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There is a bill in the Senate to extend benefits to those long term unemployed who suddenly are without money. Any money.
As local news agencies have oft repeatedly reported, when new jobs get offered there are over 100s, sometimes 1000s of applicants for each position.. With so many unemployed for so few jobs, how does cutting unemployment benefits to these long-termed unemployed help anyone or do anything to help the economy? They do a lot to hurt however… For example Delaware will have lost $3.9 million dollars of economic activity by this Saturday coming up… That missing almost $4 million in 3 weeks means cut hours for those across the state who could be normally be working….but for this cut.
That is just one example. Inventory restocking gets cut, as $4 million in product which would be normally gone, still sits on Delaware’s grocers’ shelves. Those delivering and producing also must cut hours back, because from every state they serve, they are getting the same reactions.
So why, is it that something so simple cannot be passed by Congress?…. You will probably hear from America’s media that alas, it is gridlock and it is both party’s fault. No doubt on some networks you will hear that the majority party will stubbornly not allow any amendments to this bill and for that, it is the Democrat’s fault if the bill does not have support of the minority. Or then again, you may hear what is really happening.
The Republican minority is loading up the unemployment bill with junk amendments which it wants Democrats to have a record of voting upon when they compete in the Congressional elections in 2014, ten months away.…
That is why, attached to the Long-Term Unemployment Compensation Bill, are all these amendments which……
1. S.AMDT.2603 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Ayotte, Kelly [NH] (introduced 1/7/2014) Cosponsors (14)
Latest Major Action: 1/7/2014 Senate amendment submitted
2. S.AMDT.2604 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Vitter, David [LA] (introduced 1/7/2014) Cosponsors (None)
Latest Major Action: 1/7/2014 Senate amendment submitted
3. S.AMDT.2605 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Inhofe, James M. [OK] (introduced 1/7/2014) Cosponsors (None)
Latest Major Action: 1/7/2014 Senate amendment submitted
4. S.AMDT.2606 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Coburn, Tom [OK] (introduced 1/7/2014) Cosponsors (9)
Latest Major Action: 1/7/2014 Senate amendment submitted
5. S.AMDT.2607 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Coburn, Tom [OK] (introduced 1/7/2014) Cosponsors (4)
Latest Major Action: 1/7/2014 Senate amendment submitted
6. S.AMDT.2608 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Blumenthal, Richard [CT] (introduced 1/7/2014) Cosponsors (2)
Latest Major Action: 1/7/2014 Senate amendment submitted
7. S.AMDT.2609 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text.
Sponsor: Sen Coats, Daniel [IN] (introduced 1/7/2014) Cosponsors (None)
Latest Major Action: 1/7/2014 Senate amendment submitted
8. S.AMDT.2610 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Coats, Daniel [IN] (introduced 1/7/2014) Cosponsors (None)
Latest Major Action: 1/7/2014 Senate amendment submitted
9. S.AMDT.2611 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Coats, Daniel [IN] (introduced 1/7/2014) Cosponsors (1)
Latest Major Action: 1/7/2014 Senate amendment submitted
10. S.AMDT.2612 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. :Sponsor: Sen Moran, Jerry [KS] (introduced 1/7/2014) Cosponsors (1)
Latest Major Action: 1/7/2014 Senate amendment submitted
11. S.AMDT.2613 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. :Sponsor: Sen Portman, Rob [OH] (introduced 1/8/2014) Cosponsors (4)
Latest Major Action: 1/8/2014 Senate amendment submitted
12. S.AMDT.2614 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. :Sponsor: Sen Paul, Rand [KY] (introduced 1/8/2014) Cosponsors (1)
Latest Major Action: 1/8/2014 Senate amendment submitted
13. S.AMDT.2615 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text.: Sponsor: Sen Inhofe, James M. [OK] (introduced 1/8/2014) Cosponsors (4)
Latest Major Action: 1/8/2014 Senate amendment submitted
14. S.AMDT.2616 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Portman, Rob [OH] (introduced 1/8/2014) Cosponsors (1)
Latest Major Action: 1/8/2014 Senate amendment submitted
15. S.AMDT.2617 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Coats, Daniel [IN] (introduced 1/8/2014) Cosponsors (None)
Latest Major Action: 1/8/2014 Senate amendment submitted
16. S.AMDT.2618 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Shaheen, Jeanne [NH] (introduced 1/8/2014) Cosponsors (12)
Latest Major Action: 1/8/2014 Senate amendment submitted
17. S.AMDT.2619 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Portman, Rob [OH] (introduced 1/8/2014) Cosponsors (None)
Latest Major Action: 1/8/2014 Senate amendment submitted
