Wall Street Blues Hit the Presidential Race
Who is to blame and what will our next leader do? (Also, Roger L. Simon: CEO or President?)
As our financial markets enter a near-meltdown the likes of which we haven’t seen since the Great Depression, two questions need to be asked: “Who is to blame?” and “What will our next president do?”
Investor’s Business Daily thinks they know who the culprit is — the president. The ex-President Bill Clinton, to be exact. From a recent editorial:
But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions.
For his part President Bush has done little to deepen the crisis, and his Federal Reserve Chairman, Ben Bernanke, has done much to alleviate the problem. Some would say he’s done too much — the Fed’s seemingly endless injections of liquidity have maimed the dollar and spiked inflation. Monica Lewinski and Hillary Clinton, it would seem, aren’t the only ones still paying for Clinton’s sins.
But what about our next president?
When it comes to Lehman Brothers in particular, both candidates have taken lots of donations. Obama has received almost $400,000 from Lehman employees in his three-plus years in the Senate. McCain has gotten less than $150,000 from them since 1989. Certainly both have benefited from Lehman’s largess, and simply taking donations doesn’t prove any kind of corruption. But a hundred k a year certainly cuts into Obama’s message of “change.” “Hope,” too.
In fact, of the nearly three million dollars Lehman employees and PAC distributed in the last 19 years, just two senators — Obama and Clinton — received more than a quarter of the total, split nearly evenly. McCain got about five percent.
Nevertheless, McCain isn’t exactly jumping on board the free market bandwagon.
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Stephen Green writes, broadcasts, and enjoys the occasional lovely adult beverage at the home he shares with his wife and son in Monument, Colorado.
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55 Comments
1. David Thomson:“As our financial markets enter a near-meltdown the likes of which we haven’t seen since the Great Depression”
Nonsense. There is nothing like that going on. Somebody is definitely swallowing the Kool Aid. Our recent problems impact only a relatively small part of our overall economy—which is still growing at a fairly decent rate! At the very most, these troubled lending institutions will be bought out by other firms. The world will continue. Are you over invested in these particular stocks? If not, you should be somewhat indifferent about the whole matter. Last but not least, we must stop allowing the citizens of California to con the rest of us into feeling sorry for them. These people have made their bed and should be forced to sleep in it. They are greatly responsible for the damage. The United States is overall doing fairly well. It is often only the Californians who have made a mess of things.
Sep 17, 2008 - 1:16 am 2. Cowcup:The beginning of 21st century looks more and more like that of the 20th century. History is repeating itself in interesting ways. I hope I was born 10 years earlier so I do not have to worry too much about the future. As Einstein once said, pre-war (WWI) Europe was like the golden time that never would return. I always hope I’d retired right before the Internet bubble busted.
Sep 17, 2008 - 1:24 am 3. Another View:Duh, Obama looks elite and sneaky. Lets Vote McCain. The liberals are ruining the country. Even though there has been only 2 Dem administration in the past 55 years. McCain has nine homes. He sure does relate to the working man. And you believe that? So Vote McCain and fall on your swords. But our children will still be here.
Sep 17, 2008 - 3:18 am 4. Ed Wallis:“Another View” 3:18am –
Your argument for Zerobama stands on the profound ({sarc) notion, “they be bad, so choose other guy!”
That’s NO REASON to vote for Socialist policies being imposed upon America.
I enjoyed the author’s words and choice of quote:
“And what’s the Obama Plan? In his own words:
This country can’t afford another four years of this failed philosophy. For years, I have consistently called for modernizing the rules of the road to suit a 21st century market – rules that would protect American investors and consumers. And I’ve called for policies that grow our economy and our middle-class together. That is the change I am calling for in this campaign, and that is the change I will bring as President.”
I’ve seen what “the middle class” looked like under Socialism. You can CALL IT WHAT YOU WISH, but IT IS NOT WHAT I WISH FOR THE UNITED STATES OF AMERICA.
Sep 17, 2008 - 3:57 am 5. Boris:“In other words, when Congressional oversight of banks forces banks into taking risks they can’t afford…”
What? How does congressional oversight force a bank to borrow 30 to 40 times the amount of money it has?
The problem was a LACK of oversight in investment banks.
Sep 17, 2008 - 4:25 am 6. armchairpunter:Obama Campaign (playing to the illusion that the government can or should “control” the economy):
“Don’t vote for McCain. If he were your cab driver, he’d weave all over the road. Vote for Obama. With both hands on the wheel, he’ll drive you straight off the cliff.”
Some voters seek salvation in the voting booth. Others realize the need to select the lesser of two evils.
Sep 17, 2008 - 5:13 am 7. Joan of Argghh!:So, the unspoken racial implications of this financial failure would be… unspeakable, I assume.
Because to blame it all on the multi-culti “poor” is just too much, even for my cynical, jaded sensibilities. I think the risky loans are a real problem, but I need to see some percentages before I go blaming the “crisis” on the defaults.That’s entirely too pat for a multi-dimensional entity like Lehman Bros.
Kleptocracy: does it really matter whether it’s your government or your banker that’s screwing you? Either way, you’re screwed, and someone got rich doing it. Not even a reacharound.
Sep 17, 2008 - 5:20 am 8. Chuck Pelto:TO: Stephen Green
RE: On the Blame Side
You left out the roles in this disaster of prominent Democrats….
Jamie Gorelick
It’s not everyone who can cost the tax-payers BILLIONS and BILLIONS of dollars TWICE in their lifetime; 9/11 and TODAY!
Then we have other friends of Fannie Mae and Obama….
Where I came from, we’d call these ‘key indicators’. Not only of who is to blame but ALSO what to expect of an Obamanation administration.
