Posted on 02/02/2009 12:41:18 AM PST by Tempest
The basic story line so far is that we are all to blame, including homeowners who bit off more than they could chew, lenders who wrote absurd adjustable-rate mortgages, and greedy investment bankers.
Credit derivatives also figure heavily in the plot. Apologists say that these became so complicated that even Wall Street couldn't understand them and that they created "an unacceptable level of risk." Then these blowhards tell us that the bailout will pump hundreds of billions of dollars into the credit arteries and save the patient, which is the world's financial system. It will take time—maybe a year or so—but if everyone hangs in there, we'll be all right. No structural damage has been done, and all's well that ends well.
Sorry, but that's drivel. In fact, what we are living through is the worst financial scandal in history. It dwarfs 1929, Ponzi's scheme, Teapot Dome, the South Sea Bubble, tulip bulbs, you name it. Bernie Madoff? He's peanuts.
(Excerpt) Read more at villagevoice.com ...
I’m looking forward to assigning blame and prison cells to those who caused this.
“Fast-forward to the early years of the Clinton administration. After an initial surge of regulatory behavior in favor of fair markets, especially in antitrust, that sort of behavior was abandoned, and free markets triumphed. The result was a morass of white-collar sociopathy at Archer Daniels Midland, Enron, and WorldCom, and in a host of markets ranging from oil to vitamins.”
STOPPED READING RIGHT THERE. THAT’s the point I realized this is another disinformation article written by a Liberal to divert attention from the core problem with the House of Cards the Liberals built.
Village Voice comes through once again for the Left they love so much.
“Fast-forward to the early years of the Clinton administration. After an initial surge of regulatory behavior in favor of fair markets,...”
Let’s read how in favor of fair markets Clinton was in his first year in office 1993:
http://findarticles.com/p/articles/mi_m1282/is_n25_v45/ai_14779796
My negativism is all about the job losses...frankly I don’t know that John-I don’t understand the economy-McCain would do a better job...since these games began and continued under GOP and Dem leadership over the last 25 years or so. I volunteered and voted for McCain and think we are pretty much screwed no matter what. Also, I don’t think most of the country is worried about electing Obama because they don’t see a difference one way or the other-many believe that it doesn’t matter who is elected since the average American is screwed no matter who is in office.
“The recession is NOT the problem. It is the solution.”
We have to grin and bear it, we are a tough nation.
NO TO THE BAILOUT.
OK, that makes lots of sense. A million thanks!
Even though I am financially challenged I share your opinion that it’s going to get uglier.
re: Investors found a way to eliminate risk from the free market
Maybe risk is like matter in that it can be neither created or destroyed, but can change form? It’s a matter of playing a game of “Hot Potato” with risk?
Is that you, Mr. Kucinich?
The politicians have reversed the normal market incentives. Not only are deadbeat borrowers being rewarded, but diligent real estate investors are being screwed. It will just take that much longer to regain normal market incentives.
The bailout is ancient history...the basids have gotten their blood money and will get more of your money...the only question is will congress pass a good stimulus plan-not the crap one they have now and attempt to mitigate the suffering of the American people and perhaps get us out of this...any who trust the the ‘Free Market’ to do this is drinking Jonestown Koolaide. There is no Free Market.
If you had any grasp of the subject you'd understand that government and the unions are responsible for those losses. Free trade and globalism (and credit derivatives?) are the last cries of blame from the union guys who got screwed by the people they trusted most: government and their union. When you trust others (government and unions) to look out for your well being, you'll get what you deserve.....unfortunately.
Hedge funds were develop to remove normal market incentives.
More globalist free trade gibberish...you and others who think like this are part of the problem and will never be part of the solution.
Funny-you want to excuse these guys because you believe in the so called ‘free market’ have at it...I want to hang them because they destroyed the free market (removing risk and betting against this country) and basically gave capitalism a black eye...this is not free market or capitalism, it is a criminal enterprise and Wall Street and our elected officials played a major roll in this debacle.
Ordinarily I'd have thought that this should be enough to sober up anyone.
You do understand intuitively as most of us do...what a great analogy...risk can not be eliminated, but it can be shifted to the economy from the market which is exactly what happened.
How about, just about every single human being in Western Society is living on borrowed money. Even if they are making their payments on time, they are living beyond their means. Our entire economy and system is mostly false and one paycheck away from disaster.
To begin with, they are living in homes that they cannot afford. They did not have the money to pay for them outright, so they were given them on the promise they would pay for them over 30 or 40 years.
The same goes for most who “own” new cars. Very few people actually own anything outright. Most of It is on borrowed credit.
This folks, is the real problem. Our entire society and system is BASED on a razor thin credit bubble, and is always behind, mired deeply in debt. When some economic catastrophe triggers it, the bubble pops and all those people holding that false material wealth, can no longer pay for it and therefore, never owned it in the first place.
And for these Democrats and Republicans who think that the only way out of it is to borrow more money and put us and several generations hopelessly deeper in debt, is criminal insanity.
Did your union or your government protect you? Why not? All they did was take your money and now where are you? Government and unions are the problem. Conservatives have understood that for a long time. You don’t understand this fact so you took it on the chin and now you’re bitter. That’s understandable and unfortunate but it doesn’t change the fact that free trade etc. is not the source of the problem. That rests squarely on the shoulders of government and unions —two institutions you seem to still be enamored with. If your recent experiences and this forum can’t make you smell the coffee then I’m afraid there isn’t much hope.
Ah youth.
OK, unemployment is 7.2%. During Clinton's economic miracle expansion unemployment peaked to 7.4%. We're fine.
Not really, the same thing (depression) basically happened in the 30’s when few people owned financed homes or cars...financing did not begin in earnest until the 50’s. The street basically caused the depression just as they did our modern depression with help from our government of course...they tried to blame tariffs of course...the Smoot-Hawley excuse was a giant “IT’S NOT OUR FAULT” from Wall Street to main street- who were justifiably furious.
10 % in Michigan...but those numbers are cooked-include the people laid of not as recently and you have a best case scenario of 14% and a worse case scenario of 20% in the hardest hit states...the figure is only rising.
As I am not union why should they protect me? As for government, I agree; however,I will not in this lifetime excuse the street and the globalists who played a major roll in this mess and perverted capitalism and the free market to make their undeserved and excessive profits.
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