Jump to content




Welcome to Unexplained Mysteries! Please sign in or create an account to start posting and to access a host of extra features.


- - - - -

The President and the Subprime


  • Please log in to reply
4 replies to this topic

#1    Tiggs

Tiggs

    Relax. It's only me.

  • 10,170 posts
  • Joined:30 Jan 2005
  • Gender:Male
  • Location:Orange County, California

  • Universe Service Pack 2 still needs patching.

Posted 18 October 2008 - 08:05 PM

From the Wikipedia article on the Subprime Mortgage Crisis:

The subprime mortgage crisis is an ongoing financial crisis characterized by contracted liquidity in global credit markets and banking systems. A downturn in the housing market of the United States, risky practices in lending and borrowing, and excessive individual and corporate debt levels have caused multiple adverse effects on the world economy. The crisis, which has roots in the closing years of the 20th century but has become more apparent throughout 2007 and 2008, has passed through various stages exposing pervasive weaknesses in the global financial system and regulatory framework.

...

President George W. Bush stated in September 2008: "Once this crisis is resolved, there will be time to update our financial regulatory structures. Our 21st century global economy remains regulated largely by outdated 20th century laws. Recently, we've seen how one company can grow so large that its failure jeopardizes the entire financial system." The Securities and Exchange Commission (SEC) has conceded that self-regulation of investment banks contributed to the crisis.

Which of the Presidential candidates do you think is best positioned to ensure that this never happens again?


#2    questionmark

questionmark

    Cinicus Magnus

  • Member
  • 39,690 posts
  • Joined:26 Jun 2007
  • Gender:Male
  • Location:Greece and Des Moines, IA

  • In a flat world there is an explanation to everything.

Posted 18 October 2008 - 08:14 PM

The short answer? Neither.

As long as mediocre minds are attracted to political office in the same relationship as better minds to industrial leadership, lobbyists will always disturb the balance of a free market by convincing the politicians to create or remove legislation that is in the way of their mutual enrichment.

The real power here does not lay with the Prez but with the legislative.



A skeptic is a well informed believer and a pessimist a well informed optimist
The most dangerous views of the world are from those who have never seen it. ~ Alexander v. Humboldt
If you want to bulls**t me please do it so that it takes me more than a minute to find out

about me

#3    ninjadude

ninjadude

    Seeker of truths

  • Member
  • 11,278 posts
  • Joined:11 Sep 2006
  • Gender:Male
  • Location:Illinois

  • "dirt collects at the interfaces"

Posted 18 October 2008 - 11:20 PM


Obama's plan from SIX MONTHS before the current crisis.

Quote

Giving the Federal Reserve system more oversight authority over institutions to which it provides credit as a "lender of last resort." Although Obama did not outline specifics, saying those would depend on the level of the Fed's assistance, "but at the very least, these new regulations should include liquidity and capital requirements."

Strengthening capital, liquidity and financial disclosure regulations for financial institutions. "Transparency requirements must demand full disclosure by financial institutions to shareholders and counterparties," Obama said.

Creating a financial oversight panel that could monitor and report to the president about such rapid financial developments as the growth of bond-backed subprime mortgages.

Providing an additional $30 billion in economic stimulus spending, including $10 billion in a foreclosure prevention fund for homeowners. Obama said the fund was designed to help homeowners "sell a home that is beyond their means, or modify their loan to avoid foreclosure or bankruptcy." He also called for overhauling bankruptcy laws, "so families aren't forced to stick to the terms of a home loan that was predatory or unfair."

Strengthening investigations into trading activity that appears to involve market manipulation. "Reports have circulated in recent days that some traders may have intentionally spread rumors that (investment banker) Bear Stearns was in financial distress while making market bets against the company. The SEC should investigate and punish this kind of market manipulation and report its conclusions to Congress," Obama said.

Creating a 10% mortgage interest tax credit for homeowners who do not itemize their taxes, cutting income taxes by up to $1,000 a year for "working families" and eliminating income taxes for retirees making less than $50,000 per yea


link

"Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now!""
- Friedrich Nietzsche

#4    MasterPo

MasterPo

    Alien Abducter

  • Member
  • 4,975 posts
  • Joined:30 Dec 2006
  • Gender:Male
  • Location:Long Island, NY

  • So sue me....

Posted 19 October 2008 - 04:21 AM

Certainly someone with a more conservative view for the reason that while encouraging home ownership I believe is a valid social policy, home ownership to anyone anywhere no matter what it takes is what "subprime" (meaning below the best) is all about!



The Po File - As told to MasterPo by MasterPo

Have the courage to read it.

#5    MasterPo

MasterPo

    Alien Abducter

  • Member
  • 4,975 posts
  • Joined:30 Dec 2006
  • Gender:Male
  • Location:Long Island, NY

  • So sue me....

Posted 19 October 2008 - 04:23 AM

ninjadude on Oct 18 2008, 07:20 PM, said:

Obama's plan from SIX MONTHS before the current crisis.


Does his plan also include requiring the people getting these mortgages to put down any money out of their own pocket?

Does his plan also include requiring a job history or proof they have realistic potential to pay it back on schedule?


That's the stuff that got this whole thing going sour!



The Po File - As told to MasterPo by MasterPo

Have the courage to read it.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users