Skip to comments.Already the Worst President; Can We Get Bush Back?
Posted on 02/06/2009 2:52:48 PM PST by PurpleMountains
Today the African-American lady who is the mother of one of the victims of the bombing of the U.S.S. Cole refused to meet with Obama in the wake of the throwing out of the case against the Jihadist bomb-master due to a recent Executive Order by Obama regarding Guantanamo.
What else have we seen in just two weeks? What else can go wrong?
(Excerpt) Read more at forthegrandchildren.blogspot.com ...
The Obamacorns have given us a madman!
Obama is terrible but good riddance to Bush.
GWB must be feeling pretty good right now, not because he’s glad we’re living under a moron but because all of those who’ve blasted his stimules (which I didn’t agree with), his Iraq policy, his Gitmo policy, etc. are now forced to defend those policies because Obama has adopted them.
His will be the most rapid reputation re-evaluation in presidential history.
I imagine, like the rest of us, he’s concerned about all that is happening.
DON'T SAY THAT, IT'LL JINX IT!
You know what would really be a good thing to see?
Have this lady meet with former President Bush in an interview and then let her thank W for doing all he could to keep us safe an then excoriate this appeaser-turned-terrorist-realaser,
Let America see the difference in these 2 men, Zero will come across as more interested in preserving the rights of terrorists rather than standing with the brave fallen for our great military.
0bama MUST b taken to task if he’s going to allow criminal courts of the US as a legal venue for uninformed terrorist combatants on the battlefield. This is ENSANE!
We should emulate the actions of his great leader FDR and simply put them to a firing squad. They aren’t eligible for the rules of war from the Geneva Convention let the F alone the US laws of our Constitution!!!
I quess Cindy Sheehan and her crowd will not be at all supportive of this poor woman.
You can bet the KosKids are digging up dirt on her now.
I'm sure the MSM will give TONS of coverage to this news item!
Come on! Give the poor guy a chance. He’s never held a decision making position in his life. Hope and Change baby; Hope and Change is what it’s all about.
(It will get worse).
I say make history and get Sarah Palin into the Whitehouse.
But honestly I would rather not see her go, America will have to fix there own problem, she is doing an outstanding job in Alaska.
Jinx what? Obama’s winning streak?
Yup. Although the Wall Street Journal has had a few articles praising him. I think I’ll publish them on here in a few days.
She’s getting excellent practice in Alaska. After four years of this we’ll have the entire country on her knees begging her to take over.
The foreign investors who were supporting the US debt are and have been retreating and walking away since November.
And your neo-Marxist president does not inspire anyone to invest in anything.
Not true...those foreign speculators including AIG caused much of the problems in the economy.
You seem to believe that just because a person doesn’t like George “trillion dollar bailout” Bush they must mean that he is an ally of Barack Obama. That kind of tactic isn’t working anymore, at least with a growing number of conservatives. George Bush was the most socialist president since FDR.
How about Dick Cheney instead?
Agreed. Obama is gonna be a savior compared to Bush........
I saw the properties those people held. Pipes, toilets and sinks ripped out. A bunch of illegal aliens ran away with the inside to do what with? They use toilets in Mexico.
Will Obama make your life whole? If you say yes, I already hid my money from him. Apparently, many others did too.
Hey! Let’s give the guy a ch...nah, never mind.
AIG oversold insurance (derivatives) on risky loans...this permitted investors to make incredibly dangerous investments-less risk...We have given AIG $160,000 billion dollars to date and more is on the way. You could have paid off every bad loan with 1/10 of tarp and fed money already used...BS-this is the Wall Street bankers latest excuse.
The truth is Wall Street crashed the economy with a little help from our government. Under a Democrat president and a GOP congress...the bucket law was done away with...this allowed Wall street to create derivatives (against the laws in most states before this happened) these POS financial products went off like an H bomb in our economy per Warren Buffet.
It was equally hazardous for federal entities like Freddie Mac and Fannie Mae to facilitate arbitrage deals with improperly bundled mortgage packages (CDO's) whose risk was impossible to truly gauge, not that anyone cared as long as the tax-and-credit-expansion power of the government was implicitly underwriting them. These practices encouraged financial service companies to engage in dangerous speculation using highly-leveraged assets whose value was largely predicated on the promise of Uncle Sam holding the bag when and if they blew up.
And that's what happened. The point is that in a truly free market, financial companies would NEVER have been willing to take the risks they did - because those risks were not underwritten with their own money, but with yours and mine. And that is why it is so wrong and immoral to bail them out now. The people who deserve to be in jail are the Congressmen who passed the laws and the lobbyists who paid them off.
Derivative used to be outlawed-buck shop laws...they should be again as they encourage risky investment and are not regulated.
