White House Philosophy Stoked Mortgage Bonfire: New York Times

New York Times:

The global financial system was teetering on the edge of collapse when President Bush and his economics team huddled in the Roosevelt Room of the White House for a briefing that, in the words of one participant, "scared the hell out of everybody."

Read the whole story: New York Times

Comments

[soundfury]

Bush is the virus and Greed is the disease he promoted.

[BillMelater]

I have the solution for all of these Anti-American Neocons here. First of all, make a fist. Point your thumb so it is straight up in the air. Next, place your fist with the protruding thumb firmly on your chair. Then, sit on it and rotate.

[MichiganJFrog]

...then stand up and suck on said thumb.

[ChiGuy]

That would require them extracting their heads first.

[BillMelater]

Not necessarily. I have found the typical neocon sphincter to accomodate their head and their feet because they regularly insert them in their mouth while their head is way way all the way up there. So another thumb really shouldn't be much of a problem.

[learnsomething]

I am so happy, the American people represented on November 4, and took our beloved country back from the corrupt robber barons.

[darthdarcy]

Geithner is just as much a part of this huge swindle as his bosses and mentors Greenspan and Rubin...!

Geithner wants Sheila Bair fired for trying to represent and assist those facing foreclosure..!

The robber barons are still at the helm don't kid yourself..!

Has Barack given is anti Bilderberg Group speech yet...?

[ebanks84]

Obama will do what is NECESSARY, not what you think might be necessary. The Bilderbergs are so scrambled right now, they don't even know which way is up. They will be TOAST!

[ErnestineBass]

Bair has the only plan out there to directly address THE PROBLEM...home foreclosures. No wonder they don't want to listen to her...she's making sense.

[Freedomscap]

The rent to own ratio in Los Angeles is ridiculous, even now, with prices coming down a bit, yet not enough.

Even a modest, middle income home, is 500-600K.

But it isn't just the housing market that was instrumental in causing this financial debacle -- it was the default credit swaps -- those insurance type instruments, that guaranteed the bundled mortgages, but had no security attached to them.

These default credit swaps, can't be paid -- that's the problem.

[ErnestineBass]

I've seen CDO liability figures as high as $700 TRILLION worldwide. UGH

[Hdaryl01]

AMEN! THEY would like us to believe that this was caused by US residential homeowner and our irresponsible borrowing and living beyond our means. It is offensive that the media, and the government keep coming back to residential mortgages, and specifically subprime as the root cause of this. IT WAS NOT. And, it can easily be proven. The entire US mortgage market is $11 Trillion. Well less than 5% in number of this market (and predominately representing "lower end prices) are in foreclosure or default. 5% of $11 Trillion is $550 Billion. Didn't we just give the "financial service institutions" $700 Billion, or $150 Billion more than $550 Billion?

The problem, as you state, is the credit default derivative swap market which did not exist before 1997. In ten years (what is known of this market due to its unregulated, private, non-transparent nature) this market grew from $0 to $64 Trillion, or almost SIX TIMES the size of the ENTIRE US MORTGAGE MARKET. How much do we not know about the true size of this "market", or other other similar hidden derivative markets.

These hidden derivative markets created and designed by our best and brightest Ivy League educated "financial service institution" executives were not prepared for gravity-ie what goes up, must come down. This is why AIG died. Lehman. Merrill. Citi.

I will not stand for the blame for this debacle being placed at the feet of american workers.

[Freedomscap]

Agreed. And I think it must be too complicated for most Americans to understand. That's what I figure.

Find an easy scapegoat -- those pesky, foolish Americans buying something they can't afford.

Unregulated credit default swaps are the problem and maybe a PR tour needs to be started.

[Midnightrain]

You sound like you've read Ferguson's newest book. He basically lays out derivatives as a three card molly game where debt is just moved around and around.

[hmmmmmer]

Gosh, and I thought it was just pure unadulterated greed.

[JohnnyPDX]

First, neither democrats were atheists.
Secondly, you allowed Bush to hijack your religion for his political aims. ...God is on my side, if you are not on my side then God is against you too!. Hard to argue againt the god thing.
If Bush was seeking God for answers....then God is also out of touch with what is really going on down here.

