I don’t know, maybe I haven’t learned anything in
all my years. But having run three businesses in my lifetime, and been through some hard financial times myself, it seems to me that there has to be a better way of averting this “financial calamity” that the government is warning about.
We all know what is going to happen to that 700 Billion.
It’s going to go to those banks/brokerage houses, and go right down the tubes, with absolutely no help for the individuals who really need it.
I was discussing this with my daughter (extremely intelligent) last night, and she hit on what seems to be a pretty good plan for the salvation of the “deserving” rather then the “bloodsuckers”.
Rather than taking over all these high-interest mortgages that these unscrupulous organizations knowingly forced on buyers,
why not try something a bit more sensible? The government would save half of the 700 Billion, the homeowners would be protected from foreclosure, and the so-called “bank/brokerage house companies, have a chance of remaining solvent. Not that they deserve it by any means, but only because killing them
off might provoke a financial panic.
Say a homeowner got horn-swaggled into a 10.75% 30-year fixed rate mortgage, and now can’t make the payments. If the bank forecloses, it is stuck with a physical asset, that is falling in value each day. When they write it off, or sell it for next to nothing, they lose a fortune. Rather than put greed before the
welfare of the country, what if the government offered to do this?
Force all mortgage holders to roll back interest rates on all mortgages, effective immediately, to 5.25%. The banks benefit by not having to
write off all these assets, while still making fair profit on the lower rate mortgages, and the homeowners get to keep their homes with affordable payments.
Then, the government can guarantee the homeowner mortgages to the banks. Even assuming that half the homeowners will default, which is absurd, we would be stuck with a 350 Billion Dollar bill, rather than 700Billion.
And the best part is that none of this money winds up in the hands of the charlatans and crooks who are so adept at mismanaging finances. They would only waste it on incompetent fools who look for huge “performance bonuses” for doing inferior jobs.
Thursday, September 25, 2008
(AP Photo/Lauren Victoria Burke)
As financial storm signals appeared the last 18 months, some Bush officials urged drastic reform of Fannie Mae and Freddie Mac.What you are about to read should quash any hopes of Democrats picking up a single additional seat in Congress and as well, this information should stop Barack Obama’s bid to become President. The only thing is not enough people will see this.
But according to internal government sources, Treasury Secretary Henry Paulson objected because it would look "too political." The Republican administration kept hands off the government-backed mortgage companies that are closely tied to the Democrats.—Robert Novak
I make this bold statement based on three completely verifiable findings:
• Democrats caused this financial 9/11
• The Bush Administration attempted to do something about this crisis 18 months ago and was told not to act by Secretary of Treasury Henry Paulson who is in complete conflict of interest just two years from being employed by Goldman Sachs.
• Sen. John McCain attempted to do something to regulate these companies in 2005 and was blocked by Democrats and Rep. Barney Frank, Sen. Charles Schumer Hillary Clinton, Barack Obama and Sen. Charles Dodd .
Everything that is wrong in America today is the direct result of uncontrolled unregulated corporate greed and criminality. However it took this financial fiasco to get people to see it. (see post)
Now that, that point is indisputable here’s a second point, our government is no longer functioning to protect and serve the people of this country our government is an instrument of corporate and special interest will.
That is why the President of the United States can back the Comprehensive Immigration Reform Act or CIRA. And further that is why the Republican nominee can back CIRA too as well as Global warming. Both CIRA and Global warming are big money interest and they are directly in opposition to the interest of the People of the United States.
But most importantly, that is why the Democrat led Congress and the President can orchestrate a $700 billion dollar bail out for failed lenders who ripped off the American People. What’s worst is the President and Congress can do this without holding one single investigative hearing into who is at fault and why it was allowed to happen.
We had a 9/11 commission I’m thinking a Financial Industry Collapse Commission is needed.
First here are three sources that detail Democrat complicity in this Wall Street meltdown.
See (here), (here) and (here)
The following source you probably will not be able to find on the internet if you google you just may come up with this only (see here)
However in this report Robert Novak discloses that the Bush Administration was talking about a fix 18 months ago only to be dissuaded by Henry Paulson who is heading up the affords to bring stability back to the U.S. Economy. (see article below)
Crony image dogs Paulson's rescue effort
Published: 12:00 AM Jul 17,2008
Chicago Sun-Times by ROBERT NOVAK
As financial storm signals appeared the last 18 months, some Bush officials urged drastic reform of Fannie Mae and Freddie Mac. But according to internal government sources, Treasury Secretary Henry Paulson objected because it would look "too political." The Republican administration kept hands off the government-backed mortgage companies that are closely tied to the Democrats.
