The smoking gun of the current economic Crisis we are all going to pay for

[AVG-JOE]

At this point, it would probably require a total collapse of the US Dollar first, followed by a tough depression.

What's scary, is that I think that's going to happen ANYWAY, only the government is going to use their "order out of chaos" tactic and swoop in to reap the rewards of taking another precious part of our original independence.

I smell "Problem-Reaction-Solution".

Read about that. And read about the "Totalitarian Tip Toe", too. It's quite eerie, when you compare it what's been going on over the last 10 years specifically.

The sad thing is that a depression, even a bad one, is not much more than a confidence shaking correction in prices. If people were willing to allow wages to correct at the same time as the rest of the prices in an economy, it wouldn't hurt nearly as much.

-Joe

 

[oreo]

Just watched a special on Fox News, October 5, 2008.

Unbelievable!

As we know, on Sept. 30, 1999 the Clinton adminstration pressured Fannie & Freddie to lower standards (credit & income) to persuade banks to loan out mortgage money to lower income people & minorities. They went as far as not even requiring down payments. (Easy money raced through our economy--thru new mortgages to refinancing). Not only were lower income & minorities getting homes they could not afford, but others jumped on the band wagon--using this money to buy vacation beach homes.

At this time--government lead by pressuring democrats wanted Freddie & Fannie (government) to back 50% of these new loans in their portfolios to be what we know can honestly say (risky borrowers.)

Wall Street bought up these mortgages in packages to hedge their capital. When housing prices fell--these risky borrowers walked out of the homes they purchased, primarily because they had nothing to lose. No down payment = no investment to lose.

In 2001 the Bush adminstration warned that Freddie & Fannie may be getting out of control. Then again in 2003 the Bush administration brought new legislation in to reign these agencies under control. Then again Allan Greenspan warned. Then in 2005 John McCain sponsored a bill to get tighter regulations on these agencies.

So who blocked these several new pieces of legislation that would have saved us from this 700 BILLION DOLLAR bail-out.

Every time a new piece of legislation was brought up to the banking/finance committee. Every democrat on the board would vote against new regulation, every republican on the board would vote for it. This happened at least 3 different times during the Bush adminstration.

NAMES MENTIONED: Democrat Criss Dodd--democrat Barney Frank--democrat--Charles Schumer whom were adamant that Fannie & Freddie needed no stricter regulations. Criss Dodd being the # 1 donor receipiant of Fannie/Freddie--Barack Obama being the # 2 donor receipiant of Fannie/Freddie.

ACORN--whose sole purpose was to go into banks & scream discrimination--was also a player in this. BTW--Barack Obama is connected to ACORN--& was actually this agencies attorney in his Chicago community organizing days--whom also promoted loans given to people who could not pay them back. (Note that the first bail-out bill that house republicans defeated had $20 BILLION dollars going to ACORN). This outraged them. ACORN is also currently under criminal investigation in several states for voter registration fraud.

There is absolutely no doubt in my mind--who is to blame for this financial crisis. The party who started it, the party who ignored it, & the party who voted several times against any new regulation to reign these agencies in. Democrats

 

[Ravi]

Yep Ignored just like the Bush administration and Greenspan were repeatedly Ignored by the Dems when they said Fanny and Freddie were heading for trouble.

Like I said in my original Post. I did not expect any of the Libs on this board to actually admit the Dems caused a lot of this mess. So I am not surprised they just either wrote this post off as nonsense or ignored it all together. After all it does not fit into their blame the Republicans for everything Idea.

Facts are Facts.

The Fact is the Dems pushed for Fanny and Freddie to make questionable loans to low income people.
The Fact is the Dems get way more in money from fanny and Freddie.
The Fact is the Dems ignored repeated warnings from Bush, and McCain and Others that Fanny and Freddie were heading for trouble and needed better over sight.
The Fact is the Dems in fact as recently as 2006 told us there was nothing to worry about and claimed the Republicans were just trying to stand in the way of "affordable housing"
The Fact is Obama in a short time has become the 2nd biggest receiver of Donations for Fanny and Freddie.

Ignore the facts all you want they will still be facts.

Fannie and Freddie DID NOT make NINA loans. They did not loan out money to people that had no hope of repaying them. They were not forced by anyone to make questionable loans to low income people.

What they did do, though, is buy these types of loans from other lenders that made them.

And Clinton shares some of the responsibility for our current crisis in that he signed the bill in 1999 to loosen regulations, which made it possible for lenders to sell off their loans immediately. But he is only a link in a chain. Greed is the culprit here, greed and little and bad regulation.

 

[editec]

Smoking GUN?!

We've got a SMOKING ARSENAL of guns to choose from. All of them play a part in the firing squad which our economy is facing.

Thinking that one piece of legislation is the SOLE CAUSE of this mess is simplitic and just plain wrong.