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Washington Should Refrain From Tinkering

December 30, 2013

The “Great Recession” from which the nation still is recovering was sparked in large measure by a massive downturn in real estate markets....

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(25)

MacKenzie

Jan-04-14 8:40 PM

Psycho-fu is wrong. Keep toking and drinking the kool-aid.

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Emelye

Jan-02-14 1:29 PM

"The cause of this latest recession was not the 1%, it was a combination of government regulations that eased the requirements to obtain a mortgage, the threat from government to banks if they didn't make the loans and the "magic math" and moving of money by the banks to cover these sub-prime loans, in an attempt to make money and not go under."

The deregulation of Wall Street is a direct result of Wall Street's lobbying and political "campaign spending" and thus the recession was primarily caused by greedy 1 percenters. I can't understand how you can fail to make the connection if you blame the government and not those who subverted the government to their own ends.

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Psychofux

Jan-01-14 6:33 PM

Mackenzie is wrong again. Yes, Clinton pushed home ownership. But it was Bush that saw Clinton's success with that, and then decided to do one better by pushing home ownership to poor people that had no means to pay the high mortgage payment. There is a vast difference between the two. And it was Bush's strategy that failed America. Why do you continue to ignore facts? Do you want video of Bush as he was pushing lower finance requirements around the country? Bush's speeches are on Youtube, go ahead and search youtube for Bush home ownership for poor people. Clearly different than the idea that Clinton was pushing. That is how fact is found, not by trying to bring up a false memory.

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MacKenzie

Jan-01-14 6:18 AM

It was Clinton who pushed the mortgages. Bush saw the disaster coming and Barney Frank refused to address the situation. Take a few more hits off that pipe.

And, you over-sensitive liberal extremist, if you read it correctly, I put the onus of where we are on BOTH parties. Please, do not insult our intelligence and try to portray Obama as a spend thrift who is paying for everything, not raising the debt and is frugal. That's the problem with you "Obama is the Messiah"- worshipers(Barbara Walters let that cat out of the bag). He's actually worse than GW and he was bad enough.

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Psychofux

Jan-01-14 5:10 AM

If you are upset at Obama for the "stimulus" programs, put this in your pipe and smoke it… Last week, Fox News asked Bush if he was worried about being the Herbert Hoover of the 21st century. "No," Bush replied. "I will be known as somebody who saw a problem and put the chips on the table to prevent the economy from collapsing." But Bush's stimulus wasn't set up to be repaid by the recipients. Obama actually changed the stimulus to require repayment, which we have seen getting excellent return. So, there ya go!

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Psychofux

Jan-01-14 5:02 AM

Just to point out: I'm not sure who the letter writer is referring to, but it was GWBush that ran around the country explaining how we had to reduce lending requirements so that people could by real homes, especially reducing down payment minimums. We ended up with a million people earning $30,000 a year qualifying for $400,000 mortgages. Look where it was easiest for them to do so! And then look where the hardest hit areas were. The Gramm Leach Bliley Act was signed before this, but that wouldn't have mattered if so many people weren't given easy mortgages. People kept up with their payments for a few years, and then, simultaneously began failing to make their payments. Without GWBush's input, there wouldn't be the foreclosures.

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MacKenzie

Jan-01-14 3:55 AM

The government and business are in bed together. The politicians need the campaign contributions of big business to get elected. This benefits big business, who get favors from the politicians whose campaigns they donated to. The benefit business usually gets is profits. Look at the most recent government/business in bed together. It is this current government and the health insurance companies. The law contains risk corridors for the insurance companies. The insurance companies were promised a lot of profit by the administration because 30 million people who didn't have insurance would be getting it. However, if the promised profit falls short, enter risk corridors. The government will subsidize the insurance companies. Overall, something has to change about the way just about everyone in Washington does "business".

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MacKenzie

Jan-01-14 3:47 AM

Next, I think we can all agree that there is an incestual relationship between our politicians, both Republicans and Democrats, and big-business, big banks, unions, big-pharma, etc, etc, etc.

The cause of this latest recession was not the 1%, it was a combination of government regulations that eased the requirements to obtain a mortgage, the threat from government to banks if they didn't make the loans and the "magic math" and moving of money by the banks to cover these sub-prime loans, in an attempt to make money and not go under. It caused the housing bubble and when it burst...well, our economy took the tumble.

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MacKenzie

Jan-01-14 3:39 AM

The misinformation abounds in these comments. Let's all agree, that no matter what utopian paradise the government sets up for us, there are always going to be rich people. The government may take more money from them, but they will still be rich.

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MacKenzie

Jan-01-14 12:13 AM

Monkeyboy, you fell right into the trap. I deliberately did not identify a party with big government. Because, both parties have their own version of big government and neither is good for We the People or the country. Some of us want smaller, less intrusive government and we want them to stop doing things that, Constitutionally, they have no business doing.

