Comments on: Connecting the Bailout Dots

By: scoobie jim

scoobie jim — Mon, 02 Mar 2009 17:07:15 +0000

I agree that a lot of the problems in the banking industry started in Government. My problem with not putting any blame on banks is this, First of all the banks are some of if the BIGGEST lobby groups. I find it hard to believe that they allowed anything that wouldn’t benefit them. If you find it hard to believe that they would allow this sort of thing to happen to their business ie; giving out bad loans, look no further than the credit cards. Giving out pre-approved credit to anyone under the sun and their pets? Then lobbying congress to reform bankruptcy laws to make it harder to get out of… something is not right.
And also, where were the responsible bankers? I mean you can’t actually believe that there weren’t people in those companies that saw this comeing. Why would they sweep it under the rug? Maybe they allready paid someone to take the blame? Our Government no longer works for the people it works for the highest bidder.
And then they want to put the blame on the irresponsible borrowers? Why is it that I have more of a background check to rent a house or apply for a job than i do for a home mortgage? Something doesn’t smell right.

By: Maxredline

Maxredline — Sat, 22 Nov 2008 01:12:08 +0000

Once again, your friend Jack nails it. The current economic issues are a creation of government, and the last thing we need is a governmental “solution”.

By: Andy

Andy — Mon, 10 Nov 2008 21:43:07 +0000

As an expat in Spain, I can rubber stamp that opinion. This cash crisis I think will get worse before it gets better.

By: The Politics and Money Carnival - Edition 11

The Politics and Money Carnival - Edition 11 — Fri, 31 Oct 2008 15:57:18 +0000

[...] presents Barack buys an election? posted at Divided We Stand United We Fall. Jack H. Swift presents Connecting the Bailout Dots posted at Government is Not Your [...]

By: Wamba son of Witless

Wamba son of Witless — Sun, 26 Oct 2008 21:32:11 +0000

Socialism is the opium of the ignorant. It feels really good at first.

Ask not what you can do for your country, ask what your country owes you. Obviously your country owes you health care, a life time job, and a big house. Even if you don’t pay taxes, you get a tax refund.

You ask, won’t we run out of money doing all of this? Don’t worry, we’ll print more.

By: OregonGuy

OregonGuy — Fri, 17 Oct 2008 18:31:02 +0000

Markets rush to equilibrium. Even if they don’t know where that point of equilibrium is.

While I have enjoyed the wealth effects of owning a home for which I am only paying against a portion of its market value–having purchased this home more than a decade ago on a fixed mortgage–the temptation to take a profit and “flip” seemed like a trap. If I believed–and I did–that housing prices were increasing beyond what I viewed as rational, how could I flip and not expose myself to the downside of a bubble releasing its gas?

So, today, I am less wealthy. But I’m still able to cover the cost of my mortgage, and more importantly, my income is higher than when I signed my mortgage agreement. As a percentage of my income, my housing costs have actually decreased.

If the housing market is currently over-valued, what mechanism now exists for the market to find its “new” value? Thanks to intervention by the Fed and Treasury, the market lacks clear guidance on what it can expect the effects of these massive intrusions of federal cash into the market will take. Who will be the winners and who will be the losers? Under current policy it seems there will be no losers.

Ah, the promise of Socialism. A better world for everybody, and nobody pays for it.
.

By: Tuco

Tuco — Fri, 17 Oct 2008 08:27:37 +0000

Good post, Jack, it does not solve anything. Inflation and economic growth will whittle the relative value of this debt down over time, so in a sense it is delaying the inevitable and buffering the effects short-term, not necessarily a bad thing, just 1 one choice among many, and maybe the lesser of all the potential evils. The CRA needs to be tossed, though. I’d love it if McCain said “first thing I’ll do is cancel the CRA and establish a charity any American can donate to if they want to help poor people get a home loan.” Of course, they would not get many donations, but it makes more sense than making the US Treasury a charity for people who want money on credit but can’t or don’t want to pay it back. Let them beg. Anyone who cares will listen. Better yet, let them get jobs and earn what they get, much better for them, and much better for the rest of us.