Cramer Blaming Obama

[lightwaves]

"Now that the country is leveraged, another term for in hock, up to it's eyeballs, what do we do? Does Rush Limbaugh and his CPAC people have a solution, perhaps we should just let the chips fall where they may, perhaps that would lead to many more layoffs and worse, civil insurrection."

This is the key issue. If we just let the chips fall where they may, we could very well end up with Great Depression 2 which would be a disaster. Government needs to do everything possible to put the brakes on this slide....engineer a soft landing if you will... so we don't crash and have the plane break into pieces.

 

[Rustic23]

Well lets start with not spending money you do not have!

We assail folks on this board that do not live below their means, yet that is exactly what our government is doing. Not only cut the earmarks, but the pork that is related to them. Be truthful with the American people. Don't tell us things like 'This bill has no earmarks' while it is riddled with pork projects! Federal spending should go for Federal projects only! And then don't allow local projects to become federal. If CA wants a museum the CA should build it. Not TX or FL!

You want health care, fine, cut military spending, or well fair, or road projects, or foreign aid, or farm aid, or what ever you want. I won't say another word about it. Just fund it out of existing funds, without fancy tax increases masked as fees or other hidden names.

 

[lightwaves]

Rustic...I agree with what you said. We should strive for that going forward. But we are in a tough spot now and this is how politics has been done for decades. I say government hopefully engineers a soft landing first and then immediately focuses like a laser beam on the improvements you mentioned.

 

[jug]

Well lets start with not spending money you do not have!

We assail folks on this board that do not live below their means, yet that is exactly what our government is doing. Not only cut the earmarks, but the pork that is related to them. Be truthful with the American people. Don't tell us things like 'This bill has no earmarks' while it is riddled with pork projects! Federal spending should go for Federal projects only! And then don't allow local projects to become federal. If CA wants a museum the CA should build it. Not TX or FL!
.

The problem as I see it is cultural. We've developed a mainstream culture of shop till you drop. Credit flowed like water, why deprive yourself. Many on this board FIRED cause they didn't buy this philosophy, the rest of the Sheeple just spent willy nilly. This culture existed on Wall street as I mentioned, existed in government.

Imagine, if Obama were to address the nation, tell the truth, say "Folks, the party is over, we are broke, there is no more credit, it is gone, we need to tighten up and start saving for while, reduce the national debt, reign in useless programs, start watching our pennies and get back to basics" "We need to go lean for a while, to regroup, recoup, and rethink our resources and ways"

Well that is the truth, the market would go down to about 5000 in short time, layoffs would continue, safetynets would have to be implemented and the economic engine based partly on useless crap would contract by 10%. But that is the truth, that is the reality, not the fantasy.

If that isn't a LBYM approach, I don't know what is, but it is the truth.

jug

 

[OhSoClose]

Well lets start with not spending money you do not have!

Generally, I couldn't agree more -- which was one reason why I so disliked President Bush. He not only got us into a war we didn't need, but then refused to tax Americans to pay for it, in the process running up large "off budget" budget deficits. But now we are going to see even larger budget deficits. Even if Obama fixes the economy, we are going to see higher inflation, or greater taxes, or both in the years to come.

I am now planning to leave my kids a greater inheritance, if I can, to help protect them from the future ravages we as a country have created for them!

 

[Dawg52]

I am now planning to leave my kids a greater inheritance, if I can, to help protect them from the future ravages we as a country have created for them!

Good luck with that. I doubt I will ever have the portfolio I had 18 months ago. I'm going to need every penny I have left just to get me to the house.

 

[SkisALot]

Skis...since you do not seems happy with Obama's solutions, what do you propose?

I propose (first) that the officials in the previous finance and banking committee (many of whom are still in the committee and in power -one currently the Vice President) admit that they encouraged Greenspan to keep rates low and that they presured the banks to lend irresponsibily; therefore that they are part of the problem. Unless they admit their part, they will continue to create more problems. It all starts here.
Second, remove the earmarks in the "stimulus" package, such as the millions to save the mouse in the San Francisco Bay area and the millions to decorate federal buildings. No need to go on here.
Third, no mortgage bailouts for those who borrowed irresponsibily. I don't want to pay for them. If others want to, then let the government send them the mortgage coupon books so that they can pay directly. or walk over to your neighbor's house and ask for the coupons.
Fourth, stop the class warfare. Railing against people who have the wherewithall to make money will not get this country anywhere we want to go. Stop the vindication against those who work.
No more indirect taxes on the middle class such as the energy tax that will be passed down.
Fifth, institute a flat tax today. Let everyone pay "their fair share." If some want to pay more, let the government send them an envelope to send it in.
Sixth, if taxpayer money is necessary to any company first kick out the "genius" CEO's and Boards that caused the problem.
Seventh, no more special deals for the people in power, such as Pelosi's expensive airplane and her trip to Italy to get her grandparent's birth certificates. I don't want to pay for those types of things either.
I could go on, but this is enough. Basically I want Obama to use logic and sense, not irresponsible, government spending.

