Posted on 10/10/2008 4:56:13 AM PDT by Hillary'sMoralVoid
It all begins and ends with Freddie and Fannie. Years of lies and misrepresentations of the financial health of these organizations by Democrats, and their resistance to greater oversight laid the groundwork for a global collapse.
They have been operating these agencies on blind faith and have been selling worthless bundles of loans on the world market. The chickens have come home to roost with the democrats.
This is not a result of failed Bush policies, it is a failure of the Democrats to heed Bush's warnings about the impending collapse of Freddie and Fannie and the onslaught of global markets that it brought.
If it’s (just) the Dem’s fault (and I’m not absolving them) then explain why Iceland is bankrupt.
AWESOME NEW SLOGAN!!!
That has got to be the non-stop chant!
The Republicans/McCain need to make this point loud and clear. Game over. As simple as that.
Because, Iceland bought into the Bolshecrat lies.
I still don’t understand (and it may take a book length tome to remedy that) how a few bad loans in one sector of something so unimaginably large as the US economy can cause the collapse of not only said US economy, but financial markets all over the world.
Rats thrive on crisis and debacles. Its the best time for them to make shifts to the left. If the crisis does not occur naturally (ie, Katrina), then they can be manufactured (fannie, terrorism (encouraged by Rats), strikes, disenfranchisement, racism).
Due to political correctness and racist issues it is always the Republicans fault.. Republicans miss managed the Democrat mess and are responsible for the collapse of the stock market../s
The GOP was in power in Congress for 14 years. The GOP had the White House for the last 8 and still the veto pen.
This is not the fault of conservative ideology, but it is the fault of the GOP as it currently exists.
Blaming the Democrats for doing what Democrats do is like blaming a new puppy for pooping on the rug. You know it is going to happen and if you don’t stop it you are a fool to blame the dog.
The only problem is that since it IS the GOPs fault, the ridiculous two-party system means the untrained dogs are going to be put in charge of cleaning the crapped-up rug.
Independent situation with Iceland. I don’t know what their exposure to sub-prime is, but there are certainly global factors in play here.
Can’t believe what I heard on Scarborough( boring with joe) this morning. He actually said that back in 93 the White House said we were headed for a housing disaster due to the sub-prime lending policy. Barney Frank told Clinton he was willing to roll the dice and see what comes up. I can’t believe that Frank isn’t under investigation.
so when is bush going to step up and demand answers and heads on a platter...??...once again the do nothing gov’t will get away with screwing the little people over....this country is quickly becoming what we send troops over seas to fight against...fraud...corruption...socialism in the making....
Keeping Fanny Mae and Freddy mac in the game buy buying any and every crappy mortgage the mortgage brokers could get rubes, illegal aliens to sign allowed the carny game to continue. The Democrats screamed bloody murder when attempts were made stop the game or at least add some sensible guidelines.
Allowing a majority of the bundled loans to be graded AA securities and sold because the loans were backed up by the federal government was the true crime. Investors all over the world bought these. Good as gold they thought.
It is not only the Democrats fault by any means. If it was so obvious, Bush and Republican leaders could have insisted that the issue be dealt with. Walking out of the House and Senate and bringing them to gridlock until they were given a chance to explain the con game going on would have helped.
The entire world overleveraged, not just the U.S. There are plenty of good explanations out there (e.g. Jim Willie financialsense.com) from people who have seen this coming for a long time.
This was manufactured by Alan Greenspan with accomplices on Wall St, not to mention Japan. The Dems went along for the ride, made things worse, but didn’t cause overleveraging around the world.
Yes the moral hazard of F&F backed up by government made our mortgages much cheaper than they should have been. But the packaging was not the creation of F&F, it was done by very smart Wall St types. The excessive liquidity at short rates that fed the monster came from Easy Al and Japan (especially Japan, have you looked at the carry trade unwind lately?)
Those loans were packaged and repackaged and sold and resold domestically and internationally, so much that no one knows what the underlying value of those repackaged bundles of loans really is.
Since no one knows, everyone in the financial markets is scared. Whereas these were seen as great investments, now they are toxic, and lending between large banks, etc., has simply seized.
All because no one knows the real value of what they have in their mortgage portfolios. The good has been sunk...not by the bad...but by the unknown.
Iceland did stupid leverage, Europe did stupid leverage, Japan and Greenspan fed them the money. The Europeans also bought a lot of MBS (now maybe 50 cents on the dollar) and they took out CDS insurance for them (now worthless). So they are out of luck, their banks are frozen and each country is protecting their own depositors at the expense of banks in the other countries.
The bottom line is STILL (I think) a bunch of bad loans in one single sector of one economy in one country. Less than 5% are bad loans is what I’ve heard — so we have global economic collapse?
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