Phil Gramm, John McSame and the sub prime fallout

Discussion in 'Politics' started by Truthmatters, Mar 28, 2008.

  1. Truthmatters
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    http://www.politico.com/news/stories/0308/9246.html

    Phil Gramm is one of Johnny McSames top advisers and he wrote the bill largely at fault for the sub prime fallout.

    Phil then went to work for the people who paid him to write the bill.


    “A regulatory structure set up for banks in the 1930s needed to change because the nature of business had changed,” the Illinois senator running for president said in a New York economic speech. “But by the time [it] was repealed in 1999, the $300 million lobbying effort that drove deregulation was more about facilitating mergers than creating an efficient regulatory framework.”

    Gramm’s role in the swift and dramatic recent restructuring of the nation’s investment houses and practices didn’t stop there.

    A year after the Gramm-Leach-Bliley Act repealed the old regulations, Swiss Bank UBS gobbled up brokerage house Paine Weber. Two years later, Gramm settled in as a vice chairman of UBS’s new investment banking arm.

    Later, he became a major player in its government affairs operation. According to federal lobbying disclosure records, Gramm lobbied Congress, the Federal Reserve and Treasury Department about banking and mortgage issues in 2005 and 2006.
     
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  2. Truthmatters
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    Its really not that tuff to understand guys.

    Phil Gram wrote the Gramm Bliely leach act of 1999 and it was passed in that Oct.

    It cleared the way for consolidation of the industry which gave them a way to profit off the subprime loans to a massive extent.

    Then when the states tried to solve their individual states with laws to shore up the problem Gramm was a lobbiest for them to beat down the states and STOP them from protecting themselves from this mess.

    So Phil Gram is the one individual asshole most responsible for this economic fiasco.

    So what does McSame do?

    He makes him a top adviser to his campaign!


    You vote for McSame and you not olny vote in favor of the failed policy that brought us to this economic mess but you vote for a spreading of this type of deals fthroughout the economy.
     
  3. Paulie
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    Paulie Platinum Member

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    Gramm's been a dirty politician most of his career.

    Don't be surprised if Gramm ends up being McCain's running mate. It would definitely lock in the conservative base. Gramm, while being a dirtbag, has a "good" fiscal conservative record. And we all know that voters don't care whether or not your a dirtbag.
     
  4. Truthmatters
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    I note the right here has avoided this thread like the plague.

    Phil Gramm ocrestrated this whole sub prime mess and now runs a part of McSames bid for the pres.

    BTW Gramm's wife was ohn the board of Enron too.
     
  5. Truthmatters
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  6. jreeves
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    jreeves Senior Member

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    Lmao, Phil Gram is an advisor for Mccain so that makes Mccain corrupt huh? So Wright is a racist and Wright was Obama's advisor, that makes Obama a ??????
     
  7. TopGunna
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    I posted this in another thread that got buried, but I think its message fits here well. Let me offer two explanations for the subprime situation:

    1) Businesses recognized an opportunity to expand the mortgage market by offering mortgages to poorer, riskier borrowers and managing the risk by securitizing these loans and reselling them in the increasingly robust institutional market for such loan packages. While certainly in it for the profit, this move was consistent with the long-term trend in the US to wider home ownership. It turned out, however, that almost everyone involved were working off some poor assumptions. Borrowers over-estimated their ability to pay and counted too much on the continued upward trajectory of real estate values. Lenders made a number of bad credit decisions, something not wholly surprising in a new market. And institutions and other investors under-estimated the risk in these packages, particularly the systematic risk associated with falling housing prices. The sub-prime market will likely re-emerge, but with everyone smarter the next time around. Huge losses give lenders and institutions all the incentive they need to change their behavior in the future.
    -- OR --
    2) Unscrupulous lenders created the sub-prime market as a way to make a quick buck off of naive and inexperienced borrowers. They tricked these borrowers into taking on more debt than they could handle in order to get large up-front fees. Institutions were not arms-length investors, but were explicitly knowledgeable and "in on" this con. Their goal was to sell worthless bonds to unsuspecting investors. The fact that the lenders and institutions are taking the biggest losses in the market collapse is not a sign that they are innocent, but that the market fell apart faster than they expected, so they had not had the chance to unload the securities on duped individual investors. Without regulation, lenders and institutions will continue committing these same crimes and poor people have proven that they need outside help to make good decisions with their money. Congress needs to step in and prevent poorer borrowers from being offered mortgages in the future, and institutional investors need to be held financially accountable when borrowers take on more debt than they can handle.

    You do know that foreclosures are a net loss for all parties involved, right?
     
  8. ronpaul2008
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    Propaganda. It is interesting that Obama is taking the slant that lack of government was the problem because the sources on a local communist/socialist morning radio show were taking the same slant. Truth is government was the problem. Government is the problem. The beginnings of this problem go back to the 70's when the federal reserve issued studies to determine if banks were discriminating against minorities. Although the studies were completly flawed, the banks simply were looking at other credit items not race, since minority dominated areas were getting few loans the government concluded the banking industry was racist. So the government put forth proposals and instituted programs through freddie mac and fannie mae to get these loans out. The initial foreclosure problem, when it was 90% minorities, likely was due to government removing proper screening standards. Recently the federal reserve lowered rates to 1%. This was the 2nd cause of the problem as it caused the dollar to drop in value and the inflation caused the prices to rise in an unsustainable manner. This is causing even non subprime candidates to go under or simply walk away from their homes.

    The government was the sole cause of this problem. It is sickening to hear the politicians clamor for more government involvement to 'fix' the problem. Even worse to give the federal reserve an insane amount of power over the economy. The federal reserve has no real oversight, there is no accountability. Ron Paul asks them how much money they printed up and they say sorry we're not going to tell you. Now Henry Engels Paulson and Ben Marx Bernake want to plan and direct the American economy with the Federal Reserve?
     
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  9. Mr. Shaman
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    From the files o'
    Truthmatters;
    Award-Winning Cub-Reporter!!!!


    [​IMG]
     
  10. Mr. Shaman
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    How amusing to hear a Ron-Paul-supporting nut-job, this early!!!!

    [​IMG]

    :clap2:
     

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