If you are unhappy about the 2008 financial crisis you might be a capitalist and not know it
many people claim the 2008 financial crisis is an example of Capitalism failing- Which is funny because its actually a result of perturbing the free market and injecting government socialist policies…
Democrats at the time complained that the housing market only benefitted the wealthy and middle class during the property boom-
So in 1999 President Bill Clinton reversed the Glass- Steagall Act- This allowed poor people and economically unreliable people to take out loans to purchase homes, loans that banks resisted without Govt subsidies to cover the liability –
Great for equality right?
Governments began subsidizing the loans that the banks were reluctant to give out knowing they were providing debt to people who likely would not, or could not pay it back-Under the Affordable housing act Fannie Mae had a 30% quota which was raised to 50% under Clinton and 55% under Bush to hold “Sub-Prime” mortgages, which basically meant a significant portion of the housing market was now owned by people with income under the median income level-
With massive debt mounting their interest payments ate them up and when the property values dropped due to the massive increase in housing debt people owed more money on their houses than they were worth, and defaulted
in a true free market economy where the government doesnt incentivize and require the banks to take unnecessary risk the collapse would not have occurred- This is a perfect example of the failings of socialist policies in a free market capitalist system.