No one seems to be able to accurately pinpoint where, when or how our horrific economic situation will culminate. The blame game is widespread. There are few, if any, executives involved, without guilt.
Apparently, lending practices of Fannie Mae and Freddie Mac to middle and low income citizens without adequate, or even, no collateral, is the major culprit. Of course, lending to citizens who ordinarily couldn't afford to buy homes is the reason for FM and FM's existence. It was first initiated in the early 90's ?
Everyone can't afford to buy a home immediately or necessarily go to college. The American Dream usually requires years of hard work and sacrifice. Most times when we give folks their dreams in place of their earning it, it turns out bad. Winners of lotteries are a good example.
CEO's of all of these failing corporations receive monstrous salaries and bonuses whether they're making money or being responsible in their position. Cronyism and greed is rampant and seemingly bipartisen.
Barney Frank (D), president of the banking commision is getting much scrutiny. How did this evolve into such a catastrophic mess without his recognizing and reporting months ago. Was this ignorance, incompetence or trying to protect his cronys ?
It's my hope that all of these greedy CEO's will be scrutinized thoroughly.
Last edited by Brian; 09-18-2008 at 13:41 PM.
"kinder, gentler"
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Basically, the 2 institutions Fannie and Freddie were the only institutions backed by the US Treasury. This basically gave then a line of credit in the Billions in case they ever had financial problems. This gave investors "security" to invest heavily, thus inflating the stock.
Couple that with the "no down payment" loans (given because they asserted the homes always go up in value) with easy terms to folks with no business attempting to buy a home, this is the end result.
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Unchecked greed and now the taxpayer is bailing it all out. I can't afford gas, food or medical insurance, why is it fair for my tax dollars to bail out these institutions?
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I agree with the greedy CEO's. It blows my mind that all of the pions do all the hard work with not much pay and they get all the money and glory for running a great company. That's about all I have to say about that. I mean, don't get me started. I could blow a gasket this morning. LOL
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John McCain questioned the operations of Fannie Mae and Freddie Mac in 2003 and in 2005. He received no support from republicans or democrats.
Source?
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We are here in Washington, D.C. to address problems. So I've set this goal for the country. We want 5.5 million more homeowners by 2010 -- million more minority homeowners by 2010. (Applause.) Five-and-a-half million families by 2010 will own a home. That is our goal. It is a realistic goal. But it's going to mean we're going to have to work hard to achieve the goal, all of us. And by all of us, I mean not only the federal government, but the private sector, as well.
-- G.W. Bush
Quote:
And so what are the barriers that we can deal with here in Washington? Well, probably the single barrier to first-time homeownership is high down payments. People take a look at the down payment, they say that's too high, I'm not buying. They may have the desire to buy, but they don't have the wherewithal to handle the down payment. We can deal with that. And so I've asked Congress to fully fund an American Dream down payment fund which will help a low-income family to qualify to buy, to buy.
-- G.W. Bush
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The fact is, the more the government gets involved the more things get screwed up, republican or democrat. The government absolutely sucks at running things.
I don't understand the mentality of bailing these guys out. The whole purpose of capitalism is to self check. If a company goes under, someone else will accept the new business, someone who makes better decisions. Bailing out a failing company is ridiculous, and it's throwing away taxpayer money. This is no different then the Linden Lumber fiasco that everyone was up in arms over, only on a much larger scale.
Wall Street bailouts
"kinder, gentler"
Re: Wall Street bailouts
Re: Wall Street bailouts
