Obama’s SAD Deal — Videos

Posted on October 17, 2013. Filed under: American History, Banking, Blogroll, College, Communications, Computers, Constitution, Crime, Economics, Education, Employment, Federal Government, Federal Government Budget, Fiscal Policy, government, government spending, history, History of Economic Thought, Inflation, Investments, IRS, Language, Law, Macroeconomics, Math, media, Microeconomics, Monetary Policy, Money, People, Philosophy, Rants, Raves, Regulations, Resources, Strategy, Talk Radio, Tax Policy, Taxes, Unemployment, Video, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , |

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TR Square Deal

Square Deal – Wiki Article

Theodore Roosevelt’s Square Deal

Roosevelt and the New Deal Part 1

Roosevelt and the New Deal Part 2

HARRY TRUMAN, PRESIDENT OF THE U.S

Harry S. Truman – Wiki Article

Obama Commends Lawmakers on Debt Deal | Shutdown News

Ted Cruz Speaks Before Senate Deal Vote | Shutdown News

Pres Obama’s Statement on Shutdown Deal

President calls for new approach after shutdown

Forex! US.DEBT CEILING! Why The Muted Reaction To A Deal

Relief as US approves debt deal

The Government Is Broke And They’re Coming For Your Cash — Episode 190

Peter Schiff – A Dangerous Person, at a Dangerous Time, Heading a Dangerous Institution

Peter Schiff – QE is Like a Drug – The More You Take the More You Need

Obama’s SAD Deal

By Raymond Thomas Pronk

Presidents like to make deals with the American people that supposedly will fix things.

Theodore Roosevelt had his Square Deal, Franklin D. Roosevelt had his New Deal, Harry Truman had his Fair Deal, and President Barack Obama has his SAD (Spending Addiction Disorder) deal.

The most recent developments in Obama’s SAD deal are the federal government will be completely open for business and funded through Jan. 15, 2014 under yet another continuing resolution passed on Wednesday by Congress and signed by the president. The gross national debt ceiling was suspended until Feb. 7, 2014. By then the national debt will be approaching $17.5 trillion and will exceed the entire gross domestic product for 2013 estimated to be about $16 trillion.

In other words the SAD deal means more government spending and taxes, more massive budgetary deficits, more government debt and more money and credit creation by the Federal Reserve System to finance the SAD habit.

Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) announced on Wednesday that they had reached an agreement to open the government until Jan. 15, 2014 and extend the debt ceiling through Feb. 7, 2014.

Sen. Ted Cruz (R-Texas) said, “The deal that has been cut provides no relief to the millions of Americans who are hurting because of Obamacare. The deal that has been cut provides no relief to all the young people coming out of school who can’t find a job because of Obamacare. It provides no relief to all the single parents who have been forced into part-time work, struggling to feed their kids on 29 hours a week.”

Unfortunately, the SAD deal will continue the annual massive budgetary deficits that over the last five years have averaged more than $1.2 trillion per year and will increase the burden of debt on existing and future generations of the American people. Under Obama’s SAD deal the gross national debt has been increased over $6 trillion to fund the fiscal year deficits from 2009 through 2013. The White House has optimistically estimated that the fiscal year deficit for 2014 will be only $750 billion!

The SAD deal has resulted in the worse post-World War II economic recovery with unemployment rates exceeding 7 percent for the 56 months of the Obama’s presidency. Tens of millions of Americans are searching for a permanent full-time job.

House Majority Leader Eric Cantor (R-Va.) at the Republican conference meeting on Oct. 16 said, “We all agree Obamacare is an abomination. We all agree taxes are too high. We all agree spending is too high. We all agree Washington is getting in the way of job growth. We all agree we have a real debt crisis that will cripple future generations. We all agree on these fundamental conservative principles.”

The American people agree that the Washington ruling elite of both the Democrat and Republican parties are simply incapable of controlling their SAD habit.

Cruz is right. The ruling elite are not listening to the American people.

The American people want federal spending and taxes to be cut, a balanced budget, the national debt paid off and Obamacare repealed. The American people can no longer afford to pay for Obama’s SAD deal.

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Recovery or Stagnation–Videos

Posted on September 16, 2010. Filed under: Blogroll, Books, Communications, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, history, Homes, Investments, Language, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Politics, Raves, Regulations, Resources, Taxes, Video, Wisdom | Tags: , , , , , , , , , |

Speakers’ Panel | Recovery or Stagnation?

 

Government Bailouts: Picking Winners | Walter Block

 

Housing and Fannie Mae: FDR’s American Dream | Douglas E. French

 

How Not to Deal with Economic Depression | Thomas J. DiLorenzo

 

How Politicians and Citizens Should Deal with Depression | Robert P. Murphy

 

Background Articles and Videos

 

Gordon Gekko “Greed is Good”

 

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The Great Depression and The Obama Depression–Videos

Posted on April 14, 2010. Filed under: Blogroll, College, Communications, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, Monetary Policy, Video, Wisdom | Tags: , , , , , , , , , |

 

Obama’s New New Deal: As bad as the old new deal?

The Truth About the Great Depression (by Thomas DiLorenzo)

Robert Higgs on Hoover’s Great Depression Policies ?

The Great Depression and the Current Recession (Robert Higgs)

“Robert Higgs is an American economist of the Austrian School and a libertarian anarchist. He currently serves as a Senior Fellow in Political Economy at the Independent Institute and is an adjunct faculty member of the Ludwig von Mises Institute and is an adjunct scholar at the Cato Institute. He received his Ph.D. in economics from Johns Hopkins University, and has taught at the University of Washington, Lafayette College, Seattle University, and the University of Economics, Prague. He has been a visiting scholar at Oxford University and Stanford University, and a fellow for the Hoover Institution and the National Science Foundation. Mr. Higgs is also a regular contributor to LewRockwell.com.

His writings in economics and economic history have most often focused on the causes, means, and effects of government growth. Some of the books he has authored include, Crisis and Leviathan: Critical Episodes in the Growth of American Government; Resurgence of the Warfare State: The Crisis Since 9/11, and Depression, War and Cold War: Studies in Political Economy. He is also the editor of the collections, Re-Thinking Green: Alternatives to Environmental Bureaucracy; The Challenge of Liberty: Classical Liberalism Today; and Opposing the Crusader State: Alternatives to Global Interventionism.”

