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juggernaut
bill Clinton created the housing boom
and that's one of the best domestic things any president has done in the last 50 years or so
the housing boom that allowed Bush to go around taking credit for how good the economy was
housing is usually 8 to 15% of the nations GNP
but in the last 5 years its hoovering around 40 to 50% of the nations GNP
what would happen to this economy if the housing boom didn't happen
it would be in the toilet
would you like to know how this happened
see Clinton made a trade agreement with china called
Central America Free Trade Agreement Implementation Act
and that allowed china to invest their money in the us
china choose to invest their money in americian Tbills
the us goverment takes the money from Tbills or tresurarys and lends that money to banks
since there were so much money available to lend to banks that forced the intrest rate to come down and it made the lending requirments looser
since the intrest rate came way down and mortages were easyer to get a lot of people were taking mortages and buying houses
since there was such a demand for houses the houses went up in price
but thats not the end of it
since the intrest rate was so low and the value of a house went up so much
people that already owned homes took equity out of their homes and used that money to buy cars and furniture and computers
which drove up the demand for workers
but thats not the end of it either
those new workers that had money to spend
they went out and bought clothes and pizza and computers and tvs
and that created a demand for even more workers
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