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The recession has popped a lot of dreams… It has forced a re-evaluation of priorities. It has put reality in the forefront.
So wiping off the table of everything, everything, and sitting down to a blank space, and asking myself, … what do I want, by the time I die.
It is:
A country where working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement,”
After watching “It’s a Wonderful Life” you can be sure it can’t happen on a Republican’s watch….. For that dream to happen, we need protection from corporations and Big Money; not giving them more and more of what we make.
We need more money funneled away from big business, to be reinvested into the Middle Class… Since they haven’t done it voluntarily, we’ll have to force it.
Republicans can’t force anyone to do anything. They are putz’s. It will take a government of all Democrats to make Americans who die, at least die happy that they were able to secure:
“A country where working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement”.
Duffy is God’s answer to a prayer.. I miss the old days of blogging when we were debating principals instead of people… Duffy has stuck to the old line of debating principals with facts, and that is what makes him special in the eyes of bloggers everywhere…
Since the passing of Steve Newton, he has been the only one to challenge me in any argument, and usually some pretty good stuff comes out of both sides during the exchange… I have respected that.. Cause once again, opinions mean dick. Facts are what we steer by.. It is my hope that in responding to his challenge that an answer may make itself apparent.. Who knows? It may not come from me… But if I’m the catalyst for bringing it out in the open, then… none of this was in vain..
Why I like to debate Duffy is simple.. Neither side, he or I, is concretely set in their opinions… We accept it when the other side makes sense… I usually go into such debates having no idea where they’ll end up… I hope the rest of you enjoy the ride as welI….
That said..
kavips rebutt’s:Uh… Mr. President. That’s not entirely accurate.
First off, the Community Reinvestment Act of 1977 was developed for, and locked in on, urban developmental areas and had no part of the subprime boom, which primarily occurred out in western desert regions where owning 4 to 5 investment homes was normal… Those homes were overwhelmingly funded by loan originators NOT SUBJECT to the act… We all know the crises was not because people couldn’t afford a payment on their house. It came about, because with no occupants, people could not afford the payments of 4 to 5 houses….. Instead of one loan per borrower turning up in default; four to five were.
Second off, The housing bubble reached its point of maximum inflation in 2005.
Courtesy of NYT
Third off, During those exact same years, Fannie and Freddie were sidelined by Congressional pressure, and saw a sharp drop in their share of loans secured by the Feds… Follow the dotted line on the very bottom of the graph…
Courtesy of NYT
Fourth off; During those exact same years, private secures, like Delaware’s own AIG, grabbed the lions share of the market.
Courtesy of NYT
Remember these graphs for later on when I discuss the results of deregulation, versus regulation… But like it or not, these graphs conclusively show that private insurers, who thanks to Marie Evans, we now know were deregulated by Phil Gramm in the 2000 Omnibus Bill, were the primary cause of the worlds financial collapse.. Probably put best by these words of AIG’s spokesperson, who when asked why they didn’t have sufficient funds to cover losses, said point blank, “We were deregulated. We were no laws requiring us to keep any funds, ..so we spent it…”
kavips rebutt’s:Uh… Mr. President. That’s not entirely accurate. I agree that the hedge funds did survive better than the banks. Not because of bailouts, but because they sold short during the crises and made billions while firms closed and people got thrown out of work. There is nothing wrong with that; I did the same. In fact close readers may remember my warnings that the crises was impending almost a year earlier. Very close readers may remember my telling them exactly when to sell, and at what point the stock market would rebound… I must say: I called it rather well. 🙂
De regulated hedge funds are not the issue… De-regulated, excessively leveraged, mortgage securities, are a different story however… They, not the banks that held them, are the cause of the crises…Years from now, when academics search for causes of the stock market crash of 2008, they will focus on the pivotal role of mortgage-backed securities. These exotic financial instruments allowed a downturn in U.S. home prices to morph into a contagion that brought down Bear Stearns a year ago this month – and more recently have brought the global banking system to its knees.
Where you err is when you state that banks too big to fail, assumed they would be bailed out… By implication, you say imply they failed from squandering money, and wanted the bailouts.. But your tax dollars didn’t flow directly to the bottom line.
So in that sense, the bailout money represents an expense for banks. That’s one reason a number of banks have said they want to give the money back as soon as possible.
