America's North Shore Journal » Entries tagged with "mortgage crisis"
Bailout Fails!
Looks like the majority of the House agreed with me. The financial bailout in its current form is dead. The usual way to fix this is for Congress to lard up to bill with pork so that more Congresscritters will vote for it. Watch for that approach to be forthcoming. Congress can be bought. It’s just a matter of the price, now. OTOH, it is remotely possible that the Congressmen and Congresswomen that voted this bill down might vote for a new bill, with no bailouts for foreigners or mismanaged companies, no purchases of securities other than mortgages and strict controls on the Treasury Department. Or, pigs will fly. Fire Congress! Previous in series Next in seriesTable of contents for Fire CongressFinancial Disaster Coming?Is This Mortgage Worthless?Emergency Economic Stabilization Act of 2008Opposing the BailoutBailout … Read entire article »
Filed under: American Economy, Commentary, Original writing
Opposing the Bailout
The bailout uses your money. From your pocket. Do you really want to spend your money? Do you really want the Federal Government to take your money and spend it however they wish? Here are some of the others opposing the financial bailout. Michelle Malkin Phone calls to congressional offices continue to show overwhelming public opposition to the massive, unprecedented government giveaway. Nevertheless, GOP House Minority Leader John Boehner and the House Republican leadership have thrown in the towel. Make room for them on the couch with Gingrich and Pelosi. Boehner called the deal a “crap sandwich,†but told House Republicans he’ll vote for it. Are you going to swallow this crap? Is your congressional representative? No Wall Street Bailout The $700 billion bailout figure is as much money as the combined annual budgets of … Read entire article »
Filed under: American Economy, Other Bloggers
Emergency Economic Stabilization Act of 2008
Here is a link to the Financial bailout agreement. It is in PDF form. It is a long and complex document but a very quick scan reveals some issues for the American taxpayer. Emergency Economic Stabilization Act of 2008 Lots of bad options were taken out. Still: The government would have the authority to buy troubled assets from foreign banks and governments. The government, in certain circumstances, is authorized to pay more for the troubled asset than its current owner paid. A substantial bureaucracy to administer and inspect these programs is authorized. While the government is urged to mitigate foreclosures by interest rate changes and / or the forgiveness of principal, foreclosure is not ruled out. The government is authorized to begin buys before creating any policies, procedures or regulations concerning such activities. Fire Congress! Previous in series … Read entire article »
Filed under: American Economy, Commentary, Original writing
Financial Disaster Coming?
Read this. Send it to all your friends. Send it to your enemies and even strangers. This is the absolute truth about the Congress. No bull. Steve Schippert posts at Wizbang: We are witnessing a failure in government. Our Congress cannot work together to provide an immediate fix to a problem it created in the first place: forcing the American financial sector to extend mortgages to those who were high risk borrowers in order to champion to the American people that more minorities own homes than ever. That worked well under a booming economy. But when the natural cycle of economics turned downward, fear dismissed became reality unavoidable. The house of cards came tumbling down. And even still, amid all the haggling and fighting going on in Congress over how to shore up … Read entire article »
Filed under: American Economy, Other Bloggers
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Mark to Market Changed for Now
October 1st, 2008 | Comments Off
One of the accounting rules that has created this “crisis” is called mark to market. What that means is that securities are to be valued at the price they could be sold for at market. It allows a company to recognize that its investments have appreciated, or sadly, depreciated in value. The credit market got tied up when major players refused to buy at prices they viewed as too low. If you cannot sell a security, it has zero value. Suddenly, banks and other institutions held massive amounts of mortgage securities with no apparent value. As has been demonstrated here, they do have a value, but the refusal to buy and sell at those values shut the credit market down. Companies went bankrupt due to their losses in securities marked to market. The SEC … Read entire article »
Filed under: American Economy, Commentary, Original writing