Warnings of mortgage meltdown: Why government did not act?
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2008/images/12/01/art.foreclosure.a.gi.jpg caption="The government was warned of financial crisis and mortgage meltdown years before it happened."]
FROM CNN's Jack Cafferty:
It's official. We're in a recession, and we have been in one since December of last year according to the National Bureau of Economic Research. That's their job. They tell us when we're in a recession. Any American could have told you we've been in a recession for the past year, but the government agency that's supposed to tell us these things just got around to it today.
The government is great. According to a new analysis of documents conducted by the Associated Press, the government was warned of the coming financial crisis and mortgage meltdown years before it happened. But the Bush administration ignored the warnings under aggressive lobbying and promises of stability from some of same financial institutions that ultimately failed.
"Expect fallout, expect foreclosures, expect horror stories," one California mortgage lender wrote to U.S. regulators in January 2006. Some bank regulators proposed capping risky mortgages and providing clearer explanations of what mortgage-backed securities are. But regulators delayed putting new rules in place for the mortgage industry until later that year. By then it was too late. The meltdown was well underway.
The Bush administration has always been about trusting market forces and avoiding government intervention in the economy. The Associated Press points out that that philosophy "ironically has ushered in the most massive government intervention since the 1930s."
Here’s my question to you: What does it mean that the White House and Congress failed to act earlier on warnings about the mortgage meltdown?
Interested to know which ones made it on air?
Mike writes:
The failure on the part of Congress and the White House to act in the best interest of the American public demonstrates that they are not our representatives, but are instead beholden to a set of interests other than their voting constituents.
Marshall writes:
Your assumption that the White House failed to act on the crisis warnings does not hold up to scrutiny. There are plenty of video clips of Congressional hearings during which John McCain and others asked Congress to act on the impending mortgage crisis. To blame this on "Republicans" alone is as dishonest as your assumption is corrupt.
Rich from San Clemente, California writes:
It's the Bush administration's operating mode: put mine owners and lobbyists in charge of mine safety, put a college girl in charge of hiring at the Justice Department, put oil execs in charge of energy policy, put contractors in charge of contractor oversight. If Bush ever even cared enough to ask his Treasury guys and economic advisors whether or not things could get bad, he'd be getting answers from men who had made and were still making millions from the situation.
Michael from Canada writes:
Greenspan admitted publicly, government put too much trust in banks to regulate themselves. He thought banks and financial firms would have held themselves more accountable, which should have prevented over-leveraging assets. In this case, real estate. Greenspan, although he didn't come right out and say it, admitted that there should have been better regulation of the housing and financial markets.
M. writes:
This is an opportunity for the Republicans to loot the treasury and put an end to the new president's plans before they are even born.
@jackcafferty on Twitter
It means what we already know....They are a bunch of incompetent boobs!
It means that this “do nothing useful” congress will wait until everything is at the crisis stage before it does anything other than vote their own salary increases and help for friends. Unfortunately, whatever they come up with as a cure will be worse than the problem, like all the billionaire bailouts that stick the people who are really hurting with all the bills.
Pointing out the impending financial meltdown would be like pointing out flies on the party tray bean dip.
It spoils the festivities.
KCLaw in KCMO
The mortgage meltdown was known far in advance to the perpertrators. The Bushies` are now lining their pockets with " bail-out " money , just as they planned it , along with those crooked bankers and lenders.
After the Obama administration begins to take hold in Jan., I hope all if not most of those crooks are brought to justice . If the persons who are initially indicted are smart , they`ll snitch on others and we`ll get to the bottom of this mess and hold those accountable for their actions in this felonious assault on the American people .
They needed some time for all the instigators to grab their money and run, leaving the U.S. taxpayer holding the bag.
It means–the incompetence ship's captain ran his vessel aground, while the rebelious crew was too busy plotting a mutiny to do see the eminent wreck ahead.
More importantly, in only two of the last eight years was there a different party majority in congress, the crew of the first six was fat and happy, and did not want to make waves.
It indicates that, as usual, the Congress and the White House were way behind the curve of what is happening on Main Street USA. As long as their "friends and supporters" with the money are happy, "All Is Well"...
What does it mean that the White House and Congress failed to act earlier on warnings about the mortgage meltdown?
It means that GW Bush and the GOP were taking care of their base.
Jenna
Roseville CA
It means that we haven't genuine leadership for the past 8 years, the President and Congress both failed us miserably.
It means they can't see the future any better than you or I can. Today you can an educated opinion on something and there will be an exact opposite educated opinion ten minutes later. In Washington it always will be "Don't rock the boat" mentality. There are only two things politicians truly care about. 1) Getting elected 2) getting re-elected.
I think they tried to hide all the mistakes, mismanagement that occurred until they could no longer do so. Both parties have some
responsibility. but primarily the republicans as they had control.
They were, no doubt, hoping the financial crisis would not raise
its ugly head until after the election.
As yet have not seen anyone face up to or admit any responsibility.
Jack,
Our White House and Congress failed to act simply because they cannot manage there own government bodies let alone the Mortgage problem. The only ones they listen to are the lobbyist. In my opion, most of our elected officials are only motivated by money and greed.
Carl
That bush was asleep at the wheel and in bed with the banks. He let the banks do whatever they wanted so that they could continue to make their obscene profits at the expense of the rest of us.
It means we're screwed!!!!
One word, Jack: greed.
the people who have a mortgage do not put money in the pockets of the Politicians, banks and the companies like them do. The Wall Street people will be able to hire Bush after he leaves office, what can main street do to match that?
Probably gave them time to get their houses in order.
The Congress, the White House, the financial institutions, and the people of this country have known that this bubble would burst for a long time. Without a clear majority that could overturn a Presidential veto, the Congress decided not to even try to legislate – a mistake. The White House took the benefits from supporters in the financial world to turn a blind eye – a mistake. And the people all said "we can get something for nothing" – a mistake.
When I got my mortgage nearly 20 years ago, even a late payment was questioned. During the subprime mess, it was obvious that many mortgages were granted people who did not qualify. Because of the financial crisis, I may lose my home I bought on a VA loan, and qualified for under much stricter regulations, but that isn't stopping the mortgage company from grouping me with the subprimers who couldn't afford their houses when they bought them. But fair doesn't matter here, unfortunately.
it means that none of them doesn't care about working people losing their homes while the big banks are ripping them off completely with subprime rates as well higher fees..bush only cares about the rich and congress doesn't act swiftly to do something about this housing crisis..i hope that one day they can trade places and face the crisis that ordinary people go through everyday when it comes to working forty hours a week, paying ultities, buying food for their families etc...yes, i rather to see the poor and middles classes keep their homes instead of bailing out wall street..i hope that obama can fix this mess because this problem has been going on too long and homes need to be saved not gm nor ford..
Jack,
The Republican mantra, which has been taken up by the Democats, too, is no regulation. The idea that if the government just gets out of the way of business all will prosper. Those that don't prosper, deserve to fail. Congress ignored the warnings until they realized that the failure of the financial industry would affect the wealthy, too.
