Did you see Bush on TV last night talking about the economic meltdown? He looked like a deer caught in the headlights.
And McCain looked pretty bad on TV yesterday too. He looked unwell. I prefer Obama, but if McCain wins this worries me, since we need him to stay healthy suince he made the idiotic choice of Palin as his vp.
Read my thoughts on the bailout: http://toratezra.blogspot.com/2008/09/downsizing-america.html
I saw part of it, but I can't watch him for long without extreme anxiety, so I didn't watch it all.
There's rampant speculation among some of my friends that McCain had a stroke or something which is why he's 'suspending' his campaign. I don't think that's true, but campaigning has to be getting to him..that's a lot of insanity for a young healthy person, let alone a 70+ year old. Which is yet another reason McCain probably isn't the best choice for president.
Oh please, the Republicans were the ones who were trying to put some controls over Fannie Mae, Freddy Mac,and the Community Reinvestment Act. Barnie Frank, Chris Dodd, Franklin Raines, Jim Johnson, and Acorn are the ones you should be blaming.
"Oh please, the Republicans were the ones who were trying to put some controls over Fannie Mae, Freddy Mac,and the Community Reinvestment Act..."
Yes, Ichabod, technically you're right. But you're dealing with a crowd of people who are more or less convinced (as an article of faith) that the solutions to all the world's ills from "global warming" to terrorism to the financial crisis may be solved with the following equation: Problem - Bush= Solution. Yes, it's stupid and makes no sense, but, as I mentioned, it's merely an article of faith, and wants no particular proof for its adherents to believe it.
The failure wasn't in the government backed mortgages. The impact on Fannie and Freddie came later (just as prime mortgages are coming under strong pressure due to the failing economy).
The problematic "liar loans" were thanks to unregulated financial instruments. Sub-prime mortgages (some strongly sub-prime) were chopped into securities, and widely sold. There was no visibility into the risk, and it is that opacity which has made it hard to even estimate the exposure that financial institutions have.
You can rant about the federal home buying programs all you want, but the fact is that it was a set of risky and unregulated investment vehicles created by private financial firms over the past half decade or so that were what broke the system.
As long as the real estate bubble continued, there was no risk to the banks for not paying attention to whether or not people could actually pay. They'd either refinance (more fees for the banks) or the banks could take the property (which was worth more than the note).
Once the bubble collapsed, the houses started going into foreclosure. That started freezing credit markets, since the banks couldn't resell. Additionally, multiple houses for sale were reducing property values, reducing new construction, and so forth.
Many of these new investment vehicles were paired with "insurance" for the companies underwriting them; the insurance companies started failing. The securities themselves became unsellable, as it became clear that they were worth far less than had been paid for them. Since banks are required to maintain asset reserves, as these investments failed, the banks became insolvent.
I know that none of this will sway those who have decided (or been convinced by sound snippets on talk radio) that it was all those pesky liberals behind things, but the facts simply don't back that up. It wasn't the government backed mortgages that started things, it was unregulated securitization of risky mortgages.
We added regulation and transparency rules in the wake of the Great Depression for a reason. The Republicans dismantled them (thank you Phil Gramm), and we are now paying the price.
He eats it, all right.
ReplyDeleteI literally cackled out loud when I saw this picture!
ReplyDeleteDid you see Bush on TV last night talking about the economic meltdown? He looked like a deer caught in the headlights.
ReplyDeleteAnd McCain looked pretty bad on TV yesterday too. He looked unwell. I prefer Obama, but if McCain wins this worries me, since we need him to stay healthy suince he made the idiotic choice of Palin as his vp.
Read my thoughts on the bailout: http://toratezra.blogspot.com/2008/09/downsizing-america.html
I saw part of it, but I can't watch him for long without extreme anxiety, so I didn't watch it all.
ReplyDeleteThere's rampant speculation among some of my friends that McCain had a stroke or something which is why he's 'suspending' his campaign. I don't think that's true, but campaigning has to be getting to him..that's a lot of insanity for a young healthy person, let alone a 70+ year old. Which is yet another reason McCain probably isn't the best choice for president.
This is funny!
ReplyDelete1.20.09 baby!!!
ReplyDeleteLets just hope its not the war hero and the moose hunter
He's living breathing proof that any American boy (who was born with money and all that money can buy, including Florida) can grow up to be president!
ReplyDeleteOh please, the Republicans were the ones who were trying to put some controls over Fannie Mae, Freddy Mac,and the Community Reinvestment Act. Barnie Frank, Chris Dodd, Franklin Raines, Jim Johnson, and Acorn are the ones you should be blaming.
ReplyDeleteIchabod Chrain
"Oh please, the Republicans were the ones who were trying to put some controls over Fannie Mae, Freddy Mac,and the Community Reinvestment Act..."
ReplyDeleteYes, Ichabod, technically you're right. But you're dealing with a crowd of people who are more or less convinced (as an article of faith) that the solutions to all the world's ills from "global warming" to terrorism to the financial crisis may be solved with the following equation:
Problem - Bush= Solution.
Yes, it's stupid and makes no sense, but, as I mentioned, it's merely an article of faith, and wants no particular proof for its adherents to believe it.
The failure wasn't in the government backed mortgages. The impact on Fannie and Freddie came later (just as prime mortgages are coming under strong pressure due to the failing economy).
ReplyDeleteThe problematic "liar loans" were thanks to unregulated financial instruments. Sub-prime mortgages (some strongly sub-prime) were chopped into securities, and widely sold. There was no visibility into the risk, and it is that opacity which has made it hard to even estimate the exposure that financial institutions have.
You can rant about the federal home buying programs all you want, but the fact is that it was a set of risky and unregulated investment vehicles created by private financial firms over the past half decade or so that were what broke the system.
As long as the real estate bubble continued, there was no risk to the banks for not paying attention to whether or not people could actually pay. They'd either refinance (more fees for the banks) or the banks could take the property (which was worth more than the note).
Once the bubble collapsed, the houses started going into foreclosure. That started freezing credit markets, since the banks couldn't resell. Additionally, multiple houses for sale were reducing property values, reducing new construction, and so forth.
Many of these new investment vehicles were paired with "insurance" for the companies underwriting them; the insurance companies started failing. The securities themselves became unsellable, as it became clear that they were worth far less than had been paid for them. Since banks are required to maintain asset reserves, as these investments failed, the banks became insolvent.
I know that none of this will sway those who have decided (or been convinced by sound snippets on talk radio) that it was all those pesky liberals behind things, but the facts simply don't back that up. It wasn't the government backed mortgages that started things, it was unregulated securitization of risky mortgages.
We added regulation and transparency rules in the wake of the Great Depression for a reason. The Republicans dismantled them (thank you Phil Gramm), and we are now paying the price.
Nobody BOUGHT Florida. We happen to be a swing state.
ReplyDelete