Folks, it's all about transferring [legalized stealing of] vast sums of wealth—mainly from the middle class to the upper class. So much of the fruits of our nation's productivity has gone to the top executives, instead of the average workers. The compensation differences are so disproportionate.
Many global financial leaders were certainly most instrumental in the intentional and methodical schemes and machinations which led to the economic collapse (2007-2009)—in the first place.
You heard about "revolving doors," haven't you? Well, most of the top government posts for economic, banking, and financial regulatory agencies are filled by the very guys who were former heads of these financial industry companies. So, the very folks who caused the financial collapse—and profited lucratively—were placed in charge of fixing the very same problems which they were instrumental in creating. Go figure! It's like having the fox guard the chicken coop.
These large financial institutions colluded and conspired, amongst themselves, and with top global government officials, to run a financial scam of epic proportions upon the world. This included the banks, mortgage brokers, investment firms, insurance companies, and the major credit rating agencies.
First, the financial industry extensively lobbied the repeal or weakening of certain “inconvenient,” financial regulatory laws. Then, they ignored many rules of proper risk management. They—aggressively and deceptively—peddled countless sub-prime mortgages, which they knew would ultimately be defaulted upon. And finally, they intentionally bundled those worthless mortgages into complex structured finance packages, which they then unscrupulously and greedily sold to unsuspecting investors.
Such plans could not have been carried out without the complicity or acquiescence of key government officials—whose very job it was to protect us. There was definitely a wide-scale pattern of institutional fraud and deception, which was carried out over a period of years. Their greedy, psychopathic schemes and machinations led to a collapse of the world’s economy.
As a person with both an econometrics and finance background, I look at the real numbers, patterns, and the inter-relationships among the major dynamic forces. True analysts don't ever bank on any short-term fluctuations, natural adjustments/correction, numbers that can be fudged, or artificially generated positive economic numbers.
And yes, stock market values and the like can be artificially influenced and manipulated—at-will—by the major financial institutions and monopolistic corporate entities. Also, the government routinely fudges economic indicators. It can do this by either ignoring or downplaying certain negative variables in the equation.
One more point...
Much of the supposed wealth that powered the last boom (i.e., pre-2007) was artificial, i.e., those derivatives, inflated house values (inflated equity), credit, etc. Many people took out mortgages based upon the illusory excess equity in their homes. It is also unfortunate that so much income was derived from housing construction, real estate sales, and related industries.
Sad but true, the banks, primarily through mortgage brokers, knowingly sold homes to folks whom they knew would eventually default. They enticed those folks with ARMs and the likes. Folks were reassured that, even in tough times, they would have various options as to payment options. Also, they were told that the mortgage holders would always work with them.
Just like the 2007-2009 global economic collapse, things aren't always what they seem... Remember former-Prez Bush constantly reassuring the public? "The economy is fine; it's just going through some market adjustments." Then, just as he is leaving office, the bottom falls out. The Administration then provides trillions for the financial institutions and automakers, but nothing for the common folks.
And most folks adamantly believe that all the bailouts were necessary because the institutions were "too big to fail." Well, the corporations need the citizens, just as much as the citizens need the corporations. Besides, they should not have deregulated the financial industry in the first place. The resultant financial collapse was certainly predictable.
Meanwhile, because 70% of GDP is domestic spending, the bottom falls out when banks severely tighten credit. Why? Because although, for years, the productivity rate had been approximately 5% per year, income did not increase. So, how did folks afford to purchase all those goods and services? They borrowed money from the banks.