Regards,
Chuck(le)
[Government has come to be a trade, and is managed solely on commercial principles. A man plunges into politics to make his fortune, and only cares that the world should last his days. -- Ralph Waldo Emerson]
P.S. For men and women who have no words such as ‘honor’ or ‘integrity’ in their vocabulary, let alone their constitution…..
Sep 17, 2008 - 5:23 am 9. Chuck Pelto:TO: Joan of Arrgh!
RE: Been Sleeping?
I think all the information that has been coming out over the last 12 months should be sufficient. However, you’re welcome to seek what statistics you will.
As for the fall of Lehman, AIG, Fannie this, Freddie that and several banks scattered here and there, it was a house of cards. And I’m glad I got out from under it before the collapse began in earnest.
Regards,
Chuck(le)
Sep 17, 2008 - 5:29 am 10. jpw94:[Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. -- Will Rogers]
Everyone seems to be on one side or the other (of course!) I have my leanings but I am YEARNING for our government to take off their rose colored glasses and start looking OBJECTIVELY about the issues confronting this country.
I am always curious about how one candidate can actually change anything. Of course, to focus is on the presidential candidates. But will this one candidate actually produce change? Isn’t our investment really in the Congress?
I am probably being naive on this but I’m not convinced either candidate will be able to do what they say that are going to do. Perhaps they are just expressing their wishes and hope those wishes are in-line with enough folks to get elected. I believe they can influence but not effect change.
Look at their relationship with their party. Do the really have the juice within? The Congress is standing by, hoping their party gets elected so their tenure will be extended. There is an unfortunate reality here: these guys are just hoping to win this popularity contest. But, the power lies with the Congress.
Perhaps I am wrong. If so, sorry? And enlighten me.
Sep 17, 2008 - 5:56 am 11. mjk:I think most people realize that it was the banks, etc.’s fault for failing business practises. I almost bought a condo this year but I’m glad I didn’t. I don’t see this crisis being over anytime soon.
Sep 17, 2008 - 6:19 am 12. Peter Gee:It is indeed Clintonism that started the whole ball rolling of lending money to people who could not afford to repay, since asking for traditional valuation was “racist” or “discriminatory” against traget groups like racial minorities, single women etc.
The stock market went down 22% in one day a few decades ago. But no banks failed. The reason banks and insurers are now failing is because they were allowed, encouraged and co-erced by political correctness to becoming “non-discriminatory lenders”…staring with Fannie Mae and Freddie Mac, whose leaders and the institutionssince the Clinton era have been enormous contributors, staffers and execs for various Democrats, including Obama.
Bush tried in 2003 to re-regulate housing loans. Every pig in Washington was then feeding at the trough, and nobody wanted it. Ditto McCain in 2005.
Sep 17, 2008 - 6:27 am 13. Krusty:I knew conservatives were incapable of reasoning, now there is proof:
http://www.huffingtonpost.com/dan-sweeney/theres-no-arguing-with-co_b_126805.html
Why don’t y’all secede and have your theocracy?
Sep 17, 2008 - 6:34 am 14. Another View:Well Ed;
I am looking at the middle class during facsism and it doesn’t look good. At the same time our imperalistic capitalism causes anti U.S. seniment and threatens our security.
Its not profound. “If it ain’t broke don’t fix it”. “If it’s broke fix it”. Ed are you gonna ride until the wheels fall off?
Sean Hannity and crew are getting a bonus from Rupert if the GOP stays in power are you?
Sep 17, 2008 - 6:38 am 15. Saltherring:Ed Wallis says, “I’ve seen what ‘the middle class’ looked like under Socialism. You can CALL IT WHAT YOU WISH, but IT IS NOT WHAT I WISH FOR THE UNITED STATES OF AMERICA.”
Photos of half-starved Soviet collectivist peasants gleaning rutted fields for culled potatoes come to mind, Ed. Placed alongside pictures of fat and smiling Politburo members they present an accurate contrast of socialism’s two distinctly differing economic classes. Prospective Obama voters should take a long hard look at these old photos, as it will be they who live with the guilt of voting to dismantle capitalism in favor of nanny-state socialism.
Sep 17, 2008 - 7:04 am 16. Tennesseefree.com » Another Post About Following The Money:[...] Pajamas Media: In fact, of the nearly three million dollars Lehman employees and PAC distributed in the last 19 [...]
Sep 17, 2008 - 7:50 am 17. BMoon:An anecdote: A year ago we were buying a house. Our real estate agent showed us a real “fixer-upper” (which he happened to own.) We politely declined. The next door property was an illegal immigrant ghetto where you could see at least a half-dozen men hanging around out back and draped about the front porch swilling beer, empty Budweiser boxes strewn about the lawn, which looked as if a hurricane had just passed through.
Knowing we had lived in Mexico, the agent exclaimed, “Hey! You guys speak Spanish! Maybe I can sell it to them if you help me translate!”
“But, they most likely don’t have jobs, don’t have papers, and it looks like they are alcoholics to boot! How could people like that ever buy a house?” I asked him.
“Programs!” he exclaimed,” There are programs out there!”
Sep 17, 2008 - 8:17 am 18. cedarford:jpw94:
Everyone seems to be on one side or the other (of course!) I have my leanings but I am YEARNING for our government to take off their rose colored glasses and start looking OBJECTIVELY about the issues confronting this country.
Agree strongly, 1jpw94. People trying to understand this should read from sources at a safe remove from being influenced by partisan politics – in other words, skip the NYTimes and WSJ and Business Week except for basic facts and look to The Economist or Asia Times for more objective articles.
Blame appears on both sides. It is important to know who screwed up for reforming the mess the taxpayers are getting the tab for.
