If you want to know why there is inflation.

rylan1

rylan1

Active Member
For those that are saying the economy is in good shape... I hope they'll begin to change their mind.
If you look at the headlines for the week... only positive is price per barrel decrease, yet gas went up.
The negatives are more bank closings/FED takeovers, Merril Lynch buyout, Lehman Brothers, AIG, Chrysler job losses, Hewlitt Packard job losses...stock market....
Its not good news..
 
stdreb27

stdreb27

Active Member
Originally Posted by Rylan1
http:///forum/post/2758294
For those that are saying the economy is in good shape... I hope they'll begin to change their mind.
If you look at the headlines for the week... only positive is price per barrel decrease, yet gas went up.
The negatives are more bank closings/FED takeovers, Merril Lynch buyout, Lehman Brothers, AIG, Chrysler job losses, Hewlitt Packard job losses...stock market....
Its not good news..
To prove that it is, despite all this bad news, we still have 3.3% growth...
I love how you and your liberal friends are sooo wanting the economy to suck. The simple fact is, all this stuff you see from freddy and fanny to feds bailing out banks can all be tied back to one thing. (something that obama champions) Artificial controls in the market place.
 
kingsmith

kingsmith

Member
Originally Posted by stdreb27
http:///forum/post/2757569
The Federal Reserve added $70 billion in reserves to the banking system
The problem isn't a flaw of the free market as some as suggested but a result of government intervention. Dumping 70 billion more money into the money supply is going to only fuel high inflation rates. You can play with some algebra and directly link inflation with increases in the money supply. And the theoretical and actual numbers are very close.
CAN I see that Math??
 
rylan1

rylan1

Active Member
Originally Posted by stdreb27
http:///forum/post/2758315
To prove that it is, despite all this bad news, we still have 3.3% growth...
I love how you and your liberal friends are sooo wanting the economy to suck. The simple fact is, all this stuff you see from freddy and fanny to feds bailing out banks can all be tied back to one thing. (something that obama champions) Artificial controls in the market place.
totally opposite... the market did have control and regulation... gas did, but to the Enron Loophole now does not.
If the Mortage Market was regulated or had oversight... there wouldn't have been the situation with bad loans given by manipulating financial records and approval methods. We simply would not have the sub-prime loans. I don't want to hear about the whole lib thing... it is simply a tactic to place blame based on superficial things.
Bottomline the lack of oversight of these two industries are a large part of the reason why we are in this mess...
But to deny the market sucks... shows how out of touch some people are... when people change behavior..instead of just talking about it... there is a problem
 
1journeyman

1journeyman

Active Member

Originally Posted by Rylan1
http:///forum/post/2758331
totally opposite... the market did have control and regulation...
Bottomline the lack of oversight of these two industries are a large part of the reason why we are in this mess.......
I'm confused; Did the market have oversight or not?
 
rylan1

rylan1

Active Member
Originally Posted by 1journeyman
http:///forum/post/2758335
I'm confused; Did the market have oversight or not?
the oil market did... the mortage did not... there are a variety of players, both democrat and republican that played a role... but essentially lending practices are unregulated.
I believe republicans are pushing for deregulation... my question is "If there was oversight of these markets, could the problems that resulted been avoided?
 
oceansidefish

oceansidefish

Active Member
Rylan forgot to type another NOT in the first sentance. The

[hr]
market has gone very unregulated as far as their ability to set their own loan structures. Which of course now has bitten them in the you know what. I have been learning quite a bit on this since I have just bought a house and have done some extensive research on housing prices, trends etc. Particularly since I live in southern california and the prices of homes here are pretty high. Most of you could live in mansions for what I just paid for a small 3b 2b in need of a gutting. Most of the problems were here in southern california where people were paying 600,000 for a single family home. There was no way most people could actually pay for one so all these new loan structures came out to keep buisness afloat. As gravity goes, what goes up must come down.
 
reefraff

reefraff

Active Member
I don't think any serious person would claim the economy is "good" but there are some underlying fundamentals that are obviously propping things up for the time being. Considering what oil prices did then this credit mess it's amazing how well the economy has held up. 6.1% unemployment isn't that horrible.
I think the knee jerk reaction about liberals is due to their trying to convince the country we have been in a recession since 2004. Still amazing me that a couple idiots at BSNBC try to argue we have been in a recession for months when there hasn't been a quarter of negative GDP yet and it takes 2
 
stdreb27

stdreb27

Active Member
Originally Posted by Rylan1
http:///forum/post/2758331
totally opposite... the market did have control and regulation... gas did, but to the Enron Loophole now does not.
If the Mortage Market was regulated or had oversight... there wouldn't have been the situation with bad loans given by manipulating financial records and approval methods. We simply would not have the sub-prime loans. I don't want to hear about the whole lib thing... it is simply a tactic to place blame based on superficial things.
Bottomline the lack of oversight of these two industries are a large part of the reason why we are in this mess...
But to deny the market sucks... shows how out of touch some people are... when people change behavior..instead of just talking about it... there is a problem
The problem with the morgage industry is that freddy and fanny removed risk, so people could act irresponsibily. Brokers lent money, and sold the more risky loans to freddy and fanny then they turned around and sold securities of these junk loans. The whole problem is these government created entities removed the risk in approving loan since they knew that freddy and fanny would buy the junk morgages. So they approved everyone. It is that simple.
If the morgage industry had not had these quazi-government agencies removing the majority of the risk from morgage lending we would not be in the situation we are now. Because these junk morgages would have NEVER BEEN APPROVED.
To say that lack of "oversite" caused these problems just shows ignorance.
And dispite this, we still see growth in the market.
And real wages trending upwards.
 
