Very good summary and explanation of the current economic mess - a must read

[SpidermanTUba]

"For most of the last 20 years we have been studying banks, monetary policy, and financial crises. So for us the events of the last year have been especially fascinating.

"The last 10 days have been the most remarkable period of government intervention into the financial system since the Great Depression. In talking with reporters and our noneconomist friends, we have been besieged with questions about several aspects of these events. Here are a few of the most frequently asked questions with our best answers."

http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-the-recent-financial-upheavals/

[emmett]

"For most of the last 20 years we have been studying banks, monetary policy, and financial crises. So for us the events of the last year have been especially fascinating.

"The last 10 days have been the most remarkable period of government intervention into the financial system since the Great Depression. In talking with reporters and our noneconomist friends, we have been besieged with questions about several aspects of these events. Here are a few of the most frequently asked questions with our best answers."

http://freakonomics.blogs.nytimes.com/2008/09/18/diamond-and-kashyap-on-the-recent-financial-upheavals/


I'm sorry but I can explain it alot better...AND....in terms that can be understood.


Once upon a time the people of America, who were suppose to be members of a true capitalist society refused to elect more Libertarians to office. This without a doubt left asses and elephants free to "control" things. Everyone knows that both asses and elephants are greedy lying dogs who buy votes, induldge in crooked lobbying efforts and receive huge gifts and plane rides to far off places for their votes in the congress and Senate.

Soon, the people's government began to control private enterprise.........and if I have to finish this fucking story, you wouldn't understand it!!!!!!






WHEN ARE AMERICANS GOING TO LEARN THAT THERE CAN BE NO HALF STEPPING WITH REGARDS TO THIS EXACT SUBJECT. This would not...and could not have happened with a true Libertarian majority in government. Someone go ahead and make themselves look stupid and argue this point with me....PLEASE!!!!!



Fannie May and Freddie Mac will prove to be the absolute stupidest thing the US Government ever tried to control. Never should have happened.....it's the reason for the biggest fuck up in history and we will still elect a democrat or republican president and add NO senators to the US Senate or Congressman this year. This makes it OUR FAULT!!!!! Well.....YOURS!


I VOTE LIBERTARIAN!!

[Kathianne]

I'm sorry but I can explain it alot better...AND....in terms that can be understood.


Once upon a time the people of America, who were suppose to be members of a true capitalist society refused to elect more Libertarians to office. This without a doubt left asses and elephants free to "control" things. Everyone knows that both asses and elephants are greedy lying dogs who buy votes, induldge in crooked lobbying efforts and receive huge gifts and plane rides to far off places for their votes in the congress and Senate.

Soon, the people's government began to control private enterprise.........and if I have to finish this fucking story, you wouldn't understand it!!!!!!






WHEN ARE AMERICANS GOING TO LEARN THAT THERE CAN BE NO HALF STEPPING WITH REGARDS TO THIS EXACT SUBJECT. This would not...and could not have happened with a true Libertarian majority in government. Someone go ahead and make themselves look stupid and argue this point with me....PLEASE!!!!!



Fannie May and Freddie Mac will prove to be the absolute stupidest thing the US Government ever tried to control. Never should have happened.....it's the reason for the biggest fuck up in history and we will still elect a democrat or republican president and add NO senators to the US Senate or Congressman this year. This makes it OUR FAULT!!!!! Well.....YOURS!


I VOTE LIBERTARIAN!!

Well maybe yes and maybe no:

http://www.foxnews.com/printer_friendly_story/0,3566,382881,00.html


Barr: Fannie Mae/Freddie Mac Bailout Unfair to Taxpayers

Tuesday , July 15, 2008

This is a rush transcript from "Your World with Neil Cavuto," July 14, 2008. This copy may not be in its final form and may be updated.

CONNELL MCSHANE, GUEST HOST: My next guest says the move today is not good news for taxpayers.

Libertarian presidential nominee Bob Barr is with us.

Welcome to you, sir.

Now, why is this a bailout, first of all? Because as Brenda was going through details there, basically, what the Treasury said, what the Fed said is not that they would bail these companies out, but they would be there to help if something went wrong, not that they're going to do something now.

BOB BARR, LIBERTARIAN PRESIDENTIAL CANDIDATE: Well, of course, the Treasury has no money of its own. It's all taxpayer money. That's something that seems to get lost frequently in these discussions, where you have the government stepping in and saying, well, we're going to do this or we're going to that, and it's not a bailout because we're providing a backup or sort of a psychological blanket or a temporary line of credit.

But the bottom line is, this is all taxpayer dollars that we're talking about here. And, whenever taxpayer dollars are used or committed, even impliedly, the taxpayers of this country are being put at further risk.

MCSHANE: The question you have to ask yourself, as you know, in these situations is, what happens if I do nothing? What would happen if the Treasury, the Fed, the government did nothing in this case?

BARR: I think right now, doing nothing would not be advisable. As much as a Libertarian, we don't like to see — and I don't like to see — the government get further involved with yet another sector of the economy.

I think, because the government has caused this problem, similar to the savings and loan problem that the government caused a generation ago, it has to do something.

The question is, can it do enough by providing some temporary security, some temporary backup?

MCSHANE: Right.

BARR: Yet, as long as it is done with the thought in mind that there has to be long-term congressional action here to restructure and reformulate the very way Freddie Mac and Fannie Mae operate, I think that would be an advisable solution, but not doing nothing.What does 'with the thought in mind' mean?

MCSHANE: All right, so which part of it do you have a problem with, if any? Is it the part where they come in and say, all right, we might buy stock in these companies, the government buying equity in publicly traded companies? Is that where you have a problem?

BARR: I have a problem with that because that will simply lead to further government manipulation — which is always, by definition, artificial — of that sector of the marketplace, in this place — in this case, housing.

I think, though, that, if we — we have some — some temporary line of credit — and I think it's important to do this through the Congress, so Congress understands and has a stake in this as well. What do you think this means? How is it different than the 'nuances' of McCain or Obama?

MCSHANE: Right.

BARR: But the ultimate goal, I think, has to be a very firm commitment to restructure Fannie Mae and Freddie Mac.I'm noticing no requirement before said 'intervention.'

MCSHANE: Quick political question while we have you on, sir. I know you're running for president under the Libertarian line. The last poll we have — and we're showing it on the screen there — shows you with 3 percent support.

Why are you in the race?

BARR: Well, that's an old poll. The most — the more recent one by Zogby has — has us at 6 percent nationally, and actually in double digits in some states. That is a very strong base of support to begin a campaign as a third-party nominee. So, I think there is a tremendous opportunity there.

And these sorts of problems that have been manifested themselves by the work over the years of the Democrat and the Republican parties alike provides just that opportunity.

MCSHANE: Right.

All right. Former Congressman Bob Barr of Georgia, Libertarian presidential nominee, we appreciate your time. Thanks a lot for coming on with us.

BARR: Thank you, Connell.

MCSHANE: All right.

I'm not taking a slam at the Libertarians, rather once again they are trying to place an old horse in dress up as a new deal. It just doesn't work for me. I'd really like some change, just not seeing it on any front.

[Yurt]

Well maybe yes and maybe no:

http://www.foxnews.com/printer_friendly_story/0,3566,382881,00.html



I'm not taking a slam at the Libertarians, rather once again they are trying to place an old horse in dress up as a new deal. It just doesn't work for me. I'd really like some change, just not seeing it on any front.

that was a great post kath. very informative. as i adore you for, another great find. this is one of my favorite things about this site, you can't find this stuff unless you know where to look or have the knack.