Christmas in October for wall street. It’s the Wall Street Entitlement Act of 2008. Unlimited free money for financial institutions. Don’t forget, all you have to do is ship your bad debt to the Federal Government and they will make you whole. Oh Sally Mae, send in your bad debt also. Car financiers, send yours as well. Golly Gee it’s Christmas time. Your bonus checks are safe with the fed. Your commissions are assured. Yippee do.

Oh by the way, keep loaning out money to those who cannot pay it back. Just give money to them, take your commission, and send in the bad paper. The Government can print it faster than you can lend it. Make sure you lend to illegal aliens so they can buy houses. They work awful hard, you know!

Please remember we need to loan all that money to the public so they can fund their Christmas in December. Our economy will surly collapse if there is no money for all the gifts under the Christmas tree.

Go Baby GO!!!!!!!!!!!!!!!!!!!

Greg’s done a horrible job of actually backing up his assertion that the CRA is the chief cause of this mess. He’s simply regurgitated what has been floating around the webosphere. He hasn’t offered any actual numbers supporting the idea that CRA was the biggest reason for the mess.

http://www.traigerlaw.com/publications/traiger_hinckley_llp_cra_foreclosure_study_1-7-08.pdf

CRA-covered entities made 23% of all home loans, but 9% of all high-risk loans, in the 15 most populous MSAs in the country.

9% of 23% of CRA covered entities loans were high risk. Only a certain % of those went into foreclosure. I’m no fan of the CRA, but I’m also no fan of reading the same thing over and over again without any actual numbers backing up the assertion that CRA is the mian reason for the current mess.

Ron Paul doesn’t endorse this socialist bailout, so I’ll vote for him.

http://www.cnn.com/2008/POLITICS/10/01/paul.qanda/index.html

NEW YORK - Stocks are rebounding and a new bailout package could be coming soon, but the credit markets — where day-to-day borrowing occurs to keep the gears of the economy turning — are still stuck.

Even relatively healthy businesses are being left out in the cold.

Randall Stephenson, the CEO of AT&T Inc., said Tuesday that when the telecommunications company tried to get short-term cash last week by selling corporate debt known as commercial paper, no one was willing to lend anything for longer than overnight.

The crunch is being felt by others, too. Many small businesses can’t get funding for supplies and in some cases are falling behind on their payrolls, said John Castellani, president of Business Roundtable, an association of CEOs of companies that employ more than 10 million people.

Castellani said the credit problems have been going on for several months but have accelerated in recent weeks as lending tightens further and consumer spending wanes.

“It feeds into itself,” Castellani said. “It just continues to spiral down.”

http://news.yahoo.com/s/ap/20080930/ap_on_bi_ge/credit_markets;_ylt=Aqzebq5oHu_.o5N8EwRPyeOyBhIF

Interesting point. It seems to me that the big risk in this process is not the amount of money being proposed. It is not the lack of oversight on Hank Paulson. It is the posibility that they government will own way too much of the American economy when this is all over. When the government bailed out Chrysler it took warrants in that company. Ultimately, these warrants were sold back to the investing public at a profit to Chrysler. Hopefully, Bush and Paulson have a similar plan here. Once financial stability has been restored, the government must get out of private industry (albiet with much stricter regulation of the banking setor). But will they? An Obama Admistration along with a Democratically controlled Congress might find widespread government ownership of normally private assets irrestable.

And who are you going to run against him??
Please think this thru, wonderhead. :rolleyes:

In the immediate future, it really doesn’t matter how this mess happened. The question is “how long can credit markets remain frozen before irreparable damage is done to the economy”. And the answer is, “not long”.

This fiasco has basically happened twice before.

The “asset pricing bubble” collapse in Japan from 1990 - 2003 and the S&L crisis in the US. The way that the two problems were handled varied greatly as did the results.

In Japan, the government would not take definitive action when the real estate bubble burst and brought down the banking system with it (sound familiar). Instead, the government let the problems “work themselves out”. The result was a 13 year long recession whichh could have been shortened by many years had the government intervened aggressively and early.

The US S&L crisis saw the government take competent action. The government insured the depositers. Many S&Ls were forced into bankruptcy, the Resolution Trust Company was established and the assets of the bankrupt banks were sold by the government. A problem that could have resulted in a 5 year recession was resolved with a far shorter impact.

