Question by Who’s Your Daddy Now: Seeing as how Republicans got us in this mess, ought to they be taxed at a higher price to pay it off?
Best answer:
Answer by Philip McCrevice
Funny.
Dems had been in handle of Congress when the economy tanked.
In fact, when Republicans had been in charge of Congress, we were cruising financially. Despite the loans to the dem voter base that ought to never ever have been allowed.
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Question by Julius S: Should Obama replace Timothy Geithner with Paul Krugman as Treasury Secretary?
In the deregulation-minded Reagan era, old-fashioned banking was increasingly replaced by wheeling and dealing on a grand scale. The new system was much bigger than the old regime: On the eve of the current crisis, finance and insurance accounted for 8 percent of G.D.P., more than twice their share in the 1960s. By early last year, the Dow contained five financial companies — giants like A.I.G., Citigroup and Bank of America.
And finance became anything but boring. It attracted many of our sharpest minds and made a select few immensely rich.
Underlying the glamorous new world of finance was the process of securitization. Loans no longer stayed with the lender. Instead, they were sold on to others, who sliced, diced and puréed individual debts to synthesize new assets. Sub-prime mortgages, credit card debts, car loans — all went into the financial system’s juicer. Out the other end, supposedly, came sweet-tasting AAA investments. And financial wizards were lavishly rewarded for overseeing the process.
But the wizards were frauds, whether they knew it or not, and their magic turned out to be no more than a collection of cheap stage tricks. Above all, the key promise of securitization — that it would make the financial system more robust by spreading risk more widely — turned out to be a lie. Banks used securitization to increase their risk, not reduce it, and in the process they made the economy more, not less, vulnerable to financial disruption.
http://www.alternet.org/workplace/133775/krugman%3A_the_market_wizards_were_exposed_as_frauds_–_too_bad_obama%27s_team_still_believes_in_their_magic/
Attention Ditto Heads: This is a serious question, so please treat it as such. I recognize that Lush Rimbaugh has been trashing Timothy Geithner, but Lush is negative for negative sake, not because he wants to make America better.
Attention: Obamabots, Barack Obama has shown that his Wall Street buddies are more important than America’s best interest. If that weren’t true, Barack Obama would not have waited almost 3 months: to propose regulating credit default swaps that were specifically unregulated by Phil Gramm and the Republican Cabal of Reagan Devolutionists; to reinstate the 70 year old SEC Uptick Rule requiring shortseller stock market manipulators to sell at higher stock prices; to return the power to bankruptcy court judges to renegotiate first mortgages and cram down sub-prime mortgages and underwater mortgages for all honest Americans.
Best answer:
Answer by Isabella
Debate it on disagreewithobama.com
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Question by ijustwannalive23: how much factual info should i include in my essay?
i’m writing a persuasive essay about whether i think there will be another great depression or not. it’s persuasive, so i’m not sure how much actual facts i should include. i know i need some to use as supporting details, but should it be really factual?
thanks
Best answer:
Answer by George
it sould be the true description of the great deparession along with the efforts to move twoard its recovery. Read this account although it a little short on the recovery but it is at the end of this essay.
The late-2000s depression was economic and it began in the United States in December 2007 (and with much greater intensity since September 2008, according to the National Bureau of Economic Research. It spread to much of the industrialized world, and has caused a pronounced deceleration of economic activity. This global depressionhas been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2010. Although the late-2000s depression has at times been referred to as “the Great Deparession,” this same phrase has been used to refer to every recession of the several preceding decades. In July 2009, it was announced that a growing number of economists believed that the recession may have ended.
The financial crisis has been linked to reckless and unsustainable lending practices compounded by government intervention and the growing trend of securitization of real estate mortgages in the United States. The US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world. A more broad based credit boom fed a global speculative bubble in real estate and equities, which served to reinforce the risky lending practices. The precarious financial situation was made more difficult by a sharp increase in oil and food prices. The emergence of Sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market. As share and housing prices declined, many large and well established investment and commercial banks in the United States and Europe suffered huge losses and even faced bankruptcy, resulting in massive public financial assistance.
A global depression has resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. In December 2008, the National Bureau of Economic Research (NBER) declared that the United States had been in recession since December 2007. Several economists have predicted that recovery may not appear until 2011 and that the recession will be the worst since the Great Depression of the 1930s. The conditions leading up to the crisis, characterised by an exorbitant rise in asset prices and associated boom in economic demand, are considered a result of the extended period of easily available credit, inadequate regulation and oversight, or increasing inequality.
The depression has renewed interest in Keynesian economic ideas on how to combat recessionary conditions. Fiscal and monetary policies have been significantly eased to stem the depresion and financial risks. Economists advise that the stimulus should be withdrawn as soon as the economies recover enough to “chart a path to sustainable growth”.
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Question by julio_slsc: What loans should the banks have made to avoid the real estate crash?
It is not wise to provide a non-answer with little detail.
Best answer:
Answer by Wisdom
They should’ve given out loans to people that could actually afford to pay them back.
That’s actually all the answer there is.
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Question by missnewjerzee: Should lenders who use abusive or unfair lending practices be punished?
these are just some examples
Failure to disclose loan price is negotiable
Failure to clearly and accurately disclose terms and conditions
Servicing agent and securitization abuses (The servicing agent is the entity that receives the mortgage payment, keeps the payment records, provides borrowers with account statements, imposes late charges when the payment is late, and pursues delinquent borrowers. A securitization is a financial transaction in which assets, especially debt instruments, are pooled and securities representing interests in the pool are issued)
now it is our responsiblity to read everything on the loan document do you think the lenders should be punished for the way they do business?
oh I agree now isn’t the time, I just mean in general
http://en.wikipedia.org/wiki/Predatory_lending
Best answer:
Answer by Ben
Yes.
What do you think? Answer below!
