Is Capitalism To Blame For Economic Downturn, As Michael Moore Claims?

I personally think that Michael Moore is way off the mark!

Here are the reasons why we are in a DEPRESSION, not a RECESSION:

Reason # 1:

The government is the one who regulates lending. They cut all the red tape around qualifying for a mortgage loan in order to stimulate the economy after the 9/11 attacks. As everyone can remember, we were in an economic crisis after the terrorist attacks, so the government responded by allowing almost anyone to get a home loan (in order to stimulate the economy)

After 2002, people were buying and selling homes like crazy, which was a temporary fix to the economic crisis. Now, we are seeing the backlash of the governments actions through indiscriminate lending practices. People who had no business getting home loans were qualified for mortgages they couldn't afford. Which is why we are seeing the record high foreclosures we are seeing today.

Reason # 2:

The stock market is crashing because the Baby Boomers are retiring, and they are yanking their nest eggs all at once out of the stock market. 64 is the legal retirement age when you can pull money out of the stock market tax free to live on. There is an estimated 30 million baby boomers. All of those people yanking money out of the stock market at once is sure to cause a rift in the economy. Also, the Baby Boomers are collecting on social security checks and Medicare, another burden on the economy.

Reason # 3

Finally, globalization is hitting us hard. Jobs are flying overseas, due to Americas over inflated economy. Because of America's cost of living, we are required to make $20 bucks an hour to survive. Whereas an employee from India can live off of $5 bucks a day - because there economy is not overinflated like ours. People are laying off employees like crazy, and outsourcing those jobs to India, Mexico and China - simply because labor is cheaper overseas.

This has little to nothing to do with capitalism. There are powerful economic trends going on in this country that is out of everyones control. Capitalist will take a great part in helping the economy, due to buying up these toxic mortgage loans, starting new businesses, and creating jobs - but I don't see capitalism as being the cause of this economic depression.