Jack: President Bush's Administration did not want to get involved with a business operation of any kind. The Bush Administration agreed with deregulation of the investment banks. Another words, Jack, the Bush Administration stuck its head in the sand. Congress made noise, but the Senate would not allow anything come to the floor for debate. Especially, the Republican Senate which had a rule of 60 votes to stop filbustering.
John
Alabama
Government has become unable to respond to anything with rational and timely action. It has incredible inertia like large Corporation (GM, etc.) where evidence shoews them on the wrong track but they can't act.
Jack,
Because it wasn't a priority then as it is now. The American people are the backbone of this country and they much rather accomodate bailouts and handouts to big corporates. What a shame that so many of Americans have paid their debts and taxes and when they need the country in return they get ingnored. I think it is abhorbably disgusting that the men and women we elect to congress could not do what is best for the American people!
Daniel Ambrose,
Atlanta, GA
Head in the sand syndrome I am afraid, I am no economic guru, but I could see this one coming a long time ago.
Martyn, Fort Lauderdale
it means the white house and congress were very poor in handling mortgage. it all were bad.
Because we have an administration in office who places the all mighty dollar above honesty, sanity, morality and plain old fashioned reality! Then when it hits the fan they all scatter like mice yelling, "it wasn't me, it wasn't me"!
They were in a panic watching their own financial meltdown.
It means they made one of biggest mistakes ever made by a president and the Congress in our history. If they would have heeded the warning signs and took early action we wouldn't be in the situation we find ourselves in today. The gov't did absolutely nothing accept to stand and watch this thing materialize in front of them. They could have at any point stepped in and stop this monster from growing at half of the cost of what it ended up costing us. I hate to think that they are that stupid but what else could it be?
Some of the biggest donors of both parties are the very same companies getting the billions in bailouts. Once in office, our Congress does as they're told which is to dismiss warnings and pass legislation to enrich their big donors and golfing buddies. It's a criminal enterprise with the taxpayer getting the shaft -again.
Capitalisam rocks!!!
Jack, it means they did not have the country's best interest as their priority. They put Wall Street and corporate interest ahead of the security of the American people. And in the case of Pres. Bush, he also touted increased home sales as a indicator that the economy was thriving when running for reelection in 2004.
They were all getting their pay checks. We need to tie the economy to their pay , then maybe they will start taking notice.I guess that would be like paying them for the days they work and not the days they don't show up. Jack, as you can see like million of Americans I am a dreamer.
The democrats have been trying to blame this mess on the Republicans. The truth is that everyone who has been in government for the last 15 years is responsible. Elected officials were too busy profiting as well as their friends to take any action. Now hardworking Americans are paying the price.
Jack, you cannot see meltdowns happening when you are looking the other way. Congress was too busy having show trials about steroids and baseball or why there isn’t a playoff in college football. The White House was too busy tapping phone calls and listening to our soldiers talking to their wives and making up reasons to go to war. These two groups of morons can’t balance a check book, you think they can see an economic downturn?
It may have something to do with getting most of the oversight removed by both the WH and Congress and them being told these fools could manage it all without laws and regulations to impede profit. They still get profit in their pockets while everyone else goes broke. Rich thinking on their part and normal, dumb, naive thinking on the part of politicians. Why do we re-elect so many dumb people to office? I guess we are that dumb, too.
trickle down economics. The smart people in washington know what's going on. They always point the finger at someone else to avoid direct blame. if government would have given a million dollars to every worker in this country they wouldn't have needed 700 billion dollars which hasn't had any impact on the economy, except a negative trickle down one. Every worker could have paid off their debts, their homes, and then there would be no mortgage problem and no serious economic crisis. Of course if they would have done this then 99 percent of today's work force would have quit their jobs and then corporate america would have been in serious trouble. So it seems government would rather throw their money away in the corporate landfill in order to keep the working class enslaved under a huge national debt and a skyrocketing cost of living.
Jack:
In one word, GREED. Anyone could see this coming. I looked at those tract mansions being built and wondered where the money was coming from. Now we know. And we are all paying for it.
Jim
Longview, TX
It means nothing's changed. The United States Government is one huge embarassing failure after another.
They were hoping that the economy would stay stable until after the Presidential election, so that there could be a Republican President. The timing of this meltdown happens earlier than the originally suspected. Checkmate game over. This is what happens when you deregulate.
It means more of the same - just as no one took it seriously when warned of the terror attacks prior to 9/11.
In one word Campaign contributions, in other countries known as bribes. They have all been paid to turn their backs.
It has been the stated policy of the US government ever since FDR to provide housing for the poor. Both Fannie Mae and Freddie Mac were sponsored by the government for that express purpose. It was politically correct to be in favor of this policy. To be against it would have been political suicide for any politician of either party.
With their Golden parachutes maybe they should run the big three auto companies, that is apparently all they really worry about. Jim Logansport, In.
There is such a thing as debtor's prison nowadays. It's the national debt.
First, let's be fair about Congress. The Dems didn't have the votes to do anything as far as the Senate was concerned. The Repubs would have never went for a mortgage reform and we know it. The same can be said for the House too to an extent. Anything that would have helped folks whom are in trouble wouldn't have passed. Their rich business friends, yes; We, The People, no.
Second, look who has been "leading" the country the past eight years. I don't think I need to elaborate.
Jack, this means Americans don't have a voice or true representation. Washington has become a pool of greed and corruption and we are paying the ultimate price. If every American kicked in one dollar to hire our own lobbyist, maybe things would be different. But why does it have to come to this?
What else could you expect from a Congress that gives a felon (Stevens) a standing ovation?
Why they didn't act?
Jack–skunks don't know skunks stink. And politicians who believe that everything they are doing is right–are flabbergasted when it turns out everything they were doing was wrong.
It was a shock for them–but not most of us.
Jack
We had a do nothing administration, and a do nothing congress, all this coupled with the greed of all the finiancial institutions, and the stupidity of people that went out and secured mortgages that they could not afford. Why didnt Allan Greenspan see this coming ?
Just like the 80's under Reagan derugulation, so the
G(reedy)OP administration's cronies could rake in big bucks.
Big oil/energy ditto!
The writing was on the wall long ago. I believe congress is so out of touch with reality, they think we don't notice. Why should they earn their huge paychecks if they don't have to? They think the taxpayor dollars are heaven sent, so they continue to make us pay the bills, and the consequences for their incompetence. Graft and corruption are rampant in Washington, and we the people must get our arms around what to do about it. Obama must now play catch up to bring this country back to solvency.
Somebody remind me why we need Congress and a President
Because of the "robber baron" mentality of of the past eight years; the cronies take the money and run!
Probably the same reason(s) that our gov't. didn't act before 9/11: apparently these memos/warnings are not read and/or not taken seriously. I bet it will be different with Obama – I don't think he'll put up with that kind of laziness for 1 second!
This one is easy, Jack. Because so many people were making so much money. These mortgages were designed to fail, and some of the people involved were actually able to pay all those extra fees and the increased interest on the much larger payments. Nobody really cares about those who couldn't pay so much more. It is a crime that we taxpayers have to give money to the executives who manipulated this crisis. We should be paying for their jail cell.
As for the white house and republicans, I'm sure they hoped the "stuff" would hold off from hitting the fan until after the election, instead, it created the perfectly timed economic sunami which paved the way for a near fillabuster-proof senate and even a black president. Our leadership vacuum has sucked Obama into political power and tested him nearly two months before his inauguration. So far, he has kept hope alive, even among republicans. Can't wait to hear his speech.
