Stop the Bailouts
McCain is exactly right. This is getting ridiculous.
John McCain says the Federal Reserve needs to stop bailing out failed financial institutions.
Addressing a business group in Wisconsin, the Republican presidential hopeful said the Fed should get back to what he called “its core business of responsibly managing our money supply and inflation.”
McCain and Palin are all over the map. One minute they’re deregulators, the next they want the Fed all over Wall Street, followed by calling the bailouts an unfortunate necessity before they come full circle again and say the taxpayers have been put on the hook for too much.
If you are going to talk in broad rhetorical brush strokes, you should at least pick a theme and stick to it. This round and round is reflected in the most basic tenants of their campaign, even the slogan at the end of their commercials changes by the day it seems.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 0959 hrs
Lefty - with all due respect - shut the f..k up.
Obama’s economic advisors are the same ass-wipes that were in charge of Fannie and Freddie.
The door prize for all of us that made good decisions in buying a home we could afford and not running up our debt?
We get Fuc.ed!!!!! AGAIN!!!!!Hey - Charlie Rangel doesn’t have to pay taxes. Maybe I should try that. Oh yeah. I can’t - they take it out of my *#@!&$#(* paycheck.
It has officially happened. Those that actually pay taxes are now out-numbered by those that don’t. We’re screwed.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1116 hrs
Owen, AFP’s guy Steve Moore is strongly supporting this nonsense.
Any comment?
We’re screwed.
Yep!
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1202 hrs
He’s wrong. It happens.
Posted by Owen on September 19, 2008 at 1257 hrs
Actually with Stephen Moore it happens with tremendous regularity.
Take him away from the podium and he is easy to nail.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1446 hrs
Your party in action, Owen.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1540 hrs
The bailouts, the ups and downs of the market this week, and the crazy amount of chatter from the MSM have left me with a question. This maybe quite naive to ask and this may be the wrong board or form of putting it forth on this particular blog; however, here it is.
As an average working Wisconsinite, has the potential blip in the economy made any effect on daily life? Ultimately, what are the implications of the current situation?
By watching the MSM, I would almost come to the assumption that America as we know it is imploding and that I should start stock piling ammo to live off the land. Any thoughts on this would be appreciated.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1547 hrs
McCain’s against any more bailouts, until he’s faced with another one. Then he’ll be for it.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1649 hrs
The Federal Reserve had to act in the way it did BECAUSE the folks in charge in the White House for eight years as the crisis built did not place the needed rules and regs in place to stop those who only wish to get richer no matter the cost. And that is what happened.
THIS IS WHY WE NEED GOVT. REGULATIONS!
And this week shows that when left to their own devices big business interests that are left alone will always seek to make money at the expense of everyone else.
This was a learning week for the GOP.
The Federal Reserve had to act.
Posted by Gregory on September 19, 2008 at 1700 hrs
It’s looking like we’re becoming a socialist country starting with our financial markets. What surprises me is it’s happening under a GOP administration.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1803 hrs
A few points, before getting too “partisan”:
A) Actually, this deregulation stuff started with the Reagan administration and has continued right up to now, and that includes one Democratic administration. It was a reaction to the horrible economic stagnation of the years prior to Reagan’s election, and now the pendulum is swinging back.
B) It is hard for the government to regulate what it doesn’t understand. No doubt that there is now a better understanding of how this happened, and there will be a basis for regulation. Kind of think of all these “smart” financial people needing “education” & “direction” - obviously they were not competent enough to figure this out on their own. They are literally screaming for help.
C) Before getting too partisan, let’s wait for the “numbers” as far as how much Wall Street has poured into the election so far.
Read this:
http://www.kansascity.com/445/story/801477.htmlHere are some samples:
Merrill Lynch & Co.‘s chief executive, for example, has raised more than $500,000 for McCain’s campaign. Obama has received at least $1.5 million collected by three senior executives at Lehman Brothers.
Note: Obama +$1M
The tough talk is coming from candidates who have fueled their campaigns with Wall Street money. Securities and investment firms gave $9.9 million to Obama and $6.9 million to McCain through July, according to the Center for Responsive Politics, a private group that tracks money spent in politics. The industry is McCain’s No. 3 contributor and Obama’s No. 4 contributor, according to the center.
Note: Obama +$3M
Three executives from Goldman Sachs Group Inc. have raised at least half a million dollars for Obama. That firm is Obama’s top source of campaign money overall; its employees have contributed more than $690,000 to his campaign, according to the center.
Separately, employees from the commercial bank and insurance sectors gave McCain’s campaign $3.6 million and
Obama’s campaign $3.4 million.Note: McCain +$200,000
Congress collects considerable money from Wall Street, too. Democratic candidates have accepted nearly $37 million from securities and investment firms in the current election, and Republicans have accepted nearly $29 million.
Note: Democrats +$8M
Following a weekend that reshaped Wall Street, Goldman Sachs is the larger of the nation’s two remaining major independent investment banks. The other is Morgan Stanley, where employees have contributed $300,000 to Obama and $217,000 to McCain.