But suffice it to say that this is another big hit to Republican ideologues who seek to deregulate from pure ideology institutions that have dangerous consequences to the wallet and health of Americans if “the genius of the now-unregulated free market” fails to work. I am not very keen on pending moves to dereg – on things like food import’s safety, Mexican truckers on US roads.
It is also a big hit on incestuous relations in DC where our corrupt political system and antiquated Constitution fail to stop the serving of the rich and special interests over the interests of the People, and the Dems happy to stick taxpayers with the cleanup because they think certain businesses are “too big to fail”.
(Bush) Believer – cedarford — Name the Republicans who’ve made tens of millions off these failures. I only have the names of Dems who’ve made money and destroyed these institutions.
Open a Forbes 500 Richest Americans List. We can tick off about 80 names that made hundreds of millions to tens of millions off this Fiasco the taxpayer will bail out. 65% Republican, 35% Democrat. In any hot real estate area, look at the politics of local
developers and investment partnerships that made a killing off the artificial boom in prices.
Bush came to office determined to take these trends even further, to deliver Social Security accounts to Wall Street and target minority communities–traditionally out of the Republican Party’s reach–for easy homeownership. “Under 50 percent of African Americans and Hispanic Americans own a home,” Bush observed in 2002. “That’s just too few.” He called on Fannie Mae and the private sector “to unlock millions of dollars, to make it available for the purchase of a home”–an important reminder that subprime lenders were taking their cue straight from the top.
In 2003 Grover Norquist, the powerful head of the Club for Growth, who enforced the Party Line on Tax Cuts for the Rich – called Bush’s effort to put the poor in subprime homes and disconnect all Americans from Social Security and Medicare with “private ownership pension and medical accounts” they could invest in real estate and the Stock Market -
“Bush’s greatest legacy.”
Of course, Bush’s big thrust to alter Social Security and push supply side and trickledown theory with his official “Ownership Society” failed in 2005 as it was widely seen as another program to benefit the rich and give them the greatest benefit of putting more of their income in “tax-free” private accounts. It failed..
All except the housing bubble, which Republicans and well as Democrats saw as great policy – lots of jobs and mortgage credit even for illegal aliens with no savings.
The architect of this was Phil Gramm. The greatest beneficiaries of this policy were the wealthy developers, the Wall Street financiers, REIT and hedge fund managers (all heavily Republican), and existing wealthy owners of homes that saw their property value double in the Bubble the supply siders created.
Gramm’s genius was including wealthy Democrats in the riches gained…He had no problem with Dems packing their own cronies into Freddie and Fannie through Chris Dodd – pressuring Clinton in turn to sign off on deregulation. The more Democrat fatcats that got rich on Wall Street off subprimes and derivatives and mortgage resale and insurance – the better. The more Democrat investment bastions like Goldman Sachs, Lehman Bros and long-time Dem financiers (nobably powerful Jews like Greenburg of AIG, and the NYC Billionaire real estate magnates and oldline WASP liberals like the Ellis’s and VanHeuvens) the better.
This is more a “both Parties be damned” thing. Republicans like Gramm waved the voodoo economics charm, and this time the Democrats rushed to join at the feeding trough beginning in the early 90s – and tell Dems needing their Big Donor Bucks – it was Game On!
But lest we forget, in Congress from 1994 to 2006, with only a 1-year hiatuse thanks to Jeffords Senate defection – it was not banking and finance Oversight chairs Democrats Barney Frank and Chris Dodd in the lead pushing this corrupt, reckless mess.
It was James Leach, Phil Gramm, Richard Shelby and a cast of two dozen eager Republicans outside a small rebel faction headed by Ron Paul – who called the whole thing “fiscal insanity”.
Yes Obamessiah is second in Fannie and Freddie donations to Committee Head Chris Dodd, of Senators.
Yes, but the architect of this taxpayer bloodbath to save the rich’s golden parachutes and equity from this latest folly of subprime mansions for ChinaMart store clerks and rampant speculation free of the margin restrictions stock speculators operate on when borrowing to leverage their investments????
Well, that would be Phil Gramm. John MCain’s key economic advisor. Who may become truly radioactive from his mildly radioactive status of calling people complaining about the “sound” economy – “whiners.”
I think just reducing this to who paid what Presidential candidate is a big mistake. To reduce it all to stupid partisanship where one side is the demon and the other is lily-pure.
It just ain’t so.
It’s another great American failure. With plenty of blame and corruption inside and outside government, across party lines.
Fixing it will be as hard as fixing mass unchecked immigration. Ruling Elites will oppose and block it. If we don’t fix this and all the other accumulating problems our Constitution and political system have failed to deal with the last 40 years – then we have to look to a 2nd, perhaps violent Revolution to let the People regain control of Government and what sort of Rules&Operating Manual (The Constitution) the nation runs on.
We have known for almost 150 years that lifetime appointment of judges is a bad thing in binding future generations to whims of people they had no role in selecting, that the Committee System in Congress is tailor-made for corruption. We now know the Amending process is broken and in iron gridlock, with no Amendment capable of passing with even a modicum of opposition since 1962 (Poll Tax Elimination). We now realize that the Constitutional bar to the executive having a line item veto, as all governors have, has been catastrophic for the nation’s fiscal health.
Now add the Ruling Elites wanting “genius free markets” they can enrich themselves off of – but latching the good faith and credit of the wealth of ALL the People of the nation (99% who are not “insiders” in such schemes) – obligated to bail the fatcats out, if those wonderful “free markets and private industry” fail.