I'd like to think it was optimism and good intentions, but I'm afraid it really was stupidity.
They did act, they deregulated everything, allowing this to happen.
Because these was obscene amounts of money to be made. I'd like to see an investigation into offshore and Swiss bank accounts for these politicians, personally.
It means they burned out the first paper shredder and needed to procure a new one and finish the job.
These things take time Jack.
Gee whiz Jack, they thought the markets would police themselves and were shocked when all they found was greed and, of course the sub-prime mess. What did they expect with no one watching the store?
This is typical government from Washington. It really begs the question that Lou Dobbs asks on a regular basis; "don't Americans deserve a government that works?"
Look at the Senate's reaction to Ted Stevens conviction; they postponed vote to expel him until after the election. If he lost, then they would not have to get rid of one of their own.
I hate to say it but our elected officials don't care what their constituents want, they're only concerned with covering their butts.
Failed to act or do you mean failed to bail out. Do people really expect the taxpayer to bail out those that lied about income on their mortgage application or bought something they could not afford. Unfortunately, by definition, middle class is just that, in the middle with a category above and one below. Even that grandest of wealth transfers will never change that.
I believe that Bush and Cheney knew that the bottom was going to fall out – but, not until they left office. It all collapsed so rapidly that both the Executive branch and Congress did not know What to do.
They did not want to acknowledge they allowed the mess to happen and they really did not want to help out the poor and middle class who fell into the trap of the American dream of owning a house.
Because they would have had to admit that they were wrong about deregulation and they, "the government" are not real big in admitting being wrong about anything including invading another country.
We can't seem to learn history's lessons and we keep repeating the same mistakes. The Great Depression should have taught us that government needed to regulate the banks and the Vietnam war should have taught us to question the rationale for taking the country to war.
Ed Reed
Port Aransas, TX
It means the Bushies were asleep at the switch again.......just like every other time our country faced a crisis during the past eight years.
I't means nothing. They Are not supposed to "fix" anything. The US Goverment is not supposed to help nor hinder us, we are free to fail or succed on our own. Yes, it is unfortunet that so many got caught in this, but why should I have to help them. I would want...
A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor and bread it has earned – this is the sum of good government.
Thomas Jefferson
I’ll bet the White House and Congress failed to act earlier on the warnings about the mortgage meltdown because they needed time to divest any holdings they had in financial institutions. I have yet to hear a politician complain about their losses in the stock market.
It shows that corporate America still controls our government and that needs to change because our government was designed of the people, for the people, and by the people and not by the greedy...
Ahhh...greed? Just a guess.
Thom
Negaunee, MI
Why should they Jack? It is not the Governments fault that banks were giving out too much money and stupid people were borrowing over there heads. My wife and I bought a home 4 years ago the bank said we qualified for almost double what we paid. We were not stupid and paid what we could afford. It is easy to blame the Government but the people that are really at fault are the Lender and the greedy borrower.
It means that nothing was being done as long as there was anything left for the taking, but now that everything has been stolen, they are begging for more to steal. You know as well as I that it wasn't a secret what was happening, but did anyone alert us to the problem? Now it will be up to the taxpayers as usual to get things going again. I'm sure also that you are aware that the government can print as much money as they want to, and it only caused the value of gold to double, however this should not affect anyone but those buying gold, so let the government print until they run out of ink, let the money flow, and everything will be hunky diry again.
Jack,
It means that our elected leaders were either:
a) blissfully ignorant
b) in on the money making
c) inept at making decisions
d) a combination of the above.
I'm inclined to go with d.
Erik
McDonough, GA
Except for starting and fighting a couple of wars and spending all of the taxpayers money, this government has been "out-to-lunch" on all of the other important issues for the last eight years. This isn't anything new for government. During the Clinton administration the government was out on the golf course or spending time tallying up the large sums of money in their stock portfolios.
Geri – Mead, OK
It means quite frankly that there were too many people making too much money who had too much influence with the Bush White House which was too short sighted to forsee the potential gravity of the situation.
As Greenspan admitted publicly, government put too much trust in banks to regulate themselves. He thought banks and financial firms would have held themselves more accountable, which should have prevented over-leveraging assets (in this case, real estate). Greenspan, although he didn't come right out and say it, admitted that there should have been better regulation of the housing and financial markets.
Probably the best reasoning behind why neither Congress or the White acted on the economic melt down would be to compare how they think like how some teenagers think. What I mean by this is they likely thought it couldn't happen here to them and it could only happen somewhere else.
it means if you don't live in the swamp you don't know what it like to live there. the middle class let alone the poor and disabled, are something the top 10 % don't want to deal with.. they hope the problem will just go away.........
It means what it has always meant in the Bush administration. Incompetence rules.
The only excuse I can think of is "nobody got the memo".
Kenneth Chadbourn N.C.
Corruption, incompetence, ignorance and stupidity from the top (Bush) down to the last member of congress. All of them should be in prison.
Jack,
It's simple, the warning signs about the mortgage meltdown wasn't heeded for two reasons. One, the Members of Congress and the Administration have weren't affected by it, therefore it doesn't exist. Two, the Lobbyists kept forking money at the above, so it wasn't a problem.
Probably because he didn't think (think being the operative word here.)
it means if you arent rich in this country you dont matter.......
doug in arkansas
The Bush administration knows all and never takes advice. To do something about the possibility of a mortgage meltdown would mean regulating the big lenders, which is against the Bush policy of unlimited profits.
Jack, it means that no one thought anything such as this could happen. It was probably assumed that money management was in capable hands and that anyone loaning funds would only do so guided by strict rules to ensure that such loans could be repaid in the near future. The situation also points to the fact that no communication was taking place between lenders and those entrusted to oversee the feasibility of the transactions taking place. Americans can expect to see new laws to curb this irresponsible behavior of those who initiated the lending scheme.
Jack , This is a great question. Who really knows why. During one of the Congressional hearing, Rep. Ackerman of N.Y. posed a great question to Fed. Chairman, Chris Cox.
Ackerman asked, " How is possible, with over 300 PHD's in finance, in a single building, ("The Federal Reserve") all studying various aspects of the economy be caught off guard by this mortgage collapse?
Cox had no succinct response.
Both did what Congress and the President always do when it comes to economic hardship on others - if they ignore the problem, it will resolve itself. That wrong-headed thinking never works but it buys them enough time to retire rich and happy while the rest of us continue to suffer.
Financial scamming is always short lived and Bush knew it. However, he didn't think he would get caught holding the bag. So close, yet so far. I can't wait for the trials, that is unless Bush pardon's himself before leaving office.
Short answer, Jack. Avoiding action was the most comfortable option.
In contrast, taking action would have meant questioning the honesty and integrity of those who were lining their pockets while saying, "All's well! No problems here."
It means that the $1.561 Billion that the Finance industry gave to all Presidential and many Congressional Candidates since 2000 was a great investment.
These companies include all of the investment and insurance companies that are now getting billions from the bailout with very little additional government oversight.
Jack, in addition to the many other things that are broken, we need to fix campaign financing law. For real this time.