18. S.AMDT.2620 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Toomey, Pat [PA] (introduced 1/8/2014) Cosponsors (None)
Latest Major Action: 1/8/2014 Senate amendment submitted
19. S.AMDT.2621 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text.: Sponsor: Sen Portman, Rob [OH] (introduced 1/8/2014) Cosponsors (None)
Latest Major Action: 1/8/2014 Senate amendment submitted
20. S.AMDT.2622 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Thune, John [SD] (introduced 1/8/2014) Cosponsors (2)
Latest Major Action: 1/8/2014 Senate amendment submitted
21. S.AMDT.2623 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. Sponsor: Sen McConnell, Mitch [KY] (introduced 1/8/2014) Cosponsors (1)
Latest Major Action: 1/8/2014 Senate amendment submitted
22. S.AMDT.2624 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen McConnell, Mitch [KY] (introduced 1/8/2014) Cosponsors (1)
Latest Major Action: 1/8/2014 Senate amendment submitted
23. S.AMDT.2625 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen McConnell, Mitch [KY] (introduced 1/8/2014) Cosponsors (1)
Latest Major Action: 1/8/2014 Senate amendment submitted
24. S.AMDT.2626 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Sessions, Jeff [AL] (introduced 1/8/2014) Cosponsors (3)
Latest Major Action: 1/8/2014 Senate amendment submitted
25. S.AMDT.2627 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text.: Sponsor: Sen Scott, Tim [SC] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment submitted
26. S.AMDT.2628 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text.: Sponsor: Sen Portman, Rob [OH] (introduced 1/9/2014) Cosponsors (1)
Latest Major Action: 1/9/2014 Senate amendment submitted
27. S.AMDT.2629 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text.: Sponsor: Sen Collins, Susan M. [ME] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment submitted
28. S.AMDT.2630 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Flake, Jeff [AZ] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment submitted
29. S.AMDT.2631 to S.1845 Relating to extension and modification of emergency unemployment compensation program. : Sponsor: Sen Reed, Jack [RI] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment proposed (on the floor)
30. S.AMDT.2632 to S.1845 To change the enactment date. : Sponsor: Sen Reid, Harry [NV] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment proposed (on the floor)
31. S.AMDT.2633 to S.1845 To change the enactment date. : Sponsor: Sen Reid, Harry [NV] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment proposed (on the floor)
32. S.AMDT.2634 to S.1845 Of a perfecting nature. : Sponsor: Sen Reid, Harry [NV] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment proposed (on the floor)
33. S.AMDT.2635 to S.1845 Of a perfecting nature. : Sponsor: Sen Reid, Harry [NV] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment proposed (on the floor)
34. S.AMDT.2636 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Pryor, Mark L. [AR] (introduced 1/9/2014) Cosponsors (None)
Latest Major Action: 1/9/2014 Senate amendment submitted
35. S.AMDT.2637 to S.1845 Purpose will be available when the amendment is proposed for consideration. See Congressional Record for text. : Sponsor: Sen Scott, Tim [SC] (introduced 1/9/2014) Cosponsors (2)
Latest Major Action: 1/9/2014 Senate amendment submitted
So when you happen to hear from someone who is not accurately attuned to factual reality, still stating that both sides own part of the problem, politely inform them that if they want to report on the news accurately, they should properly state that 28/35ths of the delay is Republican orieneted…. (I’m being generous; if you back out Reid’s strictly procedural amendments, the problem is even more onesided as being 28/32ths the Republican’s fault….)
Some of these amendments, especially from Republicans, cover a wide range of topics…. Here are a few…..
REPEAL OF ALL REDUCTIONS MADE BY BIPARTISAN BUDGET ACT
OF 2013. Ayote’s Amendment #1
TRANSPARENCY OF CONGRESSIONAL STAFFER’S AFFORDABLE CARE ACT COVERAGE of every House and Senate Office member as well as the representatives themselves. Vitter’s #2 Amendment.
STATE CONTROL OF ENERGY DEVELOPMENT AND PRODUCTION ON
ALL AVAILABLE FEDERAL LAND. . Inhoffe’s #3 Amendment.
ENDING UNEMPLOYMENT PAYMENTS TO JOBLESS MILLIONAIRES
AND BILLIONAIRES. ( just the visual of Bill Gates standing in line in a Washington State’s Unemployment Office for his weekly check of $224 dollars, was worth all the time writing this article…) Coburn #4 Amendment.
PROHIBITION ON PAYMENT OF BENEFITS BASED ON RECEIPT
OF UNEMPLOYMENT COMPENSATION which cuts future Social Security Benefits by the amount dispensed through unemployment compensation. Coburn #5 Amendment.
CREATE PATHWAYS BACK TO WORK FUND OF $12 BILLION. Gives Secretary of Labor discretion to spend $12 billion to give to states who create state jobs for unemployed. Blumenthal (D) #6 Amendment.
SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE REFUNDABLE PORTION OF THE CHILD TAX CREDIT. Coats #7 Amendment.
DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT COMPENSATION IS RECEIVED. Coats #8 Amendment.
DELAY IN APPLICATION OF INDIVIDUAL HEALTH INSURANCE MANDATE. Coats #9 Amendment
CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS WITH AN ADVANCED DEGREE IN A STEM FIELD. Moran #10 Amendment
DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE BENEFITS IN A MONTH FOR WHICH UNEMPLOYMENT COMPENSATION IS RECEIVED. Portman #11 Amendment
PROHIBITION AGAINST A FEDERAL GOVERNMENT BAILOUT OF A STATE, CITY, OR MUNICIPALITY Rand Paul #12 Amendment
ANALYSIS OF EMPLOYMENT EFFECTS UNDER THE CLEAN AIR ACT. Inhoffe #13 Amendment
AUTHORITY TO USE ANY DISCRETIONARY APPROPRIATIONS AVAILABLE TO THE SECRETARY OF LABOR TO CONDUCT IN-PERSON REEMPLOYMENT AND UNEMPLOYMENT INSURANCE ELIGIBILITY ASSESSMENTS FOR UNEMPLOYMENT INSURANCE BENEFICIARIES.. Portman #14 Amendment
REQUIREMENT THAT INDIVIDUALS RECEIVING EMERGENCY UNEMPLOYMENT COMPENSATION BE ACTIVELY ENGAGED IN A SYSTEMATIC AND SUSTAINED EFFORT TO OBTAIN EMPLOYMENT. Coats #15 Amendment
TREATMENT OF FOREIGN CORPORATIONS MANAGED AND CONTROLLED IN THE UNITED STATES AS DOMESTIC CORPORATIONS. Shaheen (D) Amendment #16
READJUSTMENT OF AMENDMENT #14 ABOVE: Portman #17 Amendment
EXTENSION AND MODIFICATION OF THE EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM. Combines most Republican amendments into one amendment. Tooney #18 Amendment
UNFUNDED MANDATES ACCOUNTABILITY. Portman #19 Amendment
EXEMPTION FROM AFFORDABLE CARE ACT MANDATE FOR LONG-TERM
UNEMPLOYED. LONG-TERM UNEMPLOYED INDIVIDUALS NOT TAKEN INTO
ACCOUNT FOR EMPLOYER HEALTH CARE COVERAGE MANDATE: Thune #20 Amendment
REPEAL OF REDUCTIONS MADE BY BIPARISAN BUDGET ACT OF 2013. McConnell #21 Amendment
DELAY IN APPLICATION OF INDIVIDUAL HEALTH INSURANCE MANDATE McConnell #22 Amendment
REPEAL OF NONREDUCTION RULE UNDER THE EMERGENCY UNEMPLOYMENT ACT. McConnell #23 Amendment
ACCOUNTABILITY THROUGH ELECTRONIC VERIFICATION. Sessions #24 Amendment
MODIFICATION OF DEFINITION OF FULL-TIME EMPLOYEE FROM 30 HOUR/WEEK TO 40 HOURS/WEEK. Scott #25 Amendment
STEERING FEDERAL TRAINING DOLLARS TOWARD SKILLS NEEDED BY INDUSTRY. Portman #26 Amendment
DEFINITION OF FULL-TIME EMPLOYEE Collins #27 Amendment
REDUCTION IN SHARE OF CROP INSURANCE PREMIUM PAID BY FEDERAL CROP INSURANCE CORPORATION. Flake #28 Amendment
REQUIREMENT FOR PARTICIPATION IN PUBLIC SERVICE AS A CONDITION FOR RECEIPT OF EXTENDED UNEMPLOYMENT BENEFITS Reed #29 Amendment
LAW ENACTED ON DAY AFTER SIGNING Reid #30 Amendment
AMENDMENT TO PREVIOUS AMENDMENT Reid #31 Amendment
AMENDMENT TO PREVIOUS AMENDMENT Reid #32 Amendment
AMENDMENT TO PREVIOUS AMENDMENT. Reid #33 Amendment
REQUIREMENT FOR PARTICIPATION IN PUBLIC SERVICE AS A
CONDITION FOR RECEIPT OF EXTENDED UNEMPLOYMENT
BENEFITS. Pryor #34 Amendment
SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS Scott #35 Amendment
And that is one half of the reason we do not have extended Unemployment benefits. The other half lies in the House.
The inaugural commission created a menu balanced across the palate of the United States of America… Featuring Maine Lobster, hickory grilled bison from South Dakota, Hudson valley apple pie, wines from Lake Eire region. The decision was made by a committee…
Mrs. Debbie Boehnor
Mrs. Diani Cantor
Mrs. Honey Alexander
Mrs. Iris Schumner
Mr. Paul Pelosi
Mrs. Landra Reid
They tasted thousands of different items representing areas across this , and came to a consensus… How hard is that? You try it. It is very hard!
If Americans who have no connection other than their spouses chose to run for office and won, can come together to figure out a complicated endeavor, why can’t we figure how to keep guns out of school, how to raise our debt ceiling, how to cut spending fairly and how to balance our budget?
The reason is the bullies on the outside. Those groups who yell, “don’t you give one inch”. Those groups who say “they’re trying to take rights away from you”. Those groups who growl: “take everything; give them not one penny in return”.
Usually those bullies are powerful because they are bullies. They live and survive on your donations… IF they can freak you out, that you give up some of your hard earned money, they get rich…
There is an industry that thrives on conflict. That gets rich off discontent. That fans flames to grow their pockets.
That industry is who to blame for our nation’s intransigence. Fox News gets the lions share, because they were first. But Rush Limbaugh, Sean Hannity, Bill O’Reilly, Ann Coultier, Glenn Beck, are all to blame. Because we see them in surroundings that mirror our memories of Ed Marrow, Walter Cronkite, Tom Brokaw, Peter Jennings, we drop the pretense that what we are hearing is not news. It is a business whose income depends upon the temperature of our hate. Pure and simple. The more we hate, the richer they get..
Would a consensus on a menu reflecting all of America have been so easily obtainable if Limbaugh, Hannity, O’Reilly were shrieking about each item? Exhorting any viewers to call and complain?
You know the answer… Proof is without the bullies on the outside, you put a handful of Americans on any committee, and things get done….
We’ve got to silence the bullies on the outside… Let’s do it, and eat in peace…
Courtesy of the Treasury Blog.
Right click to open full image… Pictograph Courtesy of Viral..
So, can someone tell me again, why we shouldn’t tax the rich, and instead, balance the budget on the backs of everyone else?…….
I seem to be missing that little detail where that all makes sense……
The Republicans do not have the votes to push their legislation forward.
That is why they have to be the disruptor.
The Democrats have the final say, and a chamber of Congress that can pass appropriate legislation….
They also have the executive; the one with final say.
The weaker side in this argument is the Republican Party. That means if America crashes, turning us into another Britain after the end of WWII, it will solely be the Republicans fault. Bottom line, they are the ones who have to give in, now, … rather quickly. Yes, they are solely to blame.
When this started, the Republicans said they would not vote to raise the spending cap, unless the $2.7 trillion increase in the debt limit, was balanced by a 2.7 decrease in longterm spending….
That makes sense.
What doesn’t make sense is, in this economy, pressing forward so hard to insist, that the pain be leveled only on the poor, by demanding that the burden SHALL NOT BE SHARED by anyone making over $100,000,000,000 dollars a day…..
What does make sense, is that with 80% of Americans now in dire financial straits, that the 1% at the top, at literally at no hardship to themselves, put “our” money that “THEY” have, back into the economy…
That’s what taxes do. They take money from the wealthy, reinvest it into the bottom of the economy, so it can rise again, benefiting all.
In Congress right now, sponsored by the Democratic Senate, is a budget bill that does exactly, exactly what the Republicans stated was their original objective.
It cuts $2.7 trillion in expenses in return for $2.7 debt ceiling raise..
Again. that is what is needed, sorry to say…
Republicans are of course “opposed”. Because it’s not “theirs”, of course…..
Republicans are like a screaming child in a restaurant.. Someone needs to take them out.
Today the White House issued this Executive Order.
“Should the debt ceiling not be lifted in time by May 16, in order to prevent the Treasury from running out of funds, I am hereby using the emergency powers given to the Chief Executive by the Constitution, to temporarily suspend the Bush Tax Cuts until: 1) either we can legally borrow the funds to continue paying on our commitments, or 2) we bring our debt down to the 2008 level by having much more tax revenue pour in.
This is in effect, immediately, and I have instructed the IRS to recalculate all 2010 tax forms over the level of $2 million dollars, and asses those individuals and companies, for the differences.
We must take this action because Republicans want to pay politics with your lives. As Chief Executive, I am responsible to you, not them. I won’t let that happen.
With these tax cuts out of the way, and with our austerity programs already in effect, that windfall of profit the Treasury will receive, will be entirely funneled towards the paying off our debt.
This policy will continue until Republicans can act reasonably and in a productive fashion.
Barack Obama.
Led by Pelosi, the House Democrats did not back Obama’s tax compromise bill.
It is different in the Senate. Legislation aimed at avoiding sweeping tax increases looks headed for Senate approval after negotiators added sweeteners to promote ethanol and other alternative energies.
Senate Majority Leader Harry Reid set the vote for Monday at 3 p.m. (2000 GMT).
Obama said on Thursday he expected the agreement would eventually pass, for the simple reason that should the House balk, the Republican House in three short weeks, will pass anyway. And that bill, the one in January, will be stripped of all its sweeteners.
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.
kavips 