OBAMA STATE OF THE UNION: MORE OF THE SAME BIG GOVERNMENT

[I B Hankering]

Originally Posted by flghtr65

IBH, I am dissapointed in you. I thought you would have a stonger reply than that. Over-simplistic, what do you want me to do write a dissertation. This is not gradurate school you know. Everything I said was true. Bush came into office with a surplus and left with the USA in the worst recession since 1929. Was Slick Willie Clinton doing derivatives tradeing for the firms I mentioned previously? I don't think so. Are you insinuating Bush 43 engaged in such derivative trades; therefore, he is wholly responsible for a bill Slick Willie signed into law? The Bill that you are talking about was designed to make it a little easier to buy a home. Instead of having to put down 20 percent and have a credit score of 800, you could for example put down 10 per cent and have a credit score of 650. The Bill did not tell the mortgage bankers to stop doing income verification checks and credit checks. (See cited wiki article below) The Bill did not tell the banks to process fradulent loans. Where were your "watch dogs", Senators Dodd (D) & Schumer (D) and Congressman Frank (D), why didn't they do their jobs and properly monitor the banks, et al? The banks got greedy with these sub-prime mortgages. (See cited wiki article below)They wrote them as fast as they could, sold them to the Wall Street firms that I mentioned previously and the Wall street firms grouped these mortgages together into a security and sold it on the open market, backed with an undeserved 'AAA' rating from S&P. (See cited wiki article below)The Justice Department of the Federal Government is sueing the S&P for this practice. It was in the USA Today about 2 weeks ago, so don't tell me I am makeing it up. Once people start defaulting on these sub prime loans, you had a receipe for disaster, Lehman Brothers and AIG went completely bankrupt selling these unregulated securities. This is not the fault of Slick Willie Clinton. You should go to www.cnbc.com and watch their House of Cards Special, you might learn something. That's how it went down my friend. Obama did the stimulus and the bailouts to stablize our banking system and our economy. You can spin the DJIA any way you want. The DJIA closed today at 14,130, just 60 points from the all time high. Once again, that's just an "abstract, meaningless number" with no intrinsic value when you do not factor in inflation. The market is still 10% to 11% -- not merely "60 points" -- below its previous all time high when you factor in inflation. The S&P 500 and the Wilshire 5000 index have already reached all time highs under Obama. You are in effect arguing that the U.S. dollar has the same value today as it did in 2007. That's a pathetically bogus argument any 10th grader with a computer can refute. The trickle down and no regulations for Wall Street simply does not work. Who is getting schooled now?

Slick Willie the Perjuring Sexual Predator signed the Financial Services Modernization Act of 1999 which effectively neutered the Glass-Steagall Act of 1933. The Financial Services Modernization Act coupled with the federal requirements put on banks by the Community Reinvestment Act all but guaranteed a financial crisis such as the one that occurred in 2007.

“Financial Services Modernization Act of 1999 repealed part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the passage of the Financial Services Modernization Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. The legislation was signed into law by President Bill Clinton. . . .”

“Many believe that the Act directly helped cause the 2007 subprime mortgage financial crisis. President Barack Obama has stated that GLB led to deregulation that, among other things, allowed for the creation of giant financial supermarkets that could own investment banks, commercial banks and insurance firms, something banned since the Great Depression. Its passage, critics also say, cleared the way for companies that were too big and intertwined to fail.

“Austrian Economists Mark Thornton and Robert Ekelund have also criticized the Act as contributing to the crisis, noting that the act did not at all 'deregulate' in the literal sense of the word, but merely transferred regulatory power to the regional Federal Reserve Banks. They state that "in a world regulated by a gold standard, 100% reserve banking, and no FDIC deposit insurance" the Financial Services Modernization Act would have made perfect sense as a legitimate act of so-called "deregulation," but under the present fiat monetary system it "amounts to corporate welfare for financial institutions and a moral hazard that will make taxpayers pay dearly."

“Austrian Economist Frank Shostak has argued that Financial Services Modernization Act actually gave more regulation over the banking sector. He argues that with the existence of a central bank, competition among banks led to increased inflation and "rather than promoting an efficient allocation of real savings, the current "deregulated" monetary system has been channeling money created out of thin air across the economy."

“Nobel Prize-winning economist Joseph Stiglitz has also argued that the Act helped to create the crisis. In an article in The Nation, Mark Sumner asserted that the Financial Services Modernization Act was responsible for the creation of entities that took on more risk due to their being considered “too big to fail." Other critics also assert that proponents and defenders of the Act espouse a form of "eliteconomics" that has, with the passage of the Act, directly precipitated the current economic recession while at the same time shifting the burden of belt-tightening measures onto the lower- and middle-income classes. . .”

“According to a 2009 policy report from the Cato Institute authored by one of the institute's directors, Mark A. Calabria, critics of the legislation feared that, with the allowance for mergers between investment and commercial banks, Financial Services Modernization Act allowed the newly-merged banks to take on riskier investments while at the same time removing any requirements to maintain enough equity, exposing the assets of its banking customers" (wikipedia).

BTW, NBC and its ancillary networks are the most biased of the MSM libertard networks. Suggest you pick up a book, such as Bethany McLean’s and Joseph Nocera’s, All The Devils Are Here: The Hidden History Of The Financial Crisis. (2010), rather than subsisting entirely on the pabulum Kool Aid NBC dispenses on a daily basis; you'll discover that your understanding of events is biased and over-simplistic.

[I B Hankering]

Originally Posted by flghtr65

Obama did the stimulus and the bailouts to stablize our banking system and our economy. You can spin the DJIA any way you want. The DJIA closed today at 14,130, just 60 points from the all time high. The S&P 500 and the Wilshire 5000 index have already reached all time highs under Obama. The trickle down and no regulations for Wall Street simply does not work. Who is getting schooled now?

Curiously enough, this story was today cited in another thread . . . try spinning this:

Odumbo’s new Treasury Secretary, Jack Lew (D), “joined Citigroup in June of 2006. The company had set its course for disaster eight years earlier [1998] when, in defiance of existing law, Sanford (Sandy) Weill merged his insurance company, Travelers Group, which owned an investment bank (Salomon Brothers) and a retail stock brokerage firm (Smith Barney) with the commercial bank, Citicorp. This was the very combination outlawed under the Glass-Steagall Act of 1933 and the Bank Holding Company Act of 1956 to prevent banks holding FDIC insured deposits from merging with firms engaging in the much riskier securities or insurance underwriting.

The Glass-Steagall Act had been put in place to prevent the Wall Street abuses that led to the 1929 to 1932 Wall Street crash which saw a 90 percent decline in stock prices and led to the Great Depression. The Citigroup merger effectively forced the hand of Congress to repeal the legislation in 1999 under the rubric of “modernization” or force the breakup of a powerful and politically connected company.

The repeal of the Glass-Steagall Act occurred under the Clinton administration. The U.S. Treasury Secretary at the time, Robert Rubin (D), played a leading part in advocating for the repeal. Rubin (D) went straight from public service to join Citigroup and collected $120 million in compensation over the next eight years for non-management work. According to the Washington Post, it was Rubin who recommended Lew for the post at Citigroup.

http://wallstreetonparade.com/2013/0...ued-citigroup/

[Yssup Rider]

Could you repeat that?

[Chica Chaser]

Originally Posted by Yssup Rider

Could you repeat that?

This pretty much covers it, talk about paving your future!

Rubin (D) went straight from public service to join Citigroup and collected $120 million in compensation over the next eight years for non-management work

[Yssup Rider]

I'd have done it for 110 million!