Boehner: Failing To Raise The Debt Limit Puts Economy In Great Jeopardy

[MaggieMae]

Big surprise. The two parties are hardly different at all. When it comes to the philosophy that matters, they always end up with the same policy. More wars, more welfare, more taxes, more spending, more debt. I am afraid things wont change until we hit an economic crisis. The size scope of this current government is unsustainable.

The behemoth bureaucracy really is what needs to be addressed, but of course it won't, simply because of the way we conduct elections. It would be a monumental task to "downsize" the federal government, but how would it ever really get done? In the meantime, each party will spend spend spend on those pet projects that appeal to their own ideological senses, and when we have a split Congress, gridlock occurs. When one party controls everything, the opposing party is so pissed off that by the next election, no one seems even interested in the issues themselves, but only in how much vitriol can be useful in order to win. Then along comes a presidential cycle, and the Noble Noobs all think (they really do) that they have the answers to all the problems. Just vote for me and, and my party with my leadership will see Americans dancing in the streets in unison.

Uh huh...

 

[MaggieMae]

Authored by Repubs but yes, sadly, signed by Clinton.

Yes it was. That was one of the biggest problems of the bubbles. It gave off the idea that we finally figured out the markets and could beat it. So therefore, deregulation would just be a swell idea. And then only a few years later, that myth came out crashing down hard.

And considering the lack of regulation to come out of the crisis, I wouldn't be surprised to see another similar incident happen in the future.

Believing that the market would oversee itself was probably the last time that trust and faith that people will do the right thing ever happened. Greed came out the winner and only a few benefited.

 

[MaggieMae]

Authored by Repubs but yes, sadly, signed by Clinton.

Yes it was. That was one of the biggest problems of the bubbles. It gave off the idea that we finally figured out the markets and could beat it. So therefore, deregulation would just be a swell idea. And then only a few years later, that myth came out crashing down hard.

And considering the lack of regulation to come out of the crisis, I wouldn't be surprised to see another similar incident happen in the future.

that's the scary part. they had the power and didn't do what was necessary to keep future problems from happening.

What? Republicans would have trashed financial reform in its entirety. What we ended up with was the best anyone could hope for in face of severe opposition.

 

[MaggieMae]

well either. but the dems had the power for two years and didn't do enough to put the regulations back in place. the current congress, well, we know what they'll do.

The Dems have been in power in the house AND senate since '06.........they had GW licking their boots until he was booted.....then they had BO from '09 until 11/10.

Bush sucked big time his last couple years...........he could have vetoed the crap the D's were doing...........but he didn't.

IMO, Bush was AWOL his second term..just like BO is now.........

there's no way Bush ever would have put something like Glass Steagall back in place. my point is after this crash, the dems of 2009-2011 who were supposed to have the power, did nothing.

During the Congressional debates over financial reform, reinstating Glass Steagall was attempted but got shot down. There ARE still Republicans in the Senate who hold sway over final debates and final bills, you know.

 

[MaggieMae]

I don't know why I let myself get sucked into 'partisan' threads like this.

Let me put this forth:

D's and R's aka 'politicans' SUCK.

If you can't take back your local freedoms about where you can build a shed on your property, you/me have no business whining about the over reach of the feds.

If something is preventing you from building a shed on your property, don't blame the federal government; blame your state and local ordinances and/or laws. Washington's "reach" isn't that far.

 

[MaggieMae]

this is true. The rating agencies were complicit and so far, seemed to have gotten off. I read this book over the Spring:
Amazon.com: The Big Short: Inside the Doomsday Machine (9780393072235): Michael Lewis: Books

Eventually I'll get this one but financial reading can be monotonous:
Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America
Amazon.com: Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America (9780385529952): Matt Taibbi: Books
Its basically- capitalism unplugged (unregulated)

I haven't read The Big Short yet (it's on my list) but I have read Griftopia. If you haven't read it yet, do so immediately. It is one of the best books on the financial crisis and how we got there.

