Is the market blowing up?

Steven, well stated.  In this complex world we need wise government instead we are dependent on selfserving politicians who only consider their own interests. 

Steven-

There isn't one individual event, department, problem that is responsible for this mess.  It is a perfect storm of many factors that have caused us to get to this point.  But you're correct that American's will rise up and work hard to get us out of this mess and eventually we will return to normal.

I couldn't agree more. There are plenty of "should have", "could have"'s being said right now but we will work our way through it and prosper, just need time and patience.

Personally, I think it is already blown, and possibly going to get worse depending on who is elected as our next president.  I am not saying McCain is lilly white, but it may just be that we need to pick the lesser of two evils.

Here is an email I received from my uncle today who is quite bright, having retired as a supervisor from the Army Corp of Engineers.  My husband also spends many hours a day reading politics, and he agrees that this email is accurate.  Read it and weep!  It is amazing how many folks have their head in the sand!  (And I'm not talking about you!)  I, too, hope our leaders will put the American people first, but this would be a first...

Obama has been accusing McCain of hiring lobbyist on his campaign staff.  Now it would seem he is hiring people with less than sterling character.  Now, Fanny Mae and Freddy Mac executives gave the highest politically contribution to four democrats: Dodd, Obama, Hillary, and Kerry.  Now there seems to be a trend here.  Think about it.  jw

Don't know the author of this, but here it is:

 

Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae.  Raines was forced to retire from his position with Fannie Mae  when auditing discovered severe irregulaties in Fannie Mae's accounting activities. At the time of his departure The Wall Street Journal noted, " Raines, who long defended the company's accounting despite mounting evidence that it wasn't proper, issued a statement late Tuesday conceding that "mistakes were made" and saying he would assume responsibility as he had earlier promised. News reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company's books ran afoul of generally accepted accounting principles for four years."  Fannie Mae had to reduce its surplus by $9 billion.

Raines left with a "golden parachute valued at $240 Million in benefits. The Government filed suit against Raines when the depth of the accounting scandal became clear. http://housingdoom.com/2006/12/18/fannie-charges/ . The Government noted, "The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner."  These charges were made in 2006.  The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the miss-stated Fannie Mae profits.

 

Tim Howard -  Was the Chief Financial Officer of Fannie Mae. Howard "was a strong internal proponent of using accounting strategies that would ensure a "stable pattern of earnings" at Fannie. In everyday English - he was cooking the books.  The Government Investigation determined that, "Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae,"

On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant's income statement to achieve management pay bonuses. Investigations by federal regulators and the company's board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004.

Howard's Golden Parachute was estimated at $20 Million!

 

Jim Johnson -   A former executive at Lehman Brothers and who was later forced from his position as Fannie Mae CEO.   A look at the Office of Federal Housing Enterprise Oversight's May 2006 report on mismanagement and corruption inside Fannie Mae, and you'll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson's 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million."   Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae. 

Johnson's Golden Parachute was estimated at $28 Million.

 

WHERE ARE THEY NOW?

FRANKLIN RAINES? Raines works for the Obama Campaign as Chief Economic Advisor

TIM HOWARD?  Howard is also a Chief Economic Advisor to Obama

JIM JOHNSON?  Johnson hired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee

 

IF OBAMA PLANS ON CLEANING UP THE MESS - HIS ADVISORS HAVE THE EXPERTISE - THEY MADE THE MESS IN THE FIRST PLACE.  

Would you trust the men who tore Wall Street down to build the New Wall Street ?

 

 

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And just for fun, go to this website called "Roast the Politicos!"  Everyone gets roasted; right and left alike:)

What amazes me is the short sighted and politically charged rhetoric of those that are doing NOTHING to fix the problem.  I can't believe that they didn't pass the plan so that we can get things on track again.  The reality is, without this bailout it isn't the big guys who loose, its the working people who need their jobs -- those people did nothing wrong -- why are our representatives punishing them just to try to get the Democrats into the White House?  I am disgusted with the whole lot of them -- when are they going to serve the people that they represent? ~ Evelyn

Hi Steve,

I am with you; I seriously thought about not sending the email out, but it is so important that people know what is going on...

Hi Evelyn,

I understand your frustration that the resolution has not been passed, but $700 Billion is a lot of money, and I think I would feel better if they took a little time to make sure it is done right -- at least as right as they can make it at this time.  I am sure both the Democrats and Republicans were trying to put their hands in the cookie jar, but one of the reasons the bill did not pass was because of the pork attached to it.  Big surprise; huh? 