[MichiganJFrog]

"Stud99 See Profile I'm a Fan of Stud99 I'm a fan of this user permalink

I had to vote for Bush, cause you Demoncrats nominated a couple of aitheist morons in 2000 and 2004."
-------------------------------

Here, my friends, is the portrait of an lunatic right-winger. Never mind the fact that it's not true, this "person" is saying that he would rather vote for an abject failure than someone who doesn't believe in the same God they do.

Moran to the n-th degree.

[Episcopagan]

The misspelling shows the educational level, too.

[begabug]

everyone knows its maroon.

[Freedomscap]

Yes, I spoke with a few like that, when I was doing my phonebanking. Religion is the most important thing to them, even if it means living in a tent.

[ebanks84]

Religion and Politics WILL NEVER mix. Get out of one and get into the other if you want sanity into your life. But do it for the RIGHT reasons only.

[soundfury]

God is A-political! What they don't understand is that God helps those who helps themselves! If they're too d-umb to recognize the smartest leader, then even He can't do that for them.

[soundfury]

I was so glad when I saw this headline. Before this man goes into retirement, it's our responsibility to rake him over the coals for his catastrophic governance, so that the truth is written about him and no lies be perpetrated further in history.

No matter what he does at this eleventh hour, or how many hypocritical remarks he makes about not wanting to leave the next President with a disaster on his hands, he IS leaving him a disaster! He neglected the economy for years to sell and obsess over his Iraq war!

Despite his last minute effort to bail out the auto industry -- he is still Herbert Hoover! Because of him, PE Obama's hands will be TIED for YEARS, trying to fix the economy and rescue the situation in Afghanistan, Pakistan and that part of the world, while he draws down in Iraq.

I've said it before, his neglect of this country and his lies to Congress and the American people, and his misuse of the Constitution all constitute impeachable offences.

Some way, somehow this man must be brought to justice!

[mesmerised]

The New York Times is the primary source of Bush Derangement Syndrome, and their disgusting slant that lands this all on Bush is another example of their despicable, hate filled propaganda. The whole system broke down because of the greed of everyone, going back to at least the '90s. That has been absolutely established, with even liberals agreeing that President Clinton had a hand in the matter with promoting mortgage loans to people who didn't qualify. Only effete liberal suckers will swallow this garbage. The truth is available at other, objective sources online and elsewhere. It's all been presented to the interested public, and the only thing left to say is that the NYT and their followers love believing things that aren't true.

[ErnestineBass]

Like Judith Miller's WMD bulls__t?

Gimme a break, wanger.

[mesmerised]

Your profile says you're a "Progessive." A "Progressive" is a Marxist spelled with a P

How's that for a break, sweetie?

[thedirtman]

"...Bush has shared his views of how the nation came to the brink of economic disaster. He cites corporate greed and market excesses..."

Bush is getting closer. As suggested by Joel Bakan in the Corporation, corporate behavior is psychopathic - marked by mental disorder. Corporations maintain such power by producing powerful government lobbies and attorneys to represent them. A government is composed of family members and individuals with close association to ruling corporations. Our vigilant government duties, that which ensures a government by, of, and for the people is now done without involving people. We can call corporations people and real people stay home in thoughtlessness. People have little voices lost in the atmosphere. Nowhere to be found is there an indication of representation.

Today, one must peddle their wares in competition with corporations hiring people that may have never known health, environmental, safety or labor standards. Few people feel rewarded for labor. Instead people are paid for giftedness, image, and personality. This is the death of the Meritocracy and its subsequent replacement with stupefaction and Pornocracy. They are compensated because they are family, relatives or friends with someone having the power to employ. Once employed people become numbers to investors that speculate in widespread layoffs. Once laid off, elderly or sick, people become liabilities in the eyes of corporations. Money is also gained by investment, inheritance, anything but labor.

A long-lasting restoration plan does not depend on bailouts alone, but a restoration of representation and the Meritocracy.

[ShakeYourComplacency]

totally agree.

[Medius]

23% expected drop in spending for holiday shopping this year. It is not evident from the crowds in the mall this weekend. Do most of these people still buy bush's statement last year that the fundamentals of our economy are strong?

