The socialists predicted our current collapse in the 90's?

edited September 2008 in The Economy
Appropriate since we're communists now.

http://www.wsws.org/articles/1999/nov19 ... -n01.shtml

Comments

  • Appropriate since we're communists now.

    http://www.wsws.org/articles/1999/nov19 ... -n01.shtml

    That's absurd. In communism, all the lying and cheating is done to convince the masses that they all get a fair share, while piping the wealth to the wealthy. What do you call it when everyone knows that's the game in town?
  • Instapundit has some good comments on this:

    http://www.pajamasmedia.com/instapundit ... 024641.php

    "The majority of left-wing blogs are absolutely loving the financial crisis. It's the rapture of the marxists.""
  • jon wrote:
    Instapundit has some good comments on this:

    http://www.pajamasmedia.com/instapundit ... 024641.php

    "The majority of left-wing blogs are absolutely loving the financial crisis. It's the rapture of the marxists.""

    This guy seems to be saying that the cause of the problem is also the cure for the problem.
  • This guy seems to be saying that the cause of the problem is also the cure for the problem.

    No, he's saying that's not cause, but is part of the cure.

    The cause seems to be the failure of the Senate Banking committee in 2005 to put a stop to the fraud going on over at the FMs and instead it pressured them to make even worse loans.

    Lots of details here:

    http://hotair.com/archives/2008/09/17/m ... c-in-2005/

    The Democrats' revision to last week's bailout bill had very positive oversight and taxpayer protection, but it also had lots more of the same easy housing handouts that got us into this mess.
  • jon wrote:
    The Democrats' revision to last week's bailout bill had very positive oversight and taxpayer protection, but it also had lots more of the same easy housing handouts that got us into this mess.

    Anything that happens 6 weeks before a major election will have handouts. It's a bit silly, really, but that's how our system works (or doesn't work, as the case may be).
  • jon wrote:
    This guy seems to be saying that the cause of the problem is also the cure for the problem.

    No, he's saying that's not cause, but is part of the cure.

    The cause seems to be the failure of the Senate Banking committee in 2005 to put a stop to the fraud going on over at the FMs and instead it pressured them to make even worse loans.

    Lots of details here:

    http://hotair.com/archives/2008/09/17/m ... c-in-2005/

    The Democrats' revision to last week's bailout bill had very positive oversight and taxpayer protection, but it also had lots more of the same easy housing handouts that got us into this mess.

    While Fannie/Freddie do own alot of the mortgage debt in our country, they only own about 1/2 of it. The rest was bought by other investors. Isn't this why so many financial institutions are failing? I mean, do you really think that Fannie is the one that owns all of the bad debt?

    There were hundreds of investment banks buying subprime mortgages. Fannie, while having loose guidelines, did have some guidelines and there were many of the subprime loans that they didn't buy. In fact, most of the worst ones were not and are not owned by Fannie/Freddie. They were purchased by investment banks and other investors. Many of the ones who have been bailed out lately. And this was allowed because of the deregulation.

    So while clamping down on them was necessary and probably should have been done, that's only one small piece to the whole financial disaster here. We'd still be in this same predicament today.
Sign In or Register to comment.