Skip to comments.Upside down economics
Posted on 02/21/2009 8:56:19 PM PST by topfile
From television specials to newspaper editorials, the media are pushing the idea that current economic problems were caused by the market and that only the government can rescue us.
What was lacking in the housing market, they say, was government regulation of the market's "greed." That makes great moral melodrama, but it turns the facts upside down.
It was precisely government intervention that turned a thriving industry into a basket case.
An economist specializing in financial markets gave a glimpse of the history of housing markets when he said: "Lending money to American homebuyers had been one of the least risky and most profitable businesses a bank could engage in for nearly a century."
That was what the market was like before the government intervened. Like many government interventions, it began small and later grew.
The Community Reinvestment Act of 1977 directed federal regulatory agencies to "encourage" banks and other lending institutions "to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions."
(Excerpt) Read more at washingtontimes.com ...
Near as I can remember the market is self-correcting. Tamper with it enough and it’s bound to get broken.
Talk about killing the goose that lays the golden eggs! You would think that Obama would prefer to be the President of an economic superpower, and not of the third-world hell hole he’s in the process of creating.
That's still the case in Canada.
The market has fallen — but, we never had a big bubble burst on us.
Banks (and most other mortgagees)here require a mortgagor to have a job; or other steady source of income. They also require a sizable down-payment. If you get submerged, you can't just walk away from your obligations. After foreclosure, you still owe any outstanding balance.
These are the sorts of things that banks do in a “free” market.
No, his goals are to be one of the UN’s Global Elite that will pull money, resources and food from the developed nations and force the world to all live in Marxist comfort.
If you make money, some guy in China that is penniless should have your earnings...
Frank Marshall Davis, Saul Alinsky, Bill Ayers and most of the Left Wing Democrats believe in a collective society that takes from the “rich” (business) and gives to the “poor” (non-working). In exchange, people, mainly attorneys, like John Kerry, Chuck Schumer, Tom Harken and Barbara Boxer will be high-ranking party members who live in the world of jets, money, fine food and armed protection while you, the useless eaters, work to lose 70-80% of your earnings to fund a collossal bureaucracy that directly or indirectly influences 90% of your life’s functions.
They live in armed palaces, you are not allowed to have guns. They live off of taxes on businesses that are no allowed to thrive as the “tribute” has made it impossible to earn a profit. They will restrict your diet, your amount of healthcare, your child’s education, the TV you watch, the fetus you elect to have or abort (2 max), the church you attend, the miles you drive, your carbon footprint that is deemed more important than industry.
You will not be able to speak up as hate speech is defined by the Party; there will be no Rush or Savage, dissent has been silenced; illegal peasants will be given first priority in finding a spot in college and in the job after college, along with HUD housing and Affirmative Action.
You will be the second class citizen in the land your forefathers died for. You will have to respect Islam as a moral religion, or face jail. You will have to rid yourself of private property.
If you think that I am exaggerating, you had better begin reading ZerO’s plans for a Communist USA. One month and he has bankrupted at least 2 generations.
Harry Reid and Chuck Levin will be your masters...get used to it.
Corliss Lamont: The exemplar of a touching, child-like faith in socialism and centralised planning only a trust-fund baby could sustain.
Obama wants to destroy the Markets. When they are gone only Government will be left and everyone will be a client.
God Help US! ! ! !
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