The credit crisis that the Republicans are making us believewe have is a scare tactic and Senator McCain hasn't got a clue how to solve it. he wanted to fire SEC Chm. Cox. When who they should fire is Fed Chm Bernanke and Treasury Sec Paulson. if our elected officials would read some history books instead of listening to those overpaid lobbyists down in Washington, they would remember that former Fed Chm Paul Volcker raised the interest rates as high as 20% in the 1980s rather than lowering them to 1/2 of 1% to cover up teh fact that those CREDIT DEFAULT SWAPS are WORTHLESS. Just ask the IRS. I agree with Kirk Shinkle when he says, "According to a National Federation of Independent Business survey of a random sample of its half-million members, while only 2% of respondents in August saw their financial situations as their biggest problem, 10% did say they found loans harder to come by--the biggest in more than 5 years. But NFIB chief economist William Dunkelberg notes that that number PALES in comparison with previous economic downturns. In the early 1980s, some 30% called access to credit their No. 1 headache." After reading this comment, it sounds like some scare tactics a HEDGE FUND DEALER, who works for an investment banker, would do just to get a taxpayer bailout to make up for some of their corrupt practices they've been doing over the years. When the FBI is through investigating, I hope they throw some of these CROOKS in JAIL. I hope Bob Schieffer of CBS addresses these issues in next weeks debate between Senator Barack Obama and Senator John McCain concerning the issues of TAXING HEDGE FUND DEALERS that are headquartered OFFSHORE, producing much needed federal revenue and to define if CREDIT DEFAULT SWAPS are worth anything at ALL.
Every step of the way through this economic collapse we have been told it's under control, it will be all right, and that the sky isn't falling. Clearly the scope of this collapse has been either greatly underestimated, or more has accurately been intentionally MISSTATED by those in the drivers seat. Exactly why should we act as though these problems will be cured by the governments next move, when everything else they have tried has amounted to little more than oral flatulence? David Walker the Comptroller General (chief accountant of Congress) who quit in disgust as much as screamed that the economic situation was dire for years. Nouriel Roubini and others have been called the most extreme of doomsday prophets, Matt Simmons and Matt Savinar have called the oil crisis correctly. Shadowstat.com has removed the veil from bogus government statics reporting: AND THEY HAVE ALL BEEN PROVEN EXACTLY RIGHT! So why should we now believe anything but a worst case scenario? America WILL default on the debt, and the world will hate us for it. Cover up and protect your family, don't listen to the Polyanna's, government economists and politicians. Better to be safe than sorry.
Awakened
of ME
@
Oct 07, 2008 22:21:35 PM
Debt repudiation and currency collapse
Has anyone considered the next wave of this crisis? What happens when the US government can no longer pay the interest on our massive debt, and our debt obligations become junk? At that point, why should any nation accept our worthless paper in exchange for useful commodities (i.e., oil, manufactured goods, food)? When this happens, the game will be up. Civilization as we know it will crash. There will be rioting and disorder, massive unemployment, starvation, and death. I don't think it can be stopped. What comes after is a full blown totalitarian state. As surreal as it seems now, enjoy these days. We will look back on them fondly.
Mike
of CT
@
Oct 07, 2008 17:55:16 PM
Enogh Blame to Go Around
Obviously there is enough blame to go around for everyone, Wall Street, politicians and us the consumer living beyond our means. I agree the politicians should have seen this coming and took action years ago but no one had the nerve to tell the American citizen the truth.
bruce buschmann
of MO
@
Oct 06, 2008 18:10:31 PM
Thanks, Wall Street
The subtitle is misleading. Wall Street didn't do this to us, the politicians did. Business people didn't dream up the Community Reinvestment Act, politiicans did. It is a government-caused problem.
Dave Brask
of IL
@
Oct 06, 2008 15:04:40 PM
Common citizen
I know only a tiny bit of what the "experts" on Wall Street know, and yet I know enough not to spend money I don't have - at least after learning a couple of powerful personal lessons. This should be a piece of cake for the power titans. Help! Which way do I run?
of CT
@
Oct 06, 2008 14:10:10 PM
Where Are The Real Leaders?
Where's Alan Greenspan? I'd love to hear what he has to say about what it is we're doing. Certainly rough times are ahead. Merely lamenting won’t change that. Take action. "To get something you’ve never had, you must be willing to do something you’ve never done"……Consider self employment. www.LikeSoup.com
Jim Campbell
of CA
@
Oct 06, 2008 13:53:16 PM
Enjoy the bailout!
Enron was similar to Fannie and Freddie. It was legalized by Jimmy Carter’s approval of the Community Reinvestment Act (CRA) and was mandated by Bill Clinton.
It allowed "no-income verification loans" and required institutions to honor these loans. How's that working now? It is known as the $700 taxpayer billion bailout. Bush tried to real in the "no verification" loans five years ago and McCain tried two years ago; Result: both were defeated by congressional liberals. People like Barney Franks, Chris Dodd, SEC's Cox should be investigated for fraud and removed from their positions immediately. It allowed Fannie and Freddie's debt equity ratio of 80:1 and filled them with mortgages that should not have been approved. When gas prices go up and house payments go up due to variable rates, the system crumbles. House prices implode due to the high-risk loans and taxpayers are required to buy these non-performing mortgages.
The CRA should be named "Government approved barbarians inside the Gate!"
Fix the system immediately! Abolish the CRA and require a minimum 10% down with income and debt verification or this bailout issue will repeat itself again and again. Enjoy the bailout!
whs806
of TX
@
Oct 05, 2008 07:41:35 AM
Next Crisis Incoming!!!
Now that the government has firmly entrenched itself as our masters with no escape routes, I figure it is about time to finish us off since some folks still have piggy banks to rob. So what will it be, an oil embargo, war with Iran, another terror attack, another surge, a collapse of a commodity market, etc??? Our government has now perfected the scare and tear technique whereas they scare us with a doomsday scensrio then hold us hostage till we relent so they can tear our possessions from us. Ever since 9/11 it has been one crisis after another building to a crescendo before the next inauguration day. With 3 months & 18 days remaining before Dumbya finally exits center stage I'm guessing we can experience at least one more horrifying experience which can only be solved by the boy wonder and a blank check. Let's see, a utility failure cutting off heat to millions, a blizzard shutting down the nation, fuel shortage etc...
LaVern Isely of WI @ Oct 09, 2008 18:03:34 PM
Awakened of ME @ Oct 07, 2008 22:21:35 PM
Mike of CT @ Oct 07, 2008 17:55:16 PM
bruce buschmann of MO @ Oct 06, 2008 18:10:31 PM
Dave Brask of IL @ Oct 06, 2008 15:04:40 PM
of CT @ Oct 06, 2008 14:10:10 PM
Jim Campbell of CA @ Oct 06, 2008 13:53:16 PM
whs806 of TX @ Oct 05, 2008 07:41:35 AM
Ray Fisher of NM @ Oct 04, 2008 12:10:09 PM
Back to article