Deanster

This what deregulation has brought us. This is where the Reagan Revolution leads.

When you undo the regulatory safeguards that were put in place after the Great Depression, don't be surprised when it starts to look like we're headed for another depression.

I for one am thankful for the reelection of George W. Bush in 2004. Now he owns his failures. Had he not had a second term, all this would fall at the heels of his successor.

Now we know.

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Cub Cadet Yanmar EX3200, CL300 Loader w/ Rankin toothbar, Land Pride bucket forks, CB75 Backhoe w/ mechanical thumb, Woods LR72 Landscape Rake, Rankin RC20-72 rotary cutter.

gunmaker

Perhaps there are some other historical facts to be considered:


The Real Culprits In This Meltdown

By INVESTOR'S BUSINESS DAILY | Posted Monday, September 15, 2008 4:20 PM PT
Big Government: Barack Obama and Democrats blame the historic financial turmoil on the market. But if it's dysfunctional, Democrats during the Clinton years are a prime reason for it.
Read More: Business & Regulation

Obama in a statement yesterday blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the "trickle-down" economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend.
But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street's most revered institutions.
Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.
The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but "predatory."
Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the '90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck.
And it was the Clinton administration that mismanaged the quasi-governmental agencies that over the decades have come to manage the real estate market in America.
As soon as Clinton crony Franklin Delano Raines took the helm in 1999 at Fannie Mae, for example, he used it as his personal piggy bank, looting it for a total of almost $100 million in compensation by the time he left in early 2005 under an ethical cloud.
Other Clinton cronies, including Janet Reno aide Jamie Gorelick, padded their pockets to the tune of another $75 million.
Raines was accused of overstating earnings and shifting losses so he and other senior executives could earn big bonuses.
In the end, Fannie had to pay a record $400 million civil fine for SEC and other violations, while also agreeing as part of a settlement to make changes in its accounting procedures and ways of managing risk.
But it was too little, too late. Raines had reportedly steered Fannie Mae business to subprime giant Countrywide Financial, which was saved from bankruptcy by Bank of America.
At the same time, the Clinton administration was pushing Fannie and her brother Freddie Mac to buy more mortgages from low-income households.
The Clinton-era corruption, combined with unprecedented catering to affordable-housing lobbyists, resulted in today's nationalization of both Fannie and Freddie, a move that is expected to cost taxpayers tens of billions of dollars.
And the worst is far from over. By the time it is, we'll all be paying for Clinton's social experiment, one that Obama hopes to trump with a whole new round of meddling in the housing and jobs markets. In fact, the social experiment Obama has planned could dwarf both the Great Society and New Deal in size and scope.
There's a political root cause to this mess that we ignore at our peril. If we blame the wrong culprits, we'll learn the wrong lessons. And taxpayers will be on the hook for even larger bailouts down the road.
But the government-can-do-no-wrong crowd just doesn't get it. They won't acknowledge the law of unintended consequences from well-meaning, if misguided, acts.
Obama and Democrats on the Hill think even more regulation and more interference in the market will solve the problem their policies helped cause. For now, unarmed by the historic record, conventional wisdom is buying into their blame-business-first rhetoric and bigger-government solutions.
While government arguably has a role in helping low-income folks buy a home, Clinton went overboard by strong-arming lenders with tougher and tougher regulations, which only led to lenders taking on hundreds of billions in subprime bilge.
Market failure? Hardly. Once again, this crisis has government's fingerprints all over it.

JD 2520 w/46bh, 200cx loader, meyers 6ft plow, KingkutterII 5' 3pt tiller
jd 425 w/54"mmm& 54"plow
NRA Benefactor Life Member

Deanster

We should expect the right-wing propaganda machine to be in full spinning mode as this (and any other) crisis unfolds, as the above article demonstrates.

Yes yes, it's Clinton's fault. That's standard fare. We expect that. Everything from the Iraq war, to katrina to the Bush economy is all really clinton's fault. Why do we even need a president Bush, when apparently Clinton is responsible for all things past present and future?

