So you want definitive proof that sub prime mortgages did not cause this mess?
Good.
Proof is good.
So lets see what we have found.
You can download the spreadsheet I used to analyze the data by clicking on the following link
Since it is the money that hurt the economy and created all of the symptoms such as sub prime mortgages, etc., we will analyze that first
This first chart shows the amount of taxes that people reported to the IRS that made less then the 52,000 dollars that I calculate it costs per household to live in America at a reasonable, not exorbiant life style.
Click to zoom in
For this first chart, there are two possible scenarios that I can think of that explain 98 and 07
- Somebody at the IRS did not pull all the data when preparing these reports, but I don’t think that is accurate because the Middle Class and Rich Charts show everything, so I believe it is the next one
- So many people had losses in 2007 and after taking their allowed deductions, they showed no income during those two years. I believe this is the probable scenario because it happened to me in 2003
Now lets look at the Middle Class
Click to zoom in
Notice how the same thing happened here too in the same years?
I believe these are the years that a lot of people moved from their Middle Class lifestyle into the ranks of the Working Poor and I believe that the data that the IRS prepared supports this theory.
Furthermore, this was way before the crash of 08/09
Now lets look at the Rich because surely they faired better?
Click to zoom in
What do you know?
They too have been taking some dramatic hits over the years, or possibly they have so many deductions that they show no income, or not a lot.
Or they could have done like Mr. Geithner and others have done and simply not reported their income.
Each and every one of these groups of people took a hit in 2007, way before the symptoms actually showed up in 2008 and 2009.
Furthermore I believe that they are going to get worse in future years if we don’t put our people back to work in America because that is where our wealth comes from.
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