80 Years Later: Parallels Between 1929 and 2009

 

 

A Recipe for the Next Great Depression

Keynesian Economics Is Wrong: Bigger Gov’t Is Not Stimulus

 

Obama’s So-Called Stimulus: Good For Government, Bad For the Economy

Ron Paul: Obama Stimulus Package Will Turn Recession Into Depression

 

UCLA’s Lee Ohanian: Hoover, Roosevelt and the Great Depression

Robert Higgs on Economic Prospects for 2010

 

Background Articles and Videos

Higgs and Liebowitz on Causes of the Economic Crisis ?

Robert Higgs on C-SPAN2’s Book TV, Part 1 of 3

Robert Higgs on C-SPAN2’s Book TV, Part 2 of 3

Robert Higgs on C-SPAN2’s Book TV, Part 3 of 3

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Progressive Radical Socialist Takeover Of America–Obama Repeating The New Deal Depression–The American People’s 9/12 Project Response

Posted on March 12, 2010. Filed under: Blogroll, Communications, Culture, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, Foreign Policy, government, government spending, Health Care, history, Immigration, Law, liberty, Life, Links, Medicine, Monetary Policy, People, Philosophy, Politics, Rants, Raves, Regulations, Resources, Science, Security, Strategy, Talk Radio, Taxes, Technology, Transportation, Video, War, Wisdom | Tags: , , , , , , , , , |

Progressive Radical Socialist Takeover Of America–Obama Repeating The New Deal Depression

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President Barack Obama’s Role Model–President Franklin D. Roosevelt–The Worse President For The U.S. and World Economies and The American People–With The Same Results–High Unemployment Rates–Over 25 Million American Citizens Seeking Full Time Jobs Today–Worse Than The Over 13 Million Seeking Jobs During The Worse of The Great Depression!

Posted on January 6, 2010. Filed under: Blogroll, Communications, Economics, Employment, Fiscal Policy, government spending, Investments, Law, liberty, Life, Links, Monetary Policy, People, Philosophy, Politics, Raves, Regulations, Video, Wisdom | Tags: , , , , , , , , , , , , , , , , , |

 “The comparatively greater prosperity of the United States is an outcome of the fact that the New Deal did not come in 1900 or 1910, but only in 1933.”

~Ludwig von Mises, Planning for Freedom, page 136.

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http://www.youtube.com/watch?v=Zis7sxCfooM

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The Great Depression and the Current Recession (Part 9 of 9)

“The cyclical fluctuations of business are not an occurrence originating in the sphere of the unhampered market, but a product of government interference with business conditions designed to lower the rate of interest below the height at which the free market would have fixed it.”

~Ludwig von Mises, Human Action, pages 562 and 565.

Among liberal and progressive radical socialists the late President Franklin D. Roosevelt was and is now considered one of the top three greatest Presidents that ever lived in the same class as George Washington and Abraham Lincoln.

Read American historians, who also are mostly liberals and progressives and whose knowledge of economics is as limited or even more limited than President Roosevelt, they too believe in the greatness of FDR.

This legend is the biggest myth or more precisely lie ever told and endless repeated.

Franklin D. Roosevelt was simply the worse President the United States has ever had in terms of the impact his economic policies had on the American economy and American people.

If you doubt this, I strongly recommend you read all of the above books.

What is so disturbing and very dangerous is that one of Barack Obama Presidential role models is Franklin Roosevelt.

President Obama  has surrounded himself with economic and political advisors who are progressive radical socialists that actually believe that repeating FDR’s economic policies would be a good for the country.

Thus the massive bailouts, stimulus packages, massive budget deficits, huge increases in the national debt, proposed new tax increases including the Cap and Trade Energy Tax,  letting the Bush tax cuts expire in 2010, and the new health care bill forcing people to buy health insurance or pay a tax fine.

Barack Obama and Franklin D. Roosevelt have many characteristics in common.

Both were educated at Harvard and Columbia Universities.

Both were excellent readers of prepared speeches.

Both were habitual liars.

Both were great believers in class warfare on businesses and the rich with very high progressive  income tax rates while at the same time imposing  hidden very regressive excise taxes on low and middle income Americans.

Both were ignorant of economics. job and wealth creation

Both destroyed jobs and wrecked the U.S. economy.

Good intentions are not enough.

Results count.

President Obama is intentionally repeating the economic mistakes of President Roosevelt that will destroy both free market capitalism and democracy and lead to a totalitarian command and control socialist economy.

I hope President Obama fails early and often and is a one term President that in the process destroys the Democratic Party of progressive radical socialists.

With over 25,000,000 Americans seeking fully time employment, repeating the mistakes of Keynesian government interventist economic policies that have repeatedly failed in country after country will only prolong the duration of the  Obama Depression.

Republican and Democratic Presidents, in the past and present, Hoover and Roosevelt, and Bush and Obama, have failed the American people by implementing massive government intervention in the free market capitalist economy.

Read and listen to economist Thomas Sowell on President Obama’s economic policies using Roosevelt as a model:

Thomas Sowell on the Housing Boom and Bust

Thomas Sowell – Obama’s Economic Policy

“Those who do not remember the past are condemned to repeat it.”

~George Santayana

Background Articles and Videos

Glen Beck with Thomas Sowell Part 1

Glenn Beck with Thomas Sowell Part 2

The Myth of War Prosperity [Robert Higgs]

 

Monetary Lessons from America’s Past

Does Bernanke Have an Exit Strategy?

Tom Woods at UNH 110609

Scholar survey results

Green backgrounds indicate top quartile. Red backgrounds indicate bottom quartile.