Or, if people don't like to read books anymore, another excellent one is "Too Big to Fail" which is also an HBO docudrama. It begins with the panic of the Bear-Stearns investment house insolvency beginning in 2006 and ending in March of 2008, which was the smoking gun that brought down the other major investment houses, including AIG. Everyone forgets AIG, which held millions of 401ks.

 

[MaggieMae]

It got worse under Barry's failed leadership, Autozona the fuckstain... Wake up... History didn't stop when your the object of your whack-off fantasies took office... At least the 0bama admin staff got sweetheart raises while Rome burns...

Fucking idiot...


Tell the class how much better people are because of your hero's policies... How unemployment has dropped significantly and ereyone who wants a job can find one.. Tell the class how easy it is to sell your house and how good it is for us to be fighting the Lybians...


0bama is Carter - only worse...

You assholes kept saying "Give 0bama some time" 2 and a half years into his Epic Failure, but sound the alarm after only 6 months of a R controlled House while ignoring the fact the the democratics shoot down any plan in the democratic controlles Senate...

Keep it coming Autozona....

Most people know that Obama took the oath of office in January 2009 and the budget for all of '09 was one signed by Bush. It's also common knowledge that the House under R leadership since January 2011 has spent weeks in recess and has produced zero bills focused on jobs; in their 6 months of control they were focused on a social conservative agenda and naming public buildings.

Today the House has one goal only, to inject fear into the population because of the massive public debt, a problem of decades duration and one which required the Republican Congress to raise the debt ceiling seven times during the Bush II Administration. Most people know the economic crisis peaked in October 2008, a full three months before Obama took the oath of office.

Yes, intelligent people that actually pay attention instead of listening to the bs on FOX do know that. We were on the edge of a depression when Obama took office. It was caused by deregulation of banks, a war that was not necessary and an economic policy geared toward making the rich richer and to hell with the masses. In other words, Obama took over a disaster. The stimulus that was needed was a lot higher than the stimulus that was granted. Then once the Tea Party got more than their toe in Congress and the Republicans took over the house absolutely NOTHING has been done excepty sound bites in the media for attention. How many jobs bills have been passed in the last year and a half? NONE Nothing except "Hey look at me".

Putting spending in perspective, here's a little trivia:

In 1987, Reagan vetoed a bill because it had 152 earmarks. In 2005, Bush signed one with 6,371. Does history tell us anything? Of course it does! Those that are so quick to lay the entire blame for the failed economy on the Obama administration and the Democrats are showing their abject ignorance.

That said, it's time to END THE BLAME GAME, and move forward to try to resolve this. "We're all in it together" may seem like a limp-wristed mantra, but realistically it's the only way the country will ever get back on track.

 

[MaggieMae]

NO, their main goal is to take over the country and put us back in the pits like we were the last time they had complete control.

You mean these are the good times?

At an individual level, what's changed? Tax rates are the same, military budgets haven't been cut, you folks still have your guns. The fact that you might have lost your house to foreclosure isn't the government's fault--it's the fault of the greedy private sector manipulators who bought and sold your mortgage. In fact, look on the bright side--you might be enjoying a payroll tax holiday right now, you can buy cheap health insurance, your job might have returned if you work in any area of the auto industry.

 

[MaggieMae]

Most people know that Obama took the oath of office in January 2009 and the budget for all of '09 was one signed by Bush. It's also common knowledge that the House under R leadership since January 2011 has spent weeks in recess and has produced zero bills focused on jobs; in their 6 months of control they were focused on a social conservative agenda and naming public buildings.

Today the House has one goal only, to inject fear into the population because of the massive public debt, a problem of decades duration and one which required the Republican Congress to raise the debt ceiling seven times during the Bush II Administration. Most people know the economic crisis peaked in October 2008, a full three months before Obama took the oath of office.

Yes, intelligent people that actually pay attention instead of listening to the bs on FOX do know that. We were on the edge of a depression when Obama took office. It was caused by deregulation of banks, a war that was not necessary and an economic policy geared toward making the rich richer and to hell with the masses. In other words, Obama took over a disaster. The stimulus that was needed was a lot higher than the stimulus that was granted. Then once the Tea Party got more than their toe in Congress and the Republicans took over the house absolutely NOTHING has been done excepty sound bites in the media for attention. How many jobs bills have been passed in the last year and a half? NONE Nothing except "Hey look at me".

