The vote is history and the financial bailout has failed. As a follow-on to our article “Bailout Urgency Sounds Like Iraq War…” it is entirely possible that banks, mortgage companies, and investment houses do not want a bailout. They do not want the scrutiny. They do not want investigations, controls, and oversight. They do not want government involved in pay-related issues. However, they do want the money. Evidence? Consider the credit card bill of rights. Bankers oppose it.
Archive for » September, 2008 «
Category: Editorial
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Just use our search box to look up “Paulson” and you will see a problem. Henry Paulson was in charge at Goldman-Sachs, and is now the treasury secretary. In August 2007 Paulson said he did not see anything that caused him to reconsider his view that the economic damage from the housing correction was “largely contained,” despite losses in a number of financial institutions and a long period for sub-prime issues to move through the economy. We thought he was short-sighted, lying, or manipulated by politics. Now he wants a free reign to spend $700 billion.
Category: Government Positions
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In an article titled “They Gave Your Mortgage To A Less-Qualified Minority” we see the effect of Clinton-era changes. Did these changes set the stage for the subprime crisis? You be the judge, but the system was abused, and went well beyond minorities. “Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton’s secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.
Category: Root Causes
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When the news hit the street, subprime borrowers took the first hit. No one seems to remember the sequence of federal manipulations or new mortgage terms, which were onerous to the point of being predatory. Terms which were deceptive and misrepresented by the mortgage brokers and lenders. Everyone in the industry wants to wheel and deal, but no one wants to milk the cow.
Category: Archives, Editorial
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U.S. authorities spent $900 billion to prop up the financial system and housing market. Authorities may get much of that money back if asset prices do not slide further. The SEC finally woke up and stopped short selling of 799 stocks. I guess the original list of 19 was too shortsighted. The SEC wake-up call came one day after John McCain said he would fire the head of the SEC.
Category: Government Positions
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