One problem is that Treasury Secretary, Henry Paulson, would have immediate access to $250 Billion, $100 Billion upon a report to Congress and another $350 Billion upon Congressional Action, and all without any oversight at all, to my knowledge. This doesn't sound any different from Fannie Mae's & Feddie Mac's unsupervised activities.

An earmark that was averted was that ACORN, Association of Community Organizations for Reform Now, one of the organizations that promoted and supported 100% financing and subprime mortgages, would have collected 20% of any and all profits that resulted from the actions of Henry Paulson.  Barack Obama has had very close associations with ACORN.  Remember, his minimal political experience that supposedly makes him ready to become our next president came from being a Community Organizer. 

ACORN is a leftist "community organizer" that is equal to "La Raza," and both have been involved in supporting voter fraud.  Even without knowing their agenda, why should they benefit from any profits resulting from this bill/resolution?

ANY AND ALL PROFITS should go back to the taxpayers, who will be suffering because of the greediness of Franklin Raines, Tim Howard and Jim Johnson, all of whom are on Obama's payroll now...  How about we take at least some of it out of their hide?  How about they pay back to the American people some of their Golden Parachutes and 20% of their profits on the money they stole from Fannie Mae and Freddie Mac, or better yet, why should they not be tried in a Court of Law for fraud, manipulation and restitution like any one of us would be?

I don't think it is healthy for anyone to have access to $700 Billion without some oversight -- and by more than one person, and not without the group being comprised of folks on both sides of the political scene. Money is too corruptive!  Greed and providing subprime mortgages to people who could not afford them is how we got into this mess in the first place...

Evelyn,

By the way, I am not picking on you...  Just got a little heated over the subject.  I am just as frustrated as you are...

Hi Steve

We are facing very complex issues and it takes time to work though the problems.

Good luck and success

Lou Ludwig

Hi Steve

We are facing very complex issues and it takes time to work though the problems.

Good luck and success

Lou Ludwig

Hey Steve,

I believe you are absolutely correct, except for the expected damage to foreign markets and foreign investors if they, our governent, don't do something...  Our politicians care more about themselves and the foreign investors than they do about us.  I am sure there is something that would need to be done with regard to the foreign investors, etc., but that is way beyond my league and comprehension...  I'm no economist!  Could someone out there please tell me why the anticipated bailout is $700 Billion?

Yes, it is fabulous that so much information is available on the internet.  Too bad network news doesn't offer it up to the general public, but we know their agenda.  They like to keep the population dumb and dumber!

The joke below came to me in the form of an email, but maybe it should be incorporated into this bill/resolution in some way.  If the politicians can have their hands in the cookie jar, why shouldn't we???  Haven't check the figures, but it sounds good to me!  Let's do something for our citizens instead of the politicians and foreign countries that don't give a rat's (you know) about us...

Ahhh, Steve, you made my day...

Yes, would love to see them eat crow...  Unfortunately, looks like there will be another vote tonight on the newest resolution.  Wish I knew whose hands are in the cookie jar this time.  Probably the same ones, but hopefully to a lesser degree.

In my view, what needs to be done is the Republicans (and Democrats for that matter, but they won't because of the persons involved - the Republicans are probably also responsible to some degree - well, let's roast them all!) should insert in the bill that the money will only be committed if there is a compete and thorough investigation of who benefited from Fannie Mae & Freddie Mac on its downward spiral, who supported the legislation that loans had to be made to folks with less than stellar credit (which is why Freddie & Fannie made the loans in the first place), who cooked the books, jail time for those involved, identification of the folks who were involved who are now spokespersons in the latest election and results open to the public. 

Of course, this would be too late for the current election... but at least maybe the general public would be more educated for the next one...

By the way, thanks for your support:)

Steve,

On a lighter note, my husband loved to surf in his younger days when I first met him 30 years ago and still loves the beach.  He has this beautiful orange Sunset surfboard in his closet that he has never used.  Won't get rid of it, though...  I guess he still has a dream of getting back out there someday...

We only live 30 minutes from the Central California Coast, but 10 acres and just daily life keeps him busy, I guess. We do visit the coast; just sans surfboard...

Please do send us any vidoes, photos and such of you and your friends surfing if you have the time...  My husband would love to see what he is missing!

This whole bailout situation did not happen in a week.  This has been coming for a long time and the congress did absolutely nothing. 

Oops, I stand corrected they took large sums of money from those they are about to bail out with our money.