I know most people are locked in on who they want to vote for, but the recent "financial crisis" has caused me to re-evaluate.
At first, I didn't understand the financial crisis but when the stock market kept tanking I wanted to try to figure it out.
The root of the financial crisis is the "sub-prime" mortgage. Simply put, too many loans were made to risky borrowers. This is not a minority/race issue at all. Many of these loans never should have been made. But they were, and they were pooled into bonds and other investments. Sophisticated investors/institutions acquired "credit default swaps", which offers insurance type protection in the event of defaults on the bonds (i.e., if the mortgages within the bonds go bad). Somehow, investors in many cases were able to aquire the credit default swaps without even owning the bonds!! Lehmann Bros. issued many of these and was, therefore, on the hook to pay off when many of the bonds defaulted. Ditto for AIG, Merrill Lynch, Washington Mutual, Wachovia, etc.
Why were all these subprime loans made you might ask, and why should we feel sorry for lenders who were stupid enough to make bad loans? Well, here is where Fannie Mae and Freddie Mac get involved. The government (note not just Republicans or Democrats) decided that it was unfair that lower income people were not able to qualify for mortgages and thus could not buy homes. So, the government enabled Fannie Mae and Freddie Mac to start buying up these subprime loans. And they did it with a vengeance. When it became apparent that the loans they were buying, and in many cases repackaging and selling(with the backing of Uncle Sam) were serious default risks, they bought off our congressional "leaders" (both Republicans and Democrats) with generous campaign contributions. One of their big lobbyists is now an advisor to McCain's campaign:shocked:. Obama isn't innocent, however, two of his advisors were heads or high up in Fannie Mae and Freddie Mac:nono5: Ultimately Fannie and Freddie had to be bailed out because of so many bad loans.
We know all of these corporate implosions have led to huge "bailouts" from the government. This sounds like it might not affect the average guy, but think about where the money is coming from to pay the "bailouts". It has to be either taxes or a worse alternative - printing money. So, going forward, to pay for these enormous bailouts, you (and/or your children) are going to have to pay higher taxes or, if printing money is how the bailouts are funded, you (and/or your children) will see the value of any dollars you have managed to save be eroded by rampant inflation. Either way, you (and/or your children) are chumps with a capital C
hno:
People always want to assess blame for situations such as this, and partisan politics has Democrats blaming Republicans and Republicans blaming Democrats. All that does is obscure the fact that you (and/or your children) are complete and total chumps.
This is not a Republican/Democrat issue. Rather than bickering between parties, us chumps need to band together and realize its the Government that is the problem!!!
Choosing sides at this point and voting for Obama or McCain while blaming their opponent will simply enable the Government to keep fleecing you through higher taxes or by inflating away the dollars that you have.
This type of Government is exactly what our founding fathers tried to avoid.
So, instead of getting all geeked up for one "team" or another, realize that you are still losing even if your guy wins.
Unless and until people realize that government is the problem, not the solution, our country will continue its downward path.
As for me, I am registering as a libertarian. I'll be voting for Bob Barr. Some will say it's "throwing your vote away", but I firmly believe a vote for Obama or McCain is worse because either way is a vote for continued corruption and fleecing of you and/or your children.
There, I feel better now. :drink:
At first, I didn't understand the financial crisis but when the stock market kept tanking I wanted to try to figure it out.
The root of the financial crisis is the "sub-prime" mortgage. Simply put, too many loans were made to risky borrowers. This is not a minority/race issue at all. Many of these loans never should have been made. But they were, and they were pooled into bonds and other investments. Sophisticated investors/institutions acquired "credit default swaps", which offers insurance type protection in the event of defaults on the bonds (i.e., if the mortgages within the bonds go bad). Somehow, investors in many cases were able to aquire the credit default swaps without even owning the bonds!! Lehmann Bros. issued many of these and was, therefore, on the hook to pay off when many of the bonds defaulted. Ditto for AIG, Merrill Lynch, Washington Mutual, Wachovia, etc.
Why were all these subprime loans made you might ask, and why should we feel sorry for lenders who were stupid enough to make bad loans? Well, here is where Fannie Mae and Freddie Mac get involved. The government (note not just Republicans or Democrats) decided that it was unfair that lower income people were not able to qualify for mortgages and thus could not buy homes. So, the government enabled Fannie Mae and Freddie Mac to start buying up these subprime loans. And they did it with a vengeance. When it became apparent that the loans they were buying, and in many cases repackaging and selling(with the backing of Uncle Sam) were serious default risks, they bought off our congressional "leaders" (both Republicans and Democrats) with generous campaign contributions. One of their big lobbyists is now an advisor to McCain's campaign:shocked:. Obama isn't innocent, however, two of his advisors were heads or high up in Fannie Mae and Freddie Mac:nono5: Ultimately Fannie and Freddie had to be bailed out because of so many bad loans.
We know all of these corporate implosions have led to huge "bailouts" from the government. This sounds like it might not affect the average guy, but think about where the money is coming from to pay the "bailouts". It has to be either taxes or a worse alternative - printing money. So, going forward, to pay for these enormous bailouts, you (and/or your children) are going to have to pay higher taxes or, if printing money is how the bailouts are funded, you (and/or your children) will see the value of any dollars you have managed to save be eroded by rampant inflation. Either way, you (and/or your children) are chumps with a capital C
hno:People always want to assess blame for situations such as this, and partisan politics has Democrats blaming Republicans and Republicans blaming Democrats. All that does is obscure the fact that you (and/or your children) are complete and total chumps.
This is not a Republican/Democrat issue. Rather than bickering between parties, us chumps need to band together and realize its the Government that is the problem!!!
Choosing sides at this point and voting for Obama or McCain while blaming their opponent will simply enable the Government to keep fleecing you through higher taxes or by inflating away the dollars that you have.
This type of Government is exactly what our founding fathers tried to avoid.
So, instead of getting all geeked up for one "team" or another, realize that you are still losing even if your guy wins.
Unless and until people realize that government is the problem, not the solution, our country will continue its downward path.
As for me, I am registering as a libertarian. I'll be voting for Bob Barr. Some will say it's "throwing your vote away", but I firmly believe a vote for Obama or McCain is worse because either way is a vote for continued corruption and fleecing of you and/or your children.
There, I feel better now. :drink:
