Economic stimulus otherwise known as “grab all you can while you can, nobody is looking†is alive and well.
A quick look at how we got into this mess will show how we are now getting into a bigger mess. Cynical you say, well no, I prefer to think of it as realistic and forward thinking.
We got into this economic mess because many Americans did not live within their means, they overspent and over speculated. They thought they could pay for today’s spending spree through the continued unabated growth in value of their homes. They felt that it was their right to have things, including a house, even if logic and simple math showed they could not afford these things.
“Let’s see, you say the mortgage payment is $2500.00 per month, I make $3000.00 per month, do you really think I can afford this?â€
“No problem, what are you going to do with the other $500 anyway, besides the value of this house is going up 10% a month and you can sell and make a fortune in a year.†“
Well, you know best, I’ll take it!â€
:yh_rotfl
In other words they borrowed heavily not knowing if they would be able to pay it all back.
If that sounds familiar it should because this is exactly what the federal government is now doing, in short, risking our future in the name of immediate expedience and “getting the economy going again.†Americans thought they could spend their way to happiness, and the federal government thinks it can spend its way to economic prosperity. They couldn’t and it can’t.
In fact, much of what is being spent will not stimulate anything other than special interest pet projects. States are being bailed out of their bad behavior and imprudent spending so they can do it all again. Money is being spent on projects that in the future will require higher local taxes to sustain them. Little is actually being spent to stimulate jobs and that which is will be a long time in coming.
We are in a period of mass hysteria with no one asking the right questions, we accept on faith that which the politicians tell us. With Americans scared, not to mention the rest of the world, it is easy to accept solutions that appear to be making the other guy suffer. The President of the United States feels compelled to speak out about Wall Street bonuses, yeah, get the bad guys…better to look in the mirror.
The absence of logic and forethought is pervasive. We move to give the several states the right to set their own auto mileage and pollution standards when all logic tells us that it is far more efficient to set one national standard. That’s why Congress enacted the Employer Retirement Income Security Act in 1974, so there would be federal jurisdiction and not 50 different set of rules when it came to pensions and other employee benefits. Have we lost all logic?
I heard two women, one an official in California, on the radio recently talking about auto mileage and they both said that it was necessary for the states to mandate mileage and pollution standards so that the auto makers would manufacture cars Americans wanted to buy. Think about that for a minute, think again.
What company in the history of the world did not strive to sell what people want to buy? If Americans were clamoring for 35 MPG cars or green cars or electric cars, then every auto manufacturer would be making them and trying to make a profit doing so. If you want people to buy more efficient cars, get the price of gas back up to $4.00 a gallon. Have you been to Rome lately?
The consumer got us into this mess and the consumer has to get us out. It is really that simple. So, how is the consumer going to get us out? Well, first they have to not be scared any longer, and then they have to gradually start spending and the snowball will start rolling up instead of down hill. How do you get consumers to do that? The quickest way is to put money in their pocket so as they gradually spend (even while finally saving a bit more), they also create demand which in turn creates jobs or at the very least in the short run stops the decline in jobs.
There is a vast pool of people who are largely unaffected by the job or even housing markets. They are the retired people. Get a little more cash to them and in a low inflation economy they will spend. Taking slaps at scapegoats on Wall Street or in Detroit isn’t going to solve our problem.
Many people have come up with ideas that deserve more attention than the mad rush to spend money. How about suspending sales taxes in the various states, or suspending payroll taxes for six months, how about more for tax changes that encourage risk taking and investment? There is nothing new here, but while we need to spend money on improved education, and health care and infrastructure regardless of the economy, to couch all of that spending as part of economic stimulus and to now simply throw money at old problems under the guise of the financial crisis is irresponsible, but typical of our politicians. :-5
It will be a long time before we return to the freewheeling spending of the last decade, so forget that and rightly so. Rather, until people forget the lessons of 2008, and 2009 and perhaps 2010, we will see more saving and less spending and moderate growth in the economy and we should be happy at the adjustment. But we will only make even those modest gains if we get money into people’s hands and they spend a good part of it.
And, it really is that simple. So if you think a new road here, a refurbished town park there or a bigger museum in Iowa is going to get us up and running, good luck with that. To solve our really big problems like health care, and Medicare and Social Security and education, we need to make money again not print it. :-3
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QUINNSCOMMENTARY
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"The power of accurate observation is commonly called cynicism by those who have not got it." George Bernard Shaw
"If everybody is thinking alike, then somebody is not thinking" Gen. George Patton
Quinnscommentary
Observations on Life. Give it a try now and tell a friend or two or fifty.
Quinnscommentary Blog
"If everybody is thinking alike, then somebody is not thinking" Gen. George Patton
Quinnscommentary
Observations on Life. Give it a try now and tell a friend or two or fifty.
Quinnscommentary Blog
Stimulate This
First, don't let Wall Street off the hook here, they got the financial mania they asked for, and its essentially destroyed your economy. Thats what has happened here, it wasn't anything else.
No one put a gun to banks heads to make them give crazy loans to millions of people who couldn't pay, to base their commercial lending on overnight capital markets, to derivatize debt into more and more debt, or waste billions on bonuses for people who obviously didn't know what they were doing (whatever fancy BS self-justifications they are coming out with now), if your going to have an effective economy you need a financial system that is rational, responsible, and based on sustainable lending, saving, and investment, not on cowboy economics run by gangsters. Someone needs to be held accountable for what has gone on, or else no one will trust the system anymore. Thats point one.
Secondly, sure, give the people money to spend, but they won't spend it if they think there is going to be a depression, they will save it, so you need to restore people's confidence that they can actually trust someone to look after their interests, which relates back to point one.
Thirdly, like all nations, the greatest asset the USA has is its people, invest in the general well-being, health, security, and talent of your own people, and give them the means to make a living, and be able to protect what they earn from public and private interests; don't indulge in an expoiltitive race to the bottom where profits for the few justifies the impoverishment of the many, thats the most sure fire way of destorying prosperity, after all thats what has just happened. Stop pandering to the clamors of the self-interested and instead run the country in the interest of all its citizens.
Its true what your saying in that there is a limit to what governments can or should do to stop recessions, as well as to the amount they can safely borrow; but there are things that can be done, and meaningful investment in infrastructure, government reform, efficiency gains, investing in things that will provide greater national producitivity are all useful things that can, and should, be done.
President Obama has inherited an economic nightmare of biblical proportions, whether he can do anything to stop it is something no one knows right now, no one in the rest of the world is faring much better. I wouldn't want to start from here either, but we are here, and we need to do something or there is going to be a worldwide depression, I have no doubt about it.
No one put a gun to banks heads to make them give crazy loans to millions of people who couldn't pay, to base their commercial lending on overnight capital markets, to derivatize debt into more and more debt, or waste billions on bonuses for people who obviously didn't know what they were doing (whatever fancy BS self-justifications they are coming out with now), if your going to have an effective economy you need a financial system that is rational, responsible, and based on sustainable lending, saving, and investment, not on cowboy economics run by gangsters. Someone needs to be held accountable for what has gone on, or else no one will trust the system anymore. Thats point one.
Secondly, sure, give the people money to spend, but they won't spend it if they think there is going to be a depression, they will save it, so you need to restore people's confidence that they can actually trust someone to look after their interests, which relates back to point one.
Thirdly, like all nations, the greatest asset the USA has is its people, invest in the general well-being, health, security, and talent of your own people, and give them the means to make a living, and be able to protect what they earn from public and private interests; don't indulge in an expoiltitive race to the bottom where profits for the few justifies the impoverishment of the many, thats the most sure fire way of destorying prosperity, after all thats what has just happened. Stop pandering to the clamors of the self-interested and instead run the country in the interest of all its citizens.
Its true what your saying in that there is a limit to what governments can or should do to stop recessions, as well as to the amount they can safely borrow; but there are things that can be done, and meaningful investment in infrastructure, government reform, efficiency gains, investing in things that will provide greater national producitivity are all useful things that can, and should, be done.