It means until a crisis reaches into the pockets of the rich, our government doesn't care.
It was clear in late 2006 that we were headed in this direction and our crackerjack government told us to stop whining. It was crystal clear in late 2007 and again, we were told it was all in our heads. Then, when the mighty started to fall this year, it became an urgent matter that needed a $700 billion bailout . Not wanting the sky to come crashing down, congress handed over the money to the same rich dudes that created the problem with no strings attached, and very convincingly argued they were doing what's best for the country. Unfortunately, there is no meaning, just a shining example of the bought-and-paid-for American Government at it's best.
Greenspan has admitted to misleading information he gave to congress. There is a video on both. Greenspan was very arogant. I would guess you won't put this on the air because cnn is afraid to cross Greenspan. JP in Orting, Washington State
If government officials were aware of this problem years before it happened, it means that all of this was allowed to happen. It means that prudent financial operations were allowed to become disjointed and shredded. It seems to portray a presidency colluding with fraudulent interests for the purpose of bringing down the country. It suggests a fraudulent president!
Jack: There really isn't a "MORTGAGE" meltdown – it was meltdown of the BUNDLES (Bonds, stocks and some mortgages that were rolled into one tidy little package for investors to buy). The investors (other banks, you and I) thought they were secure investments because it had some Government Bonds bundled into the package. And who do you think created these wonderful little BUNDLES – the investment bank companies, bankers and hedge fund brokers – the same people who are running the Government.
Audrey Fryer
Vancouver Island
Jack,
I believe legislation was passed during the Clinton Administration that encouraged banks and mortgage companies to make the kind of loans that are starting to fall apart now.
Robert
Forest, Va
I think there was a very big problem. It only became a problem when his buddies got in trouble and he didn't know how to solve their problem and leave the others out in the rain – but they were so wrapped up in their greedy stuff that it ended up involving the world and there wasn't any way to handle it. The boys at the top take care of the boys at the top. The Middle Class will fall away and America will become a little like most of Europe. All the big money has left our shores and we can't figure out how to survive. I HAVE HOPE. It is not from Arkansas. It is OBAMA. When you are raised poor, you can think better about money problems.
When I am wrong as I am at times, I can and do admit it. Knowing the difference between right and wrong and admitting a wrong are two different things. The government was wrong when Bill Clinton signed the bill to start the deregulation process that led to this problem but not one of the elected officials has ever stepped up to the plate and admitted it. We cannot correct a problem until we first admit that there is one and they still don't get it.
More importantly, why are they not now acting in any way that really will help the folks losing their homes?
Not EVERY mortgagor facing foreclosure "bought more house than they could afford". Some are simply victims of the sinking economy. Some are nice, honest, hard-working people who relied on the mortgage "professionals" and were duped into a mortgage that was not to their best interests. Some were just out-and-out lied to (I believe one mortgage company has already been the subject of multiple class-action lawsuits, which they settled).
I personally know of one couple facing foreclosure who have been advised by the foreclosure court that they need a lawyer, because it appears they were victims of fraud!
So, why did Congress not act? Why are they not acting now and bringing real relief? So far the only person I have heard who makes any sense in the meltdown is Sheila Bair, who has the RIGHT idea. Congress needs to listen to her and act on her plan. THAT is what we need.
The dangers of subprime loans and other types of Disneyland financing were obvious from the gitgo to everyone with an ounce of common sense. Government officials at all levels declined to act because it would hurt their buddies in the housing, lending, and insurance industries who were making money hand-over-fist. Nobody had the guts to confront the problem and let some air out of the balloon. Instead, they let it burst.
Remembering the intelligence memo Condi Rice got before 9/11 that was titled "Bin Laden is going to use airplanes to attack America" pretty much sums up why no action was taken on the economic crisis.
It's much easier to point fingers after the fact then it is to take preventative action before the crisis or for lack of a better explanation it would just fall under the heading of political expediance.
Hi Jack, it was greed on the part of banks and borrowers, combined with deregulation of the banking industry.
Simple! It means that they weren't in jeopardy of losing their homes.
Simply put congress is completely out of touch with the people they are supposed to be representing. Congress' allegiance is to the special interests and lobbyists!
We no longer have any true statesmen-you know the kind who used to care about this nation and its people.All the pols seem to care about is money and power .That means keeping K Street happy.
Jack, Some of this is due to the illegal banking business, but something that concerns me is , people who took out these huge housing loans knowing that they could not afford them, don't tell me that you could be talked into taking a mortgage that you can not afford, how stupid are people and how stupid do they want us to be to bail them all out of the mess that they created themselves? Have you seen the size of some of these homes, there enormous, way beyond most peoples needs, all show and no go.
It means that they knew that they would correctly get the blame for turning a blind eye to Wall Street's criminal conduct. It also means that they knew that they couldn't handle the mess, so once again it was easier to turn another blind eye and then act surprized. And as of today, they still can't do anything right. The entire system should have been allowed to collapse, and those responsible for this, jailed. The Wall Street system has always been criminal, and therefore has always been a failed system proped up on the backs of the little guy.
The problem is that the government solustion does not make sense. Instead bailing banks and insurance companies they should have bailed out people that are loosing their homes and that would have stopped home forclosure. More credit is not the solution when the credit is what got us into this situation. We need to retrain our economists that think that if business has money they will create jobs. As you can see that if consumers do not have money to buy goods, business will not create more jobs to produce those goods that nobody buys.
GREED among Bush's friends!
Fannie and Freddie Christmas story:
It started with Fannie and Freddie and big mortgage companies. They hatched this scheme to make a lot of money. Naturally, they needed help from people in Washington, the old saying, you scratch my back, I'll scratch yours, and everyone was happy making fistful of money. And then things turn sour, things did not turn out the way they thought it would, and they did not know what to do about it.
People in Washington kept pointing fingers at each other doing nothing, mean while the World Bank's were following our lead in this scheme to make a lot of money due to lack of transparency, no one knew this was happening. The rest of this corrupt story is yet to be revealed.
What it means Jack is that one missing screw does not stop the show. If it anit broke don't fix it, but what Congress and the White House failed to realize was that the other screw that was holding everything else together was loose and on the brinks of falling out. Isn't that how we are suppose to go through life, aleast those of us who are not given the power of making decisions for the American people.
I think it's fairly obvious that the current regime didn't want to deal with it - they wanted Obama to clean up the mess they've made.
The bush adiministration thought the bottom wouid'nt fall out until they left office in 2009. But they miscalculated. The economy has been in the toilet as far back as 2007, but bush kept saying we are on a firm foundation.
Hi Jack,
it means that they were blind in beliving that greed in this case extreme greed would take over the security of the country's economic stability!
Hi Jack,
it means that they were blind in believing that greed in this case extreme greed would not take over and the security of the country's economic stability would still be fine!
If I were offered a loan like some of the borrowers, I would say thanks but no thanks. They also blame it on the present Congress, but the Repubs were in for six and some of them eight years. Bush's Cabinet should have been watching what was happening. Maybe a lot of them got their pockets padded.
Well we never had an energy policy did that concern anyone. We knew Katrina was going to be devastating did anyone act. We have had eight years of no leadeship except you're doing a good job "Paulson".