stdreb27

stdreb27

Active Member
What you are seeing is BAD policy that in order for it, maybe to work needing more regulation. If the bad policy had not been there to begin with we wouldn't need more regulation.
 
reefraff

reefraff

Active Member
Originally Posted by Rylan1
http:///forum/post/2758356
the oil market did... the mortage did not... there are a variety of players, both democrat and republican that played a role... but essentially lending practices are unregulated.
I believe republicans are pushing for deregulation... my question is "If there was oversight of these markets, could the problems that resulted been avoided?
You happen to know who signed the "Enron loophole" into law

My and a buddy who happens to be a left winger have gone back and forth on the

[hr]
stuff. The one thing we agree on is when a person signs up for an ARM

[hr]
there should be a cap on what it can reset to and the person should have to qualify for that amount. Quicken was hyping these interest only home loans 3 or 4 years ago. I think they were 5 year terms. Wait till those babies come due
 
stdreb27

stdreb27

Active Member
Originally Posted by reefraff
http:///forum/post/2758373
You happen to know who signed the "Enron loophole" into law

My and a buddy who happens to be a left winger have gone back and forth on the

[hr]
stuff. The one thing we agree on is when a person signs up for an ARM

[hr]
there should be a cap on what it can reset to and the person should have to qualify for that amount. Quicken was hyping these interest only home loans 3 or 4 years ago. I think they were 5 year terms. Wait till those babies come due

The thing that ticks me off about enron, is the guys broke the law. And now the libs want to say, there was no oversite. It would be like saying we have no laws because I stole a car.
 
stdreb27

stdreb27

Active Member
I heard an interesting thought,
when did BO get rich? During the bush years, and now he is running around saying that the bush years sucked?
 
1journeyman

1journeyman

Active Member
Originally Posted by Rylan1
http:///forum/post/2758356
the oil market did... the mortage did not... there are a variety of players, both democrat and republican that played a role... but essentially lending practices are unregulated.
I believe republicans are pushing for deregulation... my question is "If there was oversight of these markets, could the problems that resulted been avoided?
Rylan, care to guess where Obama is on the list of politicians who received the most contributions from Freddy Mac and Fanny Mae? I'll give ya a hint; it's in the top 3...
McCain, in 2005, co-sponsored the Federal Housing Enterprise Regulatory Reform Act. The Dems, who receive huge amounts in"contributions" blocked it.
 
rylan1

rylan1

Active Member
Originally Posted by Oceansidefish
http:///forum/post/2758357
Rylan forgot to type another NOT in the first sentance. The

[hr]
market has gone very unregulated as far as their ability to set their own loan structures. Which of course now has bitten them in the you know what. I have been learning quite a bit on this since I have just bought a house and have done some extensive research on housing prices, trends etc. Particularly since I live in southern california and the prices of homes here are pretty high. Most of you could live in mansions for what I just paid for a small 3b 2b in need of a gutting. Most of the problems were here in southern california where people were paying 600,000 for a single family home. There was no way most people could actually pay for one so all these new loan structures came out to keep buisness afloat. As gravity goes, what goes up must come down.
you are right about cali... watch house hunters and flip that house and you will see how crazy some regions are...
saw a dump.... 600 sq ft go for $500K in LA... and it was in Compton or Inglewood or something like that. Flipped and got like $700K
 
rylan1

rylan1

Active Member
Originally Posted by 1journeyman
http:///forum/post/2759270
Rylan, care to guess where Obama is on the list of politicians who received the most contributions from Freddy Mac and Fanny Mae? I'll give ya a hint; it's in the top 3...
McCain, in 2005, co-sponsored the Federal Housing Enterprise Regulatory Reform Act. The Dems, who receive huge amounts in"contributions" blocked it.
he got like 120K from employees... McCain got like 25K
I don't buy into that stuff...
You could also say how Palin gets and asked for more $$$$ in earmarks than any other state per capita... yet the whole talking point of the campaign is anti-earmark.
You can also question this... how much more oil $ has McCain gotten from Big oil compared to Obama... or even Walmart?
 
rylan1

rylan1

Active Member
Originally Posted by stdreb27
http:///forum/post/2758444
The thing that ticks me off about enron, is the guys broke the law. And now the libs want to say, there was no oversite. It would be like saying we have no laws because I stole a car.
we have not seen the end of it..... and GOP and Enron are close... One of McCain's advisors helped legislate the Enron Loophole.
 
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