President Obama has inherited an economic nightmare of biblical proportions, whether he can do anything to stop it is something no one knows right now, no one in the rest of the world is faring much better. I wouldn't want to start from here either, but we are here, and we need to do something or there is going to be a worldwide depression, I have no doubt about it.
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
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QUINNSCOMMENTARY
- Posts: 901
- Joined: Sat May 10, 2008 4:56 pm
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Galbally;1122637 wrote: First, don't let Wall Street off the hook here, they got the financial mania they asked for, and its essentially destroyed your economy. Thats what has happened here, it wasn't anything else.
No one put a gun to banks heads to make them give crazy loans to millions of people who couldn't pay, to base their commercial lending on overnight capital markets, to derivatize debt into more and more debt, or waste billions on bonuses for people who obviously didn't know what they were doing (whatever fancy BS self-justifications they are coming out with now), if your going to have an effective economy you need a financial system that is rational, responsible, and based on sustainable lending, saving, and investment, not on cowboy economics run by gangsters. Someone needs to be held accountable for what has gone on, or else no one will trust the system anymore. Thats point one.
Secondly, sure, give the people money to spend, but they won't spend it if they think there is going to be a depression, they will save it, so you need to restore people's confidence that they can actually trust someone to look after their interests, which relates back to point one.
Thirdly, like all nations, the greatest asset the USA has is its people, invest in the general well-being, health, security, and talent of your own people, and give them the means to make a living, and be able to protect what they earn from public and private interests; don't indulge in an expoiltitive race to the bottom where profits for the few justifies the impoverishment of the many, thats the most sure fire way of destorying prosperity, after all thats what has just happened. Stop pandering to the clamors of the self-interested and instead run the country in the interest of all its citizens.
Its true what your saying in that there is a limit to what governments can or should do to stop recessions, as well as to the amount they can safely borrow; but there are things that can be done, and meaningful investment in infrastructure, government reform, efficiency gains, investing in things that will provide greater national producitivity are all useful things that can, and should, be done.
President Obama has inherited an economic nightmare of biblical proportions, whether he can do anything to stop it is something no one knows right now, no one in the rest of the world is faring much better. I wouldn't want to start from here either, but we are here, and we need to do something or there is going to be a worldwide depression, I have no doubt about it.
Yes, there are things that can and should be done and that's the point, do the right things, not what we are doing. And yes, we need to invest in education and the like for long term growth and competitiveness, but that is not what we are doing. Every member of Congress has his or her hand out for a pet project, we are spending for spending sake without a consideration of where the money is going or the long and short term implications and without consideration of the long term implications.
Wall Street is getting what it deserves for its stupidity and we are all paying the price, but the root cause is still the way people lived plus the governments meddling into who should have a loan and a home. The do gooders once again have failed to recognize the consequences of their actions which all sound fine until people enter the picture and all the logic goes to hell.
No one put a gun to banks heads to make them give crazy loans to millions of people who couldn't pay, to base their commercial lending on overnight capital markets, to derivatize debt into more and more debt, or waste billions on bonuses for people who obviously didn't know what they were doing (whatever fancy BS self-justifications they are coming out with now), if your going to have an effective economy you need a financial system that is rational, responsible, and based on sustainable lending, saving, and investment, not on cowboy economics run by gangsters. Someone needs to be held accountable for what has gone on, or else no one will trust the system anymore. Thats point one.
Secondly, sure, give the people money to spend, but they won't spend it if they think there is going to be a depression, they will save it, so you need to restore people's confidence that they can actually trust someone to look after their interests, which relates back to point one.
Thirdly, like all nations, the greatest asset the USA has is its people, invest in the general well-being, health, security, and talent of your own people, and give them the means to make a living, and be able to protect what they earn from public and private interests; don't indulge in an expoiltitive race to the bottom where profits for the few justifies the impoverishment of the many, thats the most sure fire way of destorying prosperity, after all thats what has just happened. Stop pandering to the clamors of the self-interested and instead run the country in the interest of all its citizens.
Its true what your saying in that there is a limit to what governments can or should do to stop recessions, as well as to the amount they can safely borrow; but there are things that can be done, and meaningful investment in infrastructure, government reform, efficiency gains, investing in things that will provide greater national producitivity are all useful things that can, and should, be done.
President Obama has inherited an economic nightmare of biblical proportions, whether he can do anything to stop it is something no one knows right now, no one in the rest of the world is faring much better. I wouldn't want to start from here either, but we are here, and we need to do something or there is going to be a worldwide depression, I have no doubt about it.
Yes, there are things that can and should be done and that's the point, do the right things, not what we are doing. And yes, we need to invest in education and the like for long term growth and competitiveness, but that is not what we are doing. Every member of Congress has his or her hand out for a pet project, we are spending for spending sake without a consideration of where the money is going or the long and short term implications and without consideration of the long term implications.
Wall Street is getting what it deserves for its stupidity and we are all paying the price, but the root cause is still the way people lived plus the governments meddling into who should have a loan and a home. The do gooders once again have failed to recognize the consequences of their actions which all sound fine until people enter the picture and all the logic goes to hell.
"The power of accurate observation is commonly called cynicism by those who have not got it." George Bernard Shaw
"If everybody is thinking alike, then somebody is not thinking" Gen. George Patton
Quinnscommentary
Observations on Life. Give it a try now and tell a friend or two or fifty.
Quinnscommentary Blog
"If everybody is thinking alike, then somebody is not thinking" Gen. George Patton
Quinnscommentary
Observations on Life. Give it a try now and tell a friend or two or fifty.
Quinnscommentary Blog
Stimulate This
I saw a documentary on the stock market crash of 1929; the similarities are unbelievable with what is happening today. History is repeating itself.
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Once again, Quinn, you focus in on the facts amid all BS they are feeding us.
I like a number of your ideas, particularly getting money into the hands of the retired. I'd be happy to lead that spending spree to help kick start the economy. Do you have an in with anyone in DC that we could get this rolling?
I like a number of your ideas, particularly getting money into the hands of the retired. I'd be happy to lead that spending spree to help kick start the economy. Do you have an in with anyone in DC that we could get this rolling?
"Out, damned spot! out, I say!"
- William Shakespeare, Macbeth, 5.1
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Personally, I think that this economic depression is contrived. It is no accident that England’s current Prime Minister was the Chancellor of the Exchequer for 10 years prior to his taking up the office of Prime Minister. And now, Gordon Brown is throwing the country’s treasury funds everywhere except where’s it’s really needed. That’s because he wants to grind us down by the heel.
Take a look at the money in your pocket now. There’s a hell of a lot of funny designs now. It hardly looks like sterling anymore. On top of this, there appears to be a surfeit of forged one pound coins in circulation. About one in every one hundred by my estimate. But by the look of the funny coins I have in my pocket now, I can only but feel that the Euro is going to become our currency very soon.
I hear about wages going down. I have had to take on a contract at a lower rate. But I haven’t seen any shopping prices come down as yet. Well, I suppose I wouldn’t while there’s still inflation.
So what’s going on here? I’ve had to take on a contract at a lower rate and I am not earning enough to cover my bills. I expect to go belly up soon. I haven’t got a home to sell so when I go belly up, I become homeless. And by belly up, I mean bankrupt. Would I have been better off staying in Bedford? You bet, I still get calls from agencies from the south. I even had one today but Hampshire is too far away from Leeds to travel every day.
I hate politicians. Not because they’re not good at their job but because they give nothing back to the people. When they do give us something, it’s as if they are doing us a favour. Whatever happened to democracy? I want a government that makes my life better, not one that just dictates to me and takes a huge wedge of my money.
What future does my daughter have? None that I can see. She’ll become another source of income for the ruling elite. Nothing more than another spigot in the treadmill of the economy. Raised to be another pleb.
Take a look at the money in your pocket now. There’s a hell of a lot of funny designs now. It hardly looks like sterling anymore. On top of this, there appears to be a surfeit of forged one pound coins in circulation. About one in every one hundred by my estimate. But by the look of the funny coins I have in my pocket now, I can only but feel that the Euro is going to become our currency very soon.
