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Sep 25, 2008, 2:37 GMT
Bush: US faces painful recession without rescue plan
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Older Talkback
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The big companies do face a catasrophy, but public does not. our government today is government by the multinationals, for the multinationals, to feed the multinationals!!!
So far, everyone who has made a statement on this situation has come up with a different view of it and what should or should not be done. Who do we believe, or should the solutions all be thrown in a hat and one picked out??
'We must do this now or things will be worse.' Rather than rationally looking at things and coming to a logical conclusion, Bush-baby does the kneejerk reaction thing and f*cks up as usual. Bush is just a crisis waiting to happen.
We Chinese love GWB. Leave the dude alone! Under his regime many policies of the US affecting China were good for China. They may not have been good for the United States, but ha who cares. Long live Bush. I don't like his bald headed assistant the one with a pacemaker.
The mortgage crisis has blossomed into a total financial meltdown. Banks and insurance institutions are failing left and right. At the bottom of this house of cards were Fannie and Freddie. The unethical practices of these companies are now coming to light (what Congress has known for years, but failed to act on).
Five years ago the Bush administration recognized that problems existed in these firms. They wanted to create an agency with oversight of the practices F & F were engaged in. They were met with resistance by Democrats like Barney Frank, chairman of the House Financial Services Committee. Frank said “... Fannie Mae and Freddie Mac are not facing any kind of financial crisis.” Three years ago Senator John McCain (R) co-sponsored the “Federal Housing Enterprise Regulatory Reform Act of 2005.” Democrats killed it. In a letter to the president, McCain stated “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole.” If McCain doesn’t use this statement as a campaign slogan, he’s insane.
Democrats opposed legislation because these firms have been huge campaign contributors (354 lawmakers, $4.8 million, Democrat and Republican). At the top of the list is Senator Chris Dodd (D) at $165,400. Dodd is the chairman of the Senate Banking Committee. Second on the list is Senator Barack Obama (D) at $126,349. Always the over-achiever, Obama has collected more donations in three years than all the others have in 10. Even McCain received $21,550.
Who were the villains inside these companies? Jim Johnson was CEO of Fannie Mae from 1991-1998. During his tenure, he cooked the books enabling him to receive $21 million in bonuses. He’s now a fund raiser for Obama and was on the committee to vet his vice presidential candidates. Johnson’s successor, Franklin Raines (who was also Bill Clinton’s budget director) was even better at the game. His take was over $90 million. He is now an economic advisor for Obama. These two criminals and others, have run F & F into the ground, taking a host of financial institutions with them.
Senate Majority “Leader” Harry Reid (D) made a great statement to bolster confidence. He said “no one knows what to do.”
Obama took more money from countrywide then any other senator.
Obama took more money in a shorter amount of time than any other senator. (Chris Dodd was the only one to take more in total and he did it over 10 years... Obama has only been in the senate a short time.)
Obama and his party blocked reforms of freddie and fanny that would have ensured that this never happened.
Barack Obama is doing in Washington what he did in Chicago: Helping his cronies steal money from the taxpayers.
Blame Fannie Mae and Congress
For the Credit Mess (abridged)
online.wsj.com/article/SB122212948811465427.html?mod=googlenews_wsj
In light of the collapse of Fannie and Freddie, both John McCain and Barack Obama now criticize the risk-tolerant regulatory regime that produced the current crisis. But Sen. McCain's criticisms are at least credible, since he has been pointing to systemic risks in the mortgage market and trying to do something about them for years. In contrast, Sen. Obama's conversion as a financial reformer marks a reversal from his actions in previous years, when he did nothing to disturb the status quo. The first head of Mr. Obama's vice-presidential search committee, Jim Johnson, a former chairman of Fannie Mae, was the one who announced Fannie's original affordable-housing program in 1991 -- just as Congress was taking up the first GSE regulatory legislation.
In 2005, the Senate Banking Committee, then under Republican control, adopted a strong reform bill, introduced by Republican Sens. Elizabeth Dole, John Sununu and Chuck Hagel, and supported by then chairman Richard Shelby. The bill prohibited the GSEs from holding portfolios, and gave their regulator prudential authority (such as setting capital requirements) roughly equivalent to a bank regulator. In light of the current financial crisis, this bill was probably the most important piece of financial regulation before Congress in 2005 and 2006. All the Republicans on the Committee supported the bill, and all the Democrats voted against it. Mr. McCain endorsed the legislation in a speech on the Senate floor. Mr. Obama, like all other Democrats, remained silent.
Now the Democrats are blaming the financial crisis on 'deregulation.' This is a canard. There has indeed been deregulation in our economy -- in long-distance telephone rates, airline fares, securities brokerage and trucking, to name just a few -- and this has produced much innovation and lower consumer prices. But the primary 'deregulation' in the financial world in the last 30 years permitted banks to diversify their risks geographically and across different products, which is one of the things that has kept banks relatively stable in this storm.
As a result, U.S. commercial banks have been able to attract more than $100 billion of new capital in the past year to replace most of their subprime-related write-downs. Deregulation of branching restrictions and limitations on bank product offerings also made possible bank acquisition of Bear Stearns and Merrill Lynch, saving billions in likely resolution costs for taxpayers.
