"O" Bailed out the banks to bail out the "O"

[Doc1911]

So much for money management. Regulators have approached big banks about borrowing billions to shore up the dwindling fund that insures regular deposit accounts: FDIC May Borrow Money From Banks - and he still desires a health care program?

[walien]

W bailed them out too. McC was going to as well.

[USMC-03]

Originally Posted by walien

W bailed them out too. McC was going to as well.

George Bush did indeed start the stimulus and bailout fiasco, which John McCain supported, and shame on the both of them. Last I checked though, Bush is no longer president and McCain lost. B.O. is bull of the woods now and the buck needs to stop there; not that he has anywhere near the fortitude of Harry Truman...

[Doc1911]

Originally Posted by walien

W bailed them out too. McC was going to as well.

Yes, bailouts actually began under the Republican presidency, but it does not change the stupidity of the decision especially when the Gov't is now thinking of having to borrow funds AGAIN. If the Fed has been so mis-judged and mismanaged in such a brief period of time under the "O" then how are we to trust that health-care management, which is longterm, will be any better?

[walien]

Bush is no longer president and McCain lost.

..because of term limits and McC lost to someone who was going to do the same thing with the banks that he was.

Yes, bailouts actually began under the Republican presidency, but it does not change the stupidity of the decision especially when the Gov't is now thinking of having to borrow funds AGAIN. If the Fed has been so mis-judged and mismanaged in such a brief period of time under the "O" then how are we to trust that health-care management, which is longterm, will be any better?

The FDIC is not the Federal Reserve Bank. The FDIC is there to provide protection for deposits in banks that go under. This stops 'runs' on banks and provides stability for the banking system. The current banking mess was handed to Obama. Should you want to call him out on health ideas, why not do that instead of griping about something that is largely a Republican problem that he was handed.

[Doc1911]

Originally Posted by walien

..The FDIC is not the Federal Reserve Bank. The FDIC is there to provide protection for deposits in banks that go under. This stops 'runs' on banks and provides stability for the banking system. The current banking mess was handed to Obama. Should you want to call him out on health ideas, why not do that instead of griping about something that is largely a Republican problem that he was handed.

So you see no connection between the FDIC and the FRB? You do not see mismanagement at the highest levels of gov't? Interesting.

Things DID NOT begin with Bush, but Clinton and others (see below), but when Bush was in office he still had to work with a largely Dem: Senate and House vs. the "O" and Dems have control and have taken ownership of the financial crisis ("Ultimately, I'm responsible, I'm the president of the United States," Obama told reporters. "The buck stops with me" - March 20, 2009). If he and his Dems can't manage the economy then how can we trust him to manage health care? This is a fair question - regarding management and leadership.

You keep pointing to "what ifs" and "what was," but we are speaking about "what is." That is "what is" being currently mismanaged. That is "what is" improper leadership. You can keep dreaming the "O" dream - but that is not a "what was" or "what if" it has merely been a pack of lies.

As far as your "what was" - Clinton and the Dems need to take some Responsibility:

According to Ben Bernanke of the Federal Reserve in a press release on May 17, 2007:

Subprime mortgages are loans made to borrowers who are perceived to have high credit risk, often because they lack a strong credit history or have other characteristics that are associated with high probabilities of default. Having emerged more than two decades ago, subprime mortgage lending began to expand in earnest in the mid-1990s, the expansion spurred in large part by innovations that reduced the costs for lenders of assessing and pricing risks. In particular, technological advances facilitated credit scoring by making it easier for lenders to collect and disseminate information on the creditworthiness of prospective borrowers. In addition, lenders developed new techniques for using this information to determine underwriting standards, set interest rates, and manage their risks.

The Boston Globe reported (Mortgage meltdown - How Fed inaction fueled the subprime crisis - July 12, 2009):

Under a law that Congress passed in the early 1990s, the Federal Reserve had the power to oversee banks like Citigroup and HSBC that were writing the subprime loans. But Greenspan rebuffed appeals to act, saying it would be a “huge effort’’ and might have undermined “the desired availability of subprime credits,’’ as recounted in Alyssa Katz’s “Our Lot: How Real Estate Came to Own Us.’’

DC Examiner stated:

The current mortgage crisis came about in large part because of Clinton-era government pressure on lenders to make risky loans in order to “make homeownership more affordable for lower-income Americans and those with a poor credit history.” …One need look no further than The Washington Examiner and The Washington Post to see that the roots of this crisis sprouted during the Clinton administration’s politically motivated effort in the 1990s to use Fannie Mae and Freddie Mac to expand home ownership.

Another Subprime Mortgage Meltdown Video (in the Dems own words): http://msplaceddemocrat.wordpress.co...eltdown-video/

As Brian Davis reports:

In 1994, the Clinton Administration went directly to the Department of Housing and Urban Development (HUD), and promoted an initiative called The National Homeownership Strategy, which pushed for looser and more creative lending guidelines from both the public (FHA & Fannie Mae/Freddie Mac) and private sector's lending institutions. They released a document, called "The National Homeownership Strategy: Partners in the American Dream," and here's a telling excerpt:

For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership.

And it worked: from 1994 to 2004, the percentage of U.S. homeowners rose from roughly 64% to roughly 69%. Loose lending guidelines, continued and exacerbated by the Bush Administration and its artificially low interest rates, made money cheap, easy, and available to everyone, which created a buying frenzy, which, of course, drove up real estate prices, creating the real estate bubble. Never mind the fact that many of these borrowers were simply not qualified for homeownership, and subsequently defaulted, leading to an avalanche of foreclosures, which burst that real estate bubble.

Incidentally the National Homeownership Strategy document was posted on HUD's website until 2007, when HUD removed it, presumably out of embarrassment and fear of denouncement.

[topper]

When is someone going to bail out the poor taxpayers that end up broke after bailing out everyone else? I for one, have had it with bailouts. The government has no business delving in private business nor bailing out anyone. Stop the bailout madness, stop the economic stimulus madness, stop the healthcare madness, stop any other madness that his Madness Odumma might have. Just stop spending us into oblivion.



Wake up, america, Lock and Load!

[red14]

Originally Posted by topper

When is someone going to bail out the poor taxpayers that end up broke after bailing out everyone else? I for one, have had it with bailouts. The government has no business delving in private business nor bailing out anyone. Stop the bailout madness, stop the economic stimulus madness, stop the healthcare madness, stop any other madness that his Madness Odumma might have. Just stop spending us into oblivion.



Wake up, america, Lock and Load!

[B]+ infinity[/B]


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