I hear about wages going down. I have had to take on a contract at a lower rate. But I haven’t seen any shopping prices come down as yet. Well, I suppose I wouldn’t while there’s still inflation.
So what’s going on here? I’ve had to take on a contract at a lower rate and I am not earning enough to cover my bills. I expect to go belly up soon. I haven’t got a home to sell so when I go belly up, I become homeless. And by belly up, I mean bankrupt. Would I have been better off staying in Bedford? You bet, I still get calls from agencies from the south. I even had one today but Hampshire is too far away from Leeds to travel every day.
I hate politicians. Not because they’re not good at their job but because they give nothing back to the people. When they do give us something, it’s as if they are doing us a favour. Whatever happened to democracy? I want a government that makes my life better, not one that just dictates to me and takes a huge wedge of my money.
What future does my daughter have? None that I can see. She’ll become another source of income for the ruling elite. Nothing more than another spigot in the treadmill of the economy. Raised to be another pleb.
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too bad have the borrower's didn't know basic math. Duh!
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Oscar Namechange
- Posts: 31842
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Galbally;1122637 wrote: First, don't let Wall Street off the hook here, they got the financial mania they asked for, and its essentially destroyed your economy. Thats what has happened here, it wasn't anything else.
No one put a gun to banks heads to make them give crazy loans to millions of people who couldn't pay, to base their commercial lending on overnight capital markets, to derivatize debt into more and more debt, or waste billions on bonuses for people who obviously didn't know what they were doing (whatever fancy BS self-justifications they are coming out with now), if your going to have an effective economy you need a financial system that is rational, responsible, and based on sustainable lending, saving, and investment, not on cowboy economics run by gangsters. Someone needs to be held accountable for what has gone on, or else no one will trust the system anymore. Thats point one.
Secondly, sure, give the people money to spend, but they won't spend it if they think there is going to be a depression, they will save it, so you need to restore people's confidence that they can actually trust someone to look after their interests, which relates back to point one.
Thirdly, like all nations, the greatest asset the USA has is its people, invest in the general well-being, health, security, and talent of your own people, and give them the means to make a living, and be able to protect what they earn from public and private interests; don't indulge in an expoiltitive race to the bottom where profits for the few justifies the impoverishment of the many, thats the most sure fire way of destorying prosperity, after all thats what has just happened. Stop pandering to the clamors of the self-interested and instead run the country in the interest of all its citizens.
Its true what your saying in that there is a limit to what governments can or should do to stop recessions, as well as to the amount they can safely borrow; but there are things that can be done, and meaningful investment in infrastructure, government reform, efficiency gains, investing in things that will provide greater national producitivity are all useful things that can, and should, be done.
President Obama has inherited an economic nightmare of biblical proportions, whether he can do anything to stop it is something no one knows right now, no one in the rest of the world is faring much better. I wouldn't want to start from here either, but we are here, and we need to do something or there is going to be a worldwide depression, I have no doubt about it.
Rational words from one who's own government has brought your country to it's knee's.
Your correct in that no-one put a gun to the heads of the banks to lend to people however, greedy banks lend to greedy people....fact. All the time you have idiots who as Quinn described are believing that they are entitled to a life-styl that the math doesn't eqate to.... the banks are quite rightly going to lend and shaft them for interest rates. People got our countries into this mess and people will do it all over again given half a chance on the buy now pay later.
No one put a gun to banks heads to make them give crazy loans to millions of people who couldn't pay, to base their commercial lending on overnight capital markets, to derivatize debt into more and more debt, or waste billions on bonuses for people who obviously didn't know what they were doing (whatever fancy BS self-justifications they are coming out with now), if your going to have an effective economy you need a financial system that is rational, responsible, and based on sustainable lending, saving, and investment, not on cowboy economics run by gangsters. Someone needs to be held accountable for what has gone on, or else no one will trust the system anymore. Thats point one.
Secondly, sure, give the people money to spend, but they won't spend it if they think there is going to be a depression, they will save it, so you need to restore people's confidence that they can actually trust someone to look after their interests, which relates back to point one.
Thirdly, like all nations, the greatest asset the USA has is its people, invest in the general well-being, health, security, and talent of your own people, and give them the means to make a living, and be able to protect what they earn from public and private interests; don't indulge in an expoiltitive race to the bottom where profits for the few justifies the impoverishment of the many, thats the most sure fire way of destorying prosperity, after all thats what has just happened. Stop pandering to the clamors of the self-interested and instead run the country in the interest of all its citizens.
Its true what your saying in that there is a limit to what governments can or should do to stop recessions, as well as to the amount they can safely borrow; but there are things that can be done, and meaningful investment in infrastructure, government reform, efficiency gains, investing in things that will provide greater national producitivity are all useful things that can, and should, be done.
President Obama has inherited an economic nightmare of biblical proportions, whether he can do anything to stop it is something no one knows right now, no one in the rest of the world is faring much better. I wouldn't want to start from here either, but we are here, and we need to do something or there is going to be a worldwide depression, I have no doubt about it.
Rational words from one who's own government has brought your country to it's knee's.
Your correct in that no-one put a gun to the heads of the banks to lend to people however, greedy banks lend to greedy people....fact. All the time you have idiots who as Quinn described are believing that they are entitled to a life-styl that the math doesn't eqate to.... the banks are quite rightly going to lend and shaft them for interest rates. People got our countries into this mess and people will do it all over again given half a chance on the buy now pay later.
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
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double helix
- Posts: 257
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QUINNSCOMMENTARY;1122618 wrote: Economic stimulus otherwise known as “grab all you can while you can, nobody is looking†is alive and well.
A quick look at how we got into this mess will show how we are now getting into a bigger mess. Cynical you say, well no, I prefer to think of it as realistic and forward thinking.
We got into this economic mess because many Americans did not live within their means, they overspent and over speculated. They thought they could pay for today’s spending spree through the continued unabated growth in value of their homes. They felt that it was their right to have things, including a house, even if logic and simple math showed they could not afford these things.
“Let’s see, you say the mortgage payment is $2500.00 per month, I make $3000.00 per month, do you really think I can afford this?â€
“No problem, what are you going to do with the other $500 anyway, besides the value of this house is going up 10% a month and you can sell and make a fortune in a year.†“
Well, you know best, I’ll take it!â€
:yh_rotfl
In other words they borrowed heavily not knowing if they would be able to pay it all back.
If that sounds familiar it should because this is exactly what the federal government is now doing, in short, risking our future in the name of immediate expedience and “getting the economy going again.†Americans thought they could spend their way to happiness, and the federal government thinks it can spend its way to economic prosperity. They couldn’t and it can’t.
In fact, much of what is being spent will not stimulate anything other than special interest pet projects. States are being bailed out of their bad behavior and imprudent spending so they can do it all again. Money is being spent on projects that in the future will require higher local taxes to sustain them. Little is actually being spent to stimulate jobs and that which is will be a long time in coming.
We are in a period of mass hysteria with no one asking the right questions, we accept on faith that which the politicians tell us. With Americans scared, not to mention the rest of the world, it is easy to accept solutions that appear to be making the other guy suffer. The President of the United States feels compelled to speak out about Wall Street bonuses, yeah, get the bad guys…better to look in the mirror.
The absence of logic and forethought is pervasive. We move to give the several states the right to set their own auto mileage and pollution standards when all logic tells us that it is far more efficient to set one national standard. That’s why Congress enacted the Employer Retirement Income Security Act in 1974, so there would be federal jurisdiction and not 50 different set of rules when it came to pensions and other employee benefits. Have we lost all logic?
I heard two women, one an official in California, on the radio recently talking about auto mileage and they both said that it was necessary for the states to mandate mileage and pollution standards so that the auto makers would manufacture cars Americans wanted to buy. Think about that for a minute, think again.
What company in the history of the world did not strive to sell what people want to buy? If Americans were clamoring for 35 MPG cars or green cars or electric cars, then every auto manufacturer would be making them and trying to make a profit doing so. If you want people to buy more efficient cars, get the price of gas back up to $4.00 a gallon. Have you been to Rome lately?