The writer of the above article knows no one will read the Community Redevelopment act of 1974 which Clinton "put on steroids" (unreferenced - of course). Seems to me this act of Congress would have to be "put on steroids" by congress - no?

I skimmed what I could find of this act, and all I found was anti-discrimination language. The credit standards being what they are at any given time, and you can't treat minorities differently based on their race. Lowering and removing credit standards is the key, and that is called deregulation - the mantra of the right-wing movement. It is not done in this act as far as I found.

Take note of the fact that none of the suggested remedies to this crisis will include repealing or amending the Community Redevelopment act of 1974. If it is so clearly the problem, then solution would seem obvious - no?

They point to compensation by the CEO of Fanny Mae from 1999 - 2005 (unreferenced - of course), but they know most people won't realize that Fanny was a private corporation at that time. I imagine CEO pay excesses were the same there as anywhere else.

It's also worth noting that the right-wing ideological nuts who own the Bush Administration wanted to throw your Social Security into this mess too.

___________________________
Cub Cadet Yanmar EX3200, CL300 Loader w/ Rankin toothbar, Land Pride bucket forks, CB75 Backhoe w/ mechanical thumb, Woods LR72 Landscape Rake, Rankin RC20-72 rotary cutter.

LarryRB

Deanster,
please,
Reagan had nothing to do with deregulation other than by law to follow it through, It was your favorite pal Carter that started deregulation,. I will say on Carters behalf, his original reason was to stop gateway's which were costing consumers but more importantly the trains, plains, trucks and boating, untold millions and for no reason. I owed tractor trailers and was running the country when this happened. No one truck company, even the largest in the nation had true (go anywhere rights) For instance with the company I was with, we could not drive NYC NY direct to Frisco and stay on I80, we had to drop off to St Louis MO, get a post card at the local truck stop send it in with the tractor and trailer number and bill of lading numbers, then go back up and get back on 80. This was gateway'ing and all had to do it back then. Total foolishness to run this far out of the way,, What happened is Tyson foods and JB Hunt, both from Arkansas, saw this as a way to gain tremendous amounts of freight and did so by cutting the rates to actual costs,, At the time, money was easily obtained and they could show the freight increases to the point they could litterally order 1000 tractors at a time from IH. My father in law was IH later called Navistar also with Chrysler Dodge Jeep Plymouth and he opted not to get involved as all dealers were asked at the time,.,.. They, Tyson and JB grew in the thousands of per cent and became in the top 25 carriers,, I no longer monitor who is who.. Again, Reagon did not start it, he acquired the rule and had to follow through.,, IT would ahve been perfect if not for tyson and jb who now have drivers running for next to nothing.

"this morning I woke up with nothing to do, it is now afternoon and I have over half of it done".
Digging in hard clay is more relaxing to a worm than going fishing..

Deanster

Larry - you're talking about deregulation of a particular industry. In one case or another, deregulation may be good or bad. Depends on the industry and the regulations.

Reagan never had all 3 branches of government under his control, so didn't achieve the level of deregulation we are living with now. But deregulation is what defines Reaganomics, along with lower taxes: "The government is not the solution, it's the problem", "Get the government out of the oil business..." and so on.

The recent deregulation of energy and financial markets that is screwing us all is part of a political movement that really took hold under Reagan. That's where the reference to the Reagan Revolution comes from

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Cub Cadet Yanmar EX3200, CL300 Loader w/ Rankin toothbar, Land Pride bucket forks, CB75 Backhoe w/ mechanical thumb, Woods LR72 Landscape Rake, Rankin RC20-72 rotary cutter.

irwin

The living breathing entity our government has become is not us. "We the people" are the great unwashed 95%, we have no real say in any of this. The "We the people" that run things ain't you and I, that Wtp is the great 5% "The Controllers" rich and beautiful. We own no part of anything, well..just slightly more than the Chinese people own part of the businesses the Chinese government owns. My role in all this is to pay now and pay later, Oh and I get to pray that the next bunch brings a little sanity to the job with them.

