Posted on 09/17/2008 2:46:43 PM PDT by Mr. Brightside
Senate Majority Leader on Economic Woes: 'No One Knows What to Do'
September 17, 2008 2:03 PM
ABC News' Z. Byron Wolf reports from Capitol Hill: Don't look for any legislation in the near future to address the financial crisis.
Senate Majority Leader Harry Reid, asked today what new regulatory actions Congress can take, said, bluntly, "No one knows what to do."
(Excerpt) Read more at blogs.abcnews.com ...
Wait, what? Nobody knows what to do? I though Obama had all the answers?
I smell a new ad coming shortly from the Schmidt Storm.
Please, will the good people of the great state of Nevada spare us this millstone the next time around!
When have rats ever known what to do?
Too busy complaining and passing blame..
Legislation?!!!! That would nothing but pour gas on the fire! Keep Washington out of it.
Reinstitute Glass-Steagal for finance industry.
Adopt Bush’s 2003 proposed reform of Fannie Mae.
Limit derivatives.
It’s not that difficult.
ARREST FRANKLIN RAINES!!! He SHOULD be in Prison! Next go for ALAN GREENSPAN!! Then look at Clinton for getting rid of that Glass/? Act with the stroke of a pen!
Legislation?!!!! That would do nothing but pour gas on the fire! Keep Washington out of it.
..don't get your knickers wet Dingy, somewhere, somehow, people like yourself will get to screw it up more
I cannot comprehend the sheer idiocy and hubris of thinking that legislation or regulations can “fix” an economy. Economies either fix themselves or they don’t. Part of the pain that we’re going through is what we must go through to correct the mistakes of the past.
When government gets involved in trying to “fix” something as broad, fluid, dynamic and organic as our economy, surely no good can come of it.
Meddling by the government in the form of bailouts will only prolong the situation by preventing the system from cleansing itself of bad debt, which is the ultimate source of these current problems.
In a world that is falling apart by the minute, I thank you for posting one of the funniest pics I have ever seen!
Pardon my ignorance, but I've heard that term, derivatives, several times today. What is a derivative?
I’d start by firing every damn federal bureaucrat not involved in national security. And if that doesn’t work, I’d start hanging congresscritters.
Ronald Reagan would know what to do.
Don’t get the government involved in trying to “fix” everything.
When the government bails out sick companies, it has to take money away from healty companies in the form of taxes, or it has to borrow money (which makes it harder/costlier for healthy companies to borrow money.)
Creating a bunch of new regulations just creates more red tape that makes it harder for healthy companies to do business.
The solution is the same as it was when Reagan took office in Jan. of 1981 and inherited Carter’s disaster of an economy. Cut taxes. Not just a little, but a lot. Cut them for business even more to help healty companies expand and help others start new businesses (and so we quit taxing businesses to the point the move overseas to avoid our 2nd highest in the world corporate tax rate.)
Reduce spending. Every dollar the government spends is a dollar a business (you know, those things that create jobs and drive the economy) can’t invest to create jobs.
Ronald Reagan would know what to do.
A derivative is a synthetic security that is constructed (derived) from other securities. For example, a simple derivative security is the IO (interest only) that is constructed out of a pool of mortgages. The holder of the mortgages sells the interest payments, as a stand-alone cash flow stream, to an investor as a new “derivative” security. The remaining piece, the principal payments, are separately packaged as a PO (principal only).
It gets much more complicated, with such things as CMO residuals that you probably don’t want to know about.
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