[Chillinout]

The economy is strong if you work as an executive on Wall Street.

[Medius]

True. White blank shopping bags do come very handy this holiday season.

[Pronto]

Maybe the "hurting American people" aren't "hurting" as much as The Libs and The MSM (redundant) are making you believe.

[hardybear]

No homeless living under your particular bridge?

[Medius]

So you got your talking points memo from bushie or is it from lou?

[Episcopagan]

23% drop is not "hurting?"

Poor Bushbot. No wonder you look up to him. Even he is more intelligent that you.

[PS4OBAMA]

Schwarztenager just asked all state in employees to to take two days a week without pay.....now, that equates to $200 a day for many of those employes....if these people can't pay their bills, especially the credit cards, one missed payment and they triple your finance charge....I'm just wondering if he will help these people call their card companies, loans etc., and tell them he will pay for their debts. We had Grey Davis first and now, with Arnold, California is in dire straits and it's hitting the school system and peoples lives. In Stockton alone, 200 homes in a subdivision and everyone walked away .... we have the highest foreclosure rate in the country. I'm trying to save my home right now as I was lied to and read the paperwork line for line and they still got around with some crap in my loans......

To me, these people should have stayed in the homes, did a deed in lieu of forecloser and asked if they could rent the property. Right now homes are being invaded and robbed, as I was on 11/11; the homeless and taggers (with are having a field day) the gangs are using these homes for their get togethers....If I coudl afford to leave my job (glad I have one) and get the hell out of California....I WOULD IN A HOT SECOND!

[scandals-n-skeletons]

They are using wehat ever they have left on their credit cards.

Why not go for broke

[Midnightrain]

You nailed it!

[Medius]

Exactly. Everyone for himself mentality?

[LaHenche]

Guilty as "charged".

I plead "no contest".

[bigmadd]

12 years of a republican congress,8years ot Bush.I hope the American People now know that unregulated capitalism doesn't work ,just like communism it doesn't a allow for greed

[theplaintrutho1]

"...unregulated capitalism doesn't work ,just like communism it doesn't a allow for greed"

What are you talking about? This is statement unintelligible.

Unless you're saying we need more greedy bosses, what, WTF?

[rowzeer]

I understood it....Capitalism can't work because greed takes over...just like communism can't work. Industry without regulation is like a nation without laws.

[Freedomscap]

This piece is laden with folks warning the Administration, but no. And yes they were experts. Read this section:

At 29, Mr. Thomas had followed a fast-track career path that took him from a Buffalo meatpacking plant, where he worked as a statistician, to the White House. He was seen as a whiz kid, “a brilliant guy,” his former boss, Mr. Hubbard, says.

As Mr. Thomas began digging into New Century’s failure that spring, he became fixated on a particular statistic, the rent-to-own ratio.

Typically, as home prices increase, rental costs rise proportionally. But Mr. Thomas sent charts to top White House and Treasury officials showing that the monthly cost of owning far outpaced the cost to rent. To Mr. Thomas, it was a sign that housing prices were wildly inflated and bound to plunge, a condition that could set off a foreclosure crisis as conventional and subprime borrowers with little equity found they owed more than their houses were worth.

[Episcopagan]

Stud99
Its great, I can fill up my SUVs for like $25. Bush is a great president.
Posted 11:41 AM on 12/21/2008
.
http://earthfirst.com/wp-content/uploads/2008/05/hummer-comic.jpg

[levibatgirl]

ROFL

[rich misty]

So true...

[MichiganJFrog]

Yep.

[Bullwinkie]

lol

between the moniker stud and the SUV, it must be a problem.

[ErnestineBass]

Generally speaking, a stud is just a very short bolt.

[ErnestineBass]

ROFLMFAO~

[ChiGuy]

One can only hope that Bush and his greedy, thieving cronies all had heavy investments with Madoff.

[Mahi Joe]

LOL would that be poetic justice or what?

[Freedomscap]

Did you read this quote from the piece:

The problem with those guys at the White House, they had all the answers and they didn’t think they had to listen to anyone, including the Treasury secretary,” Mr. Oxley said in a recent interview. “They were driving the ideological train.

If I were sitting on the jury, I would vote: guilty, just based on this quote alone.