 

[OhSoClose]

I propose (first) that the officials in the previous finance and banking committee (many of whom are still in the committee and in power -one currently the Vice President) admit that they encouraged Greenspan to keep rates low and that they presured the banks to lend irresponsibily; therefore that they are part of the problem. Unless they admit their part, they will continue to create more problems. It all starts here.

I just don't follow this attack on Senator Biden and other Democrats for their supposed role in the mortgage crisis that lead to this ecomonic situation we are in. I have seen this claim about Democratic culpability before, and want to set the record straight.

I work for a federal financial regulatory agency, and have since 1999. The chief regulators are appointed by, and part, of the executive branch -- not the legislative branch. And it is clear that George Bush and the Republicans -- not the Democrats -- controlled regulatory appointments and thus all the banking agencies during the period in which the mortgage mess really started to brew and came to a head (2001 - 2006).

As a regulator, your job is to say "no" when a member of Congress legislature comes to you and tries to pressure you to do something that is not right --- and a good regulator will do that. In fact, since the Keating 5 scandal (remember that?), most legislators are circumspect in their requests relating to financial regulation.

Of course, the folks in Congress can pass laws that are irresponsible, or try irresponsibly to pressure a regulator to do something by threatening to change the existing law in a way the regulator won't like. But in the time period that the mortgage mess was really starting to brew (See the CNBC documentary "House of Cards"), the Democrats did not even control the Congress!! So the Democrats couldn't pass laws, or effectively pressure the regulators by threatening to pass laws, even if those Democrats wanted to. So the idea that Biden should fess up to some sort of responsibility for the current mortgage mess just makes no sense to me.

OK, I have said enough about this. There is plenty of blame to go around, but to blame the Democrats you have go back years and years prior to the mortgage crisis came to a head and contruct very flimsy arguments. It is really a stretch.

 

[OhSoClose]

In the interests of saving time, and of everyone's desire to find a scapegoat for the mortgage meltdown, I have a solution.

You can all blame me.

Thanks be to God for internet anonymity.

 

[youbet]

Generally, I couldn't agree more -- which was one reason why I so disliked President Bush. He not only got us into a war we didn't need, but then refused to tax Americans to pay for it, in the process running up large "off budget" budget deficits. But now we are going to see even larger budget deficits. Even if Obama fixes the economy, we are going to see higher inflation, or greater taxes, or both in the years to come.

It is amazing that Obama is doing some of the same things we disliked about Bush policies. The only difference I see is that Obama is being upfront about his war agenda and non-military spending whereas Bush tended to try to keep those things masked. But the end results are looking very similar in many regards. American youth are dieing needlessly in foreign lands and we're running up staggering deficits.

 

[Rustic23]

Neither Bush or Obama spend money. While the Executive branch does the actual spending, Congress appropriates funds for programs. Congress passes the bills that sets up the spending. What Bush did wrong, IMO, is he did not veto those spending bills. And, Obama will not either. The seated President gets the blame, but it is your and my congressman that has loaded up the last bill with over 8,000 earmarks, i.e. PORK, and, it is people like us who blindly re-elect them.

 

[jug]

You guys can politicize this all you want, it's not gonna help. The bill is due, the shop till ya drop charge it up the wazzu culture in Government, on Wall street, on Main street has come to an end. Both sides, Bush and Obama tried to stave off the inevitable, dealing with the fact that credit has dried up, we are tapped out, and to sustain as consume like a bunch of pigs economy can no longer be sustained.

We ate and drank too much collectively, and the waiter wants his money or he'll sell our souls to china.

jug
likes chinese food

 

[SkisALot]

I just don't follow this attack on Senator Biden and other Democrats for their supposed role in the mortgage crisis that lead to this ecomonic situation we are in. I have seen this claim about Democratic culpability

I didn't say they were all Democrats.

 

[ERD50]

....
Audrey

P.S. Obama is doing what he said he would do. The shock, outrage and despair seem a little silly. What were they expecting? Him NOT to do those things? Where is the surprise? Maybe they were hoping he would take a long time to get around to them.

I think you misunderstand. I think very, very few people are "shocked or surprised" - and if they are it *is* silly. But what he is doing is not instilling confidence in the markets that these plans will help the economy. That is the problem.

If the plans sounded good, I think you would see the market rise in anticipation of better times. That ain't happening and the reason is simple. His plans don't pass muster.