The consumer got us into this mess and the consumer has to get us out. It is really that simple. So, how is the consumer going to get us out? Well, first they have to not be scared any longer, and then they have to gradually start spending and the snowball will start rolling up instead of down hill. How do you get consumers to do that? The quickest way is to put money in their pocket so as they gradually spend (even while finally saving a bit more), they also create demand which in turn creates jobs or at the very least in the short run stops the decline in jobs.
There is a vast pool of people who are largely unaffected by the job or even housing markets. They are the retired people. Get a little more cash to them and in a low inflation economy they will spend. Taking slaps at scapegoats on Wall Street or in Detroit isn’t going to solve our problem.
Many people have come up with ideas that deserve more attention than the mad rush to spend money. How about suspending sales taxes in the various states, or suspending payroll taxes for six months, how about more for tax changes that encourage risk taking and investment? There is nothing new here, but while we need to spend money on improved education, and health care and infrastructure regardless of the economy, to couch all of that spending as part of economic stimulus and to now simply throw money at old problems under the guise of the financial crisis is irresponsible, but typical of our politicians. :-5
It will be a long time before we return to the freewheeling spending of the last decade, so forget that and rightly so. Rather, until people forget the lessons of 2008, and 2009 and perhaps 2010, we will see more saving and less spending and moderate growth in the economy and we should be happy at the adjustment. But we will only make even those modest gains if we get money into people’s hands and they spend a good part of it.
And, it really is that simple. So if you think a new road here, a refurbished town park there or a bigger museum in Iowa is going to get us up and running, good luck with that. To solve our really big problems like health care, and Medicare and Social Security and education, we need to make money again not print it. :-3
Wow! You acctually make sense! You sound just like my very intelligent, very savey husband! HEY, is that you sweetie pie?:yh_rotfl
No, really, you make absolute perfect 100% sense. Keep up the good posts.
A quick look at how we got into this mess will show how we are now getting into a bigger mess. Cynical you say, well no, I prefer to think of it as realistic and forward thinking.
We got into this economic mess because many Americans did not live within their means, they overspent and over speculated. They thought they could pay for today’s spending spree through the continued unabated growth in value of their homes. They felt that it was their right to have things, including a house, even if logic and simple math showed they could not afford these things.
“Let’s see, you say the mortgage payment is $2500.00 per month, I make $3000.00 per month, do you really think I can afford this?â€
“No problem, what are you going to do with the other $500 anyway, besides the value of this house is going up 10% a month and you can sell and make a fortune in a year.†“
Well, you know best, I’ll take it!â€
:yh_rotfl
In other words they borrowed heavily not knowing if they would be able to pay it all back.
If that sounds familiar it should because this is exactly what the federal government is now doing, in short, risking our future in the name of immediate expedience and “getting the economy going again.†Americans thought they could spend their way to happiness, and the federal government thinks it can spend its way to economic prosperity. They couldn’t and it can’t.
In fact, much of what is being spent will not stimulate anything other than special interest pet projects. States are being bailed out of their bad behavior and imprudent spending so they can do it all again. Money is being spent on projects that in the future will require higher local taxes to sustain them. Little is actually being spent to stimulate jobs and that which is will be a long time in coming.
We are in a period of mass hysteria with no one asking the right questions, we accept on faith that which the politicians tell us. With Americans scared, not to mention the rest of the world, it is easy to accept solutions that appear to be making the other guy suffer. The President of the United States feels compelled to speak out about Wall Street bonuses, yeah, get the bad guys…better to look in the mirror.
The absence of logic and forethought is pervasive. We move to give the several states the right to set their own auto mileage and pollution standards when all logic tells us that it is far more efficient to set one national standard. That’s why Congress enacted the Employer Retirement Income Security Act in 1974, so there would be federal jurisdiction and not 50 different set of rules when it came to pensions and other employee benefits. Have we lost all logic?
I heard two women, one an official in California, on the radio recently talking about auto mileage and they both said that it was necessary for the states to mandate mileage and pollution standards so that the auto makers would manufacture cars Americans wanted to buy. Think about that for a minute, think again.
What company in the history of the world did not strive to sell what people want to buy? If Americans were clamoring for 35 MPG cars or green cars or electric cars, then every auto manufacturer would be making them and trying to make a profit doing so. If you want people to buy more efficient cars, get the price of gas back up to $4.00 a gallon. Have you been to Rome lately?
The consumer got us into this mess and the consumer has to get us out. It is really that simple. So, how is the consumer going to get us out? Well, first they have to not be scared any longer, and then they have to gradually start spending and the snowball will start rolling up instead of down hill. How do you get consumers to do that? The quickest way is to put money in their pocket so as they gradually spend (even while finally saving a bit more), they also create demand which in turn creates jobs or at the very least in the short run stops the decline in jobs.
There is a vast pool of people who are largely unaffected by the job or even housing markets. They are the retired people. Get a little more cash to them and in a low inflation economy they will spend. Taking slaps at scapegoats on Wall Street or in Detroit isn’t going to solve our problem.
Many people have come up with ideas that deserve more attention than the mad rush to spend money. How about suspending sales taxes in the various states, or suspending payroll taxes for six months, how about more for tax changes that encourage risk taking and investment? There is nothing new here, but while we need to spend money on improved education, and health care and infrastructure regardless of the economy, to couch all of that spending as part of economic stimulus and to now simply throw money at old problems under the guise of the financial crisis is irresponsible, but typical of our politicians. :-5
It will be a long time before we return to the freewheeling spending of the last decade, so forget that and rightly so. Rather, until people forget the lessons of 2008, and 2009 and perhaps 2010, we will see more saving and less spending and moderate growth in the economy and we should be happy at the adjustment. But we will only make even those modest gains if we get money into people’s hands and they spend a good part of it.
And, it really is that simple. So if you think a new road here, a refurbished town park there or a bigger museum in Iowa is going to get us up and running, good luck with that. To solve our really big problems like health care, and Medicare and Social Security and education, we need to make money again not print it. :-3
Wow! You acctually make sense! You sound just like my very intelligent, very savey husband! HEY, is that you sweetie pie?:yh_rotfl
No, really, you make absolute perfect 100% sense. Keep up the good posts.
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QUINNSCOMMENTARY
- Posts: 901
- Joined: Sat May 10, 2008 4:56 pm
Stimulate This
Just so we understand where I am coming from criticizing the "stimulus" package, the Congressional Budget office estimates that only 25% of the stimulus will even go out in the first year. The Wall Street Journal did its own calculation and came up with 12%. I guess we better write off 2009 entirely.
Every politician in the US (and elsewhere I suspect) is spouting doom and gloom, the President of the US should be encouraging people not depressing them. If one were cynical one could conclude that politicians have no idea what they are doing and are merely keeping people from all hope so when their dancing around fails they can say, "we told you so." :rolleyes:
Every politician in the US (and elsewhere I suspect) is spouting doom and gloom, the President of the US should be encouraging people not depressing them. If one were cynical one could conclude that politicians have no idea what they are doing and are merely keeping people from all hope so when their dancing around fails they can say, "we told you so." :rolleyes:
"The power of accurate observation is commonly called cynicism by those who have not got it." George Bernard Shaw
"If everybody is thinking alike, then somebody is not thinking" Gen. George Patton
Quinnscommentary
Observations on Life. Give it a try now and tell a friend or two or fifty.
Quinnscommentary Blog
"If everybody is thinking alike, then somebody is not thinking" Gen. George Patton
Quinnscommentary
Observations on Life. Give it a try now and tell a friend or two or fifty.
Quinnscommentary Blog
Stimulate This
QUINNSCOMMENTARY;1123410 wrote: Just so we understand where I am coming from criticizing the "stimulus" package, the Congressional Budget office estimates that only 25% of the stimulus will even go out in the first year. The Wall Street Journal did its own calculation and came up with 12%. I guess we better write off 2009 entirely.
