Bruce Nunnally

Who is to blame for the financial meltdown?

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Business Week has a summary up in an attempt to explain who is responsible for the financial meltdown.

Investment banks started taking more risks. They created new financial vehicles which were not well understood. Financial credit rating services rated the new vehicles well even though they were not good investments. The regulations changed during the Clinton administration to allow commercial banks to act more like investment banks. This drove the investment banks to take even greater risks in an attempt to survive.

Investment Bankers were paid huge salaries, based on the huge risks they were taking and that were working out well. This encouraged them to take more risks. As the problems escalated, no one pointed out that there was a crisis until everything went off the tracks.


Bruce

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i actually wrote a big rant about that today, it's a premise of telling people it's not george bush's fault, here is most of it. :scenic:

The two major things that caused this where A) the sub-prime mortgage fiasco and B)record high oil prices both of which hit there worst point at nearly the same time. Both of those issues can be attributed to deregulation in our economy since the 1930's. If you want to blame a president, blame Roosevelt!

First the price per barrel, it hit a record high and gas prices soared. The prices went so high that food prices started to rise. Now not everybody drives, but everybody eats. With these 2 fundamental prices raised, people had to start watching where they spent their money, and as we all know less spending=worse economy. But why did the prices get so high? Did the supply change dramatically? no. did our ability to process crude change significantly? no. What happened? Speculation! It artificially drove the prices up and up. Nothing proves this better than it's dramatic drop recently. what could have prevented this? maybe a government that decides to take at least a look at what's going on, a s.e.c. that gives a *smurf*. a little regulation to keep the speculators out of the market and let the price rise and fall based on real events. The only way George bush affected this, aside from being part of a government failure that has lasted over the last 70 years, is the war with Iraq. but as we have seen that has had little effect as to the price of oil aside from the initial burst, and in the long run may actually bring gas prices down.

The next issue is the media named "mortgage meltdown". this was a combination of banks fooling people into signing crazy loans that lack stability and the whole sub-prime mortgage fiasco. Frankly the banks already have a system in place that would have prevented the sub-prime mortgage mess. It' called credit. They gave huge loans out to people who, by the banks own reckoning, where going to pay them back and whoa surprise, they didn't. That blame falls squarely on the shoulders of the banks that gave those loans out. The other half is all the crazy mortgages that people with good credit signed with the idea that it would end up saving them money in the long run, which at the time it did. but now, lots of them owe more than their house is even worth. while these loans should never have even been offered, you can't really fault the bank for wanting to make more money(seriously that's the only reason they are around), you can blame that on the American consumer's nearsightedness. so now pretty much everyone who had a home loan now has bad credit, so they can't get another loan, so large amount of money is being spent, our economy goes south. George Bush didn't make anybody sign for those, and he shares the blame with the rest of the government for the failure to manage what the banks offered.

The last thing i will note is that while the dow jones had dropped dramatically recently, under who's presidency did it hit it's record high? oh yeah George Bush. but as everyone should know a big peak, means a deep valley, which is BASIC economics. this will hopefully prove to end up being just the kick in the pants that we all need to get on top on our money! also i hope that this does for the s.e.c. what hurricane katrina did for fema, making them more proactive, instead of strictly reactive.

if you read all of that I applaud and thank you, if I’m way off let me know.


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Saturday evening Neil Cavuto was a guest on FNC's Geraldo at Large. With only seconds to go in the interview Geraldo asked Cavuto a question (I'm paraphrasing):

GERALDO: Will the bailout plan work?

CAVUTO: (pause . . .) NO. It will only delay our recovery.

There was no further comment. I'll be watching Cavuto Monday afternoon to see if he expands on that remark.

Regards,

Warren


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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Actually, I don't mind stepping on the toes of the taxpayers since I know I'm not running for any office. The cause and blame for the financial meltdown belongs with CONSUMERS.

It is CONSUMERS who choose to sign up for the credit cards, they choose to sign up for the mortgages, they choose to sign up with investment firms. Consumers choose how to spend their money. (Notice, I call them consumers, not citizens.) I know that the liberal media wants everyone to believe that they are such stupid sheep that they actually fall for all the advertising on TV and that they actually do covet their neighbors goods but....oh wait...they are stupid sheep.... :lol:


If you really want to make people safe drivers again then simply remove all the safety features from cars. No more seat belts, ABS brakes, traction control, air bags or stability control. No more anything. You'll see how quickly people will slow down and once again learn to drive like "normal" humans.

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Well, I think there is enough blame to go around, so there really is no need to pin it on any one thing. Just in general, nobody cares what the government, banks, or financial industry is doing until something blows up. And they know it! Add that to the fact that your average consumer just isn't very bright... and it's amazing something like this didn't happen sooner.