Lehman insured Freddie and Fannie you know. I include CDO’s as well. All of this nonsense needs to be stopped. Buck Shop laws were there for a reason. As for mortgages...you could pay off every bad mortgage with 1/10 of the money spent-TARP and Fed money...more bailouts to come-including bad bank. This is where the banks get to transfer their toxic assets to the taxpayer.
Brokers like Lehman used their trading leverage to market these assets aggressively, and why not? It seemed foolproof, that is, as long as real estate prices continued to rise and long-term interest rates remained stable. High-risk borrowers simply refinanced whenever the payments got to be too much, using increased home equity as collateral, and the new mortgages were bundled and sold off almost immediately to finance other investments.
A Fool's Paradise it was, of course, dependent on the Federal Reserve's printing presses and taxpayer pocketbooks, should The Unthinkable happen. In this case, the "unthinkable" was in reality a very routine occurrence: a correction in real estate prices. These prices were driven to lofty levels by speculation that was itself created by government policy. High American business taxes (the highest in the free world), increasing energy prices (no drilling, no nuclear power), and a non-level playing field in international trade made US equity interests far less attractive than real estate as an investment.
When the Boom busted, the whole house of cards fell apart rather quickly, in part because no one believed it was happening, but also because the multiple layers of leverage built into the market could not be unwound fast enough to stop the snowball effect.
Lessons learned, one would hope. When the government gets involved in the business of financial risk management, honesty, trust and transparency are the first things to fly out the window. The incentive systems that result from government mandates create two classes of people: crooks and victims. Some will gladly volunteer to be the first if they think they can get away with it (right, Bernie Madow?) but no one wants to be in the latter class. Unfortunately, that's exactly where most end up.
Does that state it plainly enough?
We operated just fine without derivatives until 2000, when the modernization act under Clinton overturned the bucket shop laws. I understand that these product do offer liquidity. However, the banks chose to do this. They chopped the mortgages up and firms like AIG granted ‘insurance’ for increasingly risky investments including the mortgages and other investments which have nothing to do with mortgages and without sufficient capital to cover their losses... if you keep these derivatives, and I don’t think you should, they must be regulated to make sure they are backed by sufficient capital just like any insurance company. Warren Buffet called these things H bombs...and they sure went off in the world economy...Iceland is bankrupt, England is almost bankrupt as is the United states. I think modern financial business should think long and hard about this...perhaps the old ways were better.
You could take every bad mortgage and pay it off...you would not use 1/10 of TARP or the FED spending ...this is not about mortgages. It’s about wall street making terrible investments without sufficient capital relying on derivatives (insurance) to cover their losses...too bad there was insufficient capital to cover the losses.
Well, I guess I need to find a better shortcut way of explaining then. Do you have a concise sentence you can offer?
It’s hard to be concise when explaining this. First, it’s not all about mortgages. We can see this as every bad mortgage out there would not add up to 1/10 of TARP and Fed money spent. Credit derivatives were offered to investors to cover risky investments...this included some mortgages and also loans to companies like Ford as well (companies needing restructuring) as well as other risky investments. Credit derivatives were basically an insurance policy...insuring risk...this allowed various banks, businesses and even governments to take huge gambles...leveraging themselves 60-1 in some cases. I think Lehman started the downward spiral when it manipulated oil prices driving them up...this caused some losses. The problem was AIG and Lehmans were not properly capitalized. When some investments failed they could not cover the losses...this caused investor panic who began to sell these things...Lehman fell and the rest is history. If Lehman was bailed out, we might not be in this situation, but it would be waiting for us down the road. Derivatives would not have permitted before 2000 because there used to be a ‘bucket shop’ law which outlawed this type of financial product which encourages gambling and not sound investment practices.
Some of the smartest people on the planet thought they had found a way to make debt risk dissolve into the global economy while still making enormous profits? If I understand this correctly, they failed...
You understand it perfectly...remove the risks from themselves and place it in the economy...you are concise...wow...great post (tipping my imaginary hat).
You are very kind. I’m just trying to figure out how to make it understandable to non-financial people (like me.)
You did a great job...much better than I could...I’m not a financial person either. I studied it and it was explained to me by my brother who warned my husband to get out of the market last year (broker is a broker), we should have listened.
What has nearly bankrupted the country is the idea that everyone is entitled to own a home regardless of their ability and/or willingness to pay the mortgage cost.
It was a nice socialist pipe-dream while it lasted... /s
It had NOTHING to do with that, that was just the cause/effect part of it.
What BANKRUPTED AMERICA is the silly notion that Socialist ideas can work here, just because WE haven’t tried it, yet!!
American manufacturing has been OUTFORCED by Democrat policies since the mid-70’s, to get us to now, where we no longer have the productive base to support runaway gub’ment entitlements. And all in the name of vote-buying and centralization of power.
Dems have killed the goose that laid the Golden Egg, and NOW they want an increase in Golden Egg production!!!
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