It seems to me. They are claiming that the decline in the markets since September is because of the expectation, then the reality, of Obama’s election, and saying “I told you so.”
<
p>Of course, for anyone who lives in the real world, it is obvious that this is a fantasy. Our current problems are a direct result of decisions made by the Republican Party in general and the Bush administration in particular.
<
p>This is the Republican Recession and RMG and anyone who supports the Republican Party had better hope it ends sooner rather than later, because the longer it lasts the worse it will be for Republicans.
<
p>To be clear, it will also be bad for Democrats to some degree, but it will be worse for Republicans because they created the problem, and in a two-party system that means … the wilderness.
garysays
No, it was Dodd, and Frank. Also Clinton who push home ownership. But Gramm allowed securitization. Yeah but Clinton signed the bill that Gramm wrote, then there was Greenspan, but since Bush was in charge after Clinton but he was after Bush and he deregulated everything except the financial markets which are still regulated more than anything not handling nuclear material, so of course Clinton blew it, no wait, that was Lewinsky and Greenspan couldn’t do it by himself since there were other Fed Governors involved, so Paulson blew $350 billion, yeah but Geitner blew the other $350 and beside Geitner was the head regulator for Citi in the first place. Mine fantasy to make what is complicated simple. No, mine, mine…
… we’d just be in a housing cycle, not a ‘the credit clusterf#)$ of all time’.
garysays
Decades from now, and because historians and economists are still debating what caused the Great Depression, I’m betting that we’ll still be debating what caused this current phenomena.
<
p>And I’m more than quick to concede that securitization contributed, but since securitization was around well before the 90s, I’m not willing to blame the entire crisis on Clinton because he signed the Securities Modernization Act.
… it seems to me that it was the gradual divorcing of paper value from real value. The layer’s of packaging combined with over-leveraged hedges are what did us in. We were the coyote having run off the cliff and held up in there air by virtue of having not noticed it, but then we noticed and now we’re plunging. Nobody generating loans felt the need that they be secure because nobody was holding on to them long enough to care. The securitization packaging and hedges were the catalyst because they made buying the packages acceptable as well as obfuscating the value – packages helped obfuscate real value, hedges helped obfuscate real risk, and the market trading these things were more concerned with real-estate price overall than with the ‘dividends’ the products were meant to secure in the first place. Nobody knew where the floor was nor on what ground they stood. They just were not that worried because the visible pressures on price (real-estate values as well as price inflation due to trading demand) only seemed to go up. Without the packaging this is only a bad housing bubble and not a world wide catastrophe. With the packaging but without the hedging from credit default swaps, investors take more stock of their exposure and this never gets to the catastrophe level and is instead a minor global recession.
garysays
What! If you can’t bother to condense it whole problem into: a) it was Bush, or b) it was Frank and Dodd, why play?
It’s true! It really was-in a Forest Gump sorta way-Grady Little that caused the crash.
<
p>Born 1950, right in the early middle of the Boomer bubble. Top of the first, no runners on, 1968 MLB draft, Little hits and scores: big salary, the kid’s really got an arm and he’s on his way through the 70s and beyond. Earn and spend; borrow and spend. Go, go.
<
p>Moves through the league Maryland, NC, Boston all the while pulling down some serious cash and pushing up the housing market.
<
p>Cursed by the Bambino, sure, but who cares if you’re making the bucks.
<
p>Then there he was, 2003, looking out from Fenway toward the twilight of his career, and hanging his hat on the younger Martinez generation. Martinez, the next generation boomer hope to continue the party, let him down. No party here. Bam, slow fast ball down the middle, and the Recesssion hits it outta the park. Good bye Little. Good night American Boomer retirement dream.
<
p>Sure, there was always Hope, and California for Little, but houses prices are sliding. The Dodgers too.
Time Magazine had an article on the “25 People to Blame for the Economic Mess we are in” http://www.time.com/time/speci…
<
p>I was surprised at Gramm as #2 since I had forgotten about his role in deregulation. Plenty of Republicans AND Democrats to blame. Good to see Consumers part of the blame, but no Chris Dodd or Barney Frank, honorable mention perhaps.
<
p>Intersting on some of the more obscure indviduals like Mozilo (Countrywide Mortgage) and the Sandlers (Wachovia)
It seems to me. They are claiming that the decline in the markets since September is because of the expectation, then the reality, of Obama’s election, and saying “I told you so.”