Every politician in the US (and elsewhere I suspect) is spouting doom and gloom, the President of the US should be encouraging people not depressing them. If one were cynical one could conclude that politicians have no idea what they are doing and are merely keeping people from all hope so when their dancing around fails they can say, "we told you so." :rolleyes:
I think your perfectly right and entitled to look damn hard at what is going on in Washington and hold the people there to account for the money they are spending on your behalf, we have to do the same here. Ultimately as citizens of free societies, its essentially up to us as a collective to look after our own interests and that those who govern in our name, do what is right.
That is what representative democracy is all about. I think you will have to give this new guy some time Quinn, he hasn't been in the job two weeks yet, they say the first 100 days of any Presidency is a good amount of time to guage what the direction and style of a new administration is going to be; so come late April/June time it will be easier to assess whether the Obama administration is getting anywhere; though to be frank it would take any President and Administration years to even get out of the hole that has opened up.
Right now, I am more concerned about my own shower, and what they intend to do about where we are, which is equally as bad as where you are, at the moment I don't know what's coming next, or where its all going, but there isn't a lot I personally can do, other than get on with it, so thats what I intend to do for one. I wish the new President every success, as what happens over there, will effect us over here, whether he is up to the task only time will tell; I remain hopeful that the American people as a whole will eventually work through it, and get their country back on an even course again. Only time will tell.
Every politician in the US (and elsewhere I suspect) is spouting doom and gloom, the President of the US should be encouraging people not depressing them. If one were cynical one could conclude that politicians have no idea what they are doing and are merely keeping people from all hope so when their dancing around fails they can say, "we told you so." :rolleyes:
I think your perfectly right and entitled to look damn hard at what is going on in Washington and hold the people there to account for the money they are spending on your behalf, we have to do the same here. Ultimately as citizens of free societies, its essentially up to us as a collective to look after our own interests and that those who govern in our name, do what is right.
That is what representative democracy is all about. I think you will have to give this new guy some time Quinn, he hasn't been in the job two weeks yet, they say the first 100 days of any Presidency is a good amount of time to guage what the direction and style of a new administration is going to be; so come late April/June time it will be easier to assess whether the Obama administration is getting anywhere; though to be frank it would take any President and Administration years to even get out of the hole that has opened up.
Right now, I am more concerned about my own shower, and what they intend to do about where we are, which is equally as bad as where you are, at the moment I don't know what's coming next, or where its all going, but there isn't a lot I personally can do, other than get on with it, so thats what I intend to do for one. I wish the new President every success, as what happens over there, will effect us over here, whether he is up to the task only time will tell; I remain hopeful that the American people as a whole will eventually work through it, and get their country back on an even course again. Only time will tell.
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
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TruthBringer
- Posts: 3567
- Joined: Sat Feb 11, 2006 5:39 pm
Stimulate This
What if the banks start to call in all of the loans they gave out during the mortgage boom?
What if the United States government overextends itself? What if it spends so much money that it becomes broke?
What if the dollar loses even just half of it's current value?
What if the oil companies raise the price of gas back to $4.00 a gallon? While unemployment skyrockets even higher?
What if this was all part of the "agenda" for a new currency for North America?
What if none of this happened by "accident"?
What if we only have our selves to blame if we don't demand answers and real solutions from our Government?
What if we're the ones being "raped" here, and it is our own government who is responsible for it?
What if the United States government overextends itself? What if it spends so much money that it becomes broke?
What if the dollar loses even just half of it's current value?
What if the oil companies raise the price of gas back to $4.00 a gallon? While unemployment skyrockets even higher?
What if this was all part of the "agenda" for a new currency for North America?
What if none of this happened by "accident"?
What if we only have our selves to blame if we don't demand answers and real solutions from our Government?
What if we're the ones being "raped" here, and it is our own government who is responsible for it?
Link removed by moderator
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double helix
- Posts: 257
- Joined: Sat Sep 16, 2006 2:32 pm
Stimulate This
What if we're the ones being "raped" here, and it is our own government who is responsible for it? Umm, in my opinion, I don't think this is a question but a fact.
Stimulate This
1933-FDR sworn in as POTUS with a solid Democrat majority Congress
1934-As part of FDR’s “New Dealâ€, the FHA is created to insure mortgages of borrowers with less than 20% down.
1935-The Social Security Act (literally a Ponzi Scheme) is signed into law by FDR. It not only called for old age, retirement, and death benefits, but also included federal aid to the States for the aged (Title I), Unemployment Insurance (Title III), AFDC (Title IV), maternity and child welfare (Title V), public health services (Title VI) and the blind (Title X)
1937-The first payroll taxes were collected to support Social Security, and the first lump-sum death benefits were paid out to 53,236 beneficiaries.
1938-Fannie Mae created to buy FHA mortgages.
1939-Congress passes the Federal Insurance Contributions Act (FICA) and changes the original Social Security funding mechanism to the alleged “pay as you go†system. Lump sum death benefits eliminated.
1940-The first monthly payment was issued on January 31, 1940 to Ida May Fuller of Ludlow, Vermont. In 1937, 1938 and 1939 she paid a total of $24.75 into the Social Security System. Her first check was for $22.54. After her second check, Fuller already had received more than she contributed over the three-year period. She lived to be 100 and collected a total of $22,888.92. She received nearly 1000 times as much from the system as she paid into it, and nobody questioned the wisdom of this???
Total Social Security benefits paid out exceeds $35 million ($512 million in 2007 dollars).
1947-The Housing and Home Finance Agency established
1949-As part of Harry Truman’s “Fair Dealâ€, the American Housing Act of 1949 is enacted. It authorized providing federal financing for slum clearance programs associated with urban renewal projects in American cities (Title I), allowed the Federal Housing Administration (FHA) to insure mortgages (Title II), extending federal money to build more than 800,000 public housing units (Title III), and permitted the FHA to provide financing for rural homeowners.
1950-Total Social Security benefits paid out in excess of $960 million (more than $8 Bn in 2007 dollars).
1956-Social Security withholding increased to 4%, and disability benefits added.
1960-Total Social Security benefits paid out in excess of $11 Billion (more than $93 Bn in 2007 dollars)
1961-Social Security withholding increased to 6%.
1965-As part of LBJ’s “Great Society†HUD is created as a Cabinet level position by the Department of Housing and Urban Development Act.
Johnson signs into law the Medicare Act as an Amendment to Social Security.
1966-Medicare budget is $64 million ($404 million in 2007 dollars)
1968-Fair Housing Act of 1968 prohibited the practice of “redlining†in the decision making process in the issuance of mortgages. While noble in it’s purpose, it completely ignored the fact that the areas that were “redlined†were done so for specific and financially sound principles due to the general lack of ability of those within the “redlined†areas to pay their mortgages.
The Johnson administration adopts the “unified budget†and includes surplus in the Social Security “trust fund†in order to conceal the amount of the National Debt.
1969- The Brooke Amendment establishes that low income families only pay no more than 25 percent of their income for rent or mortgages. This Amendment to the federal housing assistant programs artificially kept housing prices low.
1970-following legislation passed by the Democrat controlled 90th Congress in 1968 under the Johnson (D) Administration, the original Fannie Mae’s name changed to Ginnie Mae, and the new “Fannie Mae†was created. The “new†Fannie Mae, unlike it’s predecessor of the same name, became a publically traded company, and was permitted to purchase riskier conventional mortgages, with an implicit, but not an actual guarantee from the US government. At the same time Freddie Mac was created to package Fannies mortgages into bonds, or as they are more commonly known as “mortgage backed securities†(MBS), to sell them to investors. Ginnie Mae issues it’s first MBS.
The average single family home in the US is valued at $26,000.00, median household income is $8,734.00
Fannie’s original 1970 charter allowed it to buy up to 100% mortgages provided that the amount over 80% was insured.
Total Social Security benefits paid out equals nearly $32 Billion (more than $169 Bn in 2007 dollars)
Medicare budget at $6.2 Billon ($32.8 Billion in 2007 dollars)
1971-Freddie Mac issues it’s first MBS
1972-Congress passes the Supplemental Security Income (SSI) Act, and increases the monthly SS benefits. It also allows immigrants who never paid any Social Security to draw benefits at age 65,
1975-Congress implements COLA on Social Security tied to the CPI, but an error in the calculations actually resulted in benefits increasing at double the inflation rate which wouldn’t be fixed until 1977. The COLA being tied to the CPI rather than wages meant that benefits changed with prices instead of wages, thereby effectively driving down wages.