Note: Obama +$83,000
So, I don’t pretend to know why this has been going on this way. Any “theories”? Wall Street run by Democrats? Wall Street “hedging” their bets that they can run past Obama if he is President? Wall Street wants to have friends on both sides of the aisle?
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1833 hrs
Good post mht. My, off the cuff theory is the golden rule. Those with the most gold make the rules.
The US taxpayer is their “raw material” now that the age of manufacturing is over. Prepare to be mined even more in the comming years.Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1908 hrs
Yes I misspelled coming. So Sorry Miss. Spindleshanks.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 1911 hrs
I work in the credit markets (in a legitimate credit market and not with the idiots who were allowed to create this sub prime mess). Let me tell you all that the events of the last five days were the equivalent of an atomic bomb being detonated in the United States. Using that analogy, a bunch of people in New York got wiped out in the blast but for the rest of the country, they really didn’t notice it.
However, there is a large radiation cloud that is drifting right now as we speak. For most of the US population things seem normal. But the radiation sickness is starting as early as today. People don’t see the damage because they can’t see the radiation. But it is there.
Now I’m mixing analogies, but the dominoes have already started to fall. If Hank Paulson can stop the domino chain here and a year from now we only have an unemployment rate of 7.5% or less, he’ll be a hero in my book.
The events of the great depression took time before their effects on the country could truly be felt, and this is no different. Again, Paulson may be able to thread the needle here, and I hope he does.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 2038 hrs
Give me a break!! If all you lefties are so smart why weren’t you screaming that this was going to happen for the last 4 years. This a big mess and there is plenty of blame to go around.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 2058 hrs
I’m not a leftie, but if anyone would have “screamed’, would anyone have listened? I think not. Now is a good time to start listening. Be afraid, very afraid.
Steve - now I’m really depressed! Thanks a lot! In 1977, my mother-in-law sold her home with a financing contingency of a 30 year mortgage with 5% downpayment and interest rate at 7%. In 1982, to settle her estate we sold her next home with a financing contingency of 13%! and 20% down - there wasn’t much of market gain for her, we had to ask a lot less because the market was back to requiring 20% down, and the price had to reflect what most first-time buyers could save before buying a house. But that is what happened the last time we had major financial meltdown. I think this is the kind of “radiation sickness” Steve talks about.
TerryN - good point about the power of money (gold) - I think a lot of money has been made by people who have a very short-term interest in the financial health of the country & it has nothing to do with party affiliation, as much as “opportunity” to make a killing.
In order to clean up this mess, it is going to take the kind of bipartisan cooperation that would be needed if there were a natural disaster or act of war against the United States. Supposedly one of the motivations for the 9/11 attacks was to bring down our markets - looks like we are doing a pretty good job of doing it ourselves, “the American way”.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 2127 hrs
Mht is talking about the economic mess from 1978-1982 when unemployment hit around 12% and the Prime rate hit 21%. We may heading for a similar period. It won’t be the “same” as 78-82 but will have challenges on that magnitude.
Corporate borrowers have been enjoying cheap and highly efficient capital via the money market system. Money market borrowers this week (corporations) saw the interest rates on their loans double or triple as the $3.4 Trillion dollar money market funding system collapsed. There was a run on the money markets similar to the run on the banks during the Depression. And the system wasn’t prepared for it. There is an outside chance the MM system may not be able to be put back together.
If it can’t be pieced back together, we’ve lost $3.4 Trillion of cheap capital this country thrived on for the last two decades. That impact started this week, and will be felt throughout the US immediately.
Paulson has to try and save the money market system in the next 2-3 weeks. Because if he doesn’t, it’s going to take down many banks and corporations who will not be able to replace this cheap capital source.
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 2216 hrs
mht,
Thanks for all the homework on contributions.
Odd that should even be an issue here at the home of anonymous & unlimited political contributions and free speech.
And kudos to TerryN for the astute observation.
You are exactly right on your assessment of anybody listening. Some people have seen this coming for at least a decade. Apparently ACE needs to be screamed at before he notices that 2+2 does equal 5 or 6.
Steve, love the analogies. Atomic bombs, radiation clouds and dominoes.
And I thought it was just a touch of the flu. Sheesh!
The “radiation damage” has been spreading for at least 18-24 months.
Where have you been?
Posted by .(JavaScript must be enabled to view this email address) on September 19, 2008 at 2230 hrs
Steve,
Your opinion echoes that of several other friends who work in the investment/banking/insurance industries across the country.
I agree these actions are unfortunately necessary to prevent far worse consequences. As always pragmatism should rule the day over simple-minded ideology.
McCain’s problem, as it has been for over a year, is whether he advocates pragmatism or panders to the rubes in his base.
But yes, you should still be stocking up on beans and ammo.
Posted by .(JavaScript must be enabled to view this email address) on September 20, 2008 at 0641 hrs
I’ve slept on it a night now and I don’t feel any better. In my life I’ve known a number of the WWII generation types who always had that “fear strand” in their DNA that was imprinted on them from the depression.
