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94 Comments
- PuterPrsn, on 01/06/2009, -1/+57"Savings glut"?? I guess that's why all the industrialized nations are worried about a "credit card meltdown" when a large percentage of people are going to default on their credit cards - because they saved so much money in banks. Please!
- thoughtsonthis, on 01/06/2009, -1/+39Paulson may go down as the worse Treasury Secretary we have had.
- inactive, on 01/07/2009, -0/+31 Lets get things clear. He did not "get it wrong." He told an outright lie. We need to stop thinking these guys are dumb.
- BlacklabelSAR, on 01/07/2009, -0/+30Fractional Reserve Banking is a scam so big most people can't or won't see it.
- kemp34, on 01/06/2009, -0/+21Hank this "global savings glut" can also be known as global printing press running after the dotcom meltdown. This competitive currency devaluation was quarterbacked by the Federal Reserve Chairman of the time, one Alan Greenspan.
Paulson is a proven liar or fool. I see no reason such a man should have such an important public position. No reason whatsoever. - bigp3rm, on 01/07/2009, -0/+17So when does the revolution really start?
- redskyformiles, on 01/07/2009, -0/+17I cant believe that people still take this schmuck seriously...
- method7670, on 01/07/2009, -0/+16Treasury Secretary Paulson, the only person who could be worse with your money than Madoff.
- exspasticcomics, on 01/06/2009, -4/+19His name was (Hank) Paulson.
- statik99, on 11/03/2009, -0/+14A person who can't account for where portions of bailout money is going was bound to be fail.
Hank Paulson == EPIC FAIL. 'nuff said. - yocouchdigga, on 01/07/2009, -0/+13since 1985 the average american's savings have gone from being around 9% of their yearly income to between 2-.5%. These ***** liars need to go.
if you have 3+ hours watch: http://www.chrismartenson.com/crashcourse - it's very informative and non-conspiratorial, good stuff. - inactive, on 01/07/2009, -0/+13He is complaining that the central banks can no longer rob the people of their savings with low interest and high inflation.
- JosephStalin, on 01/07/2009, -0/+11Appointing an "old white guy" isn't a bad thing. It depends on who that guy is and what he knows. Someone like Ron Paul, for example, who's seen this mess coming for decades could do an excellent job. Jim Rogers is another example of an "old white guy" that knows his stuff and could do an excellent job. A younger person that believes in Keynesian economics would just continue to fsck things up.
(Jim Rogers: http://www.youtube.com/watch?v=jvycPv7aay4 )
/me not an economist, but thanks to Ron Paul, Peter Schiff, and Lew Rockwell I'm learning... - mrcaulfield, on 01/07/2009, -0/+11Your time is almost up, Paulson.
- markoranovich, on 01/07/2009, -0/+10Not one mention of Peter Schiff, where the hell is everyone? Google his youtube video's, specifically his banker's conference
- inactive, on 01/07/2009, -1/+11Oh I think they know exactly how they created this. It is no accident.
- exspasticcomics, on 01/07/2009, -1/+9If the 'old white guy's' name happens to be Ron Paul- I'd probably be okay with that.
- DangerCollie, on 01/07/2009, -1/+9The right wing doesn't stay with a story line long enough to defend it. It's sort of a waterfall of excuses. By the time one is debunked they're circulating the next one.
Not long ago the line was that the credit crisis was precipitated because mortgage lenders were required to lend to qualified buyers regardless of race. Although they modified the wording of the law and said it made banks loan money to "poor people". The law was meant to prevent red lining neighborhoods, not to encourage the poor to borrow excessively. That line was echoed by the predictable suspects. Ben Stein in a Yahoo! finance column, the chairman of Goldman, a couple right wing tabloids.
Nothing about greed, incompetence, the corrupting influence of Washington lobbyists, the K Street Project and the Chamber of Commerce...no, none of that, it was banks being forced to loan money to poor [black] people. And now it's because people saved too much money. Maybe a waterfall is the wrong analogy, this is more like a manure spreader. Just keep the s--- flying another 2 weeks and they can all go home and write books about how this is all Clinton's fault. - SouthsideIrish, on 01/07/2009, -0/+7And who is going to replace him? Ah, someone just like him. What is going to change, all you are doing to promoting the Governor of the New York.
No change here, move on. - shig, on 01/07/2009, -0/+7The two laws you reference, Equal Credit Opportunity Act (preventing discrimination) and the Community Reinvestment Act (preventing redlining), were passed in the mid-70's.
It's been modified more than a half dozen times since then, and it's a completely different document now. Multiple legislative and regulatory changes, there is no denying that most of which occurred during Clinton's term, have given it more than than the simple task of preventing discrimination and redlining.