We still are on the edge. If the crisis peaked in Oct 08 why do we still have 9.2% unemployment today? And it wasn't caused by deregulation of the banks but over regulation forcing them to make sub-prime loans.

Did you know that the middle class was shrinking? And do you know that the poorer classes are also shrinking? Where are they going? Think about it....

Republicans control half of the Congress. Can't pass anything when the other half won't even vote on it. Now look at you....

Unemployment remains high because countless numbers of small- and medium-sized businesses and factories had to close their doors when they could no longer get lines of credit. Getting back into the game may never happen for many of them, so new businesses will need to get established, start hiring and training or retraining. And that won't happen until people actually have money to spend on their products. It's been an ongoing Catch-22 situation, with the ol' "Mexican standoff" now over who will blink first. Pathetic.

 

[WillowTree]

"Shovel Ready" my ass.

 

[MaggieMae]

We still are on the edge. If the crisis peaked in Oct 08 why do we still have 9.2% unemployment today? And it wasn't caused by deregulation of the banks but over regulation forcing them to make sub-prime loans.

So it's not the banks fault whatsoever for taking advantage of the deregulation but rather supposedly overregulation? Please clarify and tell me you believe that. I have quite the post in store for you if that is the case.

Ouch. I missed that part. Can't wait to see your reply at some point. As I recall, "banks" were still required to use the formula for down payment (20%) and the monthly payment could be no more than one-third of one's income. It wasn't the "banks" that fucked it all up; it was the investment houses which began buying up non-bank mortgages and reselling them under the guise of a "security."

 

[Trajan]

it's coming down to the wire.

Do you think that means the GOP (or least the leadership) will accept the concessions that President Obama has offered up?

hummm I wonder what Obama thinks of harry's plan?

Senate Democrats draft debt-reduction plan
By Lori Montgomery, Published: July 8



Senate Democrats have drafted a sweeping debt-reduction plan that would slice $4 trillion from projected borrowing over the next decade without touching the expensive health and retirement programs targeted by President Obama.

Instead, Senate Democrats are proposing to stabilize borrowing through sharp cuts at the Pentagon and other government agencies, as well as $2 trillion in new taxes, primarily on families earning more than $1 million year, according to a copy of the plan obtained by The Washington Post.


With debt-reduction talks under way between Obama and congressional leaders, Senate Democrats are unlikely to adopt the blueprint. However, it has gained broad support among those eager to chart a path to solving the nation’s budget problems without making politically painful cuts to Social Security and Medicare.

“The very strong feeling was we needed to get this into the conversation, because it provides an alternative view,” said a Senate Democrat familiar with the blueprint, who spoke on condition of anonymity because it has not been publicly released. “What’s striking is how modest the changes need to be to get us back on track.”

more at-

Senate Democrats draft debt-reduction plan - The Washington Post

 

[Trajan]

lewinskys like him fail to point out that the deregulation of banks happened under clinton.

Deregulation started under Reagan, continued through Clinton (especially with Alan Greenspan and the Administration's hands-off policy), and continued on right through Bush until Enron. And even after that, it occurred from time to time.

see the edit. without the repeal of Glass Steagall, the bank failures never would have happened.

it appears Britain has reenacted their own glass-steagall.

 

[Trajan]

Con, do you think we got broke over the policies of the last two years?

It got worse under Barry's failed leadership, Autozona the fuckstain... Wake up... History didn't stop when your the object of your whack-off fantasies took office... At least the 0bama admin staff got sweetheart raises while Rome burns...

Fucking idiot...


Tell the class how much better people are because of your hero's policies... How unemployment has dropped significantly and ereyone who wants a job can find one.. Tell the class how easy it is to sell your house and how good it is for us to be fighting the Lybians...

Boner is bush. He really is. He has dont NOTHING towards job creation. Nothing!

0bama is Carter - only worse...

You assholes kept saying "Give 0bama some time" 2 and a half years into his Epic Failure, but sound the alarm after only 6 months of a R controlled House while ignoring the fact the the democratics shoot down any plan in the democratic controlles Senate...

