Notable day tomorrow--Financial crisis

[Skip Miller]

Remember this at all times, the government is comprised of.....US! People in gov't are not a separate species.

'zactly. That's why the system will never work smoothly.

I think it was Will Rogers who said "Be thankful we're not getting all the government we're paying for."

-Skip

 

[Henning]

Don't try to lump me into that bunch, Bubba. And what problem do any of us have that we honestly think (if we're smart enough to pour **** out of a boot) the government can solve better than we can?

Sigh... WE are the government. When the country gets beyond segregationist and selfish thinking, it can finally progress out of this cycle, unfortunately that just isn't within the scope of humans which is why Karl Marx's ideas didn't work out.

 

[AuntPeggy]

I believe if anyone from the government had the audacity to suggest such a thing, millions of people in a murderous rage would descend on Washington DC, declare open season on hypocrites and open freaking fire... (I just want to sell tickets to the event.)

I brought this up, though it may have been on a purple board thread. The funny thing is you bring up the Great Depression (very apropos). After the GD, congress instituted regulations to prevent it from happenning again, regulations which McCain has for years been working away at getting rid of. Slowly but surely they did, and in typical laisez faire style, this was abused by the criminally and stupidly greedy to make a "quick buck" with no foresight into (or more likely, no concern for) the future, even when three years ago, it was apparent to anyone that it was creating an economic Ponzi scheme that was unsustainable. We can't go blaming this on "Them", whomever "them" may be. It is due to us; we, you, me, and the rest of everybody. It is an issue of culture in this country. It's due to our values. It's due to our "I'm getting mine, screw you" attitude. It's the culture of competetiveness and "keeping up with the Jonses". We may want to blame the anks for writing irresponsible loans, but what about all the people who irresponsibly (and more than occassionally, fraudulantly) applied for loans? How many people 4 years ago when they were refi-ing and pulling out all that increadible equity they "earned" in the prior 2 years considered, "Damn, real estate value increases like this don't last and will swing back down in a year or so?" Anyone old enough to own a home has seen this cycle before at least a couple of times in their life. So, when we go looking for whom to place the blame upon, we collectively need look no further than the mirror.

Personal Responsibility, that is what we lack, and it's not just this country, it's us as a species.

People like to spout off about smaller government and less regulation, people, I've gotta say it in all honesty, collectively, we are too stupid to make that work.

Sigh... WE are the government. When the country gets beyond segregationist and selfish thinking, it can finally progress out of this cycle, unfortunately that just isn't within the scope of humans which is why Karl Marx's ideas didn't work out.

I think it can still be done.

In your hands, my fellow citizens, more than in mine, will rest the final success or failure of our course. Since this country was founded, each generation of Americans has been summoned to give testimony to its national loyalty. The graves of young Americans who answered the call to service surround the globe.

Now the trumpet summons us again—not as a call to bear arms, though arms we need; not as a call to battle, though embattled we are—but a call to bear the burden of a long twilight struggle, year in and year out, "rejoicing in hope, patient in tribulation"—a struggle against the common enemies of man: tyranny, poverty, disease, and war itself.

Can we forge against these enemies a grand and global alliance, North and South, East and West, that can assure a more fruitful life for all mankind? Will you join in that historic effort?

In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from this responsibility—I welcome it. I do not believe that any of us would exchange places with any other people or any other generation. The energy, the faith, the devotion which we bring to this endeavor will light our country and all who serve it—and the glow from that fire can truly light the world.

And so, my fellow Americans: ask not what your country can do for you—ask what you can do for your country.

My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man.

Finally, whether you are citizens of America or citizens of the world, ask of us the same high standards of strength and sacrifice which we ask of you. With a good conscience our only sure reward, with history the final judge of our deeds, let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on earth God's work must truly be our own.

I think we need a politician with the courage to tell people that fixing this situation is in our hands. We can pay for it in taxes, if you want, but that won't really solve the problem.

We cannot solve it by getting a new loan and refinancing. We can solve it by paying our bills. Don't walk away from your obligations. Stand up and put as much money back into the economy as you promised you would.

We got into this situation with 1% or 0% interest loans so that the government could borrow to the hilt without having to pay a natural interest rate of 6%. Now, the ponzi scheme is unravelling on all this greed.

When will we wake up and stand up like adults? Stop trying to borrow your way to fulfillment of every dream. Pay your bills. I'm not an eloquent speaker, so this is sounding pretty rough. I want one of our leaders to talk some sense.

 

[Henning]

I think it can still be done.

Considering that speech was fourty some years ago, and not a dman thing has changed for the better, and much for the worse in these regards, I'm not as optimistic as you.

 

[wabower]

Still some good buys on Freddy & Fanny paper, even though the guarantees have already kicked in. It was real cheap for a few days.

Considering that speech was fourty some years ago, and not a dman thing has changed for the better, and much for the worse in these regards, I'm not as optimistic as you.

 

[woodstock]

From my neighbor. He imports Jet A(!) from overseas, matching up sellers and buyers The people he deals with had a consensus that the bad thing was coming in September, mostly in regards to foreign countries marking the US as a deadbeat and rejecting dollars.

I strongly suspect THAT is what the Friday deal is all about and as it stands the US hasn't done a thing about it except make plans.

OK - the crisis is liquidity. The banks can't value the mortgage packages they're carrying if nobody will buy one.

I also fear the "the treasury will buy troubled loans" deal is not going to turn out as well as the S&L bailout did with real estate. BTW, in that case private buyers made a killing that the US didn't really profit from. Look for that again.

INFLATION IS COMING.

Since your neighbor seems to be the oracle - any updates on his predictions that the US will be "fine"? Oil hasn't hit 91 a barrel yet...

 

[mikea]

Since your neighbor seems to be the oracle - any updates on his predictions that the US will be "fine"? Oil hasn't hit 91 a barrel yet...

Haven't talked to him lately. I got the sense he's distracted....

 

[Dave Siciliano]

Perpetrators now saviors?

It's no secret that I'm of the opinion that Congressional hearings are often a waste of time, that the politicians on the Senate Banking and House Financial Services Committee are clueless, and that Congress is to blame for mismanaging the Mortgage GSEs.

Lest you think that I simply like bashing politicians for fun and sport, here is a look at some excerpts from the hearings on Fannie (FNM) and Freddie (FRE) after the latter's accounting issues came to light:

http://tinyurl.com/4wjdlx

Best,

Dave

 

[gprellwitz]

Perpetrators now saviors?

It's no secret that I'm of the opinion that Congressional hearings are often a waste of time, that the politicians on the Senate Banking and House Financial Services Committee are clueless, and that Congress is to blame for mismanaging the Mortgage GSEs.

Lest you think that I simply like bashing politicians for fun and sport, here is a look at some excerpts from the hearings on Fannie (FNM) and Freddie (FRE) after the latter's accounting issues came to light:

http://tinyurl.com/4wjdlx

Best,

Dave

There was no byline on the article, Dave. Did you write it?

 

[Dave Siciliano]

Markham Lee authored that. It's on web site called Seeking Alpha. Lots of stock and homebuilder news on there.

Best,

Dave