You say big banks were counting on a bailout, and they got them? That didn’t happen to these banks. New Mexico, Georgia, and Florida each lost a bank just last Friday. That brings to 8, the number of banks failed in June. Unfortunately if a bank is failing, it can’t bet on itself to fail, as can a hedge fund.
kavips rebutt’s:Uh… Mr. President. That’s not entirely accurate. The idea is that the banks made bad decisions knowing taxpayers would bail them out is the issue that is inaccurate. For the record, I have no qualms that it was the Clinton legacy who tore down the wall between banks and investment banking. Like you, I feel it was a good idea to do so… Again the problem was not primarily with banks making loans to people who could not pay.. Although, it was as late as October 2009, when I was made aware of one private Bank in Denver still exaggerating income to make loans look good enough on paper to get approval of securitization. What caused the collapse was the leveraging of those loans as securities, so that as the housing market became overextended, and the ARM jumped past the low cost opening years, the damage was 100 times worse because of leveraging. What made the collapse criminal, was that the insurance most financial institutions had bought from AIG, to cover such an improbable event, had already spent by that companies executives, out on bonuses to themselves. What made it doubly criminal, was that when they received government dollars through a taxpayer bailout, those same executives assumed it was to first go towards paying their bonuses again. However, very recent events may give some cover to the argument that some collusion was implicit in the bailing out of Goldman Sacs and AIG… Basically, once bailed out, AIG paid Goldman Sacs for shares twice as much as they were worth. The documents also indicate that regulators ignored recommendations from their own advisers to force the banks to accept losses on their A.I.G. deals and instead paid the banks in full for the contracts.
Bud Cummings, ex U. S. attorney recently commented on Salon.com about his past experience. He hits exactly on why the Bush Administration continues to create such ire among American patriots.
It is not that Bush is bad, I’m sure in another capacity he could be a great guy. It is what he has done to the country, that is bad………………………………………
The tragedy of this Attorney General scandal, is not that it was done. As this administration quickly pointed out, other administrations have done much worse. The tragedy,……. is in HOW it was done. A political firing was falsely based on poor performance.
Excerpt from Bud Cummings:
The president had an absolute right to fire us. We served at his pleasure, and that meant we could be dismissed for any reason or for no reason. And we all accepted that fact without complaint. When challenged by Congress, the leaders of the Department of Justice could have refused to explain. Or, they could have explained the truth. But apparently the truth behind some or all of the firings was embarrassing. So, instead, they said it was because of “performance.” We didn’t accept that, because it wasn’t the truth.
He then hits upon what most of us bloggers take issue with throughout the entire government spectrum, whether it is lurking in Family Court, Representative Atkins, Senator Adams, Governor Minner, the FBI, or the inner sanctuary of the White House itself, and that is credibility. He follows with these wise words.
Put simply, the Department of Justice lives on credibility. When a federal prosecutor sends FBI agents to your brother’s house with an arrest warrant, demonstrating an intention to take away years of his liberty, separate him from his family, and take away his property, you and the public at large must have absolute confidence that the sole reason for those actions is that there was substantial evidence to suggest that your brother intentionally committed a federal crime. Everyone must have confidence that the prosecutor exercised his or her vast discretion in a neutral and nonpartisan pursuit of the facts and the law.
So where do we go from here…….
Again, Bud Cummings:
You only get one chance to hold on to your credibility. My team, which holds temporary custody of the Department of Justice, has blown it in this case. The Department of Justice will be paying for it for some time to come. Lots of sound investigations and convictions are now going to be questioned. That is a crying shame, because most of the 110,000 employees to whom the attorney general referred in a recent news conference, are neutral, nonpartisan public servants and do incredible work. A lot of President Bush’s political appointees have done a lot of great work, too. Sadly, because of the damage done by this protracted scandal, which the administration has handled poorly at every turn, none of that good work is currently being recognized. And more ominously, the credibility of the Department of Justice may no longer be, either.
We can do honor to those 110,000 of neutral public servants by remembering that incompetence is due to the head, and does not arise from the body. Unfortunately this is just the opposite of what we usually do when we are on the public stage. We attack the body.
Paul, can we have a drum roll please. All right ladies and gentlemen: Here we go……the top ten reasons we are definitely going to bomb Iran.
Number 10:
Two carrier groups and four subs are sitting off the coast of Iran. They need some “R” and “R”….
Number 9:
Their embassy in Irbil, didn’t have any video games for us to steal when we raided it.
Number 8:
Their moderates are getting far too powerful. If the fanatics lose control, it undermines our entire justification for paying Haliburton all the money we stole from Social Security…….
Number 7:
Our soldiers are tired standing down and being blown up by IED’s. They want to drive tanks again……………
Number 6:
Democrats want to cut back spending on the war. We’ll give them a new war, so we can all cut back on the old war in genuine bipartisanship spirit…….
Number 5:
We haven’t seen a nuclear explosion since the French did one in the Pacific. We forgot what one looks like…..
Number 4:
The French and Germans have started talking to us and being nice to us again.
Number 3;
Tehran was solely responsible for 9/11 Remember 9/11, remember 9/11. It was Iran that did it; (“Gee Dick, how’d I do, did it sound alright?)
Number 2;
John McCain needs some help.
And the Number 1 reason we are going to bomb Iran in the very near future………………………………………………………
(drumroll)
Gas Prices are still hovering at $2 a gallon and …WE JUST CAN’T STAND IT…….