Paulson is a Republican, but as head of the Goldman Sachs investment bank, he had close ties with Democratic-dominated Fannie Mae. After prominent Democrat James A. Johnson left Fannie after eight years as chairman and CEO, he was named head of Goldman Sachs' compensation committee, helping set Paulson's abundant salary there.
That connection clearly was not enough for Paulson to consider recusing himself from dealing with the crisis threatening Fannie, Freddie and the whole American economy. He structured the bailout and was on the phone last weekend encouraging leading investment bankers to buy Freddie Mac bonds. Financial consultant Lawrence Lindsey, President Bush's former national economic director, told clients Sunday, "Surely things are somewhat amiss when a country's finance minister plays bond salesman for a supposedly privately owned company."
Testifying before the Senate Banking Committee on Tuesday, Paulson stressed the U.S. would purchase assets only if necessary. But relying on investment bankers could be awkward for Paulson because of indiscreet jubilation from his old company. "This is our bailout," a senior Goldman Sachs official told a Wall Street colleague this week, suggesting the firm will cherry-pick for mortgage bargains.
The only senior executive branch officials who expressed alarm about overextended Fannie and Freddie were former Federal Reserve Chairman Alan Greenspan and former Treasury Secretary Lawrence Summers, and their warnings were shrugged off.
It was worse on Capitol Hill. Former Rep. Richard Baker could not find a single House co-sponsor for his reform bill. He lost his bid to become ranking Republican on the House Financial Services Committee though he had seniority, and then retired from Congress to become a lobbyist. Republican Sen. Chuck Hagel had trouble finding other Senate supporters of Baker's bill.
Baker, Hagel and Sen. Richard Shelby, ranking Republican on the Senate Banking Committee, were rare members of committees with jurisdiction who took the issue seriously. The powerhouse Democratic overseers of the banking committees -- Rep. Barney Frank, Sen. Christopher Dodd and Sen. Chuck Schumer -- protected Fannie and Freddie.
Tuesday's hearing was more than an hour old when Hagel became the first senator to ask whether the well-paid officials and directors of the mortgage companies should be held accountable. "I'm not looking for scapegoats," Paulson replied.
Many of Paulson's non-scapegoats have traveled a familiar path from modest net worth to sudden wealth at the mortgage companies, especially Fannie Mae. Most have been Democrats, but token Republicans also have enjoyed the profitable ride. It is an old story, well described in "Crony Capitalism: American Style" by financial affairs reporter Owen Ullman in the July-August 1999 issue of the International Economy magazine. He portrayed rich "rewards" for fortunate insiders.
In that article, former Treasury official Peter Wallison of the American Enterprise Institute saw Fannie and Freddie posing a "prescription for financial disaster," similar to the savings-and-loan debacle a decade earlier. Will Paulson follow Wallison's advice and put the mortgage companies in federal receivership at the expense of shareholders? Wall Street tycoon Hank Paulson was the secretary of the treasury that Bush finally found on his third try. Now, grumbling has begun inside the Senate Republican Conference. The grumblers are asking whether Paulson will prove more than a crony in this crisis.
Lawrence B. Lindsey
Larry Lindsey is President and Chief Executive Officer of The Lindsey Group. He has held leading positions in government, academia, and business. Prior to forming The Lindsey Group, he held the position of Assistant to the President and Director of the National Economic Council at the White House and was the chief economic adviser to candidate George W. Bush during the 2000 Presidential campaign.
Dr. Lindsey also served as a Governor of the Federal Reserve System from 1991 to 1997, as Special Assistant to the President for Domestic Economic Policy during the first Bush Administration, and as Senior Staff Economist for Tax Policy at the Council of Economic Advisers during President Reagan's first term. Dr. Lindsey served five years on the Economics faculty of Harvard University and held the Arthur F. Burns Chair for Economic Research at the American Enterprise Institute. From 1997 until 2001 he was Managing Director of Economic Strategies, a global consulting firm.
Dr. Lindsey earned his A.B. Magna Cum Laude from Bowdoin College and his M.A. and Ph.D. from Harvard University. He was awarded the Outstanding Doctoral Dissertation Award by the National Tax Association and named the Citicorp Wriston Fellow for Economic Research at the Manhattan Institute. He is the author of numerous articles and three books: The Growth Experiment, Economic Puppet Masters and What a President Should Know...but Most Learn Too Late.
Finally Sen. McCain has not only talked about what to do and what he would do but Sen. McCain has already attempted to enact the reforms over Financial Loan institutions only to be stopped by Democrats. See (here) and (here)
And last for all of you that still don’t quit get it the following 10 min video shows how a the proposed bail out will harm the American people.
If anyone is still willing to elect Barack Obama or any Democrats after seeing this information then you really don’t have this country’s best interest at heart.