1977-Congress passes the Community Reinvestment Act mandating that any lending institution receiving FDIC coverage “help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoodsâ€. The Act provides no specific criteria for compliance with CRA, leaving the interpretation of the banks records as to whether the lending institutions actually are in compliance entirely up to the discretion of the reviewer. It further required that the same lending standards be applied to all of a banks branches, regardless of where the bank had branches. What this meant was that a bank with 20 branches in a city, hundreds of branches in a state, or even thousands of branches around the country were required to apply the same lending standards to all of it’s branches, regardless of the particular financial realities of a particular part of a community, state, or region of the country it had other branches in.
The Carter Administration passed legislation touted as guaranteeing that Social Security solvency was secure until at least 2030.
1978-Fannie permitted to buy multi-family, second mortgages,
1980-Cap for Fannie purchases at $108,300.00
The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits
Average new home price $76,400.00
Average household income $17,710.00
Total Social Security benefits paid out in excess of $120 Billion (more than $298 Bn in 2007 dollars)
Medicare budget at $32 Billion ($79 Billion in 2007 dollars)
1981-Fannie Mae permitted to buy ARM’s and issues it’s first MBS
1982-A study reveals that Social Security will be bankrupt in less than a year and that Social Security would be unable to pay out benefits
1983-Alan Greenspan chairs the National Commission on Social Security Reform (NCSSR) and determines that a 6 month delay in COLA, changing the tax rates between 1984 and 1990, imposing an income tax on Social Security benefits for higher income tax payers, including more people in mandatory Social Security withholding, and the retirement age being increased would be necessary if Social Security was to be saved. With the enactment of the 1983 Amendments, Social Security and portions of Medicare were exempted from any budget cuts.
-Continued Below-
1934-As part of FDR’s “New Dealâ€, the FHA is created to insure mortgages of borrowers with less than 20% down.
1935-The Social Security Act (literally a Ponzi Scheme) is signed into law by FDR. It not only called for old age, retirement, and death benefits, but also included federal aid to the States for the aged (Title I), Unemployment Insurance (Title III), AFDC (Title IV), maternity and child welfare (Title V), public health services (Title VI) and the blind (Title X)
1937-The first payroll taxes were collected to support Social Security, and the first lump-sum death benefits were paid out to 53,236 beneficiaries.
1938-Fannie Mae created to buy FHA mortgages.
1939-Congress passes the Federal Insurance Contributions Act (FICA) and changes the original Social Security funding mechanism to the alleged “pay as you go†system. Lump sum death benefits eliminated.
1940-The first monthly payment was issued on January 31, 1940 to Ida May Fuller of Ludlow, Vermont. In 1937, 1938 and 1939 she paid a total of $24.75 into the Social Security System. Her first check was for $22.54. After her second check, Fuller already had received more than she contributed over the three-year period. She lived to be 100 and collected a total of $22,888.92. She received nearly 1000 times as much from the system as she paid into it, and nobody questioned the wisdom of this???
Total Social Security benefits paid out exceeds $35 million ($512 million in 2007 dollars).
1947-The Housing and Home Finance Agency established
1949-As part of Harry Truman’s “Fair Dealâ€, the American Housing Act of 1949 is enacted. It authorized providing federal financing for slum clearance programs associated with urban renewal projects in American cities (Title I), allowed the Federal Housing Administration (FHA) to insure mortgages (Title II), extending federal money to build more than 800,000 public housing units (Title III), and permitted the FHA to provide financing for rural homeowners.
1950-Total Social Security benefits paid out in excess of $960 million (more than $8 Bn in 2007 dollars).
1956-Social Security withholding increased to 4%, and disability benefits added.
1960-Total Social Security benefits paid out in excess of $11 Billion (more than $93 Bn in 2007 dollars)
1961-Social Security withholding increased to 6%.
1965-As part of LBJ’s “Great Society†HUD is created as a Cabinet level position by the Department of Housing and Urban Development Act.
Johnson signs into law the Medicare Act as an Amendment to Social Security.
1966-Medicare budget is $64 million ($404 million in 2007 dollars)
1968-Fair Housing Act of 1968 prohibited the practice of “redlining†in the decision making process in the issuance of mortgages. While noble in it’s purpose, it completely ignored the fact that the areas that were “redlined†were done so for specific and financially sound principles due to the general lack of ability of those within the “redlined†areas to pay their mortgages.
The Johnson administration adopts the “unified budget†and includes surplus in the Social Security “trust fund†in order to conceal the amount of the National Debt.
1969- The Brooke Amendment establishes that low income families only pay no more than 25 percent of their income for rent or mortgages. This Amendment to the federal housing assistant programs artificially kept housing prices low.
1970-following legislation passed by the Democrat controlled 90th Congress in 1968 under the Johnson (D) Administration, the original Fannie Mae’s name changed to Ginnie Mae, and the new “Fannie Mae†was created. The “new†Fannie Mae, unlike it’s predecessor of the same name, became a publically traded company, and was permitted to purchase riskier conventional mortgages, with an implicit, but not an actual guarantee from the US government. At the same time Freddie Mac was created to package Fannies mortgages into bonds, or as they are more commonly known as “mortgage backed securities†(MBS), to sell them to investors. Ginnie Mae issues it’s first MBS.
The average single family home in the US is valued at $26,000.00, median household income is $8,734.00
Fannie’s original 1970 charter allowed it to buy up to 100% mortgages provided that the amount over 80% was insured.
Total Social Security benefits paid out equals nearly $32 Billion (more than $169 Bn in 2007 dollars)
Medicare budget at $6.2 Billon ($32.8 Billion in 2007 dollars)
1971-Freddie Mac issues it’s first MBS
1972-Congress passes the Supplemental Security Income (SSI) Act, and increases the monthly SS benefits. It also allows immigrants who never paid any Social Security to draw benefits at age 65,
1975-Congress implements COLA on Social Security tied to the CPI, but an error in the calculations actually resulted in benefits increasing at double the inflation rate which wouldn’t be fixed until 1977. The COLA being tied to the CPI rather than wages meant that benefits changed with prices instead of wages, thereby effectively driving down wages.
1977-Congress passes the Community Reinvestment Act mandating that any lending institution receiving FDIC coverage “help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoodsâ€. The Act provides no specific criteria for compliance with CRA, leaving the interpretation of the banks records as to whether the lending institutions actually are in compliance entirely up to the discretion of the reviewer. It further required that the same lending standards be applied to all of a banks branches, regardless of where the bank had branches. What this meant was that a bank with 20 branches in a city, hundreds of branches in a state, or even thousands of branches around the country were required to apply the same lending standards to all of it’s branches, regardless of the particular financial realities of a particular part of a community, state, or region of the country it had other branches in.
The Carter Administration passed legislation touted as guaranteeing that Social Security solvency was secure until at least 2030.
1978-Fannie permitted to buy multi-family, second mortgages,
1980-Cap for Fannie purchases at $108,300.00
The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits
Average new home price $76,400.00
Average household income $17,710.00
Total Social Security benefits paid out in excess of $120 Billion (more than $298 Bn in 2007 dollars)
Medicare budget at $32 Billion ($79 Billion in 2007 dollars)
1981-Fannie Mae permitted to buy ARM’s and issues it’s first MBS
1982-A study reveals that Social Security will be bankrupt in less than a year and that Social Security would be unable to pay out benefits
1983-Alan Greenspan chairs the National Commission on Social Security Reform (NCSSR) and determines that a 6 month delay in COLA, changing the tax rates between 1984 and 1990, imposing an income tax on Social Security benefits for higher income tax payers, including more people in mandatory Social Security withholding, and the retirement age being increased would be necessary if Social Security was to be saved. With the enactment of the 1983 Amendments, Social Security and portions of Medicare were exempted from any budget cuts.