No  ↓ President  ↓ Schlesinger 1948 poll rank  ↓ Schlesinger 1962 poll rank  ↓ 1982 Murray-Blessing survey  ↓ Chicago Tribune 1982 poll rank  ↓ Siena 1982 poll rank  ↓ Siena 1990 poll rank  ↓ Siena 1994 poll rank  ↓ Ridings- McIver 1996 poll rank  ↓ CSPAN 1999 poll rank  ↓ Wall Street Journal 2000 poll rank  ↓ Siena 2002 poll rank  ↓ Wall Street Journal 2005 poll rank  ↓ CSPAN 2009 poll rank  ↓
Total in survey 29 31 36 38 39 40 41 41 41 39 42 40 42
01 Washington George Washington 02 02 03 03 04 04 04 03 03 01 04 01 02
02 Adams, John John Adams 09 10 09 14 (tie) 10 14 12 14 16 13 12 13 17
03 Jeff Thomas Jefferson 05 05 04 05 02 03 05 04 07 04 05 04 07
04 Mad James Madison 14 12 14 17 09 08 09 10 18 15 09 17 20
05 Mon James Monroe 12 18 15 16 15 11 15 13 14 16 08 16 14
06 Adams, John Q John Quincy Adams 11 13 16 19 17 16 17 18 19 20 17 25 19
07 Jack Andrew Jackson 06 06 07 06 13 09 11 08 13 06 13 10 13
08 Van B Martin Van Buren 15 17 20 18 21 21 22 21 30 23 24 27 31
09 Harrison, W William Henry Harrison  –  –  – 38 26 35 28 35 37  – 36  – 39
10 Tyle John Tyler 22 25 28 29 34 33 34 34 36 34 37 35 35
11 Polk James K. Polk 10 08 12 11 12 13 14 11 12 10 11 09 12
12 Tay Zachary Taylor 25 24 27 28 29 34 33 29 28 31 34 33 29
13 Fil Millard Fillmore 24 26 29 31 32 32 35 36 35 35 38 36 37
14 Pier Franklin Pierce 27 28 31 35 35 36 37 37 39 37 39 38 40
15 Buc James Buchanan 26 29 33 36 37 38 39 40 41 39 41 40 42
16 Linc Abraham Lincoln 01 01 01 01 03 02 02 01 01 02 02 02 01
17 Johnson, A Andrew Johnson 19 23 32 32 38 39 40 39 40 36 42 37 41
18 Gran Ulysses S. Grant 28 30 35 30 36 37 38 38 33 32 35 29 23
19 Hay Rutherford B. Hayes 13 14 22 22 22 23 24 25 26 22 27 24 33
20 Gar James Garfield  –  –  – 33 25 30 26 30 29  – 33  – 28
21 Art Chester A. Arthur 17 21 26 24 24 26 27 28 32 26 30 26 32
22/24 Cle Grover Cleveland 08 11 17 13 18 17 19 16 17 12 20 12 21
23 Harrison, B Benjamin Harrison 21 20 23 25 31 29 30 31 31 27 32 30 30
25 McK William McKinley 18 15 18 10 19 19 18 17 15 14 19 14 16
26 Roosevelt, T Theodore Roosevelt 07 07 05 04 05 05 03 05 04 05 03 05 04
27 Taf William Howard Taft 16 16 19 20 20 20 21 20 24 19 21 20 24
28 Wilson Woodrow Wilson 04 04 06 07 06 06 06 06 06 11 06 11 09
29 Harding Warren G. Harding 29 31 36 37 39 40 41 41 38 37 40 39 38
30 Cool Calvin Coolidge 23 27 30 27 30 31 36 33 27 25 29 23 26
31 Hoov Herbert Hoover 20 19 21 21 27 28 29 24 34 29 31 31 34
32 Roosevelt, F Franklin D. Roosevelt 03 03 02 02 01 01 01 02 02 03 01 03 03
33 Truman Harry S. Truman  – 09 08 08 07 07 07 07 05 07 07 07 05
34 Eisen Dwight D. Eisenhower  – 22 11 09 11 12 08 09 09 09 10 08 08
35 Kennedy, J John F. Kennedy  –  – 13 14 (tie) 08 10 10 15 08 18 14 15 06
36 Johnson, L Lyndon B. Johnson  –  – 10 12 14 15 13 12 11 17 15 18 11
37 Nix Richard Nixon  –  – 34 34 28 25 23 32 25 33 26 32 27
38 Ford, G Gerald R. Ford  –  – 24 23 23 27 32 27 23 28 28 28 22
39 Carter Jimmy Carter  –  – 25 26 33 24 25 19 22 30 25 34 25
40 Reagan Ronald Reagan  –  –  –  – 16 22 20 26 10 08 16 06 10
41 Bush, George H George H. W. Bush  –  –  –  –  – 18 31 22 20 21 22 21 18
42 Clinton, B Bill Clinton  –  –  –  –  –  – 16 23 21 24 18 22 15
43 Bush, George W George W. Bush  –  –  –  –  –  –  –  –  –  – 23 19 36
44 Obama Barack Obama  –  –  –  –  –  –  –  –  –  –  –  –  –

 http://en.wikipedia.org/wiki/Historical_rankings_of_United_States_Presidents

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Obamanomics–New Deal Progressive Radical Socialist Interventionism

Posted on December 6, 2009. Filed under: Communications, Economics, Education, Employment, Energy, Fiscal Policy, government spending, history, Law, liberty, Life, Links, Monetary Policy, People, Philosophy, Politics, Psychology, Raves, Regulations, Resources, Technology, Uncategorized, Video, Wisdom | Tags: , , , , , , , , , , |

OBAMANOMICS EXPLAINED: Spreading the Wealth

DIGGING DEEPER IN THE HOLE !! OBAMANOMICS 17.5 % UNEMPLOYMENT SCHIFF !!

Thomas Sowell – Obama’s Vision

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By: Timothy P. Carney

“…General Electric is a sprawling, complex corporation with many diverse businesses. The company makes light bulbs and refrigerators, sure, but it also has a finance arm, a transportation arm, a health-care arm, a communications arm, and more. The above letter from Immelt reveals what these arms all have in common: They all reach out for government favors.

Look at any major Obama policy initiative — healthcare reform, climate-change regulation, embryonic stem-cell research, infrastructure stimulus, electrical transmission smart-grids — and you’ll find GE has set up shop, angling for a way to pocket government handouts, gain business through mandates, or profit from government regulation. …”

http://www.washingtonexaminer.com/opinion/columns/Obamanomics_-General-Electric-wins-big-with-White-House-8613322-78254677.html

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Robert P. Murphy–Videos

Posted on December 6, 2009. Filed under: Blogroll, Communications, Economics, Education, Employment, Energy, Fiscal Policy, government spending, history, Language, Law, liberty, Life, media, Monetary Policy, People, Philosophy, Politics, Rants, Raves, Regulations, Taxes, Video, Wisdom | Tags: , , , , , , |

 

Unemployment: The 1930s and Today

Bob Murphy, Author of the Politically Incorrect Guide to the Great Depression & New Deal

Robert Murphy: Busting the Myth of Green Jobs

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Robert P. Murphy – BookTV: The Politically Incorrect Guide

Austrian vs. Neoclassical Analytics

Authors Forum: “Human Action” Study Guide

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 1/7

 

 

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 2/7

 

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 3/7

 

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 4/7

 

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 5/7

 

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 6/7

 

Dr Robert Murphy “Repeating Mistakes of The Great Depression” Nassau, Bahamas Part 7/7

 

Background Articles and Videos

Robert Murphy

“…Robert P. “Bob” Murphy (born 23 May 1976) is an Austrian School economist and free market-oriented author.