Sep 17, 2008 - 8:28 am 19. Sandy Salt:I wonder who held the gun to the heads of all these borrowers that knew there was no way they could pay back the mortgage. Who forced the banks to lower their standards? I have always gotten my loans from my Credit Union and have had to jump through my butt to do so. There were shady offers from builder loan companies that I turned down because I didn’t trust them. If you want to whine about this crisis then start blaming the greedy ones that were in charge and the ones that were stupid. The stupid will be punished by losing that house they never could afford to begin with and that is taking responsibility for your own actions. As for the greedy ones that is where we as a nation must act upon these criminals just like they were drug dealers and take every thing they have and send them to jail. I am not talking about nice white collar jail either. You want real reform then start treating the wizards of Wall Street like drug dealers and things will change. I don’t feel sorry for someone that bought a house they never could afford, call me heartless but I don’t care because resposnible adults don’t do stupid crap like that, so grow up and stop expecting everyone to save you from yourself.
Sep 17, 2008 - 8:39 am 20. Ed Wallis:“Another View” 6:38am –
Take a cue from the post just below yours from “saltherring (7:04am):
“Photos of half-starved Soviet collectivist peasants gleaning rutted fields for culled potatoes come to mind, Ed. Placed alongside pictures of fat and smiling Politburo members they present an accurate contrast of socialism’s two distinctly differing economic classes. Prospective Obama voters should take a long hard look at these old photos, as it will be they who live with the guilt of voting to dismantle capitalism in favor of nanny-state socialism.”
You write, “I am looking at the middle class during facsism and it doesn’t look good.”
WHERE’S the “fascism,” or were you making some reference to Mussolini or Hitler? Not clear on what you wish to say here.
You also write, “At the same time our imperalistic capitalism causes anti U.S. seniment and threatens our security.”
AHH…“IMPERIALISTIC CAPITALISM.” SIR: YOU ARE PARROTING OLD SCHHOL COMMUNISTS! Assuming you are not making a joke, you make a joke of yourself AND I THANK YOU FOR OPENLY EXPOSING THIS ASPECT OF OBAMA’S SUPPORT TO THE PUBLIC FOR ALL TO SEE, as NEITHER COMMUNISM NOR SOCIALISM ARE AMERICAN VALUES.
Spraying C O M M I E – B E – G O N E on the keyboard
You ask: Do/will I get a bonus from Rupert Murdock?! Serious and respectful answer: no. I’m happily “my own man” vis a vis employment, so no influence there, as you suggest.
Yet, TO THE CONTRARY, there are MORE THAN A FEW posters here at PJM who have appeared in the last few weeks, who DO EXUDE THE strong impression of being DAVID AXELROD Astroturf employees. The jargon is thick, the arguments thin and, when questioned, they devolve into vitriol almost instantly (option: they repeat their old argument without embellishment).
Sep 17, 2008 - 9:11 am 21. Saltherring:Sandy Salt said a mouthful, but in our world the foolish, the irresponsible and the greedy will beg for and (in many cases) receive bail-outs, courtesy of the taxpayer. And yet another irresponsible social engineering experiment (home ownership for all!) has bitten the dust. I say let the victims (unqualified borrowers) and the perpetrators (greedy banks and brokerage firms) eat the fruits of their own labors.
Sep 17, 2008 - 9:23 am 22. Sandy Salt:Here, here Saltherring!!
Sep 17, 2008 - 9:59 am 23. Chuck Pelto:TO: Saltherring & Sandy Salt
RE: Yeah….But….
….you’re leaving out the ones who set it all up in the first place back in the 1990s, the government that ordered the programs to be implemented.
Regards,
Chuck(le)
Sep 17, 2008 - 10:41 am 24. Sandy Salt:P.S. That includes Democrats and Republicans alike….
Chuck,
You are completely right about the Democrats and the Republicans getting away with it. Sending the Wall Street Wizards to jail would certainly cut down on their campaign contributions on all sides. I am all for tossing the Criminal Congress out on their collective butts and clearing Washington of all lobbyists. I have said it many times that until you clean house it matters not which party is in power because career politicians and lobbyist only have their self interests in mind and not the country’s.
That said, I do not believe for one minute that McCain is going to deliver on his promise to clean up Washington. He has not put any hard facts behind the hot air. I am all for full disclosure on earmarks, but that is nothing new. I want a solid plan on how he intends to clean up Washington. I said this last year, this would have been a great year for a new party that was about tossing the career politicians out, forcing term limits and ending lobbying for good. It would have been a grassroots movement of the people with candidates that vowed to follow the platform. If they had started last year it would have been a landslide for the reformer party because America is truly sick of the status quo out of Washington.
That is why Palin has invigorated this race, but I doubt she will have the necessary support before 2012 to make any real reform. She could head a the new party and break with the career politicians, while still having the credentials of leadership. It is an interesting thought.
Sep 17, 2008 - 11:00 am 25. Chuck Pelto:TO: m00tpoint
RE: Fascinating Analysis
And, highly plausible. And we, the taxpayers, in our ignorance accepted it.
It is INDEED going to do down in history as one of the great ‘bubbles’. Like the South Seas and Mississippi schemes in the 1700s, the savings and loan of the 1980s, and the dot-com of the 1990s.
History repeats itself…once again. And we have only ourselves to REALLY blame, because we (1) weren’t paying attention and (2) don’t really do much to get rid of the drek in Congress.
So…now….each of us is going to be buying those houses.
Regards,
Chuck(le)
Sep 17, 2008 - 11:03 am 26. Saltherring:I stand corrected and am all for including Congressional weasels, from both parties, into the equation. I also agree with Sandy Salt that McCain will do little to clean out the nest. And as for lobbyists, it is long past time to break out the tar and feathers.
Sep 17, 2008 - 11:17 am 27. bear:Krusty,
That was proof? you need to go back to high school
Sep 17, 2008 - 11:51 am 28. cedarford:Wall Street was doing OK except in recessions and the Great Depression on the growth of the American economy, which was led by the (then) best educated workers and unfettered by NYC lawyers.