-ERD50

 

[samclem]

The TARP saga continues. The bold is mine:

From the 2 March WSJ:

The federal government is overhauling its $150 billion bailout of American International Group Inc. in a bid to bolster the battered insurer, but its plan will expose U.S. taxpayers to more financial risk.


The new deal, the government's fourth for AIG, represents a nearly complete reversal from the one first laid out in mid-September. Back then, federal officials acted as a demanding lender, forcing the insurer to pay a steep interest rate for what was expected to be a short-term loan. Now the government is relaxing loan terms by wiping out interest in hopes of preserving AIG's value over a longer period.

Yep, these guys in DC know exactly how to manage the bailout. Their well-thought out plan is unfolding just as they expected. Piece of cake. If we'll only give them more resources they can do the same bang-up job for all the other areas of our lives that we are apparently incapable of handling on our own.

Stop the madness. Liquidate the insolvent firms and allow the market to price the assets.

 

[Texarkandy]

You guys can politicize this all you want, it's not gonna help. The bill is due, the shop till ya drop charge it up the wazzu culture in Government, on Wall street, on Main street has come to an end. Both sides, Bush and Obama tried to stave off the inevitable, dealing with the fact that credit has dried up, we are tapped out, and to sustain as consume like a bunch of pigs economy can no longer be sustained.

We ate and drank too much collectively, and the waiter wants his money or he'll sell our souls to china.

jug
likes chinese food

But I had a hamburger while others had steak. I demand separate tickets!

 

[jug]

The TARP saga continues. The bold is mine:

From the 2 March WSJ:


Yep, these guys in DC know exactly how to manage the bailout. Their well-thought out plan is unfolding just as they expected. Piece of cake. If we'll only give them more resources they can do the same bang-up job for all the other areas of our lives that we are apparently incapable of handling on our own.

Stop the madness. Liquidate the insolvent firms and allow the market to price the assets.

AIG should be broken up, since the insurance part is quite viable. The financial/investment arm is what screwed it up.

DC is going to bankrupt us, better that they shore up the little folk affected by this wall street screw up, let the chips fall where they may, sort out the derivative insanity/bonds/tranches/dreck invented by the "geniuses" of Stanford, Harvard and Uni of Penn, where they produce egos in lieu of brains and leave us with smaller big banks that are healthy to go on. Screw the stock and bond holders of these institutions, we are not in the business of socializing their losses.

As for all the financial folk, giving all sorts of advice, perhaps they should take a hiatus as border patrol agents helping the Mexicans cross over to help do the work we don't want to do. To make the crossing easier, we can pave the Rio Bravo with out of work lawyers, don't want our new productive members of society to get wet feet you know..

Ole
jug

 

[laurence]

But I had a hamburger while others had steak. I demand separate tickets!

This sums up exactly what is so aggravating about this whole mess. I got called a sucker for years for doing the LBYM lifestyle while my neighbors partied the night away. Now they are crying it's not their fault and asking me to foot the bill. New trucks, trips to Vegas, champagne brunches, all of which we heard about in detail. Why is my name on this bill?

So now we are handed a ransom note being told if we don't pay up the irresponsible ones will take the whole system down with them. I'm getting close to wanting to call their bluff.

 

[jrobb45]

I think you misunderstand. I think very, very few people are "shocked or surprised" - and if they are it *is* silly. But what he is doing is not instilling confidence in the markets that these plans will help the economy. That is the problem.

If the plans sounded good, I think you would see the market rise in anticipation of better times. That ain't happening and the reason is simple. His plans don't pass muster.

-ERD50

So, you would like to have Bush back standing up there grinning and telling you what he thinks you want to hear? Face it, reality isn't too cheery right now and it didn't get that way in a month.

jr

 

[samclem]

So, you would like to have Bush back standing up there grinning and telling you what he thinks you want to hear? Face it, reality isn't too cheery right now and it didn't get that way in a month.

jr

Lets not turn this into a political thread. Thanks.
We're talking about government policy here, that's all.

 

[youbet]

So, you would like to have Bush back standing up there grinning and telling you what he thinks you want to hear? Face it, reality isn't too cheery right now and it didn't get that way in a month.

jr

Reality is that our current leadership convinced us eloquently during the campaign that he was the man to lead us out of our current predicament. Now he seems, shall we say, a little more tentative. A classic case of massive over promising and under performing. The markets are tuned into the negative vibes.

 

[JPatrick]

Well it is probable we will have more bank problems this week with a continuing crash..Looking for a bright spot? We may soon see a dagger thrust into the heart of the Obama budget fiasco. Ah the sweet sound of gridlock..