If the Democrats had let the 2005 legislation come to a vote, the huge growth in the subprime and Alt-A loan portfolios of Fannie and Freddie could not have occurred...
online.wsj.com/article/SB122212948811465427.html?mod=googlenews_wsj
Bush can't use his usual reaction to a problem - invade and shoot everyone. Or maybe he can ?
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 25 Sep 2008 at 10:48:48 AM GMT is:
$9,794,900,102,976.55
The estimated population of the United States is 304,791,490
so each citizen's share of this debt is $32,136.40.
If Bushs proposal goes ahead to bail out $700 bil using US Taxpayers money this will increase EACH citizens debt (Man, Womaan and Child) by $2,444 (min), so each Citizens share of this debt will now raised to $$34,280.40
Of the $9.2Trillion in total Federal government debt outstanding at the end of CY 2007, approximately $5.1 Trillion was owed to the public (foreign and domestic) in the form of treasury bonds and T-bills. Of that $5.1 trillion, nearly half, $2.4 Trillion, was owed to foreign interests.
Foreign parties controlled 46% ($2.4 trillion) of $5.1 trillion of outstanding Treasury bond and T-Bill dominated debt - at the end of 2007.
This means each man, woman and child (2007) owed $7,973 in federal debt to foreign interests. A family of 4 owed $31,893 in this regard - - 25% of the total is owed to Japanese interests, 20% to China.
This is a rapidly rising trend since 1992, as the share of foreign holdings more than tripled.
Who was the idiot that said about debt, 'We owe it to ourselves, so its no big deal if debt goes up.' This chart proves Americans owe a huge amount to foreign interests - - and that's a very ,very serious.
And Bush, McCain ,Obama and everyone else is running around Wall St in ever decreasing circles like a bunch of headless chickens......
WHAT A MESS!
of the above posters fool you. Bush is responsible. He is at the core, the hub, the center, the crux. If there were no Bush, there would be 'NO Problem'.
This was preventable.Sep 21st, 2008 - 01:59:13
John McCain predicted Fannie Mae and Freddie Mac crises, pushed 2005 legislation to prevent trouble:
The 'FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005' would have headed this off but it was killed in the Committee on Banking, Housing, and Urban Affairs by Chris Dodd who recieved the most money from Fannie Mae and Freddie Mac.
President Bush sought to rein in Fannie and Freddie in 2003.
The Democratic response to Bush in 2003:
“These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
“I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.
The dems could have addressed this FIVE years ago. Your president brought it to their attention. The GOP presidential candidate had legislation made to help fix it.
The dems did nothing but take all the campaign funds, personal loans and perks.
sound together and 'Got it going on'. Other times you sound like a blithering idiot. This is one of those 'blithering idot' times.
Here is Bush's track record to date.
www.brillig.com/debt_clock/
4 Feb 08 - Bush Proposes $3.1 Trillion Budget (Los Angeles Times)
4 Feb 08 - Bush Budget Would Bring Record Deficits (Associated Press)
27 Jan 08 - The State of the Union -- and its Debt (TheStreet.com)
13 Mar 07 - Wincing Dems are likely to raise the limit on Debt (The Hill)
16 Mar 06 - Congress sets new Federal Debt Limit: $9 trillion (National Public Radio)
16 Mar 06 - Senate votes Debt Limit hike to $8.965 trillion (Reuters)
16 Mar 06 - US Debt: At least it's not $1 zillion (Reuters)
16 Feb 06 - U.S. moves to miss hitting Debt Ceiling (MarketWatch)
8 Feb 06 - Big Deficit looms behind revival of 30-year bond (Reuters)
7 Feb 06 - Bush's Budget sparks bipartisan protest (CBS News)
30 Jan 06 - Federal borrowing raised to record level (CNN)
10 Jan 06 - Bush seeking to limit spending growth in '07 Budget (Bloomberg)
8 Jan 06 - U.S. hovers close to its Debt Ceiling -- Treasury boss says government business could be affected (San Francisco Chronicle)
27 Nov 05 - Deficit cracking GOP's solidarity -- party-line vote no longer assured (San Francisco Chronicle)
26 Nov 05 - Opinion: Get down to business on U.S. Deficit (The Indianapolis Star)
20 Oct 05 - Budget debate a defining moment for GOP, groups say (CNSNews)
5 Oct 05 - Editorial: Bush mismanagement worsens Deficit (The Capital Times (WI))
For ordering the FBI to investigate the failing institutions their executives for FRAUD.
Our system is broken. It no longer works in 2008. Unless we can admit that we won't make any progress.
To me lobbying is the biggest form of corruption. Corporate executives employ lobbyists to bribe and persuade members of congress and senate. Business is not the only one doing this. Political interest groups do the same. One such group is the jewish lobby who successfully lobbied for the illegal invasion and occupation of Iraq.
The jewish lobby is responsible for us being in Iraq right now.
THIS HAS GOT TO STOP.
The business lobby....the political interest lobby....this all HAS TO BE MADE I-L-L-E-G-A-L.
Lobbying is immoral, it is unethical, it creates greed and in the case of war....is the cause for murder.
Lobbying MUST be made illegal!!!!
Lobbyists, and those hiring lobbyists (business and political interest groups) as well as congressmen and senators who are bought and influenced by the process of lobbying MUST be prosecuted to the fullest extend of the law.
Lobbyists and pork barrel spending should both be eliminated. After Palin's 'bridge to nowhere' was knocked down, millions were spent for a road to nowhere = what's with that?
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