Murphy completed his Bachelor of Arts in economics at Hillsdale College in 1998. He then moved back to his home state of New York to continue his studies at New York University. Murphy earned his Ph.D. in economics from NYU in 2003 after successfully defending a dissertation on Unanticipated Intertemporal Change in Theories of Interest.[1]

Murphy is married to Rachael Murphy (née Fajardo) with whom he has one son, Joel Clark Murphy, and lives in Nashville, Tennessee. Murphy is a Christian, and has stated in his writings that “my ethical beliefs are informed by my Christian faith, and I am a firm believer in natural law.”[2]

After earning his doctoral degree, Murphy served as Visiting Assistant Professor of Economics at Hillsdale College in Michigan, U.S., a role he relinquished in the summer of 2006 when he moved back to New York City. From 2006 until early 2007, Murphy was employed as a research and portfolio analyst with Laffer Associates,[3][4] an economic and investment consultancy firm.[5]

Murphy is a senior fellow in business and economic studies at the Pacific Research Institute,[6] and is an adjunct scholar and frequent speaker at the Ludwig von Mises Institute. He writes a column for Townhall.com[7] and has also written for LewRockwell.com. He is an adjunct scholar at the Mackinac Center for Public Policy[8] and an economist for the Institute for Energy Research.[9] Murphy appeared before the United States House Committee on Financial Services on 24 July 2008 to discuss oil prices and the United States dollar.[10] His work has been cited by Walter Block,[11] with whom Murphy has also published.[12] Murphy is a frequent radio guest. He appeared on “Free Markets With Dr. Mike Beitler” on the Voice America Business network on October 30, 2008. …”

http://en.wikipedia.org/wiki/Robert_P._Murphy

Economists Can Be Hilarious

By Robert Murphy

“…We economists have a reputation for being dry and boring. That’s why Ben Stein’s scene in Ferris Bueller’s Day Off works so well — and why this guy is such a novelty. Given our dismal reputation, I am happy to report that some economists’ recent defenses of the efficient-markets hypothesis are laugh-out-loud funny. Outside Cirque du Soleil, you will not see such contortions as when these economists try to defend their theory from either refutation or triviality. …”

http://mises.org/daily/3835

Apologist Responses to Climategate Misconstrue the Real Debate (Quantitative, not Qualitative)

by Robert Murphy

“…These defenses are self-evidently absurd to anyone who has read the actual CRU emails in question. The public’s faith in the sacrosanct “peer-review process” will be understandably shaken when they read just how this “consensus” was enforced. Furthermore, the real debate was not between ultra-skeptics who say “global warming is a hoax” versus professional climate scientists who say “anthropogenic climate change is real.”

No, the true debate has been among practicing climatologists, with some arguing that the global climate’s sensitivity to a doubling of greenhouse gas concentrations may be well below the IPCC AR4’s reported range of 2C – 4.5C. If these “skeptics”–such as Richard Lindzen, Pat Michaels, and Roy Spencer–are right, then the case for large-scale government intervention to penalize carbon emissions is considerably weakened.

In this context, the evidence brought to light by “Climategate” may be very significant, because it reaffirms the chinks in the IPCC armor that the educated skeptics have been pointing out for years. It’s true, an email from Phil Jones by itself doesn’t make Richard Lindzen right or wrong, but when policymakers need to decide which scientific experts they can trust, then the CRU emails are very relevant. …”

“…The scholarly skeptics do not doubt that the earth is warmer now than it was in 1850, and they don’t doubt that higher global temperatures would have noticeable effects on migratory patterns, ice sheets, and so forth. The real debate has been and continues to be: What fraction of this warming can be attributed to human activities? And then extrapolating, what will be the likely impacts on the climate if economic activity continues on its present trajectory?

When it comes to nuanced questions such as these–as opposed to loud mouths declaring, “Global warming is a hoax!”–the CRU emails and computer code are very revealing. Those of us who are not experts on climate models now have proof that the official line that “the science is settled” was a bluff. Of course it’s still possible that the IPCC projections may turn out to be accurate when all is said and done, but the confidence we should right now place in their modeling is much lower than what their biggest enthusiasts have been assuring us for years. …”

http://www.masterresource.org/2009/12/sarcastic-responses-to-climategate-misconstrue-the-real-debate/

Mises Daily, Robert P. Murphy

http://mises.org/articles.aspx?AuthorId=380

Free Advice, Robert P. Murphy

http://consultingbyrpm.com/blog/

Web Site of Robert P. Murphy, PhD.

http://consultingbyrpm.com/

Bob Murphy at Oil/Dollar Hearing 7/24/08 (Part 1 of 2)

Bob Murphy at Oil/Dollar Hearing 7/24/08 (Part 2 of 2)

Why You’ve Never Heard of the Great Depression of 1920


 

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The Federal Reserve System Expanded–Are You Kidding–How About Disbanded and Shut-Down For Incompetence–End The Fed–Videos

Posted on June 18, 2009. Filed under: Blogroll, Books, Economics, Employment, Energy, Foreign Policy, Homes, Investments, Law, liberty, Links, Politics, Quotations, Rants, Raves, Regulations, Talk Radio, Taxes, Video, Wisdom | Tags: , , , , , , , , , , , , |

Federal_Reserve_entrance 

 

“True, governments can reduce the rate of interest in the short run. They can issue  additional paper money.

They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity.

But such a boom is bound to collapse soon or late and bring about a depression.”

~Ludwig von Mises, Omnipotent Government, page 251

The Federal Reserve System is a private banking cartel that sets the price of money, serves as a lender of last resort, regulates member banks, and is the central bank of the United States responsible for the setting and the  implemenation of monetary policy, the expansion and contraction of the money supply with the goal of general price level stability.

The Federal Reserve fueled the housing bubble by expanding the money supply and keeping interest rates too low for too long.

The Federal Reserve failed to adequately regulate banks in particular large banks.

The Federal Reserve deserves a large portion  of the blame for the current financial crisis and recession.

Screw up big time and now the President proposes to expand their role.

Give me a break.

President Obama is bought and paid for by the large Wall Street financial institutions and the banking cartel and will do anything they want.

Thei Federal Reserve System’s  incompetence has destroyed trillions in wealth and transfered more wealth from the American people to those to big to fail in the form of bailouts–the crime of the century.

Terminate the tyranny of the banking cartel and abolish the central bank–the Federal Reserve System.

End The Fed! 