Keep it coming Autozona....

Most people know that Obama took the oath of office in January 2009 and the budget for all of '09 was one signed by Bush. It's also common knowledge that the House under R leadership since January 2011 has spent weeks in recess and has produced zero bills focused on jobs; in their 6 months of control they were focused on a social conservative agenda and naming public buildings.

Today the House has one goal only, to inject fear into the population because of the massive public debt, a problem of decades duration and one which required the Republican Congress to raise the debt ceiling seven times during the Bush II Administration. Most people know the economic crisis peaked in October 2008, a full three months before Obama took the oath of office.

some budget history-

For the record, the last budget from a Republican President AND a Republican Congress – FY-2007 (passed in 2006) – resulted in a$161 billion deficit at a time when unemployment was 4.6%. That’s what happened the last time the GOP was in control.

What happened when the Democrats took control in January 2007? Harry Reid and Nancy Pelosi passed a FY-2008 budget that had a $459 billion deficit – nearly three times the deficit in the immediately previous Republican-passed budget. Three times. And this before the financial crisis that somehow “necessitated” all this massive spending.

Now, that’s a pretty crazy increase under Democrat control. But you aint seen nothin’ yet.

The Democrats passed a FY-2009 budget with a staggering, mind-boggling, totally reckless $1.42 TRILLION deficit.

The FY-2010 budget approved by Reid and Pelosi and signed by Obama had an estimated $1.6 TRILLION deficit.

The deficit has increased from $161 billion in the last budget before Democrats took control of the Congress (FY 2007) to $1.42 trillion in the most recent fiscal year (FY 2009)—an increase of $1.26 trillion or 782%.

With three months remaining in the fiscal 2009 budget, the federal deficit just officially passed the $1 trillion mark. Worse yet, Obama borrowed more than forty cents for every single dollar he spent.

We also suffered a budget shortfall of $94 billion in the month of June, which marks the first June in more than ten years (read, “encompassing the entire Bush presidency&#8221. Bush’s success in raising revenues is bookended by two Democrat presidents who failed.

And now the Democrats aren’t even bothering to pass a budget for the next fiscal year, so they can simply spend without any accountability whatsoever.

( 2010 my addition)

more at
GOP Or Democrats: Who’s To Blame For the Budget, Spending And Shutdown Mess We’re Now In? « Start Thinking Right

oh, full disclosure- the 161 billion deficit for fy 07 is phony, the war costs of approx. 171 billion needs to be added in there. for FY 08 185 billion needs to be added their for war costs.

 

[Mustang]

Boehner: Failing To Raise The Debt Limit Puts Economy In Great Jeopardy | TPMDC

In a political role reversal Friday, House Speaker John Boehner (R-OH) warned that Congress risks severely harming the economy and exacerbating the unemployment crisis if it fails to raise the national debt ceiling in the next four weeks.

"While some think we can go past August 2nd, I frankly think it puts us in an awful lot of jeopardy, and puts our economy in jeopardy, risking even more jobs," Boehner told reporters at his weekly Capitol briefing.

His statement comes as a quiet rebuke to members of his own party who've argued that smacking against the ceiling -- or even defaulting briefly on the debt -- poses no great risk to the economy.

Interesting that he makes these comments now. Thoughts USMB?

Better late to the party, then never.

As an aside, I heard Ann Coulter interviewed yesterday. She is in favor (in a VERY enthusiastic way) of not raising the debt ceiling, and subsquently going through a default process.

 

[BolshevikHunter]

I am sure you said this when you found out how much we were spending on Iraq, righty? If not, why suddenly NOW is the time to stop the spending. Did you say a word of this during those horrible 8 years? Did you first say this the day after Obama took office because suddenly it became a problem?

Seriously. Think about what I just wrote.

Is that your solution you dumbfuck? Is your solution to the problem to just keep bringing up Bush this or Bush that all the while ignoring the facts that your hero Obama has already out spended Bush in 4 years compared to 8? Have you bumped your fucking head, or are you on dope? = Yes, by reading all your posts, that seems to be the case.

