IndyMac, Sorry Everybody!!!!!
Jim Pence July 12th, 2008
IndyMac goes bust and folks could lose as much as $500 million. Reckon foreclosure Phil will give these folks permission to whine?
Phil Gramm:
"You’ve heard of mental depression; this is a mental recession, we have sort of become a nation of whiners. You just hear this constant whining, complaining about a loss of competitiveness, America in decline."
John McCain described Gramm, one of his top economic advisors this way.
"No one who is more respected on the issue of economics than Phil Gramm," McCain said.
Read more about IndyMac .
Keith Olbermann, Phil Gramm May 27, 2008
- 2008 Presidential Campaign , IndyMac , John McCain , Keith Olbermann , Phil Gramm
- Comments(4)
The Glass - Steagal Act of 1933 was comprised of two separate pieces of
legislation. The first bill separated commercial banking from investment
banking. In other words commercial banks could not invest the funds of
depositers in the stock market and other risky investments. The second bill
created the Federal Deposit Insurance Corporation to insure the funds
of the depositers.
The Gramm-Leach-Bliley Act of 1999 repealed the Glass Steagall Act. Now
banks were free to become involved in the risky world of investments and
market.
Under the totally corrupt leader ship of George Bush the banks did just that
and now look where we are at. If you complain about the failing
economy, Phil Graham an advisor to John McCain, will call you a whiner.
If you vote for McCain you WILL get what you voted for.
Look at the Hedge fund. The Hedge fund uses borrowed money to purchase
stocks and sometimes makes money by selling short. Selling short involves
“borrowing” stocks and selling them with the anticipation that the stock will
drop in value. The Seller of the “borrowed stock” then purchases shares of
the stock at a lower price to replace the stock that he sold but did not own
(the borrowed stock). If the value of the stock increases the seller loses
money. Selling what you don’t own and profiting off the misforture of others.
A real “Christian concept” isn’t it?
Consider James 5 in the Bible:
“Now listen, you rich people, weep and wail because of the misery that is
coming upon you. Your wealth has rotted, and moths have eaten your
clothes. Your gold and silver are corroded. Their corrosion will testify against
you and eat your flesh like fire. You have hoarded wealth in the last days.
Look! The wages you failed to pay the workmen who mowed your fields are
crying out against you. The cries of the harvesters have reached the ears of
the Lord Almighty. You have lived on earth in luxury and self-indulgence.
You have fattened yourselves in the day of slaughter. You have condemned
and murdered innocent men, who were not opposing you.”
I guess that the “conservative version of the Republican Bible” does not
contain these words. Especially were investing and the exportating of our
econony is concerned.
We need to outlaw such practices as short selling, the futures market, the
hedge funds, and other totally dishonest activities.
http://thinkprogress.org/2008/05/28/mccain-adviser-phil-gramm-shaped-mccains-economic-policy-while-lobbying-for-foreign-bank/
Federal authorities estimated that the takeover of IndyMac, which had $32 billion in assets, would cost the FDIC $4 billion to $8 billion. Regulators said deposits of up to $100,000 were safe and insured by the FDIC.[…]
The takeover of IndyMac came amid rampant speculation that the federal government would also have to take over lenders Fannie Mae and Freddie Mac, which together stand behind almost half of the nation’s mortgage debt.
Update: Over at the Wonk Room, Jared Bernstein argues that the potential meltdown of the home mortgage bank industry highlights the economic ignorance of Phil Gramm.
http://thinkprogress.org/wonkroom/2008/07/12/bernstein-on-gramm/
OK, Kentuckians….here’s the deal. When there are gains and profits, the Republican ideology of no oversight, no regulation, and the “free market” makes the gains and profits PRIVATE. When there are losses, the Republican ideology makes the losses PUBLIC….in other words “socialized”. Look at Bear Sterns, and IndyMac, and now Freddie and Fannie. Of course, the crooks that created this disaster get off “scott free” with their millions and billions, and the taxpayers take the hit. Makes one wonder WHY any one would vote Republican. Why should you care??? Because the annual deficits, stunning federal debt and devalued dollar will lower the standard of living for all except the very wealthy, which excludes most of us, but includes McConnell. Get it?? When it is convenient (PROFITS) it is PRIVATE. When it is not convenient (LOSSES), it is “socialized”. You will pay the bill. You did for the S&L bailout of the 80s. “Ain’t” McConnell wonderful??
Good article , thanks and we want more! Added to FeedBurner as well