 

President Obama Announces Financial Regulation Reform

 

Dr Yaron Brook of the Ayn Rand Center for Individual Rights on Glenn Beck show June 18 2009

 

How Abolishing the Fed Would Change Everything

 

Obama’s Financial Overhaul

 

Experts discuss effect of Obama financial plan

 

Inside Look – Reforming Financial Regulation – Bloomberg

 

In-Depth Look – Obama Set To Overhaul Financial Regulation – Bloomberg

 

In-Depth Look – Obama’s Regulation Overhaul – Bloomberg

 

In-Depth Look – Impact Of Obama’s Regulation Reform On Banks – Bloomberg

 

Obama’s Regulation Reform

 

The Fed Has Increased The Monetary Base From $850 Billion To $2.2 Trillion!

 

Financial crisis: Gov’t regulation creating crony capitalism

 

Gingrich warns Obama moving towards political dictatorship

 

Greenspan: Why do we need a Central Bank?

 

Ron Paul on Federal Reserve, banking and economy

 

Bubble Economics

 

Peter Schiff Vlog Report 18 june 2009

 

June 2009: OBAMA GIVES THE FEDERAL RESERVE EVEN MORE POWER!

 

 

No Risk of Hyperinflation Says Federal Reserve Chairman Ben Bernanke. Rest easy Glenn Beck009

 

No Risk of Hyperinflation Says Federal Reserve Chairman Ben Bernanke. Rest easy Glenn Beck

 

Jim Rogers on CNBC: ABOLISH THE FEDERAL RESERVE!

 

Why the Meltdown Should Have Surprised No One

 

 

A Recipe for the Next Great Depression

 

End The Fed: Final Cut

 

“The interest of the capitalists are scarcely ever represented in monetary policy.”

~Ludwig von Mises, The Theory of Money and Credit, page 414

 

 Eccles Building Constitution  Ave.

Background Articles And Videos

Eccles Building Boardroom

 

Federal Reserve System

“…The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act (signed by Woodrow Wilson), it is a quasi-public and quasi-private (government entity with private components) banking system[1] that comprises (1) the presidentially appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) twelve regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with its own nine-member board of directors; (4) numerous other private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils. Since February 2006, Ben Bernanke has served as the Chairman of the Board of Governors of the Federal Reserve System. Donald Kohn is the current Vice Chairman (Term: June 2006–June 2010).

…”

http://en.wikipedia.org/wiki/Federal_Reserve_System

Board of Governors of the Federal Reserve System

http://www.federalreserve.gov/

Summary Of Obama Financial Regulation Plan

“…WASHINGTON -(Dow Jones)- A summary of President Barack Obama’s regulatory plan, “Financial Regulatory Reform: A New Foundation.”

For the regulation of financial firms, the proposal:

–Creates Financial Services Oversight Council, which would coordinate activities among regulators, replacing the President’s Working Group.

–Ensures that any financial firm big enough to pose a risk to the financial system would be heavily regulated by the Federal Reserve, including regular stress tests.

–Gives the Fed oversight over parent companies and all subsidiaries, including unregulated units and those based overseas.

–Says the Treasury will re-examine capital standards for banks and bank-holding companies.

–Tells regulators to issue guidelines on executive compensation, with the goal of aligning pay with long-term shareholder value, including a re-examination of the utility of golden parachutes.

–Creates a new bank agency, the National Bank Supervisor, and kills the Office of Thrift Supervision. The new agency will look over national banks, including federal branches and agencies of foreign banks.

–Forces industrial banks, non-bank financial firms and credit-card banks to become more traditional bank holding companies subject to federal oversight.

–Kills the SEC program that supervised Wall Street investment banks.

–Requires hedge funds, private-equity funds and venture-capital funds to register with the SEC, allowing the agency to collect data from the firms.

–Subjects hedge funds to new requirements in areas such as record keeping, disclosure and reporting. The oversight would include assets under management, borrowings, off-balance sheet exposures.

–Urges the SEC to give directors of money-market mutual funds the power to suspend redemptions, and take other action to strengthen regulation of money-market mutual funds to prevent runs.

–Beefs up oversight of insurance by creating an office within the Treasury to coordinate information and policy.

–Kicks off a process by which the Treasury and the Department of Housing and Urban Development will figure out the future of mortgage giants Fannie Mae (FNM), Freddie Mac (FRE) and the federal home-loan banks. …”

http://online.wsj.com/article/BT-CO-20090617-712735.html

 

Obama’s new financial regs – worse than we imagined

Rick Moran 

“…Hey kids! Let’s create a brand, spanking, new federal bureaucracy to protect consumers of mortgages, credit cards, and other financial instruments from their own stupidity!
  
That’s just one of the nanny state goodie being proposed by the Obama administration to address what they say were the causes of the financial meltdown.  
The plan seeks to overhaul the nation’s outdated system of financial regulations. Senior officials debated using a bulldozer to clear the way for fundamental reforms but decided instead to build within the shell of the existing system, offering what amounts to an architect’s blueprint for modernizing a creaky old building.
 
The White House makes its case for this approach in an 85-page white paper that describes the roots of the crisis. Gaps in regulation allowed companies to make loans many borrowers could not afford. Funding came from new kinds of investments that were poorly understood by regulators. Big firms paid employees massive bonuses, while setting aside little money to absorb potential losses. 


Surely some loans were made by criminals. The laws are already in place to deal with them. But how can you close a “gap” in the stupidity of the borrower? Never fear, the government is here!
 

The government would create a new agency to protect consumers of mortgages, credit cards and other financial products.


We welcome our ACORN overlords. …”
 
“…The problem, of course, is vastly expanding the mandate of the Federal Reserve – to give the quasi-independent agency regulatory power not answerable to Congress. If you’re a company and have a complaint about how the Fed is regulating your business, I wish you good luck and bon chance. You will get no satisfaction from our lawmakers. 

 http://www.americanthinker.com/blog/2009/06/obamas_new_financial_regs_wors.html

More Perspective – Geithner Calls for Financial Regulation Overhaul – Bloomberg

Another Look – Geithner’s Plan for Financial Overhaul – Bloomberg

The Founding of the Federal Reserve

 

The Future of Austrian Economics


 

 

How the Federal Reserve works. Part One

 

How the Federal Reserve works. Part Two

 

How the Federal Reserve works. Part Three

 

How the Federal Reserve works. Part Four

 

How the Federal Reserve works. Part Five

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 1/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 2/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 3/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 4/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 5/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 5/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 6/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 7/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 8/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 9/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 10/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 11/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 12/13

 

G. Edward Griffin in Austin, Texas 4/29/2008 – Part 13/13

 

 

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A New Political Party In The United States? American Citizens Alliance Party–ACAP On Government Spending, Taxes, Debt, and Regulations!

