Posted on 09/05/2007 9:06:29 PM PDT by Proud_USA_Republican
To: Senator Hillary Clinton, Senator Christopher Dodd, Senator Charles Schumer and members of Congress Please do not support the efforts to bail out mortgage holders and mortgage lenders with my tax dollars. As a responsible citizen, I do not believe it is right for you to ask me to pay for other peoples’ financial excesses, especially since a bailout encourages lenders to continue making predatory loans, with the assumption that taxpayers are on the hook. Further, we believe that the liability of the mortgage mess should NOT be shifted to GSE’s Freddie and Fannie.
I appreciate the goal of helping people to have access to housing, but any proposed bailout will only reward lenders and borrowers who acted irresponsibly, and it will punish people who work hard and diligently manage their finances by not buying houses which they cannot afford.
The housing market has begun a process of correction. This is necessary in order to keep housing affordable in the long-term. Let the market correct so we can achieve stability again, and people are able to save and afford the house of their dreams over time. That really is the true American Dream.
Sincerely,
The Undersigned
(Excerpt) Read more at petitiononline.com ...
Click the source link or go here:
http://www.petitiononline.com/bailout/petition.html
I’d hesitate to provide klintora, dodd, and schumer with a mailing list of folks who sent a message containing this:
“I appreciate the goal of helping people to have access to housing,”
the real problem is bad monetary policy. The problem is that the fed, not the market, sets interest rates. First it is set artificially low and people will take advantage of it. Then the rates are jacked up too high and that screws people. Then everyone needs a bailout.
It’s the same as price control. Make the price too low and watch as store shelves are cleared. Then you have shortages and long lines.
...You’re asking Hillary (White Water) Clinton to *not* support a bail out?
But you’d be depriving them of extortion money...
The Fed has control over exactly one interest rate: the interbank lending rate, aka the ''discount rate''. It does NOT have control over the celebrated Fed Funds rate. It merely sets a preferred target for that rate. The Fed has a good deal of suasion in this latter rate, but control it simply does not have.
Most of the time, lending institutions find the Fed's target reasonable and adhere to it, or very close to it. Today, the Fed Funds target is almost 30 bp too low for lending institutions, as demonstrated by the skew between the Eurodollar and Fed Funds markets.
The Fed controls interest rates? Nonsense. Learn your finance, ari. You've simply stuck your, er, finger in the electric fan here.
The United States Is Assisting In Building A Market For Affordable Housing In Latin America.
This year, the Overseas Private Investment Corporation (OPIC) has already approved $305 million in financing to help underwrite mortgages and build homes in our hemisphere. Also, OPIC is currently planning to support more than $250 million in additional financing this year to help provide low and middle income residential home mortgage loans and home construction loans in ten Latin American countries. Through OPIC, for example, the U.S. provided $10 million in financing to help underwrite mortgages that will benefit low and middle income families in Nicaragua.
Wouldn’t (isn’t) the Fed Funds be inter-bank exchange rates while the Discount Rate be for the general public at large? I would think that the Discount Rate as applied to the economy weighs mightier than the Fed Funds rate. Is there a money chart to get this type of data/info?
Tax Payers Against a Wall Street and Mortgage Bailout (Petition: Hillary, Schumer, Dodd, & Congress)
if these 3 clowns are for it (piaps/shmuck/dope)....I am against it!!!!
Heartless, mean-spirited, bigoted (insert your Demo-commie class warfare hate propaganda here) rich Republican bourgeois swine.
Another trolling for votes adventure that dems will resort to demagoguing opponents of this bill saying “Where exactly is your soul, where is your compassion you hate-filled right wing extremist.”
Better to send this petition to people who actually have enough sense to see this idea is a bad for the future of this country.
Does this bill have a provision about restoring borrowers credit rating?
Almost surely, the most famous exception occurred in the evening of 19 October 1987, aka 'Black Monday'. At the Chicago Merc, the arbitrageurs who were short stock shares and had sold SPX puts against them were utterly destroyed that day, when the SPX went to a then-unheard-of 40 pt premium over cash.
Cumulatively, these folks went into the dinger bigtime -- they were well over $1 billion in deficit.
Futures and futures options trades must be marked-to-market and settled up every day. So, how did these folks whistle up a cool billion-plus dollars overnight? The only lender in a situation such as this is the Fed, and the mechanism they used that evening was the discount window. Good thing, too -- or else CME probably wouldn't have been able to open for trading the next day, and the losses would simply have exploded when every brokerage house forcibly liquidated the remainder of the arb positions.
I'm at a bit of a loss as to what you're asking regarding Fed Funds. Delighted to answer your question (assuming, of course, that I know the answer), but I'm not sure what the question is.
Sorry.
The rates on government bonds ARE set by "the market."
The Fed has control over exactly one interest rate: the interbank lending rate, aka the ‘’discount rate’’.
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yes that is what I was talking about. The market, not the fed should set all rates. Otherwise you are bound to have imbalances.
who controls the supply of us govt debt? the govt. Therefore the rate can not be set by the market even if the demand is.
Inflate the currency and the money is ‘easy.’ This is what happened this decade; people took advantage of the easy money, took risks in real estate they would otherwise not have made if the money was sound and got screwed in the end.
http://members.forbes.com/forbes/2007/0917/023.html
Your required reading.
“...What Alan Greenspan did and what his successor, Ben Bernanke, has failed to undo is the exact opposite of Greenspan’s big blunder in the late 1990s, when the Federal Reserve inadvertently tightened up. That squeeze sent commodities crashing—oil fell to $10 a barrel—and brought on the 2000—01 recession.
Since 2004 the Fed has raised short-term interest rates in numerous baby steps, but—and this is key— it has failed to mop up the excess money it created.
What does all this have to do with the home mortgage mess? When excess money is created, lenders and investors feel the itch to put it to work. Think of it as too much money chasing too few sound business and investment opportunities. Standards deteriorate. The already booming housing market went on steroids, as did hedge funds and equity funds.
Remember one other thing, too. The 'discount window' is not used very much on an ordinary day. Why? Because it is known to the market that it is usually the lender of last resort, and banks using it take an immediate hit to their credibility. ''Wow, nobody else will lend you funds...etc, etc.''
all market rates -everything in the market- will be affected by the Fed’s policy because that’s where all the money comes from. Fed policy is not market based and you’re going to have these problems as a result.
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