Comments on: 7 Ways Congress Helped Create The Problems They Are Now Trying To Solve

By: political hobbiest

political hobbiest — Mon, 30 Mar 2009 19:15:50 +0000

Possible Solution to Economic Crisis:

Let us say there are currently 15m Americans over age 55 in work force. Take out the 2m who are in government offices, where the experience is necessary. We are left with 13m of Americans over 55 in work force. This is not an accurate number, only a scenario. We offer all those 13m Americans 200,000 to retire, under certain conditions of course. For example, of those who take offer, each must buy one vehicle from GM Chrysler. Also the must purchase medical insurance from retirement funds, not using Medicare. Given conditions, lets assume of 13m, 7m accept retirement funds. This would guarantee 7m automobiles purchased from GM; one crisis reduced. 7m medical insurance plans acquired; crisis reduced, more money Medicare saves. Much more consumer spending by more responsible Americans, including: homes, furniture, electronics, etc… Total cost of government, 1.4T
Would you take it?

By: Fred

Fred — Mon, 30 Mar 2009 17:23:48 +0000

Excellent report, now I would like to see that broadcast on the CBS, NBC and ABC evening news and printed in the daily papers. Congress has managed to shift the blame on everyone but itself. It’s time for the American people to be made aware of the root of the problem.

What we have had here is a PERFECT STORM of Democrats and Republicans together creating a disaster. This is not the only problem they have created. They have also combined their efforts to turn a blind eye to and excuse illiegal immigration.

Join the Tea Party, send your reps a copy of a tea bag. Tell them if they don’t begin to put the interest of the country as a whole first, instead of their special interests, that you will vote them out of office. Then work to find a better candidate.

By: Jay

Jay — Mon, 30 Mar 2009 16:12:20 +0000

“…but I think Wall street is making matters worse with some of their moves as of late.”

Yes, like giving large sums of money to Democrat candidates.

By: Jonathon

Jonathon — Sat, 28 Mar 2009 05:39:12 +0000

I agree with this comment,
I would only add that looking at the cause Athenian Republic failer will be helpfull. The state in my veiw should not have been allowed to get involved in the first place in such matter but I think Wall street is making matter worse with some of their moves as of late.

By: Corey in GA

Corey in GA — Fri, 27 Mar 2009 19:38:01 +0000

It is important to realize the government’s very significant role in creating this crisis.

However, I do think it’s ironic that one of your main points is ridiculing the call for more regulation when one of your main points is that the government, “Allowed banks such as Bear, Lehman and others to borrow 30, 40 and even 50 times their capital base for a multiyear period.” Exactly how would they have disallowed that? Through more regulation?

The government was significantly to blame for this crisis, but let’s not exonerate all the executives that made incredibly bad bets on debts and left the bankrupt companies hanging while keeping their millions of bonuses based on shadow profits. Let’s not forget the CEO-decided base pay for the CEO’s.

There is a systemic fault in a system where executives make millions from a company and have little to no incentive to ensure that company’s survival beyond their tenure. Perhaps all pay above $1 million per year should be in company stock payable at the lowest price over the following five years after their tenure. THAT might instill some integrity into a group that is showing very little of late.

By: chuck

chuck — Fri, 27 Mar 2009 18:02:03 +0000

Former Chrysler CEO Lee Iocca phrased it this way:
Goverment problem prolongers,Companies problem solvers. Think on it. I ran across that when I read his autobio twenty years ago.

By: Robert Dickson

Robert Dickson — Fri, 27 Mar 2009 17:03:37 +0000

Everyone I’ve read seems to be ignoring what may have started the landslide–consumers’ maxed credit cards, shaky mortgages, car loans, and negative savings, then add the doubled cost of gasoline and you get the trigger. Because most have to commute to work, first people stop shopping, eating out; then fall behind on credit card payments, next let house payments slip, then car payments, and the whole national house of cards begins to collapse.

By: ALLAN L

ALLAN L — Fri, 27 Mar 2009 16:36:07 +0000

YOU ARE RIGHT ABOUT THE WHOLE MESS

By: Brian Sullivan

Brian Sullivan — Fri, 27 Mar 2009 16:10:37 +0000

You are right with Citigroup and the others, but the banks that took on the greatest risk and massive leverage from bad mortgage related assets were the (now former) I-banks such as Bear and Lehman. It’s why they collapsed. Citi and JPM and others had a retail deposit base to buffer some of the pain, Lehman and Bear didnt.

By: Ed Waterman

Ed Waterman — Fri, 27 Mar 2009 15:51:47 +0000

You hit it perfect Brian. I did my research as well and as far as I can peg it, Barney Frank and Chris Dodd were aware of the housing bubble in the 90’s, even before the massive appreciation in 2005 (homes in my neighborhood appreciated 42% just in 2005 when inflation was probably 3% or so). They both were taking money from Fannie and furthermore, Barney Frank blocked requests to regulate subprime lending and backstopping the risky loans at Fannie. An executive at Fannie Mae (Herb Moses) was in charge of affordable lending (including zero down and sub prime products) and made millions in commissions and bonuses, while lobbying for more lax regulation. Herb was also gay and HIS LIVE IN BOYFRIEND WAS BARNEY FRANK, who happened to chair the banking committee that regulated (or didn’t regulate enough) his boyfriend’s industry and SPECIFICALLY the products he was pushing. Why has the FBI not blown this up???

The result has devastated our nation. Our state (Washington State) has over 400,000 people looking for work.

The result for us??? We lost $250k on our home, when the banks froze our customers couldn’t finance our products and we lost two VERY profitable businesses and $700k in market cap (bankrupted them), my wife was layed off her job of 20 years and we are now facing bankruptcy, foreclosure and, since our credit is now destroyed, possible homelessness with our three beautiful children. We lost over $1 million in net worth in 10 months. Our anger is indescribable.