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Bailed Out Bank Trillion Dollar Derivative Exposure

The Mother of All Bailouts–2 to 3 Trillion Dollars–$2,000,000,000–$3,000,000,000!–Rewarding Greed, Arrogance and Stupidity–Pay for Play!

Federal Government Extortion Of Sound Banks–You Decide?–Take This TARP and Shove It!

The United States is Broke!–Chapter 11 Bankruptcy Time For GM and Ford Is Now!

 

 

This is a nightmare for those who value free, independent markets. And it might get worse yet. Interpreting these broad goals will be the job of federal regulators who may take the opportunity to impose even more draconian restrictions. …”

 

 

 

Some of those “causes,” according to this piece by Binyamin Appelbaum and David Cho of the Washington Post, are remarkable for the ideological basis on which they have been analyzed:

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Today’s Progressives–Obama’s Radical Socialist Democratic Party

Posted on June 12, 2009. Filed under: Blogroll, Economics, Employment, Law, liberty, Links, People, Philosophy, Politics, Quotations, Rants, Raves, Security, Taxes, Video, Wisdom | Tags: , , , , , , , , , , , , |

statute_liberty

“The progressives who today masquerade as liberals may rant against fascism; yet it is their policy that paves the way for Hitlerism.”

~Ludwig von Mises, Interventionism, page 88

 

Glenn Beck Exposes the Progressive Movements Fascist Agenda

 

Glenn Beck: 5/7, June 11

Glenn Beck: 6/7, June 11

Glenn Beck: 7/7, June 11

Glenn Beck…Bank of America (2)

Stop today’s progressives–the radical socialist Democratic Party before they wreck the US economy and destroy even more jobs!

Unemployment Rate Surges

Stop The Spending and Deficits

US Federal Government Deficits

federal_spending

Stop Spending Our Future – The Crisis

Daniel J. Mitchell – USA: Drowning In Debt?

Stop The Cap and Trade Carbon Dioxide Energy Tax

MAJOR REDUCTIONS IN CARBON EMISSIONS ARE NOT WORTH THE MONEY DEBATE: PETER HUBER

You are invited to attend a Tea Party on July 4, 2009, Independence Day!

 

Happy_July_4

Join the Second American Revolution

we_the_people

The Meaning of Independence Day

Ayn Rand Center for Individual Rights

Second American Revolution–Tea Party Celebrations–Washington Fair–July 4, 2009–An Open Invitation To The American People

American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009!

Independents Lead The The Second American Revolution Surge–Independence Day–Saturday July 4, 2009 In Washington D.C.–Tea Party Time–On To Washington–Dare You To Move!

Please Spread The Message of Liberty

liberty_bell1

Proclaim liberty throughout the land to all its inhabitants.”

 

Let Freedom Ring

 

 

Thomas Paine on to Washington

switchfoot-dare you to move(live)

God Bless the USA – Lee Greenwood

“There is simply no other choice than this: either to abstain from interference in the free play of the market, or to delegate the entire management of production and distribution to the government. Either capitalism or socialism: there exists no middle way.”

~Ludwig von Mises, Liberalism, page 79.

 

Background Articles and Videos

Progressivism

“…Progressivism is a political and social term that refers to ideologies and movements favoring or advocating progress, changes, improvement, or reform, as opposed to wishing to maintain things as they are.

In the United States, the term progressive emerged in the late 19th century into the 20th century in reference to a more general response to the vast changes brought by industrialization: an alternative to both the traditional conservative response to social and economic issues and to the various more radical streams of socialism and anarchism which opposed them. Political parties, such as the Progressive Party, organized at the start of the 20th century, and progressivism made great strides under American presidents Theodore Roosevelt, William H. Taft, Woodrow Wilson, Franklin Delano Roosevelt and Lyndon Baines Johnson.[1] …”

http://en.wikipedia.org/wiki/Progressivism

Progressive Era

“…The Progressive Era in the United States was a period of reform which lasted from the 1890s to the 1920s.[1]

Responding to the changes brought about by industrialization, [2] the Progressives advocated a wide range of economic, political, social, and moral reforms.[3] Initially the movement was successful at local level, and then it progressed to state and gradually national. Both the reformers and their opponents were predominantly members of the middle class.

Significant changes achieved at the national levels included the income tax with the Sixteenth Amendment, direct election of Senators with the Seventeenth Amendment, Prohibition with the Eighteenth Amendment, and women’s suffrage through the Nineteenth Amendment to the U.S. Constitution.

Muckrakers were journalists who exposed waste, corruption, and scandal in the highly influential new medium of national magazines, such as McClure’s. Progressives shared a common belief in the ability of science, technology and disinterested expertise to identify problems and come up with the best solution.

Progressives moved to enable the citizenry to rule more directly and circumvent political bosses; California, Wisconsin, and Oregon took the lead.[4] California governor Hiram Johnson established the initiative, referendum, and recall, viewing them as good influences for citizen participation against the historic influence of large corporations on state assembly.[5] About 16 states began using primary elections. Many cities set up municipal reference bureaus to study the budgets and administrative structures of local governments. In Illinois, Governor Frank Lowden undertook a major reorganization of state government.[6] In Wisconsin, the stronghold of Robert LaFollette, the Wisconsin Idea, used the state university as the source of ideas and expertise.[7] Characteristics of progressivism included a favorable attitude toward urban-industrial society, belief in mankind’s ability to improve the environment and conditions of life, belief in obligation to intervene in economic and social affairs, and a belief in the ability of experts and in efficiency of government intervention. …”

http://en.wikipedia.org/wiki/Progressive_Era

Liberal Fascism (1) — Jonah Goldberg ** UNEDITED **

 

Liberal Fascism (2) — Jonah Goldberg ** UNEDITED **

 

Liberal Fascism (3) — Jonah Goldberg ** UNEDITED **

 

Liberal Fascism (4) — Jonah Goldberg ** UNEDITED **

 

Liberal Fascism (5) — Jonah Goldberg ** UNEDITED **

 

Liberal Fascism Q-A (1)

 

Liberal Fascism Q-A (2)

 

Liberal Fascism Q-A (3)

 

The Next Progressive Era

The Progressive Era

George Soros and Acorn in the 2008 Elections

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The Second Breaking Wave of Mortgage Defaults–Alt+A and Option Arm Mortgages–Crashes US Economy!–Videos

Posted on February 23, 2009. Filed under: Blogroll, Economics, Education, Employment, Homes, Investments, Law, Links, People, Quotations, Regulations, Security, Taxes, Video | Tags: , , , , , |

The American people have as the song goes “Ain’t Seen Nothing Yet”!