Our real freedom is that we get to complain, but not too successfully, might get a visit some night if our rant makes others think the wrong thoughts. Remember what Nixon did to John Lennon.

As far as Red vs Blue...The Red messed up this time, should be Blue's turn now, hope not too much more liberal insanity becomes law. We can't take much more of either extreme's influence.

.... Tim

LarryRB

speaking of which,Deanster asked the other day for proof of one of my statements and yesterday with the Neil Cavuto business one hour show between 4 and 5 pm, most of it touched heavily on that statement,. I made the statement the other day that my loan officer complained 6 years back of being forced to give loans to those that couldn't qualify on their best day, week, month or year, Even the state dictating people who collect welfare should get mortgages,, Yesterdays Cavuto's show had on many people including past CEO/CFO's of major banks, corporations and most all of them complained about the liberal congress views and laws they passed about people getting loans that should have never been allowed in the front door. Again and again I say, it is nice to think you can help most people, it isn't reality and never will be. One of those who pushed and pushed for the low classed other than white or American born, has now got himself in a pickle,, Rankel of New York,. Even though some republicans have left on their own, or been forced to leave, that super **** head from California, Pelosi says Rankels is fine and did something very minor... IT is these liberals and I am sure there are a few repubs too, that been there too long or like Pelosi is so far removed from reality I really do not see why she hasn't been removed by extreme predjudice..

"this morning I woke up with nothing to do, it is now afternoon and I have over half of it done".
Digging in hard clay is more relaxing to a worm than going fishing..

PaulChristenson

Congress has a Democratic majority for only the LAST TWO YEARS...This problem did NOT HAPPEN in the LAST TWO YEARS...


For a ancient history lesson...
Just remember that our current Republican Presidential Candidate was part of
Lincoln Savings and Loan
The Lincoln Savings led to the Keating Five political scandal, in which five U.S. senators were implicated in an influence-peddling scheme. It was named for Charles Keating, who headed Lincoln Savings and made $300,000 as political contributions to them in the 1980s. Three of those senators - Alan Cranston(D-CA), Don Riegle(D-MI), and Dennis DeConcini(D-AZ) - found their political careers cut short as a result. Two others - John Glenn(D-OH) and John McCain(R-AZ) - were rebuked by the Senate Ethics Committee for exercising "poor judgment" for intervening with the federal regulators on behalf of Keating.

Savings and loan crisis - Wikipedia, the free encyclopedia

Just remember you are rich(and Republican) if you make $5 Million...

Paul in VT

I used to own an ant farm but had to give it up. I couldn't find tractors small enough to fit it.
-- Steven Wright

http://www.wunderground.com/US/VT/Bu...typeclick=big2

gunmaker

Point is our current Gov't has now Nationalized private business. Our 'Leaders' act in self-interest, and political idealism first. The American public, in general, is satisfied to sit back and let socialism walk through the open door, as long as it doesn't effect them.
We ain't seen nothin yet! But, it's coming, and soon!

JD 2520 w/46bh, 200cx loader, meyers 6ft plow, KingkutterII 5' 3pt tiller
jd 425 w/54"mmm& 54"plow
NRA Benefactor Life Member

PaulChristenson

Yes...and as a Congressional minority for 6 years they just stopped everything...that the BUSH Administration tried to do...

Yes, I'm very familiar with the Democratic SWIFT BOAT tactics...

I agree that we ain't seen nothing yet...The pigeons are coming home to roost...

The economy is in freefall and where is THE CURRENT PRESIDENT OF THE UNITED STATES???

WHY ISN'T HE ON NATIONAL TELEVISION giving us a fireside chat ala FDR???

WHY ISN'T HE LAYING OUT A PLAN FOR OUR COUNTRY TO GET OUT OF THIS DISASTER??? (Other than bailing out AIG...and pretty soon his Treasury Secretary will be telling us it is GOOD to bail out GM as well)

The answer is my friend...he is out of ideas...

Paul in VT

I used to own an ant farm but had to give it up. I couldn't find tractors small enough to fit it.
-- Steven Wright

http://www.wunderground.com/US/VT/Bu...typeclick=big2