Lehman Bros. filed for bankruptcy and Merrill-Lynch has been bought by Bank of America. Bloomberg says investors may lose a bundle. This is disturbing, we don't know where this is going or how bad its going to get, but we do know it was totally, absolutely, 100 % avoidable, and we know who is responsible.
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Unsettled Economy & The Bailout
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Re: Unsettled Economy
Originally posted by Kalalau View Postwe know who is responsible.
We can’t be so fixated on our desire to preserve the rights of ordinary Americans.
— U.S. President Bill Clinton
USA TODAY, page 2A
11 March 1993
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Re: Unsettled Economy
Sometimes, things have to get worse - and it appears they may get much worse - before they can get better. Time to hunker down, be fiscally conservative, and get by on just the necessities.
As far as who is responsiblle,........we all are.Peace, Love, and Local Grindz
People who form FIRM opinions with so little knowledge only pretend to be open-minded. They select their facts like food from a buffet. David R. Dow
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Re: Unsettled Economy
Originally posted by Kalalau View Postbut we do know it was totally, absolutely, 100 % avoidable
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Re: Unsettled Economy
Originally posted by LocalMotion View Postin all honestly, how what this 100% avoidable?
Although I am in favor of a small, compact, efficient governement, with as little governement interferrence as possible, we now see what the probelms are with deregualtion of the financial institutions.........irresponsible institutions that are more than willing to gamble with taxpayer dollars. Government bailouts of these companies (including Freddie Mac and Fannie Mae) is not the answer. The fiscally responsible thing to do is to let them go under or figure out their own solutions.Peace, Love, and Local Grindz
People who form FIRM opinions with so little knowledge only pretend to be open-minded. They select their facts like food from a buffet. David R. Dow
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Re: Unsettled Economy
Originally posted by matapule View PostThe fiscally responsible thing to do is to let them go under or figure out their own solutions.
Didn't Enron go under, no bailout?
Have you seen the documentary on Enron, "The Smartest Guys In The Room"
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Re: Unsettled Economy
Originally posted by TuNnL View PostThough all on Capitol Hill share blame with all involved in the subprime mortage crisis and the New World Order, there are a few individuals in particular (some no longer serving in their political position) who shoulder a significant amount.
http://www.sfgate.com/cgi-bin/articl...ED7R12R6CA.DTL
The mortgage swaps distancing the originator of the loan from the ultimate collector were only made legal as a result of the Commodity Futures Modernization Act that former Texas Republican Sen. Phil Gramm pushed through Congress just hours before the 2000 Christmas recess. Gramm, until recently co-chair of the McCain campaign, also had co-authored the Gramm-Leach-Bliley Act that became law in 1999, with President Bill Clinton's signature. That gem, which Gramm had pushed for years with massive financial industry lobbying, destroyed the Depression-era barrier to the merger of stockbrokers, banks and insurance companies. Those two acts effectively ended significant regulation of the financial community, and no wonder we have witnessed an even more rapid and severe meltdown in housing values than during the Great Depression.
Not surprisingly, Gramm was rewarded for his service upon retirement as head of the Senate banking committee with a top position at the Swiss-based UBS bank, which is close to drowning in the subprime mortgage nightmare he helped create. These folks have no shame, as was evidenced when the senator's wife, Wendy, was named a director of Enron, whose roiling of the energy market had only been made possible through yet another provision of the senator's Commodity Futures Modernization Act.
While neophyte Palin can claim ignorance of such matters, that will be particularly difficult for McCain, who as a senator consistently lined up with Gramm in his deregulation crusade. Clearly McCain had not learned much from his previous involvement with the savings-and-loan debacle about the risks to consumers in unregulated banking.
Yes, this is the same Phil Gramm who called Americans who voiced their concerns about the economy as "whiners." This is the same Phil Gramm who, although fired as McCain's campaign co-chair for making that statement, is still being used by McCain as an economic advisor.
Yeah, people can vote for the GOP ticket, if they find themselves energized by supporting a hockey mom they can relate to. But as Robert Scheer pointed out, don't expect her to provide any solutions to the economic crisis we are now facing. And don't hold your breath waiting for John McCain to provide any coherent answers, either.
http://voices.washingtonpost.com/the...f_economy.html
So which is it, John? Is our economy strong, or is it at risk? If you can't even make up your damn mind, how can you provide effective leadership when it comes to being this country's economic steward?Last edited by Frankie's Market; September 15, 2008, 11:22 AM.This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.