L.M.,Arizona
It means that for some greed is the higher power in wake of all human ambivalence.
Howdy Jack, Bush had his blinders on, you know the ones "Good For Big Business, Good For Bush". Now he gets to be the new Herbert Hoover!
They did not listen to their constituents and the results of the new Congress says it all.
It means they were asleep at the switch. The wolves were having a field day with the chickens and the guard dogs were playing games out in the yard. As long as their wealthy friends were making money those in congress and the President really did not care. Also there was so much interest in trying to loan minorities money to buy a house nobody bothered to check to see if they had the means to pay the bills when due. The entire government structure has been so destroyed by the Bush machine that I wonder if it can ever be repaired.
It means that Congress was more concerned with pushing 'politically correct' mortgages instead of fiscally correct mortgages. Now that they've suddenly discovered that people making $25,000 per year can't afford $400,000 houses, they are trying to blame the lenders instead of themselves.
It means that we have the mess we have now. No one was minding the store. Until we cure the mortgage sickness, and stop saying cool stuff like 94% of the people are still paying. When in fact if unemplyment goes any higer the 94% stillpaying could easily be 84% still paying on so. Therefore, we need to figure out how to stop the bleeding and restore our mortgage market with confidence.
Jack,
The President and Congress are both out of touch, corrupt, and full of more greed and ego than Wall Street. If they would've fixed this in the beginning it would've cost the tax payer less than 500 billion.
This country is going to go bankrupt and I'm really not sure what that is going to mean.
Keep up the good fight Jack.
-Dr B,
Bloomington, Indiana.
Jack,
Regarding, the President and Congress, I will quote former NFL head coach, Dennis Green.
The President and Congress and Wall Street "They are who we thought they were, and we let'm off the hook".
Dr. B,
Bloomington, Indiana.
Jack, when I think of our Congressional so-called leaders I think of the old phrase: "That there is a devil there is no doubt . . . but is he trying to get in . . . or trying to get out?"
Big Business ran the country, congress and Bush...that is why.
What it means is that over 20 years later, we still see the failure of "supply side economics" hard at work.
Why rock the boat when everyone's making fistfuls of money? It means they're corrupt. SURPRISE!
It means politicians are lawyers, and lawyers are lobbyst..
It proves once again how out of touch our elected officials are. And we have no one else to blame but ourselves. Once Americans understand that fact we will be able to rebuild our great country from the ground up.
Do you mean the do-nothing congress, or the do-nothing for the American people Bush?
When youv'e got all those CEO's making millions and supporting your campain, you should support their needs too!!!! Their all a bunch of thieves steeling our money. a thief is a criminal, and they should all be hung !!
It means the occupants of the White House are not worried because they live rent free and the members of Congress have all their houses either paid for or they got them for free. Most in Congress do not have to be worried about the meltdown because most of them own up to 7 homes. They can lose one or two houses a year and still have a home by the time the recession is over
This is the most delusional and dysfunctional government in history. The president lives in an alternative universe and surrounds himself with people who are more ignorant than he is. How could they ever have determined that there was even a problem?
It's very simple corruption and greed. It's too easy to look the other way while millions are flowing into our elected leaders PAC's.
Don't even let me get started on this one, you wouldn't post it.
They weren't psychologically prepared to intervence. When the economy was struggling they said deregulation was necessary to help business. When economy rallied they said we had to deregulate because business is smarter than government. The Bush administration has had one policy: give business whatever it wants... including bailouts.
Every government should have an option of last resort. But presidents should exercise that option only in cases where a clear injustice cries out to be corrected, not meted out as a political favor.
They were turning a blindeye to bank deregulation and hoping the problem would fix itself, even though they all knew it wouldn't.
The administration refused to acknowledge that there was a financial problem, until September when they had no real choice. Congress tried to make the point, but the President continually refused to acknowledge a need for assistance. Congress rarely managed a veto-proof bill passage, so it was basically futile for them to try to convince the Republicans that there was a problem when they refused to acknowledge that the problem existed.
It means Congress and the White House are populated by the kind of people who win $100,000 in the lottery and use it all to buy more lottery tickets thinking they'll get a million this time. The idiots are so blinded by greed they don't know when to quit.
Simple reason Jack; Bush and McCain both wanted to sweeep it under the rug and let it be Barack Obama's inaugeration present.
The decision to invade Iraq and the decision to ignore the domestic economy were both made based on a total lack of credible intelligence – literally and figuratively – within the Bush administration.
Because that would have been a smart move and this administration don't do smart things or perform smart acts. They just let nature take its course like taking a laxative. Yeah, they are full of it.
It doesn't mean much, Jack. The super-rich eventually got what they wanted while the taxpayers got the shaft.
Brownwood, Texas
it means they were hoping it wouldn't "hit the fan" before 2009 and then they could blame it on the democrats which is what they usually do when cornered with the "truth" and there "ugly base" buy into and create another urban myth.
It tells me that there was and is a communication breakdown and failure between the current White House and Congress. It is my hope that we learn from our mistakes and history does not repeat itself.
It means four things Jack. First, our elected officials act like a bunch of juveniles taunting each other with "My dad/party can beat your dad/party," and "My party is better than yours. Nya, nya, nya." Second, these folks are mostly fairly well educated, upper-class, white dudes that have little in common with and can't relate to the average American. Third, our voice is overpowered by the lobbyists and special interest groups that have daily access to our elected officials. Lastly, while recognizing that ours is the best government possible, the vast majority of patriotic Americans use that as an excuse for not getting involved and making it better.
Why should they act, they have done nothing on any thing else, I don't expect any better. Why do we keep electing these crooks. We need to clean house, half are so old, they would have been dismissed, on any other job, they need to go home.
Presidential pardons to me are a slap in the face to all people involved in putting a case together on people who are put on trial for a crime(s) . That is the way things are suppose to be done. If they maybe pardoned what's the use of all that and why have police, lawyers, etc.
Vivian
Bakersfield, CA
It means our Congress suffers from permanent hereditary greed-based insanity passed on by senior members to junior incoming members of Congress. You newbies do it the way we've been paid by our contributors to do it, or else you'll be retiring early.
Are you ready for change?
It means Ronald Regan's goal has been realised. Add deregulation to killing the unions that protected the workers and the rich take it all and the rest of us are scewed.
The republicans were just following their idols plan. I don't know why the democrats jumped onto the team but I suspect it's lobbist money. After all we do have the best goverment money can buy.
They may have suceeded in destroying our way of life, You can be sure they'll keep trying until they do.
David
The fact that they knew what was going to happen, and still chose to do nothing, defines them as an accomplice to a criminal conspiracy against the public and the nation, to the tune of $700 Billion. Does anyone one out there not get this?
t means the same as when we learned that money is missing in Iraq or that contractors are getting blind bids... it means that the Bush motto is: "If your buddies are making money, look the other way and play dumb." Then of course, act shocked like when 9/11 happened and we could not have seen that coming, even though there was a briefing that said it would happen. Wow, the banks are failing, who could have seen that coming? I mean really, how many train wrecks does there have to be for this man to be Impeached?