Then our GNP slowed as we began to become uncompetitive and slowly surrendered our lead in 18 of 20 technological areas and most manufacturing sectors – and that was not enough for Wall Street – which without real wealth being generated at an acceptable rate and with severe trade deficits since the 70s marking our being out-competed, created 3 artificial bubbles to enrich the Fatcats.
All, they knew, would eventually collapse on the lack of real wealth and real profit created.
1. First was the junk bond bubble, which created the illusion of wealth when the Japanese were eating alive our “wealth generation” economic centers of the economy. Poof!
2. Next came the fake “new economy” of high tech companies and Internet plays – where “miracle” companies with no profit were suddenly worth more than whole states. Poof!
3. 3rd up, the “Genius of the Free Market” pounced on the scheme that basically destroyed Japan’s financial empire – the “housing boom that makes unlimited new wealth!” Poof! (And it has taken Japan almost 25 years to show some recovery from that and reverse the drop in standard of living.
The slime of Wall Street, and of both the Democrat and Republican Parties – have burned US and international workers and investors for the 3rd, and possibly last time, with their fiscal bait and switches, betrayals. And the world has alternatives in more reliable and honest financial centers…
Steve Malanga writes – But being burned for a third time may break the spell. With financial markets emerging around the world and new opportunities rising in developing countries, international investors who have been torched once too often may finally come to distrust what American investment banks peddle. The Wall Street firms that remain standing, moreover, may find their own balance sheets so weakened that it is years before they have the capital to make big, risky bets with their own money, which has been another source of profits on Wall Street. If that scenario plays out, Wall Street may find itself relying on the plain vanilla business of earning money on buying and selling stocks for customers—a low margin business—and arranging the occasional merger or public offering. Don’t look for the kind of hiring, bonuses or profits from that world that Wall Street has gotten used to.
Trying to predict the series of dominoes that would fall if investors around the world lose confidence in American finance is a speculative game that’s impossible to play accurately. Suffice it to say that the hundreds of billions of dollars that have already disappeared from portfolios worldwide are funds that are not going to be invested in American companies.
Its not just failing banks and real estate barons now begging…
Sep 17, 2008 - 1:06 pm 29. Red Blooded American:Now the last, large American manufacturing firms, what is left of our real wealth creation sectors outside farming and mining – the rest wrecked by globalization and cheap China labor – are also beginning to plea for taxpayer bail-outs. The Big 3 auto companies, are in talks with speaker Pelosi for loans or bail-outs to see if they can survive..
AIG, the world’s largest insurer, is now owned by the Federal Reserve Bank. Socialism has arrived, in full force, brought to you by your Republican administration.
Sep 17, 2008 - 1:39 pm 30. Red Blooded American:AIG, the world’s largest insurer, is now owned by the Federal Reserve Bank. Socialism has arrived, in full flower, brought to you by your Republican administration.
Sep 17, 2008 - 1:41 pm 31. Jeff:What people don’t understand is why some of us are so against the current Republican ticket, but we have an obligation to fight against history ever being repeated again. Many of us out here are not fighting for the Democratic campaign but are fighting against an ideology.
1) An ideology that completely mirrors the ideology of this past 8 years.
2) An ideology that recognizes the few while completely disregarding the masses.
3) An ideology that believes in taking military action against Iraq, an incident that is completely unrelated to 9/11, without solidifying our claims beforehand. In the present, we have found no evidence of weapons of mass destructions or a tie to Osama Bin Laden. The devastation of this war has cost us over 4,000 of our brave troops and counting, over 1/2 trillion dollars of taxpayer’s money and counting, and over 1 million Iraqi lives unrelated to the terrorists or insurgency.
Cost of the Iraq War — http://www.nationalpriorities.org/costofwar_home
4) An ideology that still believes that the Iraq War is the right war on terrorism when the Afghanistan War should had been the right war on terrorism, where Osama Bin Laden actually was until he slipped into the mountains and into Pakistan’s territory now. The Iraq War also diverted our attention away from the Afghanistan War. We now have extended our resources in two separate places and have heightened our risk to our troops, our expenses, and creating another dilemma that will take quite some time to finalize. The Iraq War will not go away overnight and it is now our obligation to see it all the way through for God knows how many more years. This has also been the most unpopular war in the eyes of the world’s communities.
5) An ideology that believes that we are at our safest state since 9/11, when a recent terrorist plot was still trying to enter Great Britain’s airports with liquid explosives heading directly to us, but thankfully the plot was foiled. While in Afghanistan, the terrorists are regrouping and strengthening and we have recently suffered another high casualty to our troops yet again within this past month. We currently have the least amount of alliances in the world’s communities due to this unpopular Iraq War. True national securities are the ties that bind us to our world’s communities and the ties that bind them to us.
6) An ideology that vetted one of the most inexperience VP ticket in history, from foreign policies to national defense. If God forbids that anything happens to this President if elected and is stricken with illness, this VP will be running the country.
7) An ideology that believes in “the fundamentals of our economy are strong” while we are facing the highest mortgage foreclosure crisis, high unemployment rate, and the largest collapse of our financial infrastructures since The Great Depression of 1929.
This is an ideology that a lot of us in America are against. Whether this ideology is in the Republican or Democratic ticket is not the main issue but the fact is that America does not want to fall into another 4 more years of devastation. We cannot afford this anymore.
Sep 17, 2008 - 2:01 pm 32. Chuck Pelto:TO: All
RE: Jeff and Bull Pucky
Meanwhile the rest of his diatribe is all about Democratic rhetoric. It’s as if he thinks we’re as stupid and/or ignorant as HE is.
Are they all terrible liars? And do we REALLY need such inept people running this country?
Regards,
Chuck(le)
Sep 17, 2008 - 2:40 pm 33. Ed Wallis:[Runtime Error 6D at 417A:32CF: Incompetent User.]