When it comes to making decisions, we have a very "reactive" country. Unless it's making headline news right now or has already blown up, nothing is going to happen to fix a potential issue.

The question is...will everybody learn from their mistakes? Or will they wait until things recover and go back to the way things were by making bad financial decisions and buying things they can't even remotely afford? People do tend to have a fairly short-term memory... so we'll see!


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Actually, I don't mind stepping on the toes of the taxpayers since I know I'm not running for any office. The cause and blame for the financial meltdown belongs with CONSUMERS.

It is CONSUMERS who choose to sign up for the credit cards, they choose to sign up for the mortgages, they choose to sign up with investment firms. Consumers choose how to spend their money. (Notice, I call them consumers, not citizens.) I know that the liberal media wants everyone to believe that they are such stupid sheep that they actually fall for all the advertising on TV and that they actually do covet their neighbors goods but....oh wait...they are stupid sheep.... :lol:

Marika,

You're starting to sound like the old conservative Republican. I wasn't expecting that. I got a little misty eyed. ;)

ikswotug,

Your post is one of the best explanations I've read so far. It's a well constructed piece, in plain English, straight forward, sights the problems, history, and more importantly what should be done. I enjoyed it. Thanks.


"Burns" rubber

" I've never considered myself to be all that conservative, but it seems the more liberal some people get the more conservative I become. "

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thank you regis. i do think though that it will work itself out, although, it would have been worked out quicker and cheaper if the 700 billion bail out was given to taxpayers rather than banks, simular to the stimulas checks problme would have been solved overnight...the economy is the only problem you can throw money at and it will fix it.


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With regard to oil prices, I had heard that in the lead up to the Olympics, China was consuming oil at a high rate doing construction, etc, and hoarding it so that there would not be any embarrising shortage during the games. It seems plausible now that the games are over and oil prices have dropped quickly.


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At best, the talking heads, try to offer up anything connected with politics/economics/ social policy... as being a conflict of conservatives versus liberals. This "Useful Myth" continues to confuse and polarize.

Stupid sheep or sheeple may be conditioned by a din of "Useful Myths" from various sources.

UM's could be planted early on, to insure their effectiveness.

About 350 years ago, the "Liberalism" seed was planted…….Or so the story goes. I’m not pitching anything here…(Catholic). Your belief, is exactly that.

I found the distinction between Conservative and Liberal, or rather, liberal moves disguised as conservative actions, as adopted conservative thinking, to be spot on.

Liberalism's Three Assaults

http://catholiceducation.org/articles/politics/pg0021.html


rek

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With regard to oil prices, I had heard that in the lead up to the Olympics, China was consuming oil at a high rate doing construction, etc, and hoarding it so that there would not be any embarrising shortage during the games. It seems plausible now that the games are over and oil prices have dropped quickly.

Well, the Chinese do Olympics a little different than most other folk.

ThreatGun.jpg

Regards,

Warren


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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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With regard to oil prices, I had heard that in the lead up to the Olympics, China was consuming oil at a high rate doing construction, etc, and hoarding it so that there would not be any embarrising shortage during the games. It seems plausible now that the games are over and oil prices have dropped quickly.

In the grand scheme of things I don't expect that amounted to a hill of beans. More interestingly, did you know China is currently consuming slightly more than half the entire world's supply of concrete?

Regards,

Warren


Posted Image

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Stupid sheep or sheeple may be conditioned by a din of "Useful Myths" from various sources.

UM's could be planted early on, to insure their effectiveness.

Or they could be planted late on to ensure no time to debunk them; it's called an "October Surprise." I'm looking forward to a few of those any day now.

For example, there is the question of Obama's birth certificate: I've researched it and found NO fault with his documentation. Nevertheless the "rumor" abounds.

I'm not a conspiracy theorist, but I'm left to wonder: why don't the Obama folk simply make it public? Did they? Did I miss it?


Posted Image

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Yes, they did. You can see a copy here at politifact.com along with a discussion.

Excellent clarification!


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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Comment deleted for exceptionally stupid redundancy.


Posted Image

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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With regard to oil prices, I had heard that in the lead up to the Olympics, China was consuming oil at a high rate doing construction, etc, and hoarding it so that there would not be any embarrising shortage during the games. It seems plausible now that the games are over and oil prices have dropped quickly.

In the grand scheme of things I don't expect that amounted to a hill of beans. More interestingly, did you know China is currently consuming slightly more than half the entire world's supply of concrete?

Regards,

Warren

I heard that China's increased demand before the olympics pushed prices up. It's interesting that they began to drop as soon as the olympics were over

http://www.nakedcapitalism.com/2008/09/mor...re-olympic.html

http://afp.google.com/article/ALeqM5jtVIIy...mUcXibchdAHSHGQ


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Yes, they did. You can see a copy here at politifact.com along with a discussion.

