Comments on: New US President’s Nightmare: Fannie, Freddie & The Economy http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/ An Internet hub for moderates, centrists, and independents, with domestic and international news, analysis, original reporting, and popular features from the left, center, and right Mon, 23 Nov 2009 08:14:00 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: DLS http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/comment-page-1/#comment-124334 DLS Tue, 09 Sep 2008 16:59:56 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/#comment-124334 It's sickening to behold, T-Steel.<br><br>As to the Big Three and their bailout, well, there are multiple reasons why we can expect it. <br><br>1. First is the repetition of the Chrysler argument, that there are plants in many states (which affect many members of Congress), and the unemployment costs to governments (unemployment benefits and such) might exceed the costs of a bailout. In some places, the Big Three still affect much of the economy (ahem, such as here in Detroit). None of the foregoing loom anywhere as largely as they did in the early 1980s because the Big Three simply don't have the market share and "psychological share" of the public the way they used to (as I knew from as far back as...the early 1980s while still in California).<br><br>2. The economy is ailing right now and the GOP wouldn't like to see it get worse.<br><br>3. The GOP would like to steal from Obama something associated with Obama, just as the announcement of troop pullouts from Iraq and transfer to Afghanistan that Bush just announced. This is stealing an election-year issue from Obama.<br><br><br>4. The precedents have been set already, not only with Fannie and Freddie, but earlier with Bear Stearns. Why help an investment bank but not US industry?<br><br>But most amusingly from a political standpoint,<br><br>5. Michigan is an undecided, fully-contestible mega-state with several electoral votes available. These electoral votes give Michigan (the Big Three) leverage against the GOP. If the GOP declines to help them, the state could go Democratic. It's sickening to behold, T-Steel.

As to the Big Three and their bailout, well, there are multiple reasons why we can expect it.

1. First is the repetition of the Chrysler argument, that there are plants in many states (which affect many members of Congress), and the unemployment costs to governments (unemployment benefits and such) might exceed the costs of a bailout. In some places, the Big Three still affect much of the economy (ahem, such as here in Detroit). None of the foregoing loom anywhere as largely as they did in the early 1980s because the Big Three simply don't have the market share and “psychological share” of the public the way they used to (as I knew from as far back as…the early 1980s while still in California).

2. The economy is ailing right now and the GOP wouldn't like to see it get worse.

3. The GOP would like to steal from Obama something associated with Obama, just as the announcement of troop pullouts from Iraq and transfer to Afghanistan that Bush just announced. This is stealing an election-year issue from Obama.

4. The precedents have been set already, not only with Fannie and Freddie, but earlier with Bear Stearns. Why help an investment bank but not US industry?

But most amusingly from a political standpoint,

5. Michigan is an undecided, fully-contestible mega-state with several electoral votes available. These electoral votes give Michigan (the Big Three) leverage against the GOP. If the GOP declines to help them, the state could go Democratic.

]]> By: T_Steel http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/comment-page-1/#comment-124333 T_Steel Tue, 09 Sep 2008 16:09:46 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/#comment-124333 That is going on here in the Atlanta Metro area. People that "look like" they wouldn't tear up a home on the way out (because of foreclosure), become seasoned vandals. This area was big on "flipping houses" for profit. Now many of the flippers are facing foreclosures on multiple homes. Of course I'm not just blaming homeowners. Banks gave these loans while practicing zero risk assessment. Money got into their eyes and blinded them.<br><br>We're in deep excrement. And the Big 3 WILL get their bailout. And we'll be in deeper. That is going on here in the Atlanta Metro area. People that “look like” they wouldn't tear up a home on the way out (because of foreclosure), become seasoned vandals. This area was big on “flipping houses” for profit. Now many of the flippers are facing foreclosures on multiple homes. Of course I'm not just blaming homeowners. Banks gave these loans while practicing zero risk assessment. Money got into their eyes and blinded them.

We're in deep excrement. And the Big 3 WILL get their bailout. And we'll be in deeper.

]]> By: DLS http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/comment-page-1/#comment-124330 DLS Tue, 09 Sep 2008 14:39:17 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/#comment-124330 As for the housing decline, it's far from over. Even the little things matter. For example, one very hard-hit place is one with explosive growth over the past several years, Las Vegas. Many of the homeowners facing foreclosure, of course, deserve no sympathy whatsoever; they deliberately overreached and wanted something effectively for nothing. Now that they're facing foreclosure, they resent losing their home, and their character is being exposed, as one bank official interviewed on the radio recently has reported. In several cases, the people, before leaving the homes, break the windows, punch holes in the walls, pour paint on the carpet, do other kinds of damage to the homes. This, of course, lowers housing values even more. Even the little things matter. As for the housing decline, it's far from over. Even the little things matter. For example, one very hard-hit place is one with explosive growth over the past several years, Las Vegas. Many of the homeowners facing foreclosure, of course, deserve no sympathy whatsoever; they deliberately overreached and wanted something effectively for nothing. Now that they're facing foreclosure, they resent losing their home, and their character is being exposed, as one bank official interviewed on the radio recently has reported. In several cases, the people, before leaving the homes, break the windows, punch holes in the walls, pour paint on the carpet, do other kinds of damage to the homes. This, of course, lowers housing values even more. Even the little things matter.

]]> By: DLS http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/comment-page-1/#comment-124324 DLS Tue, 09 Sep 2008 14:27:39 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/#comment-124324 The Big Three are next. They were planning for a bailout before and they're more motivated than ever now. They were back on the radio this morning. Expect them to push for a big bailout (infusion of capital in the form of guaranteed loans) during the next several weeks. The Big Three are next. They were planning for a bailout before and they're more motivated than ever now. They were back on the radio this morning. Expect them to push for a big bailout (infusion of capital in the form of guaranteed loans) during the next several weeks.

]]> By: JSpencer http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/comment-page-1/#comment-124323 JSpencer Tue, 09 Sep 2008 13:13:17 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/#comment-124323 Privatizing the profits and socializing the losses. Sounds kind of familiar eh? Privatizing the profits and socializing the losses. Sounds kind of familiar eh?

]]> By: New US President’s Nightmare: Fannie, Freddie & The Economy http://themoderatevoice.com/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/comment-page-1/#comment-114500 New US President’s Nightmare: Fannie, Freddie & The Economy Tue, 09 Sep 2008 11:21:24 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22537/new-us-presidents-nightmare-fannie-freddie-the-economy/#comment-114500 [...] Original SWARAAJ CHAUHAN, International Columnist [...] [...] Original SWARAAJ CHAUHAN, International Columnist [...]

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