It means, that no matter who is in the Oval Office and no matter who is in Congress, we Americans need to constantly remind them that they work for US! This is not a case of one party dropping the ball – it's a case of both parties not caring and forgetting that they hold their jobs based on the whims of the voters and their salaries are paid by the taxpayers.
Missy M. Phoenix, Ariz.
It means Bush was more interested in finishing his read on Mother Goose, and ignored the warnings, just like he did the morning of 9-1-1.
Jack, Our main problem is lack of revenue. That quit coming in when corporations set up shop in the Bahamas. They pay no federal tax thus no federal income for the needs of the government. Outsourcing jobs made the banks and investment firms billions but left normal people with no income. Rising unemployment means foreclosures not just bad loans. ALL people who took out loans for homes 15 years ago had jobs now those jobs are overseas being done for 1/2 the cost at 1/2 the quality. FREE TRADE? Not if it isn't fair to all.
Don Moline Illinois
It means.... everyone in Washington was 'asleep at the switch!
Jack,
It's the Bush administration's operating mode .....put mine owners and lobbyists in charge of mine safety, put a college girl in charge of hiring at the Justice Department, put oil execs in charge of energy policy, put contractors in charge of contractor oversite, and put a fox in charge of every hen house in the country. If Bush ever even cared enough to ask his Treasury guys and economic advisors whether or not things could get bad, he'd be getting answers from men who had made and were still making millions from the situation.
Rich Green
San Clemente, Cal.
Same sorry story from this same sorry administration.
What this means is that we have a government of the corporation, by the corporation and for the corporation.
The buggers ought to be tried for criminal neglect if not tried for treason!
It means what we've known all along, that our government is more incompetent that than what any of us thought.
It means that the financial giants and the individuals at the top turned a blind eye and ALLOWED the American people to fail with the system. My father has lost tons of money each day the market tanks, to the point where he can no longer retire. Give me a break, the government does NOT care about us, and no new CHANGE is going to change the Washington mindset.
This is an opportunity for the Republicans to loot the treasury and put an end to the new president's plans before they are even born.
It means that unchecked capitalism is just as bad as socialism.
Jack,
It means that the same nit wits who got us into this mess are the very ones we are content to rely on to get us out. What does that say about us?
John
Bridport, Vermont
Unfortunately, it might be the exact moment that those who incite terror against the capitalist American culture reference in their history books.
Easy, elections matter and it might be wise to expand your criteria beyond whether a person is fun to have a beer with.
We need intelligent and wise leaders, not beer buddies at the helm.
Now we got the bill for all the beer our buddy had...
I grew up in Brooklyn, NY and what I would do is to "tro de bums out"
Oh, we did vote to throw out Bush and some of the congressman. We need to clear out some more that let this all happen.
It means they KNEW we were asleep at the wheel and they were driving...right to the bank and now with even more of our money. I just lost my job today and I knew we were in a recession for a long time and the Whitehouse knew it too Jack.
It means that a lot of folks will lose their homes and the ones that don't will have minus equity in their homes.
Beyond that it is criminal that the congress did not insist that part of the 700 Billion help out home-owners.
Jack, this is the same people that were warned about WMD's, 9-1-1, Katrina, we are not surprised. It is incompetence at the highest level. We were warned by Michael Moore that everything Bush touched he destroyed, so this is not a surprise at all.
To me, it shows their "Incompetents". And these people most of them are Lawyers. What a waste of taxpayers money.
It's par for the course. Bush's administration, or rather Bush himself, relied on lobbyists for 8 years as a source of counsel, and, apparently, they did the same with the financial situation. It's a sad, sad, American tale.
It means that it was a bipartisan effort to allow corruption and greed to get us into this mess. Both parties are culpable and now we, as taxpayers, are being asked to fix their mess. Many of us feel we have no recourse in the matter – those that we elected were told by a 10-1 margin we were against the bailout yet they voted for it anyway and now there is no end in sight. What can we do short of a coup? Voicing our opinion hasn't seemed to matter – they prance before us in public and wink at those getting the bucks behind closed doors as they hand out money and get some back in return while we all suffer. Americans need to rise up and do something about this.
What it means is that Bush's incompetence has made us a Socialist nation. The Bush administration is spreading our wealth around. Funny how people complain about welfare and have no problem when welfare is given to companies that already robbed us blind.
Jack, it means their plan for globalisation is working. We have some of the geratest minds in the world; you can't tell me all were blind sided by this. The beginning of the end of the middle class has begun. The irony for this is without us working class the rich have nothing.
It means what's been evident to everyone for the past eight years, once again the Bush administration receives information that was clearly vital to the well-being of the nation, and they turned a blind eye. The administration will wait until the last possible second; when the situation turns critical to try and do anything, then they look like they couldn't do anything.
It means that big business will always run our government until financing political office becomes a more open process.
It means our government failed to look out for the interests of its citizens and catered to the special interest money sources. One can only guess if this cycle of corruption can ever come to an end, no matter how much change and hope is coming to Washington next month.
Jack,
It means a few things:
1. That government really doesn't care about us.
2. Members of congress and the Bush administration are/were in cahoots with Wall Street and made/make a lot of money from them.
3. "We the people" are irrelevant. We are the government's and Wall Street's cash cow.
Ask not when this country is going into the toilet, ask how far in we already are.
It means what we've known all along. that our government is more incompetent than any of us could imagine.
It means that these incompetent boobs just allowed it to happen so
that they could have time to line their pockets. Gimme a break, you
don't have to be a Harvard/Yale Economist to figure that one out.
Hopefully under the NEW Administration (wish the old one would
leave NOW) that these types of activities will CEASE and the focus
will be on Main St. and NOT Wall St. THE JIG IS UP!!!!!!
Ron – Florida
Jack, it means that the self-interested, self-absorbed, and venal corporations that control public policy have had their actions come home to roost like a carrier pigeon with a load of C-4. The incompetent Congress was either too well-paid off or too stupid to do anything about it. And even this economic catastrophe will not change it. Industries should be regulated and overseen,, pay back the money lent to them, and all lobbying should take place on C-Span, and that's just for starters.
Please, they have not acted on anything so far. The saddest of all about this incompetent government is that we have 46 million people who wanted the same thing again.. When will we ever learn.
It mean what all american already knew, that our government don't care about us. They only think about how they will make more money.This is a very sad situation that we are in, but we can't do anything about it. Our government is a joke.
Jack, you can't swindle the country out of billions of dollars over night, it takes time. A few million here and a few million there and who notices? Nobody! After a while those little millions make billions and then you pack up and leave the country holding the bag. Too bad there isn't a law against this sort of thing or these people would be in trouble.
It means they KNEW we were asleep at the wheel and they were driving...right to the bank and now with even more of our money.
What does it mean? It means that no one should ever again question that 1) this has been the most corrupt and incompetent administration this nation has suffered through or 2) that Bush's #1 concern is and was the rich and that is where his protection was focused. Now he can walk away and enjoy wealthy getaways with the fatcats he proudly protected. Just go George W. Bush and please take Sarah Palin with you. America wants to move on.
It comes down to pure unadultered greed and the fact that Bush was distracted with his totally unnecessary war in Iraq.
