Come on James,You know this is not a partisan problem. All parties (people) and both political parties have benefited from the deregulation and poor management of the financial sector. It's easy to find articles detailing the Republican parties participation in or contribution to this problem:http://wonkroom.thinkprogress.org/2008/09/19/perino-challenge/My real point however is that to continue blaming one party or the other is not helpful. If we demonize "the other", then we don't understand them; we shore up our support of our own party without understanding it either, which, contrary to your blog's mission, keeps us uninformed thus unable to change things.
ant a.,Find them and I will gladly post them. I'm not doing this as a partisan. I am doing this as an American.We have a systemic problem. These people continue to spend, spend, spend, like drunken sailors. That is what I am trying to get at.If we don't root out this systemic problem, then we aren't going to be able to fix the problem. In my humble opinion, anyone that supports this particular bailout package is a fool.We are allowing the people that robbed the henhouse, guard the henhouse. We are the one's restocking it!!!Please get me the stuff on Republicans and I will gladly post it. It has to be point-blank evidence like this and I will put it up here for all to see.This corruption must end!!! It is going to bring this country to its knees.
James here ya go! http://www.youtube.com/watch?v=vLUbb2DUYGk
This article ("The Reckoning: Agency’s ’04 Rule Let Banks Pile Up New Debt") from the NYT about a rule being lifted on investment banks explains some of the problem:http://www.nytimes.com/2008/10/03/business/03sec.html?_r=1&oref=slogin
The problem was not about piling up debt. It is and was about piling up bad debt by allowing Sub-Prime borrowers to borrow money they weren't going to be able to pay back.The same people that purchase cars from used-car financing lots or rent-a-centers were financing houses using creative marketing instruments that involved variations of adjustable rate mortgages. The problem is that while used car lots and rent-a-centers can make a living by repossessing cars or merchandise and reselling them (flipping) them, banks don’t have the same luxury.The problems began when the economy began to overheat, because of oil prices and the subsequent pressures on all industries. The government had to raise interest rates. As interest rates began to rise, these ARMs went up and the houses purchased using these creative marketing schemes became unaffordable. These are the houses that are currently sitting empty. They are the houses that taxpayers are now on the hook for, because of the bailout passed last week. The sub-prime borrowers will likely never be in the market again, so who are we going to sell these houses to? These houses are going to sit around and continue to deteriorate. We are going to lose all of that $700 billion bailout passed last week and they are going to want more. In the end this is a $2+ trillion fiasco. I hope when they come back the next time, that we will stop them.Because the government is spending money like drunken sailors, we are headed towards a period of hyperinflation. Growth in money supply is what causes inflation. The more money created, the less value it has. The only way to stave off that inflation is for the government to slash the budgets of discretionary social programs.We are going to see at a minimum 10% inflation and probably more like 20% to 25% (and maybe even higher). That will cause interest rates to be 15% minimum, 30% more likely, and it could be even higher. That is, if you can even get a loan. Our standard of living is going to decrease drastically, because everything is going to be more expensive and borrowing money will be prohibitive.The bills have basically come due. Even if we are able to push this problem down the road a bit further, we are still going to end up back at square one and we’ll be in an even bigger hole. We have to start paying down our national debt. We have to also, as individuals, start paying down our personal debt. If we don’t start doing this, we are going to suffer a protracted decline in every aspect of our economy for generations.I wish and pray that I am wrong, but common sense tells me that we are only a few months away from finding out the true scope of these perilous times.
I agree James that the sin of the individual (living well beyond his/her means and on credit) is directly reflected in the financial markets and both are being corrected. Granted, a train hitting a wall at high speeds is a painful correction, but correct it does. And as with all head-on collisions, it's gonna be gruesome.
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