“Jeff” 2:01pm –
Name and define the so-called “ideology” you yammer about.
You have done nothing but air dirty laundry. Your laundry list is nothing but that.
I’ll guess you mean : “Capitalism” …
…versus Socialism (not that you or Zerobama would ever admit to that being the driver behind his policies…no, no, we don’t mean Soros’ checkbook here…)
Given that choice, I trust Americans to vote for Capitalism – warts and all – every time over Socialism.
More than that, however, cannot really be expected from Axelrod Astroturf writers…
“Jeff,” tell Axelrod he needs to send someone else in here; you’ve ruined whatever credibility you may have once had.
Your “sincere caring” is gone baby gone.
Sep 17, 2008 - 4:38 pm 34. Ex-fetus:Much ado about nothing.
Sep 17, 2008 - 5:00 pm 35. DJB Rizalist:When the opening bell rang on Wall Street Monday morning, the USA had the number 1 economy in the world. When the closing bell rang, it still had the number 1 economy. Ditto for Tuesday, Wed. Thur. Fri. and if Wall street was open Saturday, it would be the same.
NO MATTER what happens on wall street there are winners and losers.
Notice that OIL prices have collapsed? That is because the speculators that were keeping the price up stopped to free up capital to buy Financials with. The big Financials put them selves in an over leveraged position and now they are paying the price. The BIG sharks are circiling, looking to buy a valuable property CHEAP. Fractions of a penny on the dollar.
That is all that is happening here.
Eventually the feds will figure it out put somebody in jail and they will get free room and board for a year or two , then get out and grab the Billions they have screwed the fininacials out of.
Like Martha Stewart. She made about 40 mill on her like stock scam, got caught, did 6 months in a halfway house paid 10 mill or so in fines and kept the rest.
Would you spend a few months in jail for 10’s of millions of dollars? ME too!
No really, who’s the socialist now??
Sep 17, 2008 - 5:08 pm 36. Carl:Barack Obama’s Fannie Mae/Freddie Mac Connection
Fox News ^ | Sep 16, 2008 | John Gibson
Posted on Wednesday, September 17, 2008 18:02:40 by fightinJAG
Freddie and Fannie used huge lobbying budgets and political contributions to keep regulators off their backs.
A group called the Center for Responsive Politics keeps track of which politicians get Fannie and Freddie political contributions. The top three U.S. senators getting big Fannie and Freddie political bucks were Democrats and No. 2 is Sen. Barack Obama.
Now remember, he’s only been in the Senate four years, but he still managed to grab the No. 2 spot ahead of John Kerry — decades in the Senate — and Chris Dodd, who is chairman of the Senate Banking Committee.
Fannie and Freddie have been creations of the congressional Democrats and the Clinton White House, designed to make mortgages available to more people and, as it turns out, some people who couldn’t afford them.
Fannie and Freddie have also been places for big Washington Democrats to go to work in the semi-private sector and pocket millions. The Clinton administration’s White House Budget Director Franklin Raines ran Fannie and collected $50 million. Jamie Gorelick — Clinton Justice Department official — worked for Fannie and took home $26 million. Big Democrat Jim Johnson, recently on Obama’s VP search committee, has hauled in millions from his Fannie Mae CEO job.
Sep 17, 2008 - 5:45 pm 37. Snowflakes in Hell » Financial Crisis Quote of the Day:[...] From Stephen Green: In other words, when Congressional oversight of banks forces banks into taking risks they can’t afford, the solution is more Congressional oversight of banks. To put it more plainly: When the boat is taking on water, open up the taps. [...]
Sep 17, 2008 - 6:35 pm 38. palintropos:Good post, Carl. Please see the Harvard study funded by Freddie and Fannie in 2006: http://www.jchs.harvard.edu/publications/markets/son2006/index.htm.
BOSTON, Oct. 13, 1999 (Reuters) – “The mortgage industry intends to pursue minorities with greater intensity as federal regulators turn up the heat to increase home ownership in underserved groups.
‘We need to push into these underserved markets as much as we can,’ said David Glenn, president and chief operating officer of Freddie Mac. Glenn made his remarks at the annual convention of the U.S. Mortgage Banker Association of America (MBA) this week.
Freddie Mac, like its sister agency Fannie Mae, is a government-chartered corporation that buys mortgages from banks and packages them into securities for investors.
In September, Freddie Mac launched a new lending program, based on research done in collaboration with five black colleges, to bring more African-Americans into the market.
The call for greater efforts to broaden minority home ownership comes at a time when interest rates are pinching mortgages. A record $1.5 trillion mortgages were granted in 1998 in a refinancing boom fueled by the lowest interest rates in nearly three decades.
The federal government in the meantime has increased pressure on lenders to seek out minorities, as well as low-income groups and borrowers with poor credit histories.
Fannie Mae recently reached an agreement with the U.S. Department of Housing and Urban Development to commit half its business to low-and moderate-income borrowers. That means half the mortgages bought by Fannie Mae would be from those income brackets. (Based on Reuters, via Builders On-Line 10/13/99, by Richard Leong)[deadlink http://builder.hw.net/news/1999/oct/13/mort13.htx ]
Sep 17, 2008 - 7:28 pm 39. chucklyons:When did we become so hateful? what was the turning point? Housing? Illegal immigration? People buying houses with sub-prime loans?
Sep 17, 2008 - 10:20 pm 40. Deus:The whole sub-prime had one component. Buy now, house value would go up, you would be able to refinance due to the increased equity in your house and your resultant pay increases.
Let’s see. Lehman – 600B? 900b? Freddie and Fannie? 200-300B? Bears Stearns? another couple hundred? AIG? 80B?