I always respected the existence of that gene, but never had it myself so I couldn’t relate at all. This past week I had my first taste of that, albeit brief. I’m not a “beans and ammo” guy, but for the first time the thought of our fiat money system actually collapsing entered my head as a real possibility albeit very, very remote. I’m having a hard time getting that image out of my mind. I’m hoping that I’ll watch the Packers tomorrow night to distract me and life will return to normal come Monday.
If you are able to disassociate his crazy showman personality from his commentary, Jim Cramer on CNBC I think had the best take last night. This action by the government stopped the potential of a second great depression, but it doesn’t mean it won’t get ugly here for a few years.
Posted by .(JavaScript must be enabled to view this email address) on September 20, 2008 at 0906 hrs
beans and ammo.
You guys are killing me.
Where do you get this stuff?
When main street is feeling a little pain its buck up me hardy and all that pull yourself up by your own bootstraps crap.
When wall street finally has to eat some of its crazier stuff the sky is falling and its a 12 alarm fire.
Posted by .(JavaScript must be enabled to view this email address) on September 20, 2008 at 0949 hrs
It’s taken some time to get into this hole, so it will take some time and effort to dig out of the hole.
Posted by .(JavaScript must be enabled to view this email address) on September 21, 2008 at 0945 hrs
Well I found one person warning of this problem in 2006. http://frwebgate.access.gpo.gov/cgi-bin/getpage.cgi?dbname=2006_record&page;=S5217&position;=all
My understanding is that the Democrat party blocked passage of the bill McCain is advocating here. I consider myself well informed compared the average person but I don’t remember anyone showing more than minor concern about this problem. A lot of people wondered if there was a housing bubble and warned against using your house as a piggy bank but nothing like this.
pjr - Show me what the Dems (preferably Obama) were saying in 2006 or before.
Posted by .(JavaScript must be enabled to view this email address) on September 21, 2008 at 1651 hrs
Ace, that bill would have done nothing to help out the current crisis (it’s similar to the Clear Skies Act in terms of doing the opposite of the stated goal), and it wasn’t even stopped by Democrats. If you recall, Bush was still president in 2006, and Republicans still had control of Congress.
It’s always interesting to see McCain rail against lobbyists, in particular here against Fannie Mae and Freddie Mac lobbyists. His staff is chock full of lobbyists, some of whom lobbied from McCain’s campaign bus, and his staff includes dozens of Fannie Mae lobbyists, including top strategists like Charlie Black.
Posted by .(JavaScript must be enabled to view this email address) on September 21, 2008 at 1843 hrs
I’m not going to pretend that I’ve read the bill or understand what it would do but I dought you have either Steve-O. Also I realize Freddie and Fannie are only part of the problem. The point is he foresaw a problem and proposed something. Funny you couldn’t show me a competing proposal by Obama or any other Dem.
Having control of Congress doesn’t mean anything if you don’t have 60 in Senate. Remember McCain and the gang of 13 stopped us from changing that.
Good to see you have the play book down, change the subject and attack.
Posted by .(JavaScript must be enabled to view this email address) on September 21, 2008 at 2027 hrs
Yes, I have read the bill. Obama has plenty of regulatory proposals, by the way.
Right, but the bill never even came up for a cloture vote.
Posted by .(JavaScript must be enabled to view this email address) on September 21, 2008 at 2140 hrs
Show me what the Dems (preferably Obama) were saying in 2006 or before.
Google it yourself.
But here’s a politician who had something to say in 2003.
http://www.house.gov/paul/congrec/congrec2003/cr091003.htm
Posted by .(JavaScript must be enabled to view this email address) on September 21, 2008 at 2228 hrs
Ohhh! Ron Paul warned us that we were spending too much money on Fannie and Freddie. How ever could I have missed that? I kind of meant someone that could actually get media attention, besides it not relevant.
Since no one would get specific about Obama’s proposals I checked. According to his website he offered one bill in 2006 to stop mortgage fraud. It was never voted on and it had nothing to do the current mess.
I’ll say it one last time, nobody saw this big of a mess coming.
Posted by .(JavaScript must be enabled to view this email address) on September 22, 2008 at 2115 hrs
I’ll say it one last time, nobody saw this big of a mess coming.
I just love exploiting pygmies!
Posted by .(JavaScript must be enabled to view this email address) on September 22, 2008 at 2128 hrs
Lots of people saw this big of a mess coming.
Here’s a primer from 2005: http://atimes.com/atimes/Global_Economy/GI14Dj01.html
If you know where to look, you can go back to the 1990’s and find plenty of literature on asset inflation and what it will mean.
Posted by .(JavaScript must be enabled to view this email address) on September 23, 2008 at 1345 hrs
The Asia times? Really you guys are proving my point.
Bill O’Reilly’s Talking Points tonight agreed with me.
Posted by .(JavaScript must be enabled to view this email address) on September 23, 2008 at 2213 hrs
Good for the Congressional Republicans.
http://www.cnbc.com/id/15838342
And Ryan was just up maybe they will post the video later
Posted by .(JavaScript must be enabled to view this email address) on September 26, 2008 at 1256 hrs
Nice.
http://www.cnbc.com/id/15840232?video=868796242&play;=1
Posted by .(JavaScript must be enabled to view this email address) on September 26, 2008 at 1301 hrs
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