<
p>Of course, for anyone who lives in the real world, it is obvious that this is a fantasy. Our current problems are a direct result of decisions made by the Republican Party in general and the Bush administration in particular.
<
p>This is the Republican Recession and RMG and anyone who supports the Republican Party had better hope it ends sooner rather than later, because the longer it lasts the worse it will be for Republicans.
<
p>To be clear, it will also be bad for Democrats to some degree, but it will be worse for Republicans because they created the problem, and in a two-party system that means … the wilderness.
No, it was Dodd, and Frank. Also Clinton who push home ownership. But Gramm allowed securitization. Yeah but Clinton signed the bill that Gramm wrote, then there was Greenspan, but since Bush was in charge after Clinton but he was after Bush and he deregulated everything except the financial markets which are still regulated more than anything not handling nuclear material, so of course Clinton blew it, no wait, that was Lewinsky and Greenspan couldn’t do it by himself since there were other Fed Governors involved, so Paulson blew $350 billion, yeah but Geitner blew the other $350 and beside Geitner was the head regulator for Citi in the first place. Mine fantasy to make what is complicated simple. No, mine, mine…
<
p>
… we’d just be in a housing cycle, not a ‘the credit clusterf#)$ of all time’.
Decades from now, and because historians and economists are still debating what caused the Great Depression, I’m betting that we’ll still be debating what caused this current phenomena.
<
p>And I’m more than quick to concede that securitization contributed, but since securitization was around well before the 90s, I’m not willing to blame the entire crisis on Clinton because he signed the Securities Modernization Act.
… it seems to me that it was the gradual divorcing of paper value from real value. The layer’s of packaging combined with over-leveraged hedges are what did us in. We were the coyote having run off the cliff and held up in there air by virtue of having not noticed it, but then we noticed and now we’re plunging. Nobody generating loans felt the need that they be secure because nobody was holding on to them long enough to care. The securitization packaging and hedges were the catalyst because they made buying the packages acceptable as well as obfuscating the value – packages helped obfuscate real value, hedges helped obfuscate real risk, and the market trading these things were more concerned with real-estate price overall than with the ‘dividends’ the products were meant to secure in the first place. Nobody knew where the floor was nor on what ground they stood. They just were not that worried because the visible pressures on price (real-estate values as well as price inflation due to trading demand) only seemed to go up. Without the packaging this is only a bad housing bubble and not a world wide catastrophe. With the packaging but without the hedging from credit default swaps, investors take more stock of their exposure and this never gets to the catastrophe level and is instead a minor global recession.
What! If you can’t bother to condense it whole problem into: a) it was Bush, or b) it was Frank and Dodd, why play?
<
p>Personally, I blame the boomers.
I am no fun.
It’s true! It really was-in a Forest Gump sorta way-Grady Little that caused the crash.
<
p>Born 1950, right in the early middle of the Boomer bubble. Top of the first, no runners on, 1968 MLB draft, Little hits and scores: big salary, the kid’s really got an arm and he’s on his way through the 70s and beyond. Earn and spend; borrow and spend. Go, go.
<
p>Moves through the league Maryland, NC, Boston all the while pulling down some serious cash and pushing up the housing market.
<
p>Cursed by the Bambino, sure, but who cares if you’re making the bucks.
<
p>Then there he was, 2003, looking out from Fenway toward the twilight of his career, and hanging his hat on the younger Martinez generation. Martinez, the next generation boomer hope to continue the party, let him down. No party here. Bam, slow fast ball down the middle, and the Recesssion hits it outta the park. Good bye Little. Good night American Boomer retirement dream.
<
p>Sure, there was always Hope, and California for Little, but houses prices are sliding. The Dodgers too.
Clearly, FDR.
It was this guy.
Time Magazine had an article on the “25 People to Blame for the Economic Mess we are in”
http://www.time.com/time/speci…
<
p>I was surprised at Gramm as #2 since I had forgotten about his role in deregulation. Plenty of Republicans AND Democrats to blame. Good to see Consumers part of the blame, but no Chris Dodd or Barney Frank, honorable mention perhaps.
<
p>Intersting on some of the more obscure indviduals like Mozilo (Countrywide Mortgage) and the Sandlers (Wachovia)
<
p>I’ll sum it up to GREED!