The current crisis is a product of 3 decades of the decline and in indebtedness of the US. It is also a global crisis that one nation, no matter how large cannot resolve. The US went to war in 2003 to seize ME oil supplies to offset its economic woes, 2 years before 2005. The money owed by world financial institution is 3 times the world's GDP. If the worlds bankers and economists could avoided this crisis they would have. They couldn't.
On Sep 23, 7:01 am, jgg1000a <[EMAIL PROTECTED]> wrote: > Democrats seek to deny responsibility, yet their fingerprints on all > over the cause of the RE bubble... Obama if honest would point > partical blame THERE... That he refuses to be honest, speaks volumes > about his lack of zeal in being an honest reformer... > > http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0 > > >>> What happened next was extraordinary. For the first time in history, a > >>> serious Fannie and Freddie reform bill was passed by the Senate Banking > >>> Committee. The bill gave a regulator power to crack down, and would have > >>> required the companies to eliminate their investments in risky assets. > > Different World > > If that bill had become law, then the world today would be different. > In 2005, 2006 and 2007, a blizzard of terrible mortgage paper > fluttered out of the Fannie and Freddie clouds, burying many of our > oldest and most venerable institutions. Without their checkbooks > keeping the market liquid and buying up excess supply, the market > would likely have not existed. > > But the bill didn't become law, for a simple reason: Democrats opposed > it on a party-line vote in the committee, signaling that this would be > a partisan issue. Republicans, tied in knots by the tight Democratic > opposition, couldn't even get the Senate to vote on the matter. > > That such a reckless political stand could have been taken by the > Democrats was obscene even then. Wallison wrote at the time: ``It is a > classic case of socializing the risk while privatizing the profit. The > Democrats and the few Republicans who oppose portfolio limitations > could not possibly do so if their constituents understood what they > were doing.'' > > Mounds of Materials > > Now that the collapse has occurred, the roadblock built by Senate > Democrats in 2005 is unforgivable. Many who opposed the bill > doubtlessly did so for honorable reasons. Fannie and Freddie provided > mounds of materials defending their practices. Perhaps some found > their propaganda convincing. > > But we now know that many of the senators who protected Fannie and > Freddie, including Barack Obama, Hillary Clinton and Christopher Dodd, > have received mind-boggling levels of financial support from them over > the years. --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
