When will the US financial baillout occur?

[chuckwoww]

That's the basic problem. Debt. Personal debt. Government debt. The whole country was acting like normal economic rules don't apply.

[mongon]

Consumption equals life. The first stimulus package passed in January was a check from the gov to every taxpayer. Bush wanted everyone to go to the store and buy stuff. At a time when Americans savings rate was zero and the problems in the economy are caused by debt. The administration and economics "experts" thought it would be good for the gov to borrow even more money to pay for the checks. As if this would solve the problem of too much debt.

 

If people lived within their means the drop in demand would cause a severe depression. The show must continue. And another house of cards gets bigger.

[Steve]

 

I'm better at a number of things than you are.

quote]

 

Jealousy leads to anger. Anger leads to hate. Hate is the path to the dark side of the force my padawan. :smirk:

[Bangkoktraveler]

rogie' date=' can you [b']PLEASE[/b] provide us with your credentials.

 

The proof of the pudding is in the eating.

 

 

 

 

Just as I thought, you don't have any credentials.

 

 

 

Nor credability! Come for a beer some Friday night and we will take you on a tour of the town. Beer is on us. We will even chip in for your bar fine.

 

[kamui]

Consumption equals life. The first stimulus package passed in January was a check from the gov to every taxpayer. Bush wanted everyone to go to the store and buy stuff. At a time when Americans savings rate was zero and the problems in the economy are caused by debt. The administration and economics "experts" thought it would be good for the gov to borrow even more money to pay for the checks. As if this would solve the problem of too much debt.

 

If people lived within their means the drop in demand would cause a severe depression. The show must continue. And another house of cards gets bigger.

 

The answer seems to be the middle road: decent spending and decent savings.

 

The absolute opposite to the USA is Japan:

 

There are about $15 trillion in personal financial assets in Japan, about $8 trillion of which are on deposit in banks. Banks are stuffed with money from an aging population whose consumer spending has been declining for years. Supermarket and department store sales have declined for 11 consecutive years, while sales of new cars of all brands peaked 18 years ago and have been falling ever since.

WaPo

 

 

[Steve]

I'm better at a number of things than you are.

 

If you genuinely want to understand why the credit crunch was caused by deliberate, socialistic government actions (and, of course, I doubt you do) then there is an excellent compendium of articles on the subject here.

 

And, by the way, that "politically biased site" whine makes you look like a punk. Some people happen to understand economics. Get over it already.

 

 

And, by the way, that "politically biased site" whine makes you look like a punk. Some people happen to understand economics. Get over it already.

 

LOL...look like a punk to you? You want me to value your opinion of me it seems. Don't flatter yourself RY. Trust me, I have no anger and nothing but pity and sadness for you.

 

That site referred to articles by Malanga, Sowell (I have a couple of his books actually), Minton, etc. I've heard of all them. They're all conservatives and associated with right wing think tanks, etc.

 

Why am I not surprised. Trying to pass off Conservatives as independent arbiters of this crisis.

 

I looked at the Minton article about the CRA (she was at a think tank that had Scaife so that should tell you how independent she is). 8 pages long and NOTHING that offers anything substantive on why the CRA caused or played a major part in the crisis.

 

 

 

 

 

 

 

[rogueyam]

Why am I not surprised. Trying to pass off Conservatives as independent arbiters of this crisis.

 

This is bullshit. I am "passing off" nothing and I have no use for your dishonest and retarded "standard". There is no such thing as an "independent arbiter". There are, however, certain people who are intelligent, well-educated, honest and articulate. If people who possess these qualities and are knowledgeable about economics tend to be conservatives then that should tell you something right there, steve. You've got Barney Frank agreeing with you. I've got Dr. Sowell agreeing with me. I'm happy with that. This bullshit about "independent arbiters" is just a smokescreen behind which you are hiding.

[Steve]

There is no such thing as an "independent arbiter".

Bullshit.

[Steve]

This is bullshit. I am "passing off" nothing and I have no use for your dishonest and retarded "standard". There is no such thing as an "independent arbiter". There are, however, certain people who are intelligent, well-educated, honest and articulate. If people who possess these qualities and are knowledgeable about economics tend to be conservatives then that should tell you something right there, steve. You've got Barney Frank agreeing with you. I've got Dr. Sowell agreeing with me. I'm happy with that. This bullshit about "independent arbiters" is just a smokescreen behind which you are hiding.

 

 

Interesting article in the Huffington Post addressing why blaming the CRA is bullshit.

 

http://www.huffingtonpost.com/hale-stewart/memo-to-republicans-cra-

 

Can't blame it on the collapse of Fannie Mae or Freddie Mac as well. I've got more than Barney Frank. If the Huffington Post is too 'leftist' for you, There are people and publications I can site that are "certain people who are intelligent, well-educated, honest and articulate." Barrons , a well respected paper on Wall Street which has the right of center Wall Street Journal as its sister paper says:

 

The latter contention is more than disingenuous. A substantial portion of Fannie's and Freddie's credit losses comes from $337 billion and $237 billion, respectively, of Alt-A mortgages that the agencies imprudently bought or guaranteed in recent years to boost their market share. These are mortgages for which little or no attempt was made to verify the borrowers' income or net worth. The principal balances were much higher than those of mortgages typically made to low-income borrowers. In short, Alt-A mortgages were a hallmark of real-estate speculation in the ex-urbs of Las Vegas or Los Angeles, not predatory lending to low-income folks in the inner cities.

 

The head of the San Francisco Federal Reserve

 

Janet Yellen, president of the San Francisco Federal Reserve, offers the killer statistic: Independent mortgage companies, which are not covered by CRA, made high-priced loans at more than twice the rate of the banks and thrifts. With this in mind, Yellen specifically rejects the "tendency to conflate the current problems in the sub-prime market with CRA-motivated lending.? CRA, Yellen says, "has increased the volume of responsible lending to low- and moderate-income households

 

 

The facts so far don't show the CRA are to blame 'an shit' :smirk:

 

[Steve]

Lets take a look at Thomas Sowell who walks on water according to Rogueyam and just happens to be conservative.

 

Thomas Sowell: Foreign policy 'experience' missing on Democratic side

 

In the article he makes excuses for Palin's lack of experience saying 'Governors rarely have foreign policy experience' and he sites Reagan and FDR amongst others but goes on to attack Obama for having the wrong kind of foreign policy ideals.

 

What the f**k? Not even honest enought to say Palin doesn't know shit about foreign policy. Even Republican pundits will say that.

 

Sowell goes on to say: Sen. Joe Biden's years of service on the Senate Foreign Relations Committee is even further removed from foreign policy experience. He has had a front-row seat as an observer of foreign policy. But Sen. Biden has never had any real experience of making foreign policy and taking the consequences of the results.

 

Even Republicans don't dare question Biden's foreign policy experience. Also, using the same criteria, McCain doesn't either.

 

So, let me understand this. Reagan came into the white house with no foreign policy experience. That's okay. Same with Palin. Obama has come in with more knowledge than her (possibly more than Reagan) but that doesn't count because his foreign policy ideas don't agree with Sowell's?

 

Bullshit with a capital B. His bias has eliminated logic and reason from his whole argument.

 

Yeah, Rogueyam. Sowell doesn't have an agenda. He jumped on the CRA bandwagon when the talking points got sent out. He wrote one article as well WITHOUT any facts, just supposition. Sowell usually known for his meticulous use of footnotes, stats, etc. in his books has curiously avoided those things that have gotten him notoriety.

 

Sowell is writing with an agenda and its bullshit. You can have him 'an shit'. :smirk: