If there's another Great Depression, will we start numbering them? like when The Great War became World War I?

that is a very good ideaIf there's another Great Depression, will we start numbering them? like when The Great War became World War I?
Maybe naming them would be better. If there was one then it should be named the ';Clinton Depression'; since he changed mortgage lending rules which caused the mess.





The economy was going well until the housing problems started. Federal tax revenues was up. (Tax revenue growth is a good sign of how the economy is performing. The budget deficit was the lowest in five years. ';Federal Budget Deficit Falls To Lowest Level In Five Years'; http://www.kxmc.com/News/Nation/171482.a鈥?/a> http://www.bloomberg.com/apps/news?pid=2鈥?/a> )





Clinton created the home loan mess. Clinton changed the mortgage lending rules which caused the credit crunch / housing problem.


Clinton thought everyone with a $5 an hour job should be able to buy a house. So he change the rules and got rid of most mortgage insurance. ( Getting rid of mortgage insurance is contributing to the high number of bankruptcies.)


He allowed GSE's (government sponsored enterprises) like Freddie Mac (, etc) to purchase subprime loans that were created by lenders. He basically formally approved subprime lending.


It is documented by the FTC (Federal Trade Commission)


Clinton's changes:


';Freddie Mac, one of the primary government-sponsored enterprises involved in the purchase of mortgages, recently announced plans to enter the secondary market in subprime loans by purchasing significant numbers of ';A minus'; subprime mortgages by 1998 and the higher-risk ';B and C'; loans by 1999.(20) ';


';On June 6, 1996, President Clinton announced that he had directed FHA to reduce the up-front mortgage insurance premium (UFMIP) for first-time homebuyers who receive housing counseling';


http://www.fha.gov/reference/ml1996/96-4鈥?/a>


Clinton also picked his subordinates that made it happen.


http://financialservices.house.gov/banki鈥?/a>





And in 2001, it was President Bush that reversed Bill Clinton's disasterous decision. But the damage was done. Bill Clinton basically told the industry subprime loans are a good thing.


';';Freddie Mac will no longer invest in subprime mortgages with prepayment penalty terms that exceed three years, effective for all subprime mortgages originated on or after October 1, 2002.';





Edit: Clinton approved changes in mortgage insurance. The changed allow PMI to be removed after refinancing a home that has a soaring price.


';On July 29, 1998, President Clinton signed into law a bill, The Homeowners Protection Act of 1998 ... WHAT THE NEW LAW DOESThe Homeowners Protection Act of 1998 will allow homeowners with good payment records to request that their PMI be cancelled once they have 20 percent equity ';


http://www.in.gov/dfi/education/pdfs/pmi鈥?/a>





Clintons decision was bad for lenders since ';Mortgage lenders require homebuyers to take out PMI if the buyers put less than 20 percent down when they take out the mortgage. It protects the lender against losses if a homeowner defaults on the mortgageIf there's another Great Depression, will we start numbering them? like when The Great War became World War I?
probably or just have different names for it like the first one was great this one will be huge next one will be major..idk tho
I think we won't have to number depressions anymore in the economy. We however must do this coerce the congress into halting frivilous spending. That is afterall the main reason we are going down that road. Also corporations that are not managed wisely and expect the government to bail them out when they fail.
Probably just staple the year to it. The Great Depression of 2002-??