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That comment floored me when I heard Keith Olbermann talk about that statement....Usually Fox tries to hide it a little bit better than that.
Neil Cavuto has it figured out on this crisis: According to him we wouldn't be in this mess if loans weren't approved for minorities and risky folks. Yeah, there's the answer.
We are getting there Rollinstone except for your last few words...lolI wish it was that simple...Hang the crooked politician but we have a lot of willing people on Wall Street ready to fill their pockets.
Lol....But at least Bill Frist(R-Tn) was able to diagnose the problem watching a video tape in the Terry Schiavo case....Can you image the Treasury Secretary telling congress ,despite what I have been saying since I was appointed the economy is terrible and I need $700 billion with no strings attached....I do not want oversight,nor can my plan be investigated or taken to court,I will not be held liable, and BTW I will use my cronies at Wall Street to run this plan....Where do I sign?
Boy, can you imagine what the extra problems would be if Social Security had been privatized like some idiots wanted? Someone correct me if I'm wrong. If I read right this morning, Europe has pretty well told us to kiss something when we asked them if they wanted to buy some of this debt. It's kinda like, "you broke it you fix it". I haven't seen this much action on the Hill since the Terry Schiavo thing. OK, I'll stop, we're just a nation of whiners and I know this is all imaginary. Where have I heard this before? Hmmmmm.....
I want the bailout. We will have a meltdown if they delay it. My point was this fiasco was caused by the government, with government oversight, doesn’t that concern you? Lending institutions sold their mortgages to F&F and then F&F turned the mortgages into securities, slapped a “AAA” rating on them and sold them to investors. These things are all over the world, screwing up the global economy. We have to try and fix this problem. Blaming Wall Street is just a smoke screen thrown up to try and protect a bunch of corrupt politicians.
RollinstoneFor arguments sake,lets say all your one sided views on history are correct...Congrees gets a backbone and decides to go along with your no bailout option....What does your crystal ball tell you?.......What will happen? Do you have a truth certain?The majority of Americans do not want deregulation, and Wall Street proved them right...The constitution gives congress (of the people)oversight powers.....I do not want this country run by big business nor do I want a repeat of this disaster...Borrowers,government,greed,big business and corruption are all responsible.
Theres one little problem. Banking regulations require banks to write down there assets as real estate values drop and more people default. The banks have to write down their assets, particularly the mortgage backed securities, even the good ones along with the bad and the ugly. Because assets are decreasing that slows and even stops lending by banks and other institutions. As a result credit is drying up. This has the potential to become a global economic disaster, similar to the Great Depression. The Depression would have been a severe recession but when the Fed shrank the money supply by 25% that collapsed the entire economy. Thats when we got all these idiotic FDR programs that we still have with us today. So there is an enormous gamble in delaying this bailout. This after all is mainly a bailout of the government sponsored entities what irony.
BighornDon't make this a habit,but we are in total agreement....lol I know what conservative principals are all about and I agree that principal has been taken hostage...Many principled conservatives will hold their nose and vote for a bailout....Under an ideal free market world ,loans or company stock would have been sold to avoid a government bailout....I don't give the liberal Democrats a pass ,because they did not demand oversight and some of it's leaders took advantage of the situation...Greed is determined by opportunity not political stripes.....I also realize that it is very easy to say no on bailout ,but they do not give solutions just speculation and finger pointing........
Yeah I guess Im biased. I just hate to see humans suffer because of corrupt politicians and stupid policies, go ahead put me down as biased.You say Americans will not save. One way they did save was through the equity in their homes. It was an appreciating asset and the bubble caused by government intervention in the market place finally caused it to burst. Fannie Mae and the like are not a legitimate function of government. Where in the constitution does it say that government should be in the home mortgage business? This is worthless crap left over from FDR that should have been canned years ago but it seems nothing in government ever dies. Now instead of killing Fannie and Freddie, they will be patched up, propped up and sent out to create future mayhem. Oh yeah they will be more closely regulated with congressional oversight...
Agreed Mike. The True Conservative voice was sold out by Bush when he allowed unbridled spending by Congress in order to get support for Iraq. NeoCon is your word. Traitor to his supporters is mine.The sector of "new home starts" was the great news of the past 20 plus years. They don't look so good now with all the crappy loans and broke banks around.Let the Recession begin (Not even started yet-no quarter at negative growth), and wash this crap and the politicians who drove that bus with it.
Rollinstone you must be a Ron (anti-government)Paulite....Balming the democrats and government without mentioning Phil Graham is really showing your bias.
Savings is driven by interest rates. A high enough return will get people to save, but the market is interfered with and that is the reason people don't save. Other reasons for this:Social Security tax: This is what an individual would normally save but the government takes that money and spends it, rely on later generations to pay a small portion of it back. All taxes are an expense that reduce savings.The Federal Reserve: Inflating our money trying to keep interest rates low; at or even below inflation people arent stupid. Yeah we probably aren't saving but look at the reasons it's not that people don't want to they can't and we have the government to thank for that. This latest fiasco also increases the risks in saving, it takes guts now to save and not get rid of money that is continuously losing value. I know you cant admit it but the ugly hand of political corruption is all over this mess. Yeah Wall Street shares in the blame but they were enabled by Barney Frank and his friends this whole thing really smells.
SandwichhIt is way more complicated than poor people not paying for homes........Businesses are just as much as fault...Greed is not a virtue.
