Posted on 09/24/2008 9:26:33 AM PDT by rightinthemiddle
Bernanke declares markets must be stabilized, Bush reported eyeing speech to nation
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke declared Wednesday that economic growth depends on stabilizing stressed financial institutions as the White House said President Bush was weighing a speech to the nation on turmoil in the markets.
(Excerpt) Read more at biz.yahoo.com ...
Honestly, I’d rather hear a speech about what to do from Steve Forbes or Mitt Romney about the economy than I would from W at this point.
I’d like to see him come out and tell voters about the Democrats who covered for Fannie/Freddie; the Liberal policies that got us in this mess and tell the Media to go to h*ll.
Why are all of the current bailouts designed to reward the grasshoppers among us instead of the ants?
It seems to me part of the financial problem out there is too many dollars chasing the assets. The trillion plus dollars that have already disappeared is a start, but putting money out there to only chase the next bubble is not going to help. Plus there is the confidence issue - Americans not wanting to risk their savings on the next Wall Street created monetary illusion.
So instead of a bailout of the idiots who got us into this, how about a plan to reward the people who work hard every day and are frugal?
To free up the credit markets, instead of throwing 700 billion+ out there, why can’t the government issue one million, ten year zero coupon bonds backed by the Feds? Have them pay 9 or 10% interest and only be sold to Americans who can show a Social Security number. (Limit one per SSN) The interest could come from new levies placed on the industries who have been playing fast and loose with our national heritage. If they can afford to lobby Congress for goodies, they can pay Americans to bail them out. I would guess that many Americans who have money sitting on the sidelines because they’ve been frugal would love the chance to invest in a long term secure bond that pays a decent return. Allow Americans to hold it as a Roth IRA and it would be even better. Money would stream in off the sidelines and be available to help with the credit crunch giving the US a ten year window to straighten out the mess that has been created. In addition, the money and interest would be there ten years from now to fund retirements, education, etc.
I’m sick of seeing foreign governments and power brokers always be given the sweet heart deal. See if you have easy access to the preferred stock they get. It’s time the American taxpayer got the good deal instead of the bill.
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Golden oldie from Free Republic...
The Ant and the Grasshopper
OLD VERSION: The ant works hard in the withering heat all summer long, building
his house and laying up supplies for the winter. The grasshopper thinks he’s
a fool and laughs and dances and plays the summer away. Come winter, the ant is
warm and well fed. The grasshopper has no food or shelter, so he dies out in the
cold. MORAL OF THE STORY: Be responsible for yourself!
MODERN VERSION: The ant works hard in the withering heat all summer long,
building his house and laying up supplies for the winter. The grasshopper thinks
he’s a fool and laughs and dances and plays the summer away. Come winter,
the shivering grasshopper calls a press conference and demands to know why the
ant should be allowed to be warm and well fed while others are cold and
starving. CBS, NBC, and ABC show up to provide pictures of the shivering
grasshopper next to a video of the ant in his comfortable home with a table
filled with food. America is stunned by the sharp contrast. How can this be,
that in a country of such wealth, this poor grasshopper is allowed to suffer so?
Kermit the Frog appears on Oprah with the grasshopper, and everybody cries when
they sing, “It’s Not Easy Being Green.” Jesse Jackson stages a
demonstration in front of the ant’s house where the news stations film the
group singing, “We shall overcome.” Jesse then has the group kneel
down to pray to God for the grasshopper’s sake. John Kerry exclaims in an
interview with Peter Jennings that the ant has gotten rich off the back of the
grasshopper. John Edwards cites this as an example of “two Americas”
and calls for an immediate tax hike on the ant to make him pay his “fair
share.” Finally, the EEOC drafts the “Economic Equity and Anti-
Grasshopper Act,” retroactive to the beginning of the summer. The ant is
fined for failing to hire a proportionate number of green bugs and, having
nothing left to pay his retroactive taxes, his home is confiscated by the
government. Hillary gets her old law firm to represent the grasshopper in a
defamation suit against the ant, and the case is tried before a panel of federal
judges that Bill appointed from a list of single-parent welfare recipients The
ant loses the case. The story ends as we see the grasshopper finishing up the
last bits of the ant’s food while the government house he is in, which just
happens to be the ant’s old house, crumbles around him because he
doesn’t maintain it The ant has disappeared in the snow. The grasshopper is
found dead in a drug related incident and the house, now abandoned, is taken
over by a gang of spiders who terrorize the once peaceful
neighborhood. MORAL OF THE STORY: Think Self-Responsibility. Think Conservative.