Your hero Obama is starting new wars in the middle east, got anything to say about that? = No, because you're a hypocritical spin artist that is off their meds, or on them with dope.

It's as if leftist morons like yourself actually believe that talking about the past will solve the problems of the future? Hey dummy? This just in, this isn't some filthy bad breath discussion between you and your fellow red diaper doper babies down at your local brothel or dope club. This is the real deal, and some of us have children to think about instead of just a few pot plants and wheat grass that we need to feed. ~BH

What an insightful post. I see why the military forced you out.

Shut it worm boy. Actually, They begged me to stay and make a career in the service. However, I declined because of idiots like yourself sitting behind the lines warming seats. ~BH

 

[MaggieMae]

it's coming down to the wire.

Do you think that means the GOP (or least the leadership) will accept the concessions that President Obama has offered up?

hummm I wonder what Obama thinks of harry's plan?

Senate Democrats draft debt-reduction plan
By Lori Montgomery, Published: July 8



Senate Democrats have drafted a sweeping debt-reduction plan that would slice $4 trillion from projected borrowing over the next decade without touching the expensive health and retirement programs targeted by President Obama.

Instead, Senate Democrats are proposing to stabilize borrowing through sharp cuts at the Pentagon and other government agencies, as well as $2 trillion in new taxes, primarily on families earning more than $1 million year, according to a copy of the plan obtained by The Washington Post.


With debt-reduction talks under way between Obama and congressional leaders, Senate Democrats are unlikely to adopt the blueprint. However, it has gained broad support among those eager to chart a path to solving the nation’s budget problems without making politically painful cuts to Social Security and Medicare.

“The very strong feeling was we needed to get this into the conversation, because it provides an alternative view,” said a Senate Democrat familiar with the blueprint, who spoke on condition of anonymity because it has not been publicly released. “What’s striking is how modest the changes need to be to get us back on track.”

more at-

Senate Democrats draft debt-reduction plan - The Washington Post

I think that's also known as the "Biden Plan," which apparently Republican leadership has just-said-no to because they'd rather have $2 trillion just in cuts than $4 trillion which would include higher taxes on millionaires.

 

[MaggieMae]

Deregulation started under Reagan, continued through Clinton (especially with Alan Greenspan and the Administration's hands-off policy), and continued on right through Bush until Enron. And even after that, it occurred from time to time.

see the edit. without the repeal of Glass Steagall, the bank failures never would have happened.

it appears Britain has reenacted their own glass-steagall.

And Canada escaped a banking meltdown because their mortgage banks simply used common sense, just as our own did once upon a time.

What U.S. Banks Can Learn from Canada - BusinessWeek

When American and European banks were teetering in 2008, only one of Canada's six major banks reported a loss. Last year, none did.

The stability hasn't gone unnoticed. Canada's bankers have won admiration from President Barack Obama, former Federal Reserve Chairman Paul Volcker, and Nobel prize-winning economist Paul Krugman, among others. What explains the success? Krugman points to stricter regulation—certainly a factor but not the whole story. Yes, regulators kept Canadian banks from taking on too much debt, which helped them through the crisis, but there were cultural and business reasons at play, too.

As in the U.S., it comes back to real estate. Canadian banks did not fail because they mostly avoided the big mistakes with mortgages. They didn't lend to people who couldn't prove a sufficient income. They did give no-money-down mortgages, but not many—and the practice was effectively banned. They made scant use of teaser rates.

They didn't they do these things largely because they didn't have to. Domestic banks own 80% of the mortgage business, and most of that is in the hands of the Big Six. Refinancing is expensive and a hassle. Canadian tax law also plays a role. Mortgage interest isn't tax-deductible, creating a disincentive to borrow. And heaven help the defaulter; banks can go after assets other than the home to make themselves whole.

 

[MaggieMae]

It got worse under Barry's failed leadership, Autozona the fuckstain... Wake up... History didn't stop when your the object of your whack-off fantasies took office... At least the 0bama admin staff got sweetheart raises while Rome burns...

Fucking idiot...