As usual, the Republicans don’t like the current proposals but have none of their own to offer. Instead, they ramble on about “bailing out the banks”. Four words. Let’s think this through. Who or what are “the banks”? You could define them as the set of interlocking companies and incorporations that establish the legal entity called “the bank”. Or, you could define “the banks” as being the shareholders who own the bank. If you really want to be absurd, you could define “the banks” as the executives who run “the banks”. By most measures, the best definition of “the banks” is the stockholders and (perhaps) the bondholders who have supplied capital to the leagl entity broadly called “the banks”. Have the shareholders been “bailed out”? How well have shareholders of Bear Stearns, Wachovia, Washington Mutual, Fannie Mae, Freddie Mac or AIG done? Pretty much a total loss. No bailout there. The executives? Many hold stock or stock options - so that hasn’t worked out too well. Others have golden parachutes which should be canceled but that is a very minor point in the grand scheme of the US economy. That leaves the bond holders and that’s who’s getting bailed out. If you want to get upset with any group - look to the bondholders. But the big problem is the Republicans who say this will bail out the banks instead of saying this will bail out the banking system. Of course, Reppublican ideologues and truth never mix.

But even getting upset at the bondholders or ranting at Republican dim bulbs misses the big point - if you leave the credit markets frozen then the whole economy freezes. It is just that simple.

And here’s the kicker - Japan was a nation of savers with a current account surplus. Leaving their credit markets frozen tanked their economy for 13 years. The United States is a huge debtor nation. George Bush has presided over a massive build up in government and a dramatic drop in taxes. Guess what? You can have one of those but not both. Or you can have both of somebody else will finance the deficit. Our economy is now propped up by credit extended by Russia, China, Europe, post recession Japan, etc. And what happens if they lose faith? They sell - just like you or I would sell if we lost faith in the management of a corporation. If that happens - the Japanese experience of the 1990s will look like a walk in the park. And if the dolt Republicans keep dithering on this matter, that’s exactly what will happen. The money will run out of the US just like it ran out of Asia after the Long Term Capital meltdown. And you know what happens if that occurs? Neither do I. But it will be bad and bad in a big way.

So, for all of you who are wrapped around the rhetoric instead of immersed in the economics - you are playing Russian roulette with the United States and its economic future. When the hammer hits the bullet in the chamber $700B will seem like chump change.

ROAR SOME MORE PATRIOTS!!!

TOGETHER WE CAN DO THIS!!!

TOLL FREE

Congressional Switchboard Numbers

800-833-6354
866-340-9281
877-762-8762
866-808-0065
888-355-3588
866-220-0044

“Call Wolf today people. He will vote yes again for this BS bailout of wall street which will do nothing for you and I.”

Huh?? How do you figure???

And now that they voted down the bailout, perhaps you should read about how the Congress was made irrelevant even BEFORE the vote:

http://www.istockanalyst.com/article/viewarticle+articleid_2661872.html

If they had never showed up in the first place, they wouldn’t have gotten the sub-prime loans that got us into this mess.

The easy availability of loans certainly was a factor in attracting them here.

A factoid…in 2005, 36% of the home loans made in Manassas Park were subprime. That information was available in 2006. Apparently City Council didn’t realize the implications of that since in the same year they put out a 5-year budget with a 10% increase in spending for each year.

They had no clue housing prices were going to drop or didn’t care. Now it’s a crisis.

You know, the current foreclosure crisis in the City is no surprise when you look at the fact that 36% of the loans made 3 years ago are sub-prime.

Sub-prime loans are more likely to go into default. It’s why they’re sub-prime.

Come on Ricky, we all know the insitutionalized and mentally incompetent are not allowed to vote. I’m not sure what your beef with Congress is anyway, since the unemployed don’t actually pay taxes.

Give Frank Wolf a call -

202-225-5136
or
703-709-5800
or
540-667-0990

The Washington Post noted, almost as an afterthought in a 2005 report: “Hispanics, the nation’s fastest-growing major ethnic or racial group, have been courted aggressively by real estate agents, mortgage brokers and programs for first-time buyers that offer help with closing costs. Ads proclaim: “Sin verificacion de ingresos! Sin verificacion de documento!” - which loosely translates as, ‘Income tax forms are not required, nor are immigration papers.’ ”

The chickens are coming home to roost. And law-abiding, responsible taxpayers are going to pay for it.

Bingo.

http://www.washingtontimes.com/news/2008/sep/28/illegal-immigrant-factor/