Hey Jack, Well the gov. cat is out of the bag that we are in a recession. Jack again we were warned in Jan or Feb of 2006 in the Forbes Mag put out that everything that is happening and will happen has happened. The enitre Bush admin. was told if he didn't stop borrowing money from other countries, did get us out of the wars well here we are. The worst part is that with all this info the american people still voted for this incompentant. So who is to blame the american people the entire Bush Admin. the republicans in the senate and house, and of course all the big guys from the big companies. So now it is time to pull in your belts and do the best you can to make it through the rough times are ahead for the next several years. God help us all. Diane from California
What it means? Very simple. There were some individuals that warned Soviet Union that socialist economy doesn't work. Why those who benefited from it should act? Which of the companies failed? Your guess is right. Only those who had socialism inside – why to care about business if you're only CEO but not the owner? Take your bonuses and run – the far the better. The government was old and slow – couldn't catch them. :))))
That means that someone must explain to the US Government the meaning of dereliction of duty.
Zbig
NY
I believe the Bush administration new about the forewarnings of September 11, 2001 in the summer of 2001 and did nothing. So, it's only common sense that they ignore any finiancial doom. So many problems could have been corrected if not for the complete and utter arrogance of this group. Donald trump was right.
With mark to market accounting, the banks top dogs have already benefited from bonuses. Money is shown and recognized on the books as if it's already been earned. And the fat cats keep on getting fatter.
The SEC can make changes on this accounting method to insure the losses shown are REAL losses and not just paper. Didn't the SEC learn ANYTHING from the Enron debacle when that company pulled something similar?
Jordan Dane – Oklahoma
Jack,
it only means one thing, Americans are fools to keep bailing these banks and financial intitutions without making these CEO's and managers pay for their greed and bad marketing strategies.
Jack, How about seizing personal assets of these CEO who immorally made hundreds of millions a year while common folks suffer and lose their homes.
Fon Divine
From Reading – Great Britain
More of the same criminal actions from the administration that sends our troops into an illegal war, and still embraced by our criminal congress critters. I'm not sure that the lack of tar and feathers in American politics to keep politicians in line is a good thing.
It simply means dedication to a flawed economic policy generated by the likes of X senator Phil Gramm and his wife. It means the inability to see through the flaws because of being blinded by the wealth generated by them and failure to act because the wealth was so plentiful, why dismantle the infrastructure that was giving it to them..
Surfside Beach, South Carolina ......the home of the wise.
Wisdom and cunning trumps youth and exhuberance every time.
It means that to some(most?) of the politicians, favors owed and re-election matter more than the well-being of the people they serve.
Well that was under the bush/repubs watch from 2000-2006. they wanted to make sure they all got paid and walk away with millions. and that is what happened. but the repubs have morals, lets all remember that.
Did the govt. know it was coming, Yes
Bush and his administration should be arrested and charged as well as the CEO's and COO's of the lending companies as well as GM and Ford. To me a bail out is a free ride, if we bail these companies out we should own and run theses companies.
People with old money continue to get rich, new money is moving to middle class and middle class and poor are now one
It means no one in the current administration was personally at risk of losing his or her home. It's a selfish, disconnected bunch who has no idea what it's like to live a normal American life.
Boise, ID
It means we should have probably "smoked them out."
Jack,
Bear in mind that the first six years of the Bush Administration had a Republican Congress that did nothing and the last two years we have had a stuggle between Congress and the White House with their finger pointing games. You shouldn't be surprised that this recession anouncement is coming 3 weeks after the election. After all, this is the administration that gave us those weapons of mass destruction. Who said that the Bush administration couldn't keep a secret after the Valerie Plame incident?
What does it mean? It means a vote of no-confidence from me, Jack. It means a complete vote of no-confidence in government in general, and that's a sad thing to hear from a 16 year old. Wouldn't it have been nice to grow up in a time when I could have faith in Congress or a President – because, being born in 1992, Bill Clinton was no angel either. It would be nice for me to grow up and become a rank and file Democrat or Republican, but no...no, that would be reckless and irresponsible in these times.
It is the Democrat Congress the past two years controlled by Democrats who failed their mission of over site!!
The likes of Franks, Schumer, Dodd(running for President) that did nothing and you jack still protect these scam artists!! When will you
say a bad word about Nancy Pelosi and Harry Reid, who led the Congress with the worst approval rating in History??? 9%!!
Jack,
There is not enough time to expound upon
this crisis of what is either complete incompetence
or absolute ignorance, or a horrible conspiracy,
it's a sad sad sad sad world!
Jack;
What it means is that the "Bush" victory in 2000 was a mistake taken up and approved by the Supreme Court. It let loose the Dogs of Greed that has consumed U.S. I can not still believe that Repuplicans can beleive in a "constitutionalist" court! – I guess that happens only when it meets your beliefs. W will go down as the worst president ever – to bad he will take us down also.
David
And the 1000's upon 1000's of criminal indictments for bank and securities fraud are where? I can't help but hear the silence of those like Phil – "the recession is only in YOUR mind – deregulation" – Graham....................where DID he get off to anywhy?
Jack, would you believe that not but a week has passed since Citibank has received 300 billion dollars in bailout money.And I have already been solicited with a 5000.00 personal loan check in the mail.I used to get them all the time,but they stoped offering them these past few weeks.Here we go again,money for nothing.When will the preditory lending stop. Bill
Jack,
The answer is simple, We elected Idiots because we were to lazy to do our job of checking out their real credentials.
Hopefully, we spent the time this last election to put inplace someone who can lead the way out of this crator we are in.
Paul
It means that the economy was going well and no one wanted to ackowledge the real problem. We no longer have real jobs. Free trade has been just that, free trade. We are in trouble and no one, including democrats wanst to acknowledge that trade is not working,
We need jobs to sustain our economy and not the ones that are to come from our "American Ingenuity" to make up for the ones lost by trade and corporations getting rich. 1 percent of our population now makes 25 percent of our income. Why would the Bush administration say anything.
Cindy
Beaverton, Oregon
Specific acts that work to undermine the security and stability of a sovereign nation are considered sedition and treason. Any idiot could see that the country was headed in this direction and choosing not to act with this faith based ideology that the markets would self regulate is criminal. We don't allow the tax system to self regulate relying upon citizens to voluntarily contribute. We don't allow traffic to self regulate with the notion that people will act responsibly and only "bad actors" will taking each other out of the equation, leaving law abiding citizens untouched. Why would we expect a free for all like the markets where the mission statement is greed and avarice to self regulate. Look at what these companies have done with bail out money after they have been given specific direction with how it should be used.
It makes me wonder how Obama is going to cultivate and surround himself with "strong personalites" as he said about his cabinet picks today. Where were these strong personalities when the mortgage meltdown was at the government's doorstep?
Corruption!!! Conflict of Interest and Collusion is the norm for both the Neo Con Parasites infesting the Executive Branch and the equally Corrupted Conflict of Interest and Collusion challenged Legislative Branch. All prostituting their decisions to pass laws to financially benefit their Corporate Pimps and ultimately themselves, as well as legally shielding themselves... for a couple thousand dollars in bribesd passing as contributions..
Treason is Treason!!!
It means there need to be a massive clean-up action of the corruption in Washington...
I say...
Too Big to Fail...To Big to BE...