Cash is king or more precisely hard assets or commodities are especially gold, silver, etc.

Buy guns and safes to protect them.

Unfortunately the third wave of mortgage defaults will be in commercial real estate and will shortly follow the second wave.

The greedy, arrogant, stupid bastards that got us into this mess are really beginning to make me mad including the political class in Washington who were their pals.

No more bailouts–on strike–shut it down.

A phrase even the radical socialists might even be able to understand.

Result: 18 month to 24 month recession, unemployment rate peaks at 15% in next 12 months.

Hang on to your job if you have one.

Great investment buying opportunity in real estate and eventually equities over the next 12 to 18 months.

For the long run buy commodities or raw materials.

Just wait awhile.

You ain’t seen nothing yet.

Jim Rogers has it completely right. My favorite video–three cheers!

Jim Rogers about Tim Geithner testimony 2009.02.11

 

When it comes to economics President Obama is an economic illiterate advised by a group of arrogant big government economists who think government intervention is the answer to the world’s economic problems–living in the 1930s with the same results.
 

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History of Housing Prices Chart – *SHOCKING* You Need To See This!

Count me out.

Join the second American Revolution and march on Washington July 4, 2009:

 

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This may be you last chance for a some time.

Time to take care of business and get out of Dodge.

Learn Chinese!

 

Bachman Turner Overdrive – You Ain’t Seen Nothing Yet

 

Alt+A and Option Arm Mortage Crises Yet to Come – MORE BANKER FRAUD (1 of 2)

 

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 Background Articles and Videos

Jim Rogers on the Asian Financial Forum pt 1/2 Jan 21 2009

 

Jim Rogers on the Asian Financial Forum pt 2/2 Jan 21 2009

 

Investment guru Jim Rogers

 

Jim Rogers : Teach your children Chinese !!!!!!!!

 

Richard Herring on Mortgage-backed Securities

 

Angry renters, unite!

By Michelle Malkin  

“…I want you to look at this chart, via AngryRenter.com. While ACORN and the housing entitlement mob get all the press, look who’s not getting attention.

Now, here’s some feedback in response to my appearance on FNC’s Neil Cavuto show this afternoon in support of renters (self included) who are getting the shaft from the housing entitlement-mongers: …”

http://michellemalkin.com/2009/02/19/angry-renters-unite/

 

Neil Cavuto shout down

 

 

The Federal Response to Home Mortgage Distress:

Lessons from the Great Depression

David C. Wheelock

“…The sharp increase in mortgage delinquencies and foreclosures during 2007 prompted numerous calls for government intervention in housing and mortgage markets, including the creation of an HOLC-like agency to purchase delinquent mortgages. The right of lenders to foreclose on collateral is themain reason why the interest rates on secured loans, such as home mortgages, are typically much lower than those on unsecured loans, such as credit card debt. Ordinarily, mortgage foreclosures receive little notice from the public because they have little impact on parties other than the delinquent borrower. However, when the number of foreclosures is high or concentrated geographically, they can lower property values, destabilize neighborhoods, and impose other social costs. Such “externalities” can justify government intervention to reduce the number of foreclosures. …”

 

 

 

 

http://research.stlouisfed.org/publications/review/08/05/Wheelock.pdf

 

 

 

 

New data analysis helps identify future foreclosure trouble spots

“…First, some background on the data we used. This background discussion includes a brief overview of two recent and related changes in the mortgage market: namely, mortgage securitization and the use of risk-based pricing for mortgage loans.

In the past, lenders originated, serviced, and owned their mortgages. However, in recent years, it has become more common to separate these functions. Typically, mortgages are now pooled and sold to secondary market investors, while the rights to service the loans are sold to a servicer, a firm that specializes in conducting this activity for a fee. The share of U.S. residential mortgage debt in a mortgage pool or trust has grown in the past decade. As of the second quarter of 2007, it accounted for 57 percent of total mortgage debt.1/

As the use of securitization expanded, lenders found that investors had a ready appetite for securities backed by nonprime (that is, subprime and alt-A) loans. By 2006, the number of nonprime mortgage originations increased substantially, accounting for 40 percent of all newly securitized mortgages, compared to only 9 percent in 2001.2/

In retrospect, it appears as though the chain of securitization failed to align the interests of mortgage originators, who earned fees by making loans, and investors in mortgage-backed securities, who ultimately bore the credit risk of the loans. Why investors did not exert sufficient oversight to ensure the quality of securitized mortgages is beyond the scope of this article.

The data used in our analysis capture a good deal of information about the simultaneous growth in and fusion of nonprime lending and mortgage securitization. In particular, the data include a sizable proportion of all loans sold into subprime or alt-A securities. As noted above, alt-A and subprime loans are considered riskier than prime loans and more prone to default. The risk is due mainly to quality and size considerations that make these loans “nonconforming” in the eyes of Fannie Mae and Freddie Mac.3/

Our understanding is that LP captures about 70 percent of subprime securities and 95 percent of alt-A securities. Still, it is important to remember that these data do not include any loans held on a bank’s books. The data used in this article are from October 2007. …”

http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=2453

 

The Rise in Mortgage Defaults

Chris Mayer, Karen Pence, and Shane M. Sherlund

“…The mortgage market began suffering serious problems in mid-2005. According to data from the Mortgage Bankers Association, the share of mortgage loans that were “seriously delinquent” (90 days or more past due or in the process of foreclosure) averaged 1.7 percent from 1979 to 2006, with a low of about 0.7 percent (in 1979) and a high of about 2.4 percent (in 2002). But by the second quarter of 2008, the share of seriously delinquent mortgages had surged to 4.5 percent. These delinquencies foreshadowed a sharp rise in foreclosures: roughly 1.2 million foreclosures were started in the first half of 2008, an increase of 79 percent from the 650,000 in the first half of 2007 (Federal Reserve estimates based on data from the Mortgage Bankers Association). No precise national data exist on what share of foreclosures that start are actually completed, but anecdotal evidence suggests that historically the proportion has been somewhat less than half (Cordell et al., 2008).

