So who is at fault for our economic crisis?

Found this article in the NY Times, which we all know is so far up the democrat's a$$es it's not funny.

Fannie Mae Eases Credit To Aid Mortgage Lending

It's a must read. Note this article was written in Sept. 99. a few quotes...

I love that this was in the NY Times!

 

Economic crisis is a direct result of the war.

War = high ass gas prices = higher prices on everything else = less money to spend = lower income for businesses = less jobs = less money to pay mortgages = forclosures.

Everything else just escalated because of gas prices.

 

You're joking...right?

 

The recent bailout has nothing to do with the war! This crap with Frannie and Freddie started well before the war.

With gas prices, Bush tried to pass a bill to start drilling here in the US, but Pelosi and the rest of her cronies all of a sudden took a five week vacation. I don't think it's a coincidence that our economy has gotten worse in the past two years since the democrats have taken over congress. There's a reason they call it the "do nothing" congress.

 

Anyone ever heard of a 'credit default swap'? They might not have cause the crisis, but they added to it tenfold. A credit default swap is basically insurance on a loan. If a mortgage-ee defaults on a loan, the banks step in and pay. Federal law requires those who issue credit insurance to have the capital in reserve to pay, if the loan is defaulted on. However, tricky wording by savvy corporate lawyers them 'swaps', which have no such requirement even though it's basically the same, so they were able to get away with it. And in so doing, compounded the problem immeasurably.

I don't see how they can get away with doing this. This is an absolute crime and no one's being charged with it. Used in this context, a credit default swap and credit insurance are the same damn thing and it's pathetic no one is being held accountable.

LINK

 

Absolutely not.

I just don't buy that all this financial failure just popped up at one time because of bad loans made 5, 6, 7, 8 years ago.

The timeline fits and it is the logical explanation that the price of gas is at the center of the whole problem. The war is the biggest reason for the higher gas prices, which brings me to that conclusion.

You can read all the media spin from both parties that you want, the reason I think this is not spewed all over is because both parties are at fault and it would do neither one of them good to bring it up.

I had to switch jobs because of this crap. We watched our business fall month to month, every month, since the end of 2002. We got a false upswing due to Katrina that lasted about a year, and then a nose dive to the worst numbers in the 12 years I worked there.

I've said it before, and I'll say it again, I am no political guru. Just a businessman with a clear sight at what took place, and continues to take place. Not saying I disagree with a lot of what you guys say, I just think this is the heart of the problem.

End the war, End the recession.

 

a gajillion people.

its timing. it involves bubbles, your neighbors, local businesses, fancy suits on corner offices, etc. we have too many built in buffers for one thing to cause something like this.

 

The price of oil and gas was headed up well before the war. In case you didn't notice in the late 90's, Saudia Arabia basically deflated the price of oil by flooding the market to make oil go from around $30 down $10. I don't remember the exacts but they were making a point to others in OPEC that they were the ones with the real power. To get it back to where they were, OPEC cut production and actually met their quotas. This caused the price of oil to grow steadily back to where they wanted it. Gas was headed to above $2 and now $3 because OPEC wants it there in a good economy.

Yes, the price of gas has affected the economy and not made it much better, but don't fool yourself into thinking this war caused the price of gas to skyrocket and the price of gas has caused all of it. Yes it didn't help the price, but it is only a small factor. The price of gas hinges on price of oil which fluxuates mainly based on our stored reserves, the economy as a whole and OPEC decisions to increase or decrease production.

 

You have got to be kidding.

 

Gas prices had nothing to do with the mortgage meltdown. That was caused by government pressuring Fannie Mae and Freddie Mac to make home loans to low income people. High gas prices have been with us for a much longer time. You are way off the chart.:dis: