--- In FairfieldLife@yahoogroups.com, new.morning <[EMAIL PROTECTED]> wrote: > > --- In FairfieldLife@yahoogroups.com, "raunchydog" <raunchydog@> wrote: > > > > > > > OTOH we are in a shitstorm so going with whoever you think has the > > > brainpower and perspective to lead us through it makes sense. > > > > Compare Solutions to Financial Crisis: Warm and Fuzzy Non-Specific > > Obama: http://preview.tinyurl.com/43dolg Strong and Specific Hillary: > > http://tinyurl.com/4ervw5 "Hillary took to the floor of the Senate > > today to lay out her plan for halting the economic meltdown, and her > > Senate staff has the video of her speech up online. She's speaking > > about what needs to be done NOW to address the economic meltdown > > taking place up on Wall Street this week. She talks in detail for over > > 20 minutes and dammit, it just breaks my heart that someone this > > capable and brilliant isn't headed to the White House this fall." > > Alegre http://tinyurl.com/4cy7ur on Hillary's statements. > > Sorry, I don't get it. Clinton's proposals, while good intended, > simply put band-aids on gaping wounds. And actually support and fuel > the core problem -- phantom asset valuation. They don't solve it -- > they simply delay an inevitable future, expanded, crisis, IMO. > > Clinton's proposals: > > * Create a new entity to buy up and quarantine toxic mortgage > securities that are dragging down the markets which would allow the > markets to stabilize. Last spring Senator Clinton was among the first > to call for a new entity modeled after the successful Depression-era > Home Owners' Loan Corporation (HOLC) or the Resolution Trust > Corporation (RTC) created after the Savings and Loan crisis. > > --- > Buy them up with non-existent government funds, by a gov't already 10 > trillion in debt. Popping another 2 trillion debt, the gov't may > actually sink. The dollar may go down the toilet. Strong inflation > leading to hyperinflation may follow as the government pumps more > phantom dollars into the market to pump up pahntom real estate prices. > > All to pump up housing prices, or sustain them at over-inflated, > speculative bubble values. This is not a solution, its a > continuation of the problem.
None of what's being done or contemplated now, in my understanding, has anything at all to do with propping up housing prices. That's a big fat red herring. <snip> > * Place a temporary moratorium on the most abusive stock > transactions, many of which involve the "short-selling" of stocks. > Yesterday, Senator Clinton wrote to the Securities and Exchange > Commission urging such a moratorium, saying it would provide breathing > room for the markets to recover, for investors to make accurate > assessments of companies and for regulators to assess what trading > practices should be permanently banned. > > --------- > This is idiotic populism. Banning short-selling is the equivalent > to banning the sale of stocks. "Sorry, we can't let you sell that > stock in that poorly run, worthless asset swamped firm, because, > hey it will lower the price of their stock and put in more in line > with the actual value of the company." This is lunacy. And populist > pandering. And displays a shocking ignorance of financial markets. Apparently you're not aware that this has already been done. Short selling was banned on Friday. > * Aggressively pursue and encourage mortgage modifications. > Senator Clinton has introduced legislation to remove barriers > to mortgage modification and to encourage lenders to voluntarily > work with borrowers to keep them current on payments and in > their homes. > -------- > What is "mortgage modification" code for? Adjusting the mortgages so that people can afford to make payments on them and won't lose their homes. > This sounds like a a bailout of Wall Street who foolishly bought > packages of sophisticated yet high risk loans, aggressive -- bordering > on fraudulent -- lending practices, and new or trading-up homeowners > who made a risky big bet, trying to make a bundle in the real estate > market. They all bet wrong. Being a mommy and daddy to all the kids > who made foolish decisions -- or calculated ones motivated by quick > profits -- is not a solution. Many borrowers were hornswoggled by the lenders into thinking they could afford the mortgages, probably more than were in it to make a buck. That's why it was called the "subprime mortgage crisis" in the beginning, before it spread. > The only sustainable solution is to let these complex financial > instruments, and housing valuations, to unwind and reach true > value. There will be disruptions. There will be global economic catastrophe. You obviously have no concept of how serious this is. At this point it's an insolvency and credit crisis that threatens to bring down the whole economy. It's a major, major emergency that has to be addressed *immediately*.
