Some Notes on the Current Financial Clusterfuck

[Rambunctious]

Some Notes on the Current Financial Clusterfuck
M40 - Monday, February 23rd, 2009, 7:52pm

- Under the Clinton administration, Democrats mandated that banks abandon a thousand years of proven financial practices, and begin giving loans to folks who couldn't repay them. Under these Democrat laws, if the banks refused to comply, they would lose their charter as lending institutions.

- When that system began to fail and the banks were losing money, (rather than admit they were wrong) the Democrats dumped in BILLIONS of your tax dollars in order to keep this broken system afloat. They backed up all the bad debts with “Fanny Mae” and “Freddy Mac”... funded entirely by YOU.

- When more and more banks (and even the tax-dollar backed Fanny Mae and Freddy Mac) began to have trouble, the Democrats promptly repealed a 75 year old law (Glass Steagall Act of 1933), thereby allowing them to sell off bad mortgages as "investment vehicles". Most people's retirements are heavily invested in these types of funds. Yes, we paid through the nose getting into this mess, and now all the bad debt is ours as well... all thanks to Democrats!

- Each of the many times a Republican has proposed an overhaul of Fannie Mae/Freddy Mac to put a stop to this, the Democrats simply went on the attack and accused them of being "racists". In fact John McCain was villified for trying to fix this years ago. I wish he had been successful!

- Now that the financial house of cards has come tumbling down, the Democrats have conveniently placed the blame on George Bush. They further blame Wall Street, big corporations and banking institutions. Their proposed solution is to spend VAST sums of YOUR money, and ...of course... MORE GOVERNMENT CONTROL over Wall Street, the banking system, the auto industry, and most other forms of big business.

- Their controls are what got us into this mess, and now they're going to take even more control?!?
____________________________________

"One of the methods used by statists to destroy capitalism consists of establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary."

—Ayn Rand, 1975

 

[Rambunctious]

Sure just as I thought. Where's spidey and dante.

 

[uscitizen]

And why did not the Repubs do something about these things while they had control of it all?

their buddies making too much money off of it all?

 

[Rambunctious]

And why did not the Repubs do something about these things while they had control of it all?

their buddies making too much money off of it all?

uscitizen, please! I've heard Bush in numerous speeches try to sound the alarm bell regarding Fannie and Freddie and the phony consolidation of bad loans with safe loans.
This country will never improve until the hard core left WAKES UP!

 

[uscitizen]

And why did not the Repubs do something about these things while they had control of it all?

their buddies making too much money off of it all?

uscitizen, please! I've heard Bush in numerous speeches try to sound the alarm bell regarding Fannie and Freddie and the phony consolidation of bad loans with safe loans.
This country will never improve until the hard core left WAKES UP!

Yes in speeches, but what did they DO while they had power.

Politicians are good at talking and pathetic at doing.

 

[Mr. Peepers]

Fannie and Freddie

Fannie and Freddie held up their loan requirements much longer than the private banks - they were late into the game, you know. And PRIVATE lenders held something like 86% of the subprime loans. The DEREGULATED private sector including Wall Street and mortgage companies were the main engines for the economic disaster. You can't offer a loan to someone that doesn't exist, you know.

Wall street was begging and screaming at congress to loosen lending requirements so that they could make more money once they relized how much of a cash cow these bundled mortgages were. It wouldn't hurt you to be a LITTLE honest about this instead of cutting and pasting your talky points.

 

[American Horse]

And why did not the Repubs do something about these things while they had control of it all?

their buddies making too much money off of it all?

uscitizen, please! I've heard Bush in numerous speeches try to sound the alarm bell regarding Fannie and Freddie and the phony consolidation of bad loans with safe loans.
This country will never improve until the hard core left WAKES UP!

Yes in speeches, but what did they DO while they had power.

Politicians are good at talking and pathetic at doing.

Being aware how difficult it is to pass new legislation when a party has both a massive majority in the house and a filibuster proof majority in the senate, like now, how can honest Ds fault Bush when he had only a small marginal majority inthe House - and only a bare majority of 1 in the senate, and for a couple of years was even down one when Jumpin-Jim-Jeffords went over to the other side?

 

[Rambunctious]

And why did not the Repubs do something about these things while they had control of it all?

their buddies making too much money off of it all?

uscitizen, please! I've heard Bush in numerous speeches try to sound the alarm bell regarding Fannie and Freddie and the phony consolidation of bad loans with safe loans.
This country will never improve until the hard core left WAKES UP!

Yes in speeches, but what did they DO while they had power.

Politicians are good at talking and pathetic at doing.

I know it's hard to believe that Presidents are limited in their powers by watching this President push democrats in congress and the senate around. However the President can propose fixes in legislation and policy but congress is the vehicle in fixing something like Fannie and Freddie. And that responsibility lays at the feet of #1 Chris Dodd and #2 Barney Frank. Truth hurts but truth is eye opening. Will it open your eyes?

 

[Toro]

Neither the CRA nor the GSEs were primary contributors to this mess.

http://www.usmessageboard.com/economy/70006-cra-not-to-blame-for-housing-debacle.html

Like many other institutions, they played their role, but they were minor compared to other forces in the economy.

 

[boedicca]

- Their controls are what got us into this mess, and now they're going to take even more control?!?
____________________________________

"One of the methods used by statists to destroy capitalism consists of establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary."

—Ayn Rand, 1975

Just more proof that Einstein's definition of insanity is valid today.

 

[boedicca]

Neither the CRA nor the GSEs were primary contributors to this mess.

http://www.usmessageboard.com/economy/70006-cra-not-to-blame-for-housing-debacle.html

Like many other institutions, they played their role, but they were minor compared to other forces in the economy.

You can keep saying stuff like that to buck up the permanently converted, but the rest of us know that it's a big fat lie.