Do you honestly think the sub-prime homeowners bought a trillion dollars in home loans? I mean, really?
Two things. a) The banks could have stuck to the same rules and helped the sub-primes out. They are, after all, taxpayers. Doing so would have saved both partied financial hardship b) The banks are taking advanatge of the largess of the American taxpayer.
So we end up with a situation where taxpayers get a sub-prime mortgage; the banks now decide to tighten the requirements, and the sane taxpayers that now have BK on their record end up subsidizing the same bank that wouldnt help the sub-primes to begin with.
Even Forrest gump would see the idiocy of this. The simple solution was to extend the sub-prime under the same conditions as part of any taxpayer buyout.
That assumes, however, that the sub-prime borrower, the taxpayer, and the American had any type of represntation.
And that is what has made us a hateful country.
I haven’t seen so many paranoid people as in this website!
Calling Democrats Communist is laughable. Republicans and Democrats are very similar. The differences are on their own fringes: right-wingers, left-wingers. Most voters are in the Silent Majority. You guys just make a lot noise, but that’s about it.
If you want to improve this banana republic, if your livelihood depends on your salary, keep working. If you have millions to spare, reinvest in something useful. Then meet all kinds of people just to get a little education, and then respect their differences. Travel around the World. That’s where the future is. We are an island, but can reach very far.
Right now the best choice is Obama. McCain is a bad leader. His decision making is flawed. Don’t get upset. Save your testosterone for what it’s really needed. Making a better choice will make you feel better.
Sep 18, 2008 - 2:50 am 41. harveydawabbitt:Universal Express, Inc., the Little Company that First Alerted You and the World about the Devastating Effects of Naked Shorting…
Now the whole world is feeling the pain, reeling from the effect of the Tsunami that they now call NAKED SHORT SELLING. Bear Stearns is gone, Lehman demolished, AIG humbled, Frannie and Freddie usurped by the U.S. Government, Washington Mutual about to be history, Merrill sucked up by a bank, and many more on their way out. The SEC FINALLY DECIDES TO PASS THE “NO NAKED SHORTING” RULE (to be effective tomorrow) !!! When all the horses have bolted out of the barn, Cox, the shining knight in armor, comes to our rescue!! It is the shameful last act of an impotent man appointed to save the markets from exactly what is happening.
In case you have not been paying attention, Universal Express, Inc. (USXP) was severely naked shorted in 1998 after which the company approached the SEC for help. The SEC told it to get lost, “go talk with your market maker”. The company sued the guilty parties and won two massive judgments in 2001 and 2003 totaling over 700 million $. The SEC refused to help the company collect on these judgments. Instead it sued the company and its CEO (on March 24, 2004) for issuing “unregistered” shares into the market, this after being first being sued by the company on March 02, 2004. Judge Gerard E. Lynch of the NY Federal Courts (Northern District) colluded with the crooked SEC lawyers and stripped the company bare by sending over a “conflicted” Receiver who promptly drove everyone out and sold the company for farthings, a company that spent over 10 million $ in advertising just in 2007 !!! The receiver they sent defends a confirmed mobster accused of naked shorting several companies !!
On October 14th, 2008, the 2nd circuit appeals court in New York will be conducting a hearing on whether or not the CEO of Universal Express exercised his rights within the boundaries of law to protect his company from being crushed by naked shorting. After being sued by the company for being asleep at the wheel as the naked shorts raided the company, the SEC sued Universal Express back claiming there was no naked shorting whatsoever, demanding prood (in spite of prior judgments) and charging the CEO for issuing so-called “unregistered” shares, shares the company claimed were legally issued under a Bankruptcy Judge’s plan in the early 90s when the company emerged from bankruptcy. If the ruling to be announced subsequent to this hearing in fact supports the actions of the CEO as having been legal and justified within the framework of our justice system, this will then mean that Universal Express was essentially destroyed (almost to extinction) by the crooked SEC itself, in collusion with the ruthless and crooked wall street hedge funds, aka naked shorts. It would also mean that Judge Lynch is at best an “activist” judge as Senator Sessions forewarned during the judge’s confirmation hearing, and at worst is working hand-in-glove with the dark and dangerous forces within the SEC and within wall street and needs to be indicted and incarcerated.
This coming October 14th, 2008 should be a day for you to scrutinize the judgment rendered by the New York Federal Appeals Court and do some self-introspection. If the decision to be announced subsequent to this hearing is in favor of the CEO of Universal Express and his General Counsel (the shareholders were removed from this appeal in a cruel twist by the “conflicted’ receiver), we suggest you probe deep into your conscience and ask what you could have done when first alerted of this story and why you did not come to the help of all those who screamed for help when the dark forces of naked shorting were decimating hordes of small companies over the years (several thousand of whom are now extinct). How much is your non-action to blame for this outcome? What could you have done to alert the proper forces within your power? Are we living in a democracy? Did you hear his cries when they came for the small guy or did you just laugh out loud like the rest of the world and jeer at the so-called wackos who were shouting naked something as though they were attacked by some wild and senseless unclothed beasts of wall street?
Sep 18, 2008 - 3:42 am 42. Ed Wallis:Hey “Deus,”
Cute tag name for someone pushing the candidate know as The Messiah!
Now, how about defending why Zerobama’s Chicago Machine “experience” qualifies him for “better financial leadership” than McCain – PLEASE SEE REFERENCED ARTICLE:
http://hotair.com/archives/2008/09/17/mccains-attempt-to-fix-fannie-mae-freddie-mac-in-2005/
Sep 18, 2008 - 4:09 am 43. Ed Wallis:A bit of extra info here:
John McCain (May 25, 2005), speaking to the Senate:
Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. 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.
I urge my colleagues to support swift action on this GSE reform legislation.