That's Okay, but why can't I see a copy of it on HIS web site? Above HIS signature? A definitive statement. Still curious. Is "politifact" non-partisan?


Posted Image

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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I heard that China's increased demand before the olympics pushed prices up. It's interesting that they began to drop as soon as the olympics were over

As expected. Nu?

EDIT: The collapse of the world's economy might also have had something to do with it.


Posted Image

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Actually, I don't mind stepping on the toes of the taxpayers since I know I'm not running for any office. The cause and blame for the financial meltdown belongs with CONSUMERS.

It is CONSUMERS who choose to sign up for the credit cards, they choose to sign up for the mortgages, they choose to sign up with investment firms. Consumers choose how to spend their money. (Notice, I call them consumers, not citizens.) I know that the liberal media wants everyone to believe that they are such stupid sheep that they actually fall for all the advertising on TV and that they actually do covet their neighbors goods but....oh wait...they are stupid sheep.... :lol:

Keep in mind that the CONSUMERS you so distain are also VOTERS. Sorry, I didn't mean to scare you.

Regards,

Warren :wacko:


Posted Image

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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Comment deleted for exceptionally stupid redundancy.

I was just going to say!!! :lol: :lol: :P


If you really want to make people safe drivers again then simply remove all the safety features from cars. No more seat belts, ABS brakes, traction control, air bags or stability control. No more anything. You'll see how quickly people will slow down and once again learn to drive like "normal" humans.

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Actually, I don't mind stepping on the toes of the taxpayers since I know I'm not running for any office. The cause and blame for the financial meltdown belongs with CONSUMERS.

It is CONSUMERS who choose to sign up for the credit cards, they choose to sign up for the mortgages, they choose to sign up with investment firms. Consumers choose how to spend their money. (Notice, I call them consumers, not citizens.) I know that the liberal media wants everyone to believe that they are such stupid sheep that they actually fall for all the advertising on TV and that they actually do covet their neighbors goods but....oh wait...they are stupid sheep.... :lol:

Keep in mind that the CONSUMERS you so distain are also VOTERS. Sorry, I didn't mean to scare you.

Regards,

Warren :wacko:

I don't mind stepping on the toes of the taxpayers since I know I'm not running for any office.


If you really want to make people safe drivers again then simply remove all the safety features from cars. No more seat belts, ABS brakes, traction control, air bags or stability control. No more anything. You'll see how quickly people will slow down and once again learn to drive like "normal" humans.

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Comment deleted for exceptionally stupid redundancy.

I was just going to say!!! :lol: :lol: :P

Good thing I said it first! :rolleyes:


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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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I heard that China's increased demand before the olympics pushed prices up. It's interesting that they began to drop as soon as the olympics were over

As expected. Nu?

You know, you tried explaining your obtuce curt comments to Texas Jim, now I realize that you are a New Yorker and I understand and accept you.... but explain yourself in more detail, I am left to think that the abrupt statements are worse than they are without explanation. AS EXPECTED?

I made a statement and I supported it with back up, I did NOT say it was the ONLY reason for the DROP in oil cost, but it was at LEAST partly responsible for the run up in oil prices... Think SUPPLY/DEMAND. I also believe that the OIL cost was partly responsible for the world economy collapse.

I have backed out of these conversations because they get me aggravated. Obama is going to win, and with that win and a Democratic congress we are in trouble. Add to that, the potential for federal judges will be chosen, and we are DONE as a country. First went Education, then went Manufacturing, then JOBS, then our Standard of Living. WE are done, Period, its over and its a fantasy to think otherwise.


Pre-1995 - DTC codes OBD1  >>

1996 and newer - DTC codes OBD2 >> https://www.obd-codes.com/trouble_codes/gm/obd_codes.htm

How to check for codes Caddyinfo How To Technical Archive >> http://www.caddyinfo.com/wordpress/cadillac-how-to-faq/

Cadillac History & Specifications Year by Year  http://www.motorera.com/cadillac/index.htm

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You know, you tried explaining your obtuce [sic] curt comments to Texas Jim . . .

NO! I did not! I explained nothing. I simply said, "My bad."


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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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There are few things that cure the population at large from believing in a particular political party as having that party in power.

Some Democrats are worrying now that not only will they win, they will gain a filibuster-proof majority of 60 in the Senate. If that happens, there will be NO ONE to blame for the inaction of the Democratic-led Congress. Go figure.

On the bright side, after his first four-year term Senator Obama would have TWICE as much experience in politics at the national level as he has now.


Bruce

2016 Cadillac ATS-V gray/black; 2013 Cadillac ATS 2L Turbo Premium (Wife's)

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