Gramm-Leach-Bliley Act, Riegle-Neal Interstate Banking and Branching Efficiency Act, Federal Housing Enterprises Financial Safety and Soundness Act, are just a few of the legislative changes to the original.
There were also numerous regulatory changes to the Act in 1995. - subliminalurge, on 01/07/2009, -0/+6What's even more unfortunate is that there are plenty of borrowers out there, but the lenders are hording the (essentially free) money that they just got.
- diggcommentguy, on 01/07/2009, -1/+7I seriously hate this meme, but I dugg you up anyway.
Why?
Herd mentality. - vsaint, on 01/07/2009, -1/+7Yeah exactly....the reason we are in financial crisis is because everyone on the planet decided NOT to buy ***** they couldn't afford.
- inactive, on 01/07/2009, -0/+6Shhhh!!! Mentioning Peter's name often involves admitting Ron Paul was right, and we can't have THAT!!
- shig, on 01/07/2009, -0/+6There's little doubt in my mind that this was a bi-partisan screw up. It's horribly obvious at this stage of the current crisis that Republican leaders were complicit, are complicit, and will continue at least in the short term, to be complicit. Bailouts and deals under the TARP would be Exhibit A.
Clinton himself championed most of the regulatory changes to the CRA early in his first term. Half way through his second term loans to poorer Americans by CRA-eligible institutions rose 40%. The CATO Institute went ape ***** in 1995, saying banks would operate at a loss, it would ruin the economy and contract the banking system in the long term. In 1997 the Federal Reserve assured profitability, Bear Stearns issued the first publicly available securitization of a CRA loan, and Freddie Mac guaranteed it AAA.
The rest, they wish could say, is history. - exspasticcomics, on 01/07/2009, -0/+5you are not a unique & special snowflake. sticking feathers in your butt does not make you a bird- space monkey!
- Smuikas, on 01/07/2009, -0/+5http://video.google.com/videoplay?docid=-905047436 ...
An insightful video on fractional reserve banking, and why it is destined to fail. Also posits a solution. It's a long watch (~47 minutes), but well worth it.. - inactive, on 01/07/2009, -0/+5Somehow, in doing all this "DEregulation," Republicans managed to spend $20 Billion inflation adjusted dollars MORE on (wait for it...) REGULATION. Ah, NewSpeak this good takes plenty of, um, DoubleThink...
- refisawanker, on 01/07/2009, -0/+5Leverage: driving borrowing to higher and higher levels drove this mess, not a savings glut. Savings deposits couldn't keep up with the demand for cheap loans and the bottom fell out when prices of assets contracted. He's got all the pieces, he just doesn't have them in order.
Unfortunately we need people to borrow to get us out of the mess we got into by people borrowing too much. What a cluster *****. - waggdogg, on 01/07/2009, -0/+5 U.S. Treasury Secretary Hank Paulson reminds me of chicken little. The sky is falling, the sky is falling and everyone runs inside.
- minoss, on 01/07/2009, -2/+7Yea, and we know this because of the overwhelming opposition Obama has shown against the recent bailouts and monetary policy.
Oh wait... - minoss, on 01/07/2009, -0/+4They understand it perfectly. These guys aren't dumb. It's just that their goals don't align with what they say their goals are. You don't know many broke bankers working at these broke companies now do you.
- justodd, on 01/07/2009, -0/+4People in the western world are not who Greenspan was referring to as creating a "savings glut" - it's the government of China.
Westerners in general, and Americans in particular, did not start keeping their money and paying down their credit card debt. They quit spending as much because they couldn't refi their house again now that the bubble burst and put them upside down on their mortgage. - sndream, on 01/07/2009, -1/+5OMG, ppl dugg a non-conspiracy economic article? Is this the end of the world. @_@
Seriously, this financial crisis is created by both the Republican and Democrats, both the reckless lender and borrower. The Democrats push the bank to lent more money to irresponsible ppl and Republican pull out all the financial regulation. - MrColdheart, on 01/07/2009, -2/+6The Community Reinvestment Act did not 'force' the banks to make risky loans.
It only prevented discrimination on the basis of race, color, religion, national origin, sex, marital status, or age. No matter who you are you should be able to get a loan as long as you pass the banks credit criteria.
Now I have to steal a copy of Forbes so I can set it on fire in a trash can; glossy piece of *****. - SouthsideIrish, on 01/07/2009, -0/+4I meant to say the Governor of the New York Federal Reserve Bank.
- ryan83189, on 01/07/2009, -0/+4He did not have bitch *****.