The legislation was blocked by Democrats, with the assistance of a few Republicans.
Sep 18, 2008 - 4:26 am 44. Chuck Pelto:TO: Deus
RE: Yeah
But even paranoids have enemies.
Regards,
Chuck(le)
[Just because you're paranoid doesn't mean the World ISN'T out to get you.]
P.S. If you haven’t noticed, it certainly is getting SOMEONE, i.e., every taxpayer in this country at the moment. And, based on the growing body of evidence, we have—for the most part—our friends the money-grubbing Democrats to blame; Gorelick, Johnson, Raines, Dodd, Obama, etc., etc., etc.
Oddly enough, McCain warned US about this back in 2005. See THIS item for details.
Sep 18, 2008 - 6:28 am 45. nlcatter:Mccain only worried about fannine mae becsaue poor people were getting mortgage taxpayers subsidized
which DID not cause the housing crisis.
Sep 18, 2008 - 3:43 pm 46. nlcatter:GO Pwas in power majority when the BIll was introduced
Sep 18, 2008 - 3:45 pm 47. Ed Wallis:GOP blocked it not Dems.
Nlcatter is scoopin’ more and more horsehockey as usual:
http://astuteblogger.blogspot.com/2008/09/nytimes-in-2003-bush-proposed.html
EXCERPT:
“Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
”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.”
Sep 18, 2008 - 4:32 pm 48. Deus:Ed Wallis:
There you have it: republicans and democrats don’t solve problems. So let’s pick one with the best vision and leadership.
Have a good day.
Sep 19, 2008 - 2:29 am 49. Ed Wallis:“Deus,” Your non-responsive answer appears to be sheer nonsense.
Again: Please defend why Zerobama’s Chicago Machine “experience” qualifies him for “better financial leadership” than McCain.
Sep 19, 2008 - 3:17 am 50. Jeff:What most people have not notice or fail to notice is that “Change” is coming in this election. But the “Change” is not only being promoted by Obama’s campaign since the beginning, the “Change” is now also in McCain himself, who has seemed to have made a 180 degrees turn in his own transformation. Here are the “Changes” of McCain —
1) McCain was previously against oil drilling in ANWR, Alaska; off the coast of Florida; off the coast of the Gulf of Mexico; and off the coast of California. Now he is for “drill baby drill”.
2) McCain was against Federal regulations of America’s largest financial institutions like Fannie Mae, Freddie Mac, and AIG. Now, after these financial institutions are collapsing, he is promoting Federal regulations to control them so that this crisis will not happen again. He now wants more Federal regulations of Wall Street altogether. Wouldn’t this be considered as socialism that most conservatives do not want? Also, please do not forget McCain’s past involvement in the Keating Five as an example that his future plans for Federal regulations of financial institutions will not work —
http://en.wikipedia.org/wiki/Keating_Five
3) McCain has said over and over that, “the fundamentals of our economy are strong” in reference to our economy. Now, he states that he was referring to the American workers as being the backbone of our economy? This reference is only made after Obama has contested his refusal to accept that our country is in a financial crisis. Maybe this is McCain’s way of defusing his stance of denial.
4) McCain has stated since the beginning of the Republican campaign that he will fight a good and honest campaign without resorting to dirty politics of using smear tactics. Now, most of the McCain’s campaign ads against Obama are smear campaigns that even The New York Times, The Washington Post, The LA Times, Newsweek, and various other major news agencies have declared as false information using very dirty politics. Most of the Obama’s campaign ads have been on the defense to all of these false accusations by the McCain’s campaign ads.
5) For more changes of McCain, please look at the link below —
http://www.thecarpetbaggerreport.com/flipflops
In this election, there are in fact two forms of changes. One form of “Change” is being promoted by a candidate who wants to transform this country for the better, while the other form of “Change” is being promoted by another candidate of his own transformation to capture the hearts of the American public. Which form of “Change” do we want as a country?
Sep 19, 2008 - 5:15 pm 51. Ed Wallis:“Jeff” 5:15pm – DO TELL:
NOW THAT YOU HAVE LOST ALL RESPECT AND CREDIBILITY HERE AT PJM, just WHAT do you think anyone here care what you say?
Sep 20, 2008 - 2:11 pm 52. Deus:Ed Wallis:
If my answer is “nonsense”, maybe you can’t read short answers.
I’m not here to “defend” my points, especially about “Zerobama”, never heard of it. “Chicago political machine”"? That’s something from the 20th century. Nonsense.
Did you have a good day?
Maybe you are upset about what “Jeff” said. You can’t stomach the truth . . .
Sep 20, 2008 - 10:26 pm 53. Ed Wallis:deus 10:26pm – Personal insults.
NIIIIIIIIIIIIIIIIIIICCCCCCCCCCEEEEEEEEEEE.
You still have said nothing to explain why, in your opinion, Zerobama “is the best choice.”
NO ONE’S HOLDING THEIR BREATH, but you’re making a fool of yourself by merely hurling your words without any basis or explanation (9/18, 2:50am).
You ARE, however, confirming what most jargon-thick, reason-thin Leftists (whether on Axelrod’s Astroturf payroll or not) tend to do: mumble, stumble and, when questioned, spew vitriol.
Sep 21, 2008 - 5:38 am 54. Deus:wallis:
You’re pretty sensitive, are you?
Relax and read back what I wrote. What insults? Have someone else interpret it for you. Seriously.
Sep 22, 2008 - 4:30 am 55. kabud:Banks who made mistakes should go all the way down, be investigated and those who will be found guilty- persecuted and their property confiscated
700 billion could instead be used to create METHANOL industry and convert all american cars to methanol.
This could be done fast and next year we will not be importing any oil, so 700 bill spend will come back in 2 years
Sep 22, 2008 - 8:25 am