-Continued Below-
Those who made the ultimate sacrifice thought YOU were worth dying for. Remember THEM
I'm Pro-Life, Pro-Gun, Christian, and a proud Veteran. Therefore, my government has labeled me a "right-wing extremist", a militia member, and a possible domestic terrorist
I'm Pro-Life, Pro-Gun, Christian, and a proud Veteran. Therefore, my government has labeled me a "right-wing extremist", a militia member, and a possible domestic terrorist
Stimulate This
Part II
(Continued from above)
2006-Cap for Fannie purchases at $417,000.00
US Treasury Department released a report noting that between 1997 and 2005, mortgage fraud increased by 1,411%, primarily due to Clinton era deregulation of Fannie and Freddie.
OFHEO reports that Fannie Mae senior management manipulated accounting, reaped maximum underserved bonuses, calling it an “arrogant and unethical corporate cultureâ€, and noted that Fannie engaged in excessive risk taking and had poor risk management. Fannie Mae was fined $400 million for accounting violations and was forced to restore earnings from 2001 to 2004. Regulators file 101 civil charges against former Fannie Mae CEO Franklin Raines, CFO J. Timothy Howard and former Controller Leanne G. Spencer in order to recoup more than $115 million in fraudulent bonus payments and an additional $100 million in fines and penalties for their roles in intentionally engaging in fraudulent accounting practices in order to maximize their bonuses.
John McCain co-sponsored new Legislation for the regulation of Fannie and Freddie, saying "For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac...and the sheer magnitude of these companies and the role they play in the housing markets...the GSE's need to be reformed without delay.", but the vote went straight down party lines with the Democrats voting, en masse against it, so the proposed legislation never reached the floor for a vote.
Freddie Mac fined $3.8 million by the Federal Election Commission for making illegal campaign contributions, primarily to members of the House Financial Services Committee, between 2000 and 2003.
2007-January, Democrats take control of both houses of Congress, promise to fix “everythingâ€.
Fannie backing $5.0 trillion in mortgages
Fannie finally presents it’s financial “restatement†as required. $6.3 billion in profit had disappeared and is unaccounted for.
By the second half of 2007, 90% of all mortgages were backed by Fannie and Freddie
July 2007, the US mortgage market begins to unravel, and the Democrat controlled Congress attempts to prop it up with the severely weakened Fannie and Freddie.
Fannie Mae begins feeling the pressure from their sub-prime purchases.
3rd Quarter “earningsâ€-$1.4 billion loss
4th Quarter “earningsâ€-$3.5 billion loss
By the end of 2007, many investment groups were acknowledging that it was only a matter of time before Fannie and Freddie would need a bailout.
Social Security budget at $586.1 Billion
Medicare Budget at $375.4 Billion
All Federal “Means Tested Entitlements†including Medicaid, Food Stamps, AFDC, SSI, child nutrition programs, refundable portions of EITC and HITC, child tax credits, welfare contingency fund, child care to States, temporary assistance to needy families, foster care and adoption assistance, SCHIP, and Veterans pensions equals $366.6 Billion dollars.
Total expenditures on Social Security, Medicare, and Means Tested Entitlements alone equals $1.328 Trillion dollars, or 49% of the $2.73 Trillion dollar budget for 2007.
2008-Cap for Fannie purchases at $730,000.00
Over the previous 10 years, Fannie Mae had spent nearly $200 million for lobbying and campaign contributions.
In the first half of 2008, 81% of all mortgages were backed by Fannie and Freddie. The US mortgage market has now become nationalized with the US government owning the mortgages.
1st Quarter “earningsâ€-$2.2 billion loss
2nd Quarter “earningsâ€-$2.3 billion loss
During this time, capital resource minimums were continually lowered from 38% to 20% to 15%, and Fannie and Freddie repeatedly told the press that their capital resources were within regulated minimums.
Fannie Mae’s leverage (Liabilities/Shareholder Equity) including on and off-balance sheet items, was at 78 to 1. Bear Sterns was at 33 to 1 when they imploded.
Fannie Mae’s mortgages, 21% were at over 80% of the original home value.
15%-20% of their loans were sub-prime
Year over year foreclosures were at $4.7 billion in 2008.
1st Quarter of 2008, liabilities exceeded it’s assets by $5.2 billion making it insolvent
In an interview in late 2008, former President Clinton said "I think the responsibility the Democrats have may rest more in resisting any efforts by Republicans in Congress or by me when I was President to put some standards and tighten up a little bit on Fannie Mae and Freddie Mac..."
Notable Senators and Representatives who directly benefitted
from Fannie and Freddie
• Chris Dodd (D), Chairman of the Senate Banking Committee- Received $165,400.00 from Fannie Mae and Freddie Mack.
• Barack Obama (D), Member of the Senate Banking Committee-Received $126,000.00 from Fannie and Freddie in less than 3 years.
• John Kerry (D), Member of the Senate Committee on Finance-Received $110,000.00 from Fannie and Freddie.
• Paul E. Kanjorski (D), $96,000.00
• Jack Reed (D), $78,250.00
• Harry Reid (D), Senate Majority Leader, Senate Rules Committee-Received $77,000.00 from Fannie and Freddie
• Hillary Clinton (D), need I say anything else?-Received $76,050.00 from Fannie and Freddie.
• Nancy Pelosi (D), again, need I say anything else?-Received $56,250.00 from Fannie and Freddie.
• Barney Frank (D), Ranking Member and now Chairman of the House Financial Services Committee-Received $42,350 from Fannie and Freddie as well as having his "wife" appointed to an Executive position at Fannie in 1991 where he was responsible for writing many of their rules, bringing in an additional HUNDREDS OF THOUSANDS A YEAR into their household!
• Dick Durbin (D), Senate Appropriations Committee-Received $23,750.00 from Fannie and Freddie.
• Chuck Schumer (D), Senate Finance and Senate Banking Committee-Received $24,250 from Fannie and Freddie
• Franklin Raines (D), Head of Fannie Mae took home over $50,000,000.00 in bonus payments after cooking the books.
• Jamie Gorelick (D), Executive for Fannie and Freddie, took home over $26,000,000.00 in bonus payments from cooking the books.
• Jim Johnson (D), CEO of Fannie May, took home millions in bonus payments.
I just keep saying......"I believe in my government leaders.....I believe in my government leaders"
(Continued from above)
2006-Cap for Fannie purchases at $417,000.00
US Treasury Department released a report noting that between 1997 and 2005, mortgage fraud increased by 1,411%, primarily due to Clinton era deregulation of Fannie and Freddie.
OFHEO reports that Fannie Mae senior management manipulated accounting, reaped maximum underserved bonuses, calling it an “arrogant and unethical corporate cultureâ€, and noted that Fannie engaged in excessive risk taking and had poor risk management. Fannie Mae was fined $400 million for accounting violations and was forced to restore earnings from 2001 to 2004. Regulators file 101 civil charges against former Fannie Mae CEO Franklin Raines, CFO J. Timothy Howard and former Controller Leanne G. Spencer in order to recoup more than $115 million in fraudulent bonus payments and an additional $100 million in fines and penalties for their roles in intentionally engaging in fraudulent accounting practices in order to maximize their bonuses.
John McCain co-sponsored new Legislation for the regulation of Fannie and Freddie, saying "For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac...and the sheer magnitude of these companies and the role they play in the housing markets...the GSE's need to be reformed without delay.", but the vote went straight down party lines with the Democrats voting, en masse against it, so the proposed legislation never reached the floor for a vote.
Freddie Mac fined $3.8 million by the Federal Election Commission for making illegal campaign contributions, primarily to members of the House Financial Services Committee, between 2000 and 2003.
2007-January, Democrats take control of both houses of Congress, promise to fix “everythingâ€.
Fannie backing $5.0 trillion in mortgages
Fannie finally presents it’s financial “restatement†as required. $6.3 billion in profit had disappeared and is unaccounted for.
By the second half of 2007, 90% of all mortgages were backed by Fannie and Freddie
July 2007, the US mortgage market begins to unravel, and the Democrat controlled Congress attempts to prop it up with the severely weakened Fannie and Freddie.