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Re: Unsettled Economy
Originally posted by LocalMotion View PostIn regards to Lehmans, isn't this happening? they are going under with no govt bailout...
Didn't Enron go under, no bailout?Peace, Love, and Local Grindz
People who form FIRM opinions with so little knowledge only pretend to be open-minded. They select their facts like food from a buffet. David R. Dow
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Re: Unsettled Economy
AIG is rummaging around to keep from falling down too:
http://www.forbes.com/markets/2008/0...markets18.html
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Re: Unsettled Economy
Here is the bottom line, when it comes to where the Republicans have taken the American econony is the last 8 years when they have been in power:
Inauguration Day 2001/ Now
Unemployment- 4.2%/ 6.1%
Federal Budget- $281 billion surplus/ $357 billion deficit
Federal Debt- $5.7 trillion/ $9.7 trillion
Avg. price of gas- $1.46 per gallon/ $3.84 per gallon
With institutions like Lehman Brothers, Merrill Lynch, Indy Mac, Bear Stearns, Fannie Mae, and Freddie Mac falling one after the other like dominoes,..... with the Dow taking a 500 point plunge,.... for McCain to still say, today, that "the fundamentals of this economy are strong," does he realize how close he's coming to sounding like Herbert Hoover when he said, "the economy is fundamentally sound," while the country was mired in the Great Depression?
Sorry, neocons. The truth of the matter is the economy is clearly in worst shape now than before Bush and the Republicans took over. They blew it, big time. And try as he might, John McCain trying to sell himself as a candidate of change when his party has been in control for the last 8 years isn't going to work. Not when people have very real concerns about rising gas and food prices, falling property values, unemployment, and 401k's.
So I hope that McCain enjoyed whatever bounce he got out of his convention and the novelty of Sarah Palin. Sooner or later, the reality of this messed-up economy will not work in his favor.This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.
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Re: Unsettled Economy
Originally posted by matapule View PostThat is correct, what is your point? I specifically mentioned Freddie Mac and Fannie Mae.
Freddie/Fannie, is a whole different thing and the last resort for that situation was a bailout.
They're not just going around bailing out all the companies that are running their businesses badly.
I'm not writing in a condescending tone, so please don't take it that way. i'm just discussing
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Re: Unsettled Economy
Originally posted by matapule View PostSometimes, things have to get worse - and it appears they may get much worse - before they can get better. Time to hunker down, be fiscally conservative, and get by on just the necessities.
As far as who is responsiblle,........we all are.
Your comment # two, I beg to differ. I am not responsible. I work. I pay my taxes. My family is my number one concern (children's education & health, etc). I don't overspend then declare bankruptcy, I pay my bills. I vote. I don't steal or lie or have deceptive business practices.
I am not responsibible for the idotic leadership (or lack thereof) that has landed us all in this mess. Myself, and alot of other hard working people and families, have done our part. Leadership is at fault.Now run along and play, but don’t get into trouble.
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Re: Unsettled Economy
i have no sympathy for the big wig investors who gamble like drunken sailors with other peoples money and have a history of winning big...making billions on risky deals......treat our economy like a casino and when things go south come crying for a bailout.........if your gonna play you may have to pay....and usually do.....just not with my money......in a few months no one will even remember who lehman was.....they will sort out the balance and life will go on...as a company they will not be missed......the market will sort itself out as it always does and those with money to invest will make a nother killing on the low prices that are now out there....warren buffet wil get richer...the mom and pop investor will get screwed.the bigger the government the smaller the citizen.
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Re: Unsettled Economy
Originally posted by escondido100 View Posti have no sympathy for the big wig investors who gamble like drunken sailors with other peoples money and have a history of winning big...making billions on risky deals......treat our economy like a casino and when things go south come crying for a bailout.
For all the money his company has been bleeding, it sure hasn't led to him missing any meals lately. Over the last 5 years, he's earned over $350 million and was ranked #11 on Forbes' list of the top paid executives.
http://www.forbes.com/lists/2008/12/...d-Jr_A9P0.html
I heard people grumbling about Dick Fuld not deserving any kind of golden parachute for this latest meltdown on Wall Street. I say, forget about that! The feds should investigate this guy to see if he was dumping any stock, a la Enron CEO Ken Lay. And if so, throw that bum in the slamma.This post may contain an opinion that may conflict with your opinion. Do not take it personal. Polite discussion of difference of opinion is welcome.
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