It was the government's mandating of giving loans out to people who could not afford to pay the loans is what caused this problem. Thank you Barnie Frank, Christopher Dodd, all those left socialist Dems who demanded those loans be made. There by meaning that it WAS governments intervening and REGULATING that they be approved, secured by Freddie and Fanny, that created this problem. You do not have to own a house, nor is it a RIGHT to own a house. You have a obligation to pay for it, and it's following ever increasing taxes and insurance. And it is your obligation to NOT sign a note for something you cannot afford, plus not others OBLIGATION to bail you out if you were stupid.I was stupid enough to vote for Jimmy Carter once but smart enough not to sign a house note for 16% that he caused. http://www.ibdeditorials.com/IBDArtic...
RollinstoneCNN) -- The national savings rate for Americans is at its lowest point since the Great Depression, yet 78 million Americans will retire in the next 20 years.These statistics cast doubt on the ability of Americans to plan for the long term and whether Americans consider long-term planning important, experts say.The savings rate in 2005 was at minus 0.5 percent, according to a report released by the Commerce Department in January. The rate has been negative for seven consecutive months, according to David Wyss, an economist with Standard and Poor's."The decline in savings has been going on for about 15 years, but we've now attained the ultimate [with] the whole country managing to spend more money than we earn," Wyss said. "Last year was one of three times that the savings rate was negative."http://www.cnn.com/2006/US/02/15/plan...I din't have a reason to lie about saving,it's a known fact..You continue to blame goverment (term limits & gerrymandering) ,but a lot of the blame goes to the free market. Lot of greed,living above means, and too much inventory.SalazaaRon Paul looks like a genius on paper ,but we have never implemented his plan...See what free market without regulation got us.
Folks, we are a third word county with a giant credit card and printing press, and the bills are coming in. This reckless spending and tax breaks made us the laughing stock of the world. Time to let this financial house of cards collapse, the buck stops here. We need to stop prostituting our children and their financial future to our Asian Banker masters. We created or allowed this mess or it to happen, it’s time to bite the bullet pardner. Trillion dollar plugs in the ole dam aint gonna work. We cooked our goose. Should have listen to Ron Paul back in the 80s.
GM and Ford are not government entities, you are correct and they should not get a loan, we (the government) cannot afford to give everyone a loan or bail them out, because they made bad business decisions. Tell me why does the government need to subsidize a loan on a $750,000 home? You say Americans don't save, I saved, done it all my life - that is nonsense and hog wash. The government is responsible for maintaining a sound currency and fair trade practices and little else. This fiasco we are currently experiencing is going to cause a lot of unnecessary suffering. The fact that the perps involved in this will not be accountable is appalling. We need term limits and the end of gerrymandering.The Great Depression was caused by the Smoot Hawley tariff that collapsed world trade, which collapsed the stock market, which collapse the banks that made risky loans. The Federal Reserve instead of providing liquidity did the opposite and shrank the money supply by 25%. When the economy started to recover they did it again in 1937. My point is there are always bubbles, credit problems, etc. in an economy, it can’t be helped; in fact it is a healthy thing except when the government is involved. When they are small corrections become serious prolonged down turns.
I do not disagree with the article, but it is not the only factual source.All the so –called experts that weighed in on all the talk shows agreed with one principle.In order for the free market to work, indivuals must save making their deposits (collateral) back up their loan…Since we do not save as a whole Fannie & Freddie were created as a cash cow.Fannie & Freddie lobbied and wanted less regulation and during the good times it seemed reasonable….They ran the business like a casino….Blaming four indivuals for this crisis is not right….Basically Bear Sterns,AIG,Fannie & Freddie, and others had way too little capital for the their amount of liabilities….They had creative balance sheets just to delay the inevitable.GM & Ford want a $55 billion loan….That’s not a government entity.
I'll post this again, from the Wall Street Journal.Fannie Mayhem: A History The Mortgage Backed Securities (MBS) portfolios have long been both the chief source of the systemic risk posed by the two mortgage giants and of the profits that so handsomely enriched shareholders and officers alike for decades. Without the extreme leverage inherent in those portfolios -- which the companies borrowed heavily, at taxpayer-subsidized rates, to accumulate -- their federal takeover might never have become necessary.For years, Mr. Frank and other friends of Fan and Fred opposed not only bills written to limit the size of their portfolios, but any bill that in their view gave an independent regulator too much discretion to order a reduction. This was true of the reform that his House committee passed last year. Only when the White House caved to Mr. Frank and dropped its earlier insistence that a reform bill rein in the portfolios did Mr. Frank move his bill.In his letter, Mr. Frank also repeats his familiar claim that Fannie and Freddie are vital because they support "affordable housing." This is political smoke. The awful irony of Fan and Fred is that they have done very little to assist affordable housing. Most of the taxpayer subsidy has gone to enrich shareholders and Fannie managers, as a 2003 study by the Federal Reserve shows.Mr. Frank says he favored the disclosure of Fannie and Freddie compensation -- which is nice, but beside the point. The source of the rich pay packages was the Fannie business model that Mr. Frank fought so hard to protect. Instead of helping the poor, Mr. Frank was enriching Jim Johnson, Frank Raines, Angelo Mozilo and Wall Street.In opposing genuine reform of Fan and Fred, Mr. Frank wasn't acting like a principled liberal. He was protecting corporate giants while hiding their risks from taxpayers until the middle class got stuck with the bill.Does this sound like free markets at work ? It sure doesn't to me, it sounds like government corruption and too much interference. We do not need the government in the home loan business or in any business. This is what you get when they do. The SNL bailout was suppose to fix this kind of problem so it would never happen again...what happen ?????