It means to me that they are incredibly incompetent and uncaring. Only interested in big corporations and making money off the backs of hard working Americans. They make mistake after mistake,they waste our money and fraud is rampant and unchecked! Big money corporations laugh all the way to the fraud ridden banks.
The Bush administration was continually asking for more regulation and oversight of Fannie Mae and Freddie Mac. These efforts were always blocked by the Dems. Dont let the facts get in the way of bashing Bush.
That means a lack of governmentship and accountibility to those Americans trust with their money and their decison-making. It is a shame that a country like the USA has to wait for a problem to arise before they can seek solutions. Just as the saying goes: Call a doctor after death. Like another saying goes: Warning is not always a total source of confidence but it brings self-judgement and a readiness in one's stance.
Gane from Michigan
It means that the American people have been dooped again. I don't know what it says to everybody else but it just reaffirms to me that whether it's an international crisis, terrorist attack, or financial crisis, all the signs were there to warn our government and they always seem to miss it and the American people suffer because of it. Could it be that all these crisis have been fabricated by our own government who has sworn to protect us from such things? As the bailouts continue and the terms and conditions of these bailouts continue to be altered, it's getting easier and easier to see that our government, along with the FED, is robbing it's citizens blind. And they have no plans in stopping until there is one world currency, one world government, and no more United States of America.
for sure bush kept it quiet so he could imagine that by some miracle that the powers be would magically get us out of what he got us into. his same policy of i`ll turn my head and it will go away. i hope obama brings in transparency so poweres in power will be put in check on their actions
It means that the financial industry used the legalized bribery we call campaign finance to induce Congress and the White House to let it do anything it wanted.
That, in turn, means that the trillions of taxpayer dollars being funneled into the financial industry's coffers will go toward more CEO bonuses at AIG, et al, and to finance Chase's acquisition of weaker banks.
In short: So long, sucker.
To admit we're in a recession a year late and only as they prepare to flee is a clear admittance of the administration being part of the greatest robbery in History, the heist of the US treasury! Did'nt GW consider Wall Street bandits as "his base"?
I think the government saw this coming but their over-reliance on the main stakeholders of the economy to deal with problem from the beginning failed them, that was the biggest mistake they made and they are trying to make up for their mistake by bailing out major banks which i think will take a long time for the economy to respond to it.
Treason:
1: a crime that undermines the government
2: disloyalty by virtue of subversive behavior [syn: subversiveness,
traitorousness]
3: an act of deliberate betrayal [syn: treachery, betrayal,
perfidy]
The fact that officials of our government knew, and were warned of this economic meltdown and did nothing – I consider an act of treason. Shame on you all.
Awful as it is – the mortgage meltdown was created by the White House and Congress who care only about themselves and who always brush away any common sense suggestions or warnings. Lots of examples...
But this is democracy and that's why the saying: "Every people deserves its government" applies to the U.S. more than to any other country of the world.
Lara
Washington, D.C.
Jack, does this mean that were no longer in a mental recession? Wow, now maybe we should start doing something different, like regulations for borrowing money that require me to be able to pay my bills before I get a loan for a house that I can't afford since I'm losing my good manufacturing job since it's being shipped to Mexico for cheaper labor and no benefits. They must be kidding that we're in a real recession and we're not going to get out of it for a long, long time since there is no action being taken by our fearless leaders to create new jobs or stop allowing products to be produced in China.
I always thought that some one had to see this economic meltdown coming. Why was the story supressed? I think the government and the central banks saw this as a way to sieze more power. Let the crisis happen and then sell the public the "bailout". Saying "This is too big to not do something fast!" That way they could push through pretty much whatever they wanted. What they want is too help their buddies in the central banks and the Federal Reserve. Now the central banks can gobble up their smaller competeing banks using tax payer money to gain more power.....and keep all the profits they made in the last 10 or so years.
Sweet deal for everyone at the top and the bottom pays for it as usual.
Memo to Pres. elect Obama, maybe a review of employees at the National Bureau of Economic Research is in order. I think they should all be replaced immediatley, oops, when Jan. 20 /09 rolls around. They are obviously incompetent.
What's the mystery? The problem with the Bush administration and congress is not incompetence. It's corruption! Not only did a year of inaction provide additional time for profiteering by the elite (Bush's base – remember?) it also gave them time to fill their carpetbags with cash before they were run out of town. I wouldn't be surprised if we learn that the financial meltdown was deliberately put into play by Bush's financial team as just one more disaster from which to create profit opportunities. If the American people don't begin a corruption investigation on January 21st there is something terribly wrong.
How does one ever know if some government acts at the right time? There is never good hindsight, let alone foresight.
Simple Jack, It means that due to this Bush policy, we are the witness of the beginning of the end of America as were once knew it. This situation is so massive that I am not even sure that even Obama with his dream team can fit this mess. If it comes to past that they can not fix it. I believe we will enter a new world where much will not be expected from anyone and President Bush will go down in history as the worst president in modern time placing a hard opinion of the Bush name as his father was not much better.
On April 14,1912, First Officer William Murdoch of the RMS Titanic gave an order: "Hard a'starboard." The Titanic was to attempt to sail through a sizeable iceberg. We all know how that plan turned out. Our government has used that very same logic, or lack thereof, hoping we could sail through a looming crisis. Look at what has happened and is continuing to. Now, instead of people losing their lives, they're losing their livelihoods. It is baffling how history seems to constantly repeat itself, especially on such a grand scale.
Boca Raton, FL
Jack, it would depend on when they got the warning signs. If they did nothing for fear of loosing power in the elections then shame on them!!! Nothing this administration has done has been well thought out and continuities planned for. The Democrats had a slim majority in congress that was unable to override vetoes but Congress is responsible for oversight and I didn't hear them hollering! We have given big businnes to much say in our government.
Jack – It means they are getting away with it AGAIN!!! They (the President and members of Congress, and yes, captains and chieftains of industry and their subordinates) lied and encouraged others to lie to us about the economy. Of course, you are right – Most working Americans already knew things were going badly in terms of their own personal income and finances in general. It is outrageous that "they" are allowed to benefit and profit from lies and deceitfulness, and then walk away without any legal action taken against them for their abuses, theft, fraud, and predatory practices. What happened to usury laws, loan sharking laws, consumer protection practices and the like? What has happened to our country? Can we only pursue and prosecute the smallest of the small? Are only welfare recipients required to account for every penny and not spend any on items other then the food they need? To fill out long forms and be investigated??
This is such a disgrace and our response to our leaders behavior is impotent. Thank you for giving a voice to people to be heard.
Kathleen
Because the government only reacts. They react to crisis's they themselves have architected and then congratulate themselves when they fix the problems they create. Unfortunately we only have ourselves to blame for allowing them to get away with it. We put them there.
President Bush and his administration followed the dogma of the rightness of a free market economy without government regulations. The blindness to reality enabled individuals endowed with average and below intelligence to lack the ability to analyze and reason. Voila, we have the mess that we are now experiencing.
I agree whole heartedly with your comment Mary Ann Gordon,
Treason is a high crime against the American People. The only ones paying for their crime is the American people. They lost their homes and jobs. Maybe Obama can bring hope, but He has such a task before him.