Comments on: It’s the Economy: Stupid Fact Check http://www.fragmentsfromfloyd.com/uncategorized/its-the-economy-stupid-fact-check/ Photos and Front Porch Musing from Floyd County Virginia Sat, 11 Feb 2012 14:25:42 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Jim http://www.fragmentsfromfloyd.com/uncategorized/its-the-economy-stupid-fact-check/comment-page-1/#comment-4620 Jim Wed, 24 Sep 2008 00:41:24 +0000 http://www.fragmentsfromfloyd.com/2008/09/18/its-the-economy-stupid-fact-check/#comment-4620 Fred, I have been reading that McCain was the co-sponsor of Senate Bill S-190, the Federal Housing Enterprise Regulatory Reform Act of 2005, which called for reforming Freddie Mac and Fannie Mae from taking on undue risk. This could not have been more timely. The bill was defeated by the Democrats in a House Committee. This seems incredibly germane in the current context. Fred, I have been reading that McCain was the co-sponsor of Senate Bill S-190, the Federal Housing Enterprise Regulatory Reform Act of 2005, which called for reforming Freddie Mac and Fannie Mae from taking on undue risk. This could not have been more timely. The bill was defeated by the Democrats in a House Committee. This seems incredibly germane in the current context.

]]> By: Jim http://www.fragmentsfromfloyd.com/uncategorized/its-the-economy-stupid-fact-check/comment-page-1/#comment-4591 Jim Sat, 20 Sep 2008 01:43:40 +0000 http://www.fragmentsfromfloyd.com/2008/09/18/its-the-economy-stupid-fact-check/#comment-4591 Obama would increase taxes on income, capital gains, employers, and the estate tax. McCain would help the middle class as well without both stealing from our most productive citizens and sending a message that innovation and hard work isn't as rewarding as it has been. Today we saw Biden say that you aren't patriotic unless you pay more taxes. I didn't know you could buy patriotism, but I know there is a price at which the Democrats will try to buy your vote. I think the problem with Freddie/Fannie is that they were never truly private with their credit line to the Treasury and a mandate to buy loans which led it to take on more leverage and risk than a purely private company would have. To say financial deregulation is bad without regard to complex interactions of our world is opportunistic and an oversimplification of what happened. The recent debacle will reveal how Main St, Wall St, banks, the Community Reinvestment Act, bankruptcy law, and regulators (SEC, Fed) as well as unprecedented policies all contributed. Banks and investment companies will probably be required to have higher capital requirements for on and off book assets, and to have limits for certain risky or complex products, and yes, greater regulation. Who knows, taxpayers have made $15Billion on AIG so far, but this is a drop compared to the new Resolution Trust entity. Clearly, the taxpayer should never be put into this position, but they could potentially profit from it down the road? Obama would increase taxes on income, capital gains, employers, and the estate tax. McCain would help the middle class as well without both stealing from our most productive citizens and sending a message that innovation and hard work isn’t as rewarding as it has been. Today we saw Biden say that you aren’t patriotic unless you pay more taxes. I didn’t know you could buy patriotism, but I know there is a price at which the Democrats will try to buy your vote.

I think the problem with Freddie/Fannie is that they were never truly private with their credit line to the Treasury and a mandate to buy loans which led it to take on more leverage and risk than a purely private company would have.

To say financial deregulation is bad without regard to complex interactions of our world is opportunistic and an oversimplification of what happened. The recent debacle will reveal how Main St, Wall St, banks, the Community Reinvestment Act, bankruptcy law, and regulators (SEC, Fed) as well as unprecedented policies all contributed. Banks and investment companies will probably be required to have higher capital requirements for on and off book assets, and to have limits for certain risky or complex products, and yes, greater regulation.

Who knows, taxpayers have made $15Billion on AIG so far, but this is a drop compared to the new Resolution Trust entity. Clearly, the taxpayer should never be put into this position, but they could potentially profit from it down the road?

]]> By: Jeff http://www.fragmentsfromfloyd.com/uncategorized/its-the-economy-stupid-fact-check/comment-page-1/#comment-4587 Jeff Fri, 19 Sep 2008 00:02:38 +0000 http://www.fragmentsfromfloyd.com/2008/09/18/its-the-economy-stupid-fact-check/#comment-4587 I don't have a lot of faith that either candidate will do much more than place a patch on the economy. To blame Wall Street is a bit of a red herring, in that it diverts our attention from the consumerist frenzy that has enveloped our culture in the last 40 years. That consumerism is what is ultimately responsible because there is no fiscal responsibility, across the board, in this country today. Greed and the urge to get rich is what has caused this crisis. It is time for all of us to look at ourselves and to stop pointing at others. Wall Street is just the fall guy here. Or a mirror, if we would study our reflections closely. First, there was the "dot com" boom (and bust) and now we've been through the housing boom (and bust). It is time to take stock and draw a lesson here and stop worshipping at the feet of the secular Messiah (however you define him/her) that will save us so that we can continue engaging in destructive behavior. I don’t have a lot of faith that either candidate will do much more than place a patch on the economy. To blame Wall Street is a bit of a red herring, in that it diverts our attention from the consumerist frenzy that has enveloped our culture in the last 40 years. That consumerism is what is ultimately responsible because there is no fiscal responsibility, across the board, in this country today. Greed and the urge to get rich is what has caused this crisis. It is time for all of us to look at ourselves and to stop pointing at others. Wall Street is just the fall guy here. Or a mirror, if we would study our reflections closely. First, there was the “dot com” boom (and bust) and now we’ve been through the housing boom (and bust). It is time to take stock and draw a lesson here and stop worshipping at the feet of the secular Messiah (however you define him/her) that will save us so that we can continue engaging in destructive behavior.

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