And, Monkeyboy, it is the Fed that sets the prime rate. The Fed is supposed to be independent of political leanings or affiliations. I don't believe that is true. But, Ben "Bernyankme's" fairy-tale world is about to collapse between the new, emerging housing bubble and the QE4,5 or 6...not sure which one, I've lost track.

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Emelye

Dec-31-13 10:58 PM

" . . . nd now the PJ is blaming the government they bought and manipulated for the past recession!"

Clarification, ". . . nd now the PJ is blaming the government the 1 percenters bought and manipulated for the past recession!"

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Emelye

Dec-31-13 10:56 PM

". . . remember, that very government policy caused the "sub-prime mortgage crisis" that preceded the recession."

Wow! Talk about blowing smoke! Never mind the greedy and completely irresponsible policies of the big Wall Street banks and investment. . . - oh sorry, they are the same thing ever since Glass/Steagal was abolished - when the Wall Street banksters drove the credit markets into the ground with greedy and cynical financial "instruments." The plutocrats bought enough politicians to deregulate their industry, then went wild with their so called "self-policing" (what a joke!) and now the PJ is blaming the government they bought and manipulated for the past recession! The amount of propagandist spin in that one sentence makes my head swim!

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Emelye

Dec-31-13 10:49 PM

"President Barack Obama, Congress and the Federal Reserve responded by spending hundreds of billions of dollars on "stimulus" programs that did little good."

Really? Everything I've read from responsible reporters says the stimulus prevented an even worse crash, maybe even a true depression. I call that doing a LOT of good. I agree with Paul Krugman, an economist who writes in the NY Times, they should have pushed more stimulus for a longer time.

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Monkeyboy

Dec-31-13 1:41 PM

Remember, McKenzie, it was the government's "tinkering" with the prime rate that caused the resurgence of mortgages and home sales. Of course the Republicans don't want to see the recession/depression end soon. They want it to still be going on during the next election cycle.

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MacKenzie

Dec-31-13 12:58 AM

When government screws up, the politicians don't pay, we do.

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MacKenzie

Dec-31-13 12:58 AM

Just another example of "big government" doing things, that we, the taxpayers, will have to pay for and suffer through down the road.

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Monkeyboy

Dec-30-13 2:34 PM

Home sales are down because mortgage rates are up. Simple. Lower mortgage rates again and more homes will sell. Basic math.

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Monkeyboy

Dec-30-13 2:33 PM

If the Republicans had not been requiring 60 votes in the senate on every bill, "breaking centuries of tradition" this wouldn't have happened. The Republicans were holding up nominations purely out of spite and something had to be done. Yes, they were beaten at their own game.

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Howard

Dec-30-13 10:13 AM

Does the P-J take spin lessons from Bill O'Reilly? They do not explain why just the applications for mortgages are at a 13 year low. Take a good look at all of the facts and data. Again with the stimulus. We all know Bush started the stimulus and Obama was forced to continue it to avoid the worst recession in history. Take a hard look at all of the MBA's reports to get an accurate picture. Anyone can take one small piece of information and twist it into something it is not. This reminds me of "The Family Circus" cartoon when the father lets the children take over when he goes on vacation. Is that who wrote this piece? A 10 year old?

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imfedup

Dec-30-13 9:32 AM

The 'great recession' left us in un-charted territory. I have to believe that in the short term,what the Prez and the Fed did (and doing) was totally correct, averting a deeper recession or even a possible world-wide depression. Time will tell whether was was done was the correct call or not.

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instigator

Dec-30-13 8:09 AM

Washington Should Refrain From Thinking

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instigator

Dec-30-13 8:09 AM

Washington Should Refrain From Thinking

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FedUpL8ly

Dec-30-13 6:37 AM

If anyone doesn't believe the mainstream media isn't in the tank for Democrats, it's proof positive that they are because if the Republicans did the "nuclear option", it would be on the news everyday about the "extreme GOP".

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FedUpL8ly

Dec-30-13 6:34 AM

Why do you think the Senate, under Harry Reid, overturned centuries of tradition and invoked the "nuclear option" on Presidential appointments needing Senate confirmation. Obama has been pressuring the Federal agency to lower lending standards to those who don't currently qualify. His choice, Rep. Mel Watt (D-NC) has been on record for lowering said standards. Watt wouldn't have gotten confirmed without this "nuclear option" because too many Senators are well aware this was a major cause in the ensuing financial crisis. Watt and judges so radical left that they wouldn't pass the smell test have already been confirmed.

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50s4ever

Dec-30-13 6:18 AM

"Massive downturn in real estate markets"? You mean Barney's bubble of giving everybody who couldn't afford it a nice home failed?

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