Re: How is that socialism working for ya?
posted at 6/17/2010 6:22 PM EDT
In Response to Re: How is that socialism working for ya?
"So far, the collapse of the US auto industry, the collapse of the banking system, and the BP debacle were results of unfettered capitalism. I haven't really seen any debacles caused by socialism or over regulation' How are those rose colored glasses working for you? The auto industry collapsed largely because of leftwing unions, which ruined the great capitalist success of the auto industry. The collapse of the banking system was due largely to government forcing banks to give toxic loans to those who had no ability, or more to the point, no intention of paying the loan back.. Those who oppose Obama's failed leftwing policies are not anarchists; there is a role for government; smaller the better; so whatisit's argument is weak.. Shall we ask you moonbat statists what limits you put on the Nanny state government? answer: none. "Regulations" must exist to limit success; success is known to leftists as 'obscene profits', which must be confiscated and redistributed....
Posted by BobinVa
I thought the Auto industry collapsed because they were making SUVs and nobody wanted to buy them when gas went to $5 gallon. The unions didn't seem to be a problem when gas was $2 and people were buying SUVs. Unless of course it was the unions fault that gas was $5 a gallon or the unions were forcing the auto makers to make SUVs. And Ford seems to have done Ok and they had the same Unions as GM and Chrysler.
Sorry to burst your self esteem bubble, but it was the financing of long term debt with obscenely short term loans that caused the financial sector to go under. Even you should realize the stupidity of financing 30 year debt with over night loans.
I used to work for a large bank and it was my job to set lending goals for CRA. We got an outstanding rating by the OCC, so you could say we were one of the best banks in the country at making loans to low and moderate income borrowers. The Bank was located in New England but the mortgage company owned by the bank was national. We only had to make the CRA loans in New England so I guarantee you we didn't make any outside of New England. And rest assured, the volume in New England was hardly a burden.
Most of the subprime mortgages were made by mortgage companies - not banks. CountryWide, who was forced to sell to BOA, was a mortgage company and was not under any federal obligation to make subprime loans, and yet they were one of the biggest lenders in the sub prime market.
Nope, the primary factor in the undoing of the Auto industry and mortgage industry good old short term greed.
And the banking industry collapsed because they had made overnight loans to the investment banks and the investment banks couldn't pay off the loans. The investment banks couldn't pay off the loans because no one would loan them money on the mortgage backed securities.
And what made up the mortgage backed securities? Sub prime mortgages mixed with prime mortgages so that when the sub prime mortages went sour, it took the securities for the prime mortgages down with them. Amazing, people who pay themsleves hundreds of millions of dollars each year thought it was smart to mix sub prime mortgages with prime mortgages. Isn't that like mixing old moldy meat with prime chuck to make ground beef, thereby spoiling the whole lot?
And you know that the meat packing industry used to mix old moldy meat with good meat when they were making sausages? And who was it that made them stop? Could it have been the Federal Government?
Oh Bobbin, when are you going to turn off the rhetoric. You come across like that loon Grimfandango.
One last thing - the reason for CRA was because the Federal Government wanted to get out of the housing business. Istead of the Governemtn creating projects, they wanted to incent banks to loan money to developers to create affordable housing. And the reason for the below market loans to low and moderate income people was because people who own their own home are more likely to take care of it and because neighborhoods with a high proportion of owner occupied housing have lower crime rates.
CRA is exactly the type of programs that the federal government should be doing. The problem was shaddy lenders took the mechanisms created for CRA and went crazy with them.