Tell the class how much better people are because of your hero's policies... How unemployment has dropped significantly and ereyone who wants a job can find one.. Tell the class how easy it is to sell your house and how good it is for us to be fighting the Lybians...


0bama is Carter - only worse...

You assholes kept saying "Give 0bama some time" 2 and a half years into his Epic Failure, but sound the alarm after only 6 months of a R controlled House while ignoring the fact the the democratics shoot down any plan in the democratic controlles Senate...

Keep it coming Autozona....

Most people know that Obama took the oath of office in January 2009 and the budget for all of '09 was one signed by Bush. It's also common knowledge that the House under R leadership since January 2011 has spent weeks in recess and has produced zero bills focused on jobs; in their 6 months of control they were focused on a social conservative agenda and naming public buildings.

Today the House has one goal only, to inject fear into the population because of the massive public debt, a problem of decades duration and one which required the Republican Congress to raise the debt ceiling seven times during the Bush II Administration. Most people know the economic crisis peaked in October 2008, a full three months before Obama took the oath of office.

some budget history-

For the record, the last budget from a Republican President AND a Republican Congress – FY-2007 (passed in 2006) – resulted in a$161 billion deficit at a time when unemployment was 4.6%. That’s what happened the last time the GOP was in control.

What happened when the Democrats took control in January 2007? Harry Reid and Nancy Pelosi passed a FY-2008 budget that had a $459 billion deficit – nearly three times the deficit in the immediately previous Republican-passed budget. Three times. And this before the financial crisis that somehow “necessitated” all this massive spending.

Now, that’s a pretty crazy increase under Democrat control. But you aint seen nothin’ yet.

The Democrats passed a FY-2009 budget with a staggering, mind-boggling, totally reckless $1.42 TRILLION deficit.

The FY-2010 budget approved by Reid and Pelosi and signed by Obama had an estimated $1.6 TRILLION deficit.

The deficit has increased from $161 billion in the last budget before Democrats took control of the Congress (FY 2007) to $1.42 trillion in the most recent fiscal year (FY 2009)—an increase of $1.26 trillion or 782%.

With three months remaining in the fiscal 2009 budget, the federal deficit just officially passed the $1 trillion mark. Worse yet, Obama borrowed more than forty cents for every single dollar he spent.

We also suffered a budget shortfall of $94 billion in the month of June, which marks the first June in more than ten years (read, “encompassing the entire Bush presidency”). Bush’s success in raising revenues is bookended by two Democrat presidents who failed.

And now the Democrats aren’t even bothering to pass a budget for the next fiscal year, so they can simply spend without any accountability whatsoever.

( 2010 my addition)

more at
GOP Or Democrats: Who’s To Blame For the Budget, Spending And Shutdown Mess We’re Now In? « Start Thinking Right

oh, full disclosure- the 161 billion deficit for fy 07 is phony, the war costs of approx. 171 billion needs to be added in there. for FY 08 185 billion needs to be added their for war costs.

The unemployment rate at the end of 2006 was the last time it was that low, and Bush had another 2 years to go. I don't care what the Republicans say, the budget numbers of neither Bush nor Obama had anything to do with why unemployment began to dramatically rise since 2007. Unemployment results from lack of work, period, whether it's in the public or private sector, and for a variety of reasons, not all of which can be pointed at businesses being skittish about future federal budgets.

Bureau of Labor Statistics Data

 

[edthecynic]

some budget history-

For the record, the last budget from a Republican President AND a Republican Congress – FY-2007 (passed in 2006) – resulted in a$161 billion deficit at a time when unemployment was 4.6%. That’s what happened the last time the GOP was in control.

oh, full disclosure- the 161 billion deficit for fy 07 is phony, the war costs of approx. 171 billion needs to be added in there.

Some budget bullshit, with only partial disclosure would be more honest.

The FY 2007 budget deficit was $500 billion, not $161 billion and not $161 billion + $171 billion. $500 billion!!!!!

National Debt Outstanding
Date - Dollar Amount

09/30/2007 - $9,007,653,372,262.48
09/30/2006 - $8,506,973,899,215.23