Morris: Obama Taxes Equal 'Mammoth Depression'

Discussion in 'Politics' started by Revmitchell, Aug 6, 2008.

  1. Revmitchell

    Revmitchell
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  2. JustChristian

    JustChristian
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    The mammoth depression is coming but it will be due to Bush's deregulation of the housing mortgage business.

    Paulson admits deregulation has failed us all

    Commentary: Mortgage proposals spell end to decades of looking other way
    By MarketWatch
    Last update: 1:00 p.m. EDT March 13, 2008

    WASHINGTON (MarketWatch) -- You know things are very very bad on Wall Street when a guy like Henry Paulson -- Treasury secretary, solid Republican, and former Goldman Sachs CEO -- joins the crowd calling for more regulation over the financial markets.

    Paulson spared no one in his criticism Thursday of the excesses of deregulation that has now created the worst global financial crisis in a generation, threatening the health of the U.S. economy, the savings of millions of Americans, and the survival of some of the biggest financial institutions in the world. See full story.

    Wall Street and Washington both failed big time, he said. Wall Street invented new ways to make money by selling securities so complicated that no one could really follow which shell the pea was under. Fortunes were made on the paper Wall Street sold.
    At the same time, Washington's watchdogs were dozing, tranquilized by the false assurance that Wall Street would police its own.

    It's been obvious for years now that Wall Street could not be trusted, and finally official Washington agrees. The markets need a tougher cop to make sure that money-center banks, investment banks, credit-rating agencies, hedge funds, mortgage brokers and the rest don't let their own greed and arrogance ruin it for the rest of us.
    "Regulation needs to catch up with innovation," Paulson said, and he was backed up by the rest of President Bush's working group on financial markets, including Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commissioner Chris Cox.

    Not a commie among them.

    The housing bubble wasn't a flaw; it was a predictable outcome of a system that rewarded smart people small fortunes for conjuring up ways to persuade people to borrow more than they could ever hope to pay back. All the profits were taken off the table quickly, but the staggering costs are only now being paid by homeowners, shareholders, builders and the rest of society.

    Paulson's proposals won't necessarily prevent a recurrence, but they are a humble recognition that the centerpiece of two decades of Republican economic policy have failed.

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    And just when we're beginning to think it's getting better we find out the "Big One" hasn't hit yet.

    The New York Times
    August 4, 2008


    Housing Lenders Fear Bigger Wave of Loan Defaults

    By VIKAS BAJAJ

    The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
    Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults.

    The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A mortgages, quadrupled to 12 percent in April from a year earlier. Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7 percent in that time.

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    Reuters
    Greenspan says more banks institutions may founder
    8/4/2008

    More banks and financial institutions are likely to face insolvency and need bailouts before the global financial crisis is over, according to former Federal Reserve chairman Alan Greenspan.

    Writing in the Financial Times, Greenspan called the current crisis -- which started a year ago -- a once or twice in a century event and said insolvency would only end once U.S. house prices stabilized, underpinning mortgage-backed securities.

    Until then, the threat of collapse among banks and other global financial institutions would persist.


    "A once or twice in a century event".......... Well, there was 1929 and now there'll be the BUSH DEPRESSION.
     
    #2 JustChristian, Aug 9, 2008
    Last edited by a moderator: Aug 9, 2008
  3. Revmitchell

    Revmitchell
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    Aside form the fact that there are no links to any of these articles which makes this post against the posting rules and copyright laws, Paulsons words were twisted. No where does he say there is going to be a depression. And it is just like a liberal to blame the free and open market, ( business) rather than personal choice, judgment, and freedom. And in the end tie all that to the President.
     
  4. billwald

    billwald
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    Our owners will do fine. It is the working class who will take the loss. The middle class . . .by, by and ciao.
     

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