Fannie Mae begins feeling the pressure from their sub-prime purchases.
3rd Quarter “earningsâ€-$1.4 billion loss
4th Quarter “earningsâ€-$3.5 billion loss
By the end of 2007, many investment groups were acknowledging that it was only a matter of time before Fannie and Freddie would need a bailout.
Social Security budget at $586.1 Billion
Medicare Budget at $375.4 Billion
All Federal “Means Tested Entitlements†including Medicaid, Food Stamps, AFDC, SSI, child nutrition programs, refundable portions of EITC and HITC, child tax credits, welfare contingency fund, child care to States, temporary assistance to needy families, foster care and adoption assistance, SCHIP, and Veterans pensions equals $366.6 Billion dollars.
Total expenditures on Social Security, Medicare, and Means Tested Entitlements alone equals $1.328 Trillion dollars, or 49% of the $2.73 Trillion dollar budget for 2007.
2008-Cap for Fannie purchases at $730,000.00
Over the previous 10 years, Fannie Mae had spent nearly $200 million for lobbying and campaign contributions.
In the first half of 2008, 81% of all mortgages were backed by Fannie and Freddie. The US mortgage market has now become nationalized with the US government owning the mortgages.
1st Quarter “earningsâ€-$2.2 billion loss
2nd Quarter “earningsâ€-$2.3 billion loss
During this time, capital resource minimums were continually lowered from 38% to 20% to 15%, and Fannie and Freddie repeatedly told the press that their capital resources were within regulated minimums.
Fannie Mae’s leverage (Liabilities/Shareholder Equity) including on and off-balance sheet items, was at 78 to 1. Bear Sterns was at 33 to 1 when they imploded.
Fannie Mae’s mortgages, 21% were at over 80% of the original home value.
15%-20% of their loans were sub-prime
Year over year foreclosures were at $4.7 billion in 2008.
1st Quarter of 2008, liabilities exceeded it’s assets by $5.2 billion making it insolvent
In an interview in late 2008, former President Clinton said "I think the responsibility the Democrats have may rest more in resisting any efforts by Republicans in Congress or by me when I was President to put some standards and tighten up a little bit on Fannie Mae and Freddie Mac..."
Notable Senators and Representatives who directly benefitted
from Fannie and Freddie
• Chris Dodd (D), Chairman of the Senate Banking Committee- Received $165,400.00 from Fannie Mae and Freddie Mack.
• Barack Obama (D), Member of the Senate Banking Committee-Received $126,000.00 from Fannie and Freddie in less than 3 years.
• John Kerry (D), Member of the Senate Committee on Finance-Received $110,000.00 from Fannie and Freddie.
• Paul E. Kanjorski (D), $96,000.00
• Jack Reed (D), $78,250.00
• Harry Reid (D), Senate Majority Leader, Senate Rules Committee-Received $77,000.00 from Fannie and Freddie
• Hillary Clinton (D), need I say anything else?-Received $76,050.00 from Fannie and Freddie.
• Nancy Pelosi (D), again, need I say anything else?-Received $56,250.00 from Fannie and Freddie.
• Barney Frank (D), Ranking Member and now Chairman of the House Financial Services Committee-Received $42,350 from Fannie and Freddie as well as having his "wife" appointed to an Executive position at Fannie in 1991 where he was responsible for writing many of their rules, bringing in an additional HUNDREDS OF THOUSANDS A YEAR into their household!
• Dick Durbin (D), Senate Appropriations Committee-Received $23,750.00 from Fannie and Freddie.
• Chuck Schumer (D), Senate Finance and Senate Banking Committee-Received $24,250 from Fannie and Freddie
• Franklin Raines (D), Head of Fannie Mae took home over $50,000,000.00 in bonus payments after cooking the books.
• Jamie Gorelick (D), Executive for Fannie and Freddie, took home over $26,000,000.00 in bonus payments from cooking the books.
• Jim Johnson (D), CEO of Fannie May, took home millions in bonus payments.
I just keep saying......"I believe in my government leaders.....I believe in my government leaders"
Those who made the ultimate sacrifice thought YOU were worth dying for. Remember THEM
I'm Pro-Life, Pro-Gun, Christian, and a proud Veteran. Therefore, my government has labeled me a "right-wing extremist", a militia member, and a possible domestic terrorist
I'm Pro-Life, Pro-Gun, Christian, and a proud Veteran. Therefore, my government has labeled me a "right-wing extremist", a militia member, and a possible domestic terrorist
Stimulate This
Notable Senators and Representatives who directly benefitted
from Fannie and Freddie
• Chris Dodd (D), Chairman of the Senate Banking Committee- Received $165,400.00 from Fannie Mae and Freddie Mack.
• Barack Obama (D), Member of the Senate Banking Committee-Received $126,000.00 from Fannie and Freddie in less than 3 years.
• John Kerry (D), Member of the Senate Committee on Finance-Received $110,000.00 from Fannie and Freddie.
• Paul E. Kanjorski (D), $96,000.00
• Jack Reed (D), $78,250.00
• Harry Reid (D), Senate Majority Leader, Senate Rules Committee-Received $77,000.00 from Fannie and Freddie
• Hillary Clinton (D), need I say anything else?-Received $76,050.00 from Fannie and Freddie.
• Nancy Pelosi (D), again, need I say anything else?-Received $56,250.00 from Fannie and Freddie.
• Barney Frank (D), Ranking Member and now Chairman of the House Financial Services Committee-Received $42,350 from Fannie and Freddie as well as having his "wife" appointed to an Executive position at Fannie in 1991 where he was responsible for writing many of their rules, bringing in an additional HUNDREDS OF THOUSANDS A YEAR into their household!
• Dick Durbin (D), Senate Appropriations Committee-Received $23,750.00 from Fannie and Freddie.
• Chuck Schumer (D), Senate Finance and Senate Banking Committee-Received $24,250 from Fannie and Freddie
• Franklin Raines (D), Head of Fannie Mae took home over $50,000,000.00 in bonus payments after cooking the books.
• Jamie Gorelick (D), Executive for Fannie and Freddie, took home over $26,000,000.00 in bonus payments from cooking the books.
• Jim Johnson (D), CEO of Fannie May, took home millions in bonus payments.
I just keep saying......"I believe in my government leaders.....I believe in my government leaders"
Astounding, isn't it?
from Fannie and Freddie
• Chris Dodd (D), Chairman of the Senate Banking Committee- Received $165,400.00 from Fannie Mae and Freddie Mack.
• Barack Obama (D), Member of the Senate Banking Committee-Received $126,000.00 from Fannie and Freddie in less than 3 years.
• John Kerry (D), Member of the Senate Committee on Finance-Received $110,000.00 from Fannie and Freddie.
• Paul E. Kanjorski (D), $96,000.00
• Jack Reed (D), $78,250.00
• Harry Reid (D), Senate Majority Leader, Senate Rules Committee-Received $77,000.00 from Fannie and Freddie
• Hillary Clinton (D), need I say anything else?-Received $76,050.00 from Fannie and Freddie.
• Nancy Pelosi (D), again, need I say anything else?-Received $56,250.00 from Fannie and Freddie.
• Barney Frank (D), Ranking Member and now Chairman of the House Financial Services Committee-Received $42,350 from Fannie and Freddie as well as having his "wife" appointed to an Executive position at Fannie in 1991 where he was responsible for writing many of their rules, bringing in an additional HUNDREDS OF THOUSANDS A YEAR into their household!
• Dick Durbin (D), Senate Appropriations Committee-Received $23,750.00 from Fannie and Freddie.
• Chuck Schumer (D), Senate Finance and Senate Banking Committee-Received $24,250 from Fannie and Freddie
• Franklin Raines (D), Head of Fannie Mae took home over $50,000,000.00 in bonus payments after cooking the books.
• Jamie Gorelick (D), Executive for Fannie and Freddie, took home over $26,000,000.00 in bonus payments from cooking the books.
• Jim Johnson (D), CEO of Fannie May, took home millions in bonus payments.
I just keep saying......"I believe in my government leaders.....I believe in my government leaders"
Astounding, isn't it?