Good afternoon folks.
I had a refreshing break from all the political hubub this past couple days. But read a disturbing reply to the person "suburbia" what not, (sorry about the shortened name). I saw something among the lines that just hit me as so backward. I spoke with "my Mr." and he did indeed get barbed-shot or puffed up a bit, as we old timers say. Martin, my husband read the words and fell silent momentarily, then said: "Rosie, you go ahead and write that person the FACTS." So here goes the FACTS. I forget the person's name who wrote it, but he/she said that during the Clinton tenure, the democrats passed legislation that weakened our investment banking checks/balances by forcing FREDI-MAC and FANNIE MAE to establish billions in otherwise unattainable sub-prime loans to poor folks of meager earnings. Though Martin cannot disagree that apr. 40% of those loans were potentially faulty from a national budgetary turn. (of course not taking into account that while at first, those of modest means WERE solvent, reliable borrowers). Given the radical rise in inflation, among the horrifically massive exodus of our sustaining industrial jobs, the economic stresses for that 40% took them into the "Poor-house." thanks to our opened floodgates of Corporate giveaways and tax-breaks for foreign trade. (problem is that the trade they were bringing in, was our own previously manufactured in the USA.. goods). Not to mention, as he put ti anyway: "Hellfire Rosy, everyone knows no deregulation can FORCE any lending institution into a contract they don't see as repayable! (he gets so Frosty at times)
But before that in 1999, a very financially astute jester, REPUBLICAN named Phil Gramm, along with one Senator John McCain(who admittedly doesn't understand economics) signed on with Gramm to rid our banking and trading systems of the regulations put in place after the "great depression." Now the folks in charge of our "all knowing Congress" were the Republicans, with a sound 2/3 majority. The Democrats were but symbolic paper tigers. So, shortly after GW took the election in 2000, Gramm with Mccain's support ,while the general Co-Chairman of McCain's campaign, managed to slip a 262 page amendment into the 384 billion spending bill, entitled by Gramm: Commodity Futures Modernization Act. Within the act there was a provision lobbied for by GW's and Gramm's good friends at ENRON, that By exempting energy trading from the weakened regulatory agencies oversight, it paved the way for all unregulated securities THAT, primarily caused the mess we are in. PrimarilyOf course, that couldn't have been done without the act's provisions for deregulating those financial instruments who's values fluctuates due to variables of derivatives, that were designed to help only one party. Not to mention that Gramm and his family walked away from ENRON SCOTT FREE, with nearly 2 million BUCKS just prior to the bill's passage. This is the man McCain said he'd make his TREASURY SECRETARY?! Happily now defunked, but there's still time pa-paw.
Have you ever heard of the Swiss Bank, UBS? during 2005 and 2006 (still a 2/3 Republican congress)It was lobbied successfully by Gramm to get even further sweeping deregulation passed, and was then rewarded 3/4 of a Million BUCKS for his efforts. While UBS wrote down 18 BILLION in "Sub-prime loan" exposures among other risky securities, while preparing to cut 8,000 jobs. During those years the mortgage lenders pushed congress to abate state laws that protected mortgage borrowers from predatory lenders that "Helped" borrowers dive into high cost mortgages(No Clinton or Democratic majority) that due to the economic spiral, eventually cost these "risky" borrowers their homes. I do not stand in either camp here, but for "Pete Sake" why do some refuse to call a "spade a spade?" The remaining 60% of the failed lending and trading losses WERE NOT TO POOR PEOPLE! It was to the highest of finance and richest of the rich, dabbling in endless double down tactics, THAT cost JOE THE PLUMBER his potential, Not Sen. Obama.
It's no surprise to us old "Econ Wizards" , that Sen. McCain isn't the brightest bulb on the Economics String, but he had to know at some point that all those deregulation tactics that he happily endorsed from 1999 to 2005, could come back to haunt him. Didn't he? And for once I'd like to see or hear those who keep claimin this mess was the "Democrats" doing, stand up and finally say, "okay, maybe the Republicans had a hand in there." That would be good....... because they had both hands in there, along with some idiot Democrats too. Even now with a slim 35 vote majority, the Dems seem totally useless, while GW's veto pen blazes across the bills they send him, he glows all powerful, amidst calling his "Hog Tied mechanics" useless. I wished the John McCain who seemed to detest George Bush prior to 2000 would return, so we could say goodbye to that old friend of "Real America" C'mon John, get back to your 2000 campeign stance that "spreading our national wealth isn't SOCIALISM." while you and Obama recall your votes.... to save WALL STREET first. What about us..... guys?
Oh Lord I'm pooped .
God Bless