- schallb, on 01/08/2009, -0/+4Is it just me or is anyone else thinking that these crooks that have rigged these things for years are still walking the streets and blaming the only ones (us slaves) for all that they do, instead of being in the hague or hanged on a lamp post.
- BugsSport, on 01/07/2009, -1/+5His name is Hank Paulson
- minoss, on 01/07/2009, -1/+5You say that as if his replacement is going to be any different. Notice how very few of those who actually make decisions (and certainly not the president elect) are siding with the view of the article. Paulson may be replaced, but that's just a formality to make him a scape goat of decades of bad monetary policy.
- RickScarf, on 01/07/2009, -3/+7What you've just said is one of the most insanely idiotic things I have ever heard; at no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may god have mercy on your soul.
- shig, on 01/07/2009, -0/+4That's the Equal Credit Opportunity Act, and not the CRA.
The original CRA was to prevent "redlining", but additional legislation, while not apart of CRA officially, were meant to ease lending restrictions. The Federal Housing Enterprises Financial Safety and Soundness Act, and the Riegle-Neal Interstate Banking and Branching Efficiency Act, among others in the late 90's.. - devophl, on 01/07/2009, -0/+3The economy might have stabilized for the time being but we're far from being out of this mess. The amount of person, corporate and governmental debt is staggering. This was created by a massive push to debt spending by a fiscally irresponsible administration. Now with the economy contracting, the ability to keep up with the interest payments on this debt, not to mention somehow paying it off is in doubt. Add to this another round of housing foreclosures thanks to the next wave of ARM readjustments which will likely push housing prices even lower over the next two years. This is likely to create a new wave of financial panic that will make the last one look pretty trivial. To add insult to injury, the government has decided to print money at record rates and increase deficit spending to record rates. This is like being in a hole and digging it even deeper hoping the walls don't collapse in on themselves. We need to let this recession happen to somehow readjust from the three decades of trickle down deregulated economics that got us into this crisis. The more we try and deny this, the worse the outcome is going to be. Hopefully someone smart in Washington will wake up and do something before the world comes crashing in on itself.
- inactive, on 01/07/2009, -0/+3That is really sad that people pay more in taxes than they pay themselves.
- jericho4119, on 01/07/2009, -0/+3The "savings glut" Paulson is referring to is the overseas money - China, et al - who are buying our Treasury debt. They went looking for other debt obligations, when the Fed drove rates so low the return was almost non-existent.
Investment banks said, "hey - what about these mortgage-backed securities" and all of a sudden all of those overseas dollars had a new market. Unfortunately, this market was not regulated, which no one cared about - including any of the Bush Treasury Secretaries - as home prices were escalating. As soon as the music stopped - which happened when the first investment bank held an auction for mortgage-backed securities and no one showed up to buy - the home price appreciation reversed and the banks have been attempting to unwind these bad mortgages ever since.
In to the second year of unwinding now and no end in sight. - Eorster, on 01/07/2009, -0/+3If some figity guy, like Paulson, who acts like a softball was going to be thrown at his head any minute, asked me for even a $5 bill I would wonder if this dude forgot to take his pills and then roll up my car window. But if someone like that asks congress for $700 billion they just start throwing the cash at him. Maybe I just need to start practicing my retard mannerisms in order to make it in the US nowadays. Another example just look at that "Sham Wow" pud's infomercial. He acts like a F&^%&^ retard and sells a product that has the word "Sham" in the name and is an instant success. WTF?
- devophl, on 01/07/2009, -0/+3Paulson is a great example of the inmates running the asylum!!
- vbullinger, on 01/08/2009, -0/+3I vote for liar. He's too smart to not know WTF he's doing. Realize that people: they're not "wrong," they're "lying."
- inactive, on 01/07/2009, -1/+4Why do people keep calling this a crisis?! The only "crisis" was the unbridled spending going on throughout the world over the past decade. I mean does anyone even know why the banks suddenly started dropping like flies? One reason and one reason only: people stopped paying their bills. Is it so hard for everyone to accept that maybe this is the new reality? That maybe people don't want to live a overly stressful life weighed down with crushing debt? People are beggining to realize that life isn't just about having the newest car and biggest flat screen. It scares the ***** out of me when Obama keeps repeating that he's going to "fix" the current situation back to where it was... I mean does he even know what that implies? I guess he wants the credit cards to keep filling up and people signing up for financial burdons they don't have a chance of fulfilling.
He's either THAT stupid, or he's just saying and doing what he knows people want to hear, regardless of the consequences. Either possibility is ***** frightening to be perfectly honest.
I challenge anyone to find me a truly "bad" result of the current reality check. -
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