There are many issues that have contributed to the recession, most notably;
1. An era of entitlements -- Everyone should own their own home, everyone should go to college, everyone should have health care, etc.
2. Greed -- Wall St. was strong armed into making bad home loans to those who shouldn't be buying homes. Then they chose to buy and sell risky mortgage backed securities because they could not because they should. This is only one example of their greed and dishonesty but it was one of the biggest recently.
3. Irresponsibility -- This mentality goes from the President's office (notably for the last 18 years) to the person working the drive thru at your local fast food restaurant. Everyone spends more than they have and thinks they will somehow, eventually catch up, even though they have less of their paycheck every week because more and more of it is going to cover things they've already spent their money on. Buying houses you can't afford is just one example. It contributed to inflated home prices, a false housing boom and set us up for the current correction.
4. Disintegration of the American work ethic -- We used to take pride in our work. We now take pride in not working. A 40 hour week is now the max instead of the baseline, blue collar jobs are regarded as a consequence for not being "over educated" instead of noble professions, factory unions reduced efficiency while increasing wages and put our manufacturing facilities at a disadvantage. Their are still people who take pride in their work, but sadly there are fewer and fewer of them.
I find myself thinking our economic recession is the result of a moral recession. I don't believe our society holds dear the same values that made us great in the first place. I am not just being a moralist here. I am talking about basic things we should all agree on like individual responsibility, a strong work ethic and honesty. These issues are not unique to America.
When I heard this talk when I was younger, I always thought it was just older people over reacting, not keeping up with the times, etc. Maybe that is what I'm doing now. It just frustrates me because I don't think this train can be stopped or slowed and that it will lead to our eventual demise. It likely won't happen in my lifetime or my kids' lifetimes but I think it is inevitable.
Wow.... much much wisdom in this post... now to read the rest of the thread.