Mortgage defaults and delinquencies are particularly concentrated among borrowers whose mortgages are classified as “subprime” or “near-prime.” Some key players in the mortgage market group these two into a single category, which we will call “nonprime” lending. Although the categories are not rigidly defined, subprime loans are generally targeted to borrowers who have tarnished credit histories and little savings available for down payments. Near-prime mortgages are made to borrowers with more minor credit quality issues or borrowers who are unable or unwilling to provide full documentation of assets or income; some of these borrowers are investing in real estate rather than occupying the properties they purchase. Near-prime mortgages are often bundled into securities marketed as “Alt-A.” Since our data are based on the loans underlying such securities, we use the term “Alt-A” to refer to near-prime loans in the remainder of this paper. …”

“…Conclusions and Future Research

Slackened underwriting standards–manifested most dramatically by lenders allowing borrowers to forego downpayments entirely–combined with stagnant to falling house prices in many parts of the country appear to be the most immediate contributors to the rise in mortgage defaults. The surge in early payment defaults and the rise in the share of mortgages with low or no documentation suggest that underwriting also deteriorated along other dimensions. Because downpayments were so small, when house prices declined many borrowers had little or no equity in their properties and thus less incentive to repay their mortgages. In the industrial Midwest, economic distress was also a factor in the heightened defaults. Unorthodox mortgage features such as rate resets, prepayment penalties, or negative amortization provisions do not appear to be significant contributors to date to the defaults because borrowers who experienced problems with these provisions could refinance into other mortgages. However, as markets realized the extent of the poor underwriting and house prices began to fall, refinancing opportunites became more limited. Borrowers may not be able to resolve their problems with these products through refinancing going forward and thus may be forced to default. Our conclusions are consistent with other studies (Sherlund, 2008, Gerardi, Lehnert, Sherlund, and Willen, 2008, Gerardi, Shapiro, and Willen, 2007, Haughwout, Peach, and Tracy, 2008).

Our conclusions run counter to the popular perception that unorthodox mortgage features are responsible for the surge in defaults. At first glance, the fact that the most common subprime mortgage was a confusing and complicated product–a short-term hybrid with a prepayment penalty–and that delinquency rates were highest on these products suggest that the mortgage type itself must be to blame. We suggest instead that default rates were highest on these products because they were originated to the borrowers with the lowest credit scores and highest loan-to-value ratios. This interpretation raises the questions of why the riskiest borrowers were matched with the most complicated products, and whether it was borrowers, lenders, or both who misjudged the likelihood that borrowers would default. Did borrowers seek out this product because it offered the lowest initial payment and they were focused on short-term affordability? Or did lenders offer this product to borrowers because they thought that this combination of features allowed them to manage the risks of lending to borrowers with high probabilities of default?

News accounts often suggested that borrowers were steered into subprime adjustable-rate mortgages when they could have qualified for fixed-rate or prime mortgages (Brooks and Simon, 2007). Given the poor credit profiles of these borrowers and the high price of housing relative to their incomes, however, it seems more likely that in the absence of subprime adjustable-rate mortgages these borrowers would not have gotten credit at all. If so, several more questions spring to mind. First, were these borrowers better off for having the opportunity of home ownership when the possibility of failure was so high? Second, were the associated gains in the homeownership rate illusory, or will some of these gains be sustained? Finally, to what extent were house prices pushed up by the entrance of these new buyers into the market?

Alt-A mortgages pose a similar set of questions and issues. As with subprime mortgages, the complicated provisions of these mortgages do not appear to be responsible for the sharp rise in delinquencies. Very few of these mortgages are scheduled to “recast” before 2010, when their payments could potentially increase dramatically. But even more than subprime mortgages, these mortgages were originated to borrowers who may have been speculating on future house price appreciation. As these borrowers were somewhat better credit risks than borrowers with subprime mortgages, they tended to have lower combined loan-to-value ratios at origination and better credit scores. However, the areas where investors speculated most heavily on house price appreciation were also the areas that experienced the most severe house price declines. Although the initial equity cushion kept Alt-A mortgages from defaulting as quickly as subprime mortgages, default rates on Alt-A loans, and on option adjustable-rate mortgages in particular, began to skyrocket in 2007, about twelve months after the surge in subprime delinquencies. Going forward, the key question is whether house prices will decline enough so that borrowers with prime mortgages are also left with little or no equity and thus a higher chance of default.

Any government response to mortgage distress would entail some cost. For example, a government purchase of delinquent mortgages, or expanded federal mortgage guarantees or insurance, could impose a substantial monetary cost on taxpayers. Some policies, including a government bailout of delinquent loans or expanded loan guarantees, could also encourage increased financial risk-taking and thereby lead to further instability in the future. Other actions, such as a government-imposedmoratoriumon loan foreclosures, could simply delay inevitable adjustments that are necessary to restore the functioning of mortgage and housing markets. Such direct government intervention could also increase the cost of loans for future borrowers by encouraging lenders to add a premium to loan interest rates to compensate for the risk that government officials might re-write the terms of loan contracts.

34 …” 

http://www.federalreserve.gov/Pubs/feds/2008/200859/index.html

 

Crosby Stills & Nash – Teach Your Children

 

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President Barack Obama’s White House Press Conferences–Videos

Posted on February 16, 2009. Filed under: Blogroll, Economics, Education, Employment, Energy, Foreign Policy, Immigration, Law, Links, People, Philosophy, Politics, Rants, Raves, Regulations, Resources, Taxes, Video | Tags: , , , , , , , , , |

4/29/2009 Full Presidential Press Conference

3/24/09: 3/24/09: Presidential Press Conference

3/24/09: Presidential Press Conference Part 1

 

3/24/09: Presidential Press Conference Part 2

 

3/24/09: Presidential Press Conference Part 3

 

3/24/09: Presidential Press Conference Part 4


 

 

 

2/9/09: Presidential Press Conference

 

Background Articles and Videos

 

Thoughts on the Press Conference   [Mark Hemingway]

The Democratic Great Communicator Isn’t Always: As good as he is delivering a speech, Obama is not a good extemporaneous speaker. It’s been rare in his political career you get to see him doing both back to back and the contrast is stunning. The conference was, frankly, boring and long-winded. His answer to the first question was an unforgivably meandering and pointless 10 minutes.

Names Please: The President kept referencing people that believe in “doing nothing” as a response to the economic crisis. And this “tax cuts alone can’t solve our economic problems” business is nonsense. Congressional Republicans are far from closed to the idea of government spending as a fiscal stimulus — it’s the size and scope of the current bill they disagree with. Framing things as if the debate is doing something versus doing nothing is calculated political prestidigitation.

http://corner.nationalreview.com/post/?q=YjE4YTc2Y2Q2MzlkMWE4NzU0ZTk4MjRlMzUzMzIxOTk=

Tom Woods on Glenn Beck “Meltdown” 02/09/2009

 

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