The ant has disappeared in the snow.....
After a short stay with his family back at the Ant Farm; he spent his time
doing some consulting and working on his biz plan.
Mr. Ant is back on top with a new dot com and did not repeat his past errors.
That is correct he is 100% OFF SHORE! He owns nothing! Pays almost no US taxes!
Mr. Ant now spend his spare time seeking gov funding for doing nothing.
W needs to come out and tell us how he went along with the ‘rats rather than confront them for the last 8 years.
A day late and a dollar short.
We should have been hearing from Bush ALONG TIME AGO about this.
He took a hard line against terrorism, and for that I will always be grateful. And I will always admire him for that.
But, the hardest working Americans, who pay their taxes, pay off their credit cards, their car loans, mortgages have been BETRAYED by this President, the Former President, and the Congress for the last 15-20 years.
None of them has been capable of making domestic decisions that are in the best interest of the hard working Americans. Every decision has at its core ‘how do I stay in power? and to the extreme and most sinister, ‘how do I help destroy America and subjugate her to the rest of the world?’
http://gatewaypundit.blogspot.com/2008/09/bush-called-for-reform-of-fannie-mae.html
** 2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
** 2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
** 2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (”Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
** 2004
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market’s] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
** 2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)
** 2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07)
** 2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08)
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
In 2005— Senator John McCain partnered with three other Senate Republicans to reform the government’s involvement in lending.
Democrats blocked this reform, too.
More... Not only did democrats not act on these warnings but Barack Obama put one of the major Sub-Prime Slime players on his campaign as finance chairperson.
UPDATE: The media is not reporting that the failed financial institutions are big Obama donors.
I’ve decided there must not be an emergency here. After all, if there were a real emergency - both parties wouldn’t be playing political games with it.
BDS is much easier.
There is simply no way to avoid a serious downturn in these circumstances, unless the Paulson plan is used to open up the cheap credit spigots, put Queen Leverage back on her throne, and party hearty.
McCain should be trotting out Romney at this time to do what he does best and knows the most about, and that’s dealing with the economy. When I think of Bush, I think of BILLIONS going to Africa to “fight” aids. What a “conservative”.
Amen to that. Paulson should resign and W should turn the mess over to Romney for recommendations.
Bush should just shut the hell up, he has nothing to offer on this except apologies to all of us who supported him and put him in office twice. He completely blew the incredible political capital provided him by 9-11 to shut down illegal immigration, completely blew the political capital provided him by the 2000 election problems to get a grip on voter fraud, and showed no guts whatsoever to call out the Democrats for their continuing misdeeds on a wide variety of matters, not just this financial mess. Similar to his father, a wuss-ass Presidency that sets us up for another major step backward in the coming years.
Don't hold your breath. Anything of the like would violate his precious "new tone".
It's become downright hysterical to hear anyone drone on about what an arch-conservative GWB is and then compare it to his 8 year long string of leftist giftgiving. Turns out he was just another politician saying whatever he needed to say to keep the base in line. This will be no different.
I agree. Any such speech would probably not be at all partisan or do anything to place the bulk of the blame where it belongs. GWB would probably just either accept responsibility himself or say it is a bipartisan issue. Even if he were to lay out the whole ugly truth and say Dems bear more of the blame, the reaction would be so negative that most people wouldn’t believe him anyway.
Bush said considering speech to nation on economyMcCain said to be begging him not to.
Without going into all the other stuff Bush has screwed up (e.g., al Sadr/spending/Iran,etc), just let me say you're right. He needs to shut up and go away.
Bush is 100% in favor of the sham bailout bill. If he makes a speech - it will be to try to get it passed in its current form. He will come out swinging alright - in support of the socialist plan.
Yep. He should quietly go to Crawford and not return to Washington until he has to on January 20 -- even then he should probably just let Cheney handle things.
He has no credibility left. He is a terrible communicator. Every time he appears, he only raises the poll numbers for Obama.
Dear Mr. President: If you’re going to address the Nation, please don’t do it during tha Couric interview of Sarah or no one will watch you.
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