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| No. 41 | 
May 17, 2009, 11:48 PM
 Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by azhiker96  Hey, I like the link Agrippa provided to the NPR program. It illustrates how bad loans have put the banks into the current crunch. They also noted how Americans have increased our debt ratio to a level not seen since 1929. When there are too many loans out the solution is not to loan more money.
Now suppose the government allowed insolvent banks to go bankrupt. Deposits are protected up to $250,000. That means the little guy wouldn't lose his money. The big investors would take a hit but then we could get on with rebuilding our economy at a sustainable level. Bankruptcy would penalize the banks who made bad loans or bought bad loans which would hopefully encourage the remaining banks to only make good loans. There's got to be something to keep the banks from making bad loans, either regulations or consequences.
It is an excellent program.
I agree. I believe that if a bank is too big to fail, then it is too big to exist. We need to reform our economy so that the failure of a bank or any sort of institution can't have these reverberations throughout the economy strong enough to totally incapacitate a country, and now the global economy. However we need to deal with the issue at hand. This is not the time for retribution or spanking the banks. That will come later. What is certain now was that if we let the main big banks fail (like Bank of American, Citi, Wells, etc) the turmoil will spread to many many other sectors like a virus and although I don't want to be an alarmist, such failures will send us into another Great Depression. We need to fix the damage now, stop the bleeding, and then we'll punish the culprits.
If your kid sets your house on fire playing with matches, it would behoove you to put the fire out before you discipline your child.
 | | No. 42 |
May 17, 2009, 11:55 PM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by Agrippa And as you have seen, this resulted in AIG going bust after these bonds were tanking and they turned to AIG.
So - you blame the home buyer who got a loan over their head for the brunt of this financial crisis. This is an easy target, and they do in part share the blame. But lets get real. The bubble didn't balloon because of home buyers who still have capital in the homes/land they bought.
I'm not just blaming the home buyers, but I don't give them a pass either. However, we've got to regulate the loan industry either with loan guidelines or by allowing them to suffer the consequences of their greed. Certainly the loans that were packaged into bonds swelled the bubble by allowing more loans to be created, packaged, sold; wash rinse repeat.
Check out this link to an NPR story which explains the banking crisis. You'll see the root cause is bad loans and the solution is not forcing the banks to make more bad loans. http://www.thisamericanlife.org/extr...transcript.pdf | | No. 43 |
May 17, 2009, 11:58 PM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by Agrippa And as you have seen, this resulted in AIG going bust after these bonds were tanking and they turned to AIG.
So - you blame the home buyer who got a loan over their head for the brunt of this financial crisis. This is an easy target, and they do in part share the blame. But lets get real. The bubble didn't balloon because of home buyers who still have capital in the homes/land they bought.
I'm not just blaming the home buyers, but I don't give them a pass either. However, the solution is dealing with the banking end. We've got to regulate the loan industry either with loan guidelines or by allowing them to suffer the consequences of their greed. Certainly the loans that were packaged into bonds swelled the bubble by allowing more loans to be created, packaged, sold; wash rinse repeat. The root cause though was bad loans. The subsequent housing market deflation and layoffs have exacerbated the problem.
Check out this link to an NPR story which explains the banking crisis. You'll see the root cause is bad loans and the solution is not forcing the banks to make more bad loans. http://www.thisamericanlife.org/extr...transcript.pdf | | No. 45 |
May 18, 2009, 07:13 AM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by Ladyashleyd This is surely not the time to be worried about what the deficit will be, however I absolutely LOVE the idea of Obama being re-elected for a 2nd term! Furthermore, Obama was handed this magnificent mess by your favorite Republican - GHWB - so whatever happens, cut him some slack, he's got a lot of work to do & he needs 2 terms just to get started. Lastly, I'm young, so I'll stick to what I know - recent history - and modern history says, Democrats do it better. Don't believe me, do the homework, compare & contrast & see for yourself!
Yes, Democrats are better at losing wars, escalating the deaths of American soldiers, and blaming everyone else for everything.
Obviously some think the only time to be worried about the deficit is when it can be used to win an election. And then damn the accountability...FULL SPEND AHEAD!
| | No. 46 |
May 18, 2009, 07:19 AM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by Ladyashleyd Wowza, I'm new to this site & don't know how to quote part of a previous post - among other things - but I do agree w/ some of the things you said. I too disagree w/ gov't pumping more money into the economy, not knowing where its coming from. I also have yet to come up w/ a better solution. Clearly, something must be done. The working-class needs help & cannot be left to our own devices.
Well, there you go. Just insult the "working class" and display them as helpless. So lets give Obama a pat on the back for doing something instead of nothing. I was under the impression that the dollar has not been backed by anything since Fort Knox was emptied & we were taken off the "Gold standard"? ]ack then it was gold, what has it been since? If anyone knows, could someone explain to me?
I pat no one for doing "something instead of nothing," especially when their "something" is the wrong thing and is harmful.
And it doesn't matter that we don't use the gold standard; most countries use a fiat system like we do. It doesn't mean there are no consequences to printing money.
| | No. 47 |
May 18, 2009, 07:24 AM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by talaxandra I don't think you can say Bush 'inherited' 9/11 or Katrina - they both occured while he was president. In both cases, while some of the ground work was laid before he took office, criticism of Bush in these regards has focused on his responses.
Saying that he didn't inherit the problems related to these issues is disingenuous; such logic would require that Obama take credit for the massive job losses that didn't occur until he took office. Regardless, as much as people want to pretend that Bush created Katrina, he doesn't have a weather machine. For example, in the case of 9/11 Bush responded with invasion and a war on terror. critics suggest that an approach better advantaging America would have been to harness unity of public sentiment into reducing America's reliance on fossil fuels.
Odd you say that; Obama voted FOR Bush's budget, specifically because of Bush's investment into alternative fuel sources. Time to be honest and informed here. The financial crisis is far from over, so it's too soon to tell if Obama's actions are appropriate, or even the best. We do know that other governments around the world are also using government funding to bail out major employers in financial straits, and to bolster spending. Perhaps they're all wrong, but in a system as complex as international finance it will take a while to see the long term eddects of current strategy.
Uh...leaders of nations around the world are telling Obama to back off and stop spending so much money.
| | No. 48 |
May 18, 2009, 07:29 AM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by Agrippa I still have hope that there are still some sensible Republicans around. The Republican Party has so radically shifted to the right that they were going to vote Arlen Spector out in the Primary for a Republican that was more willing to toe their line. I hope they keep doing this - who knows, we may yet get some more moderate Republicans into our open party.
That is the purpose of elections, and the function of democratic behavior.
| | No. 49 |
May 18, 2009, 07:31 AM
Re: Will Republicans ever contribute good ideas instead of just bing Obstructionists? Originally Posted by Agrippa Yes, we saw how the private banking industry performed so well.
I don't know what you mean by the postal service. I can send a letter from LA and expect it to get to San Diego in less than 2 days for less than $.50. They even work Saturdays. If I could get my health insurance to work as well as my postal service, I'd be happy.
I'd have to agree that the postal service is a poor comparison, but more frequently it's used as an example of a successful socialized program.
Thing is, everyone pays the same to send a letter from LA to San Diego, and if they don't have the money for the stamp, they don't get service. And if I could behave toward my patients as those idiots do behind the counter, them someone might have a point.
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