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A look at the financial crisis

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A look at the financial crisis

Postby outdoorswoman » Tue Sep 30, 2008 9:07 am

Written by Jerry Teasley of Pine Mountain, GA former Banker


Most of my friends know, I have tried to stop thinking, but I can't help it
in the wake of all the recent economic news.


My banking career started in 1970 and ended in 1993, but I still keep close
ties to the industry. During my banking years I did learn one or two things
along the way. The problem with our economy today is from a liberal
thinking congress, senators, and presidents, as well as greed and
dishonesty. When you put these together it spells disaster in any area of
our life.


Ask any banker (just walk in and ask one that has been there for 15 or 20
years) and they will tell you these are the FACTS:


* Under Jimmy Carter we received the Community Reinvestment act. This
law says banks have to make loans in low income areas and it has forced many
lending institutions to seek to make loans to people in areas that lenders
would not normally go because of the risk and low property values. (Sub
Prime Loans). This was in 1977. In 1980 president Carter and a Democratic
controlled congress passed the Depository Institutions Deregulation and
Monetary Control Act-- The law also removed the power of the Federal Reserve
Board of Governors under the Glass-Steagall Act and Regulation to set the interest rates of
savings accounts. A Sad fact is we are all still feeling the effects of his
policies and decisions 30 years later.
<http://en.wikipedia.org/wiki/Glass-Steagall_Act
<http://en.wikipedia.org/wiki/Regulation_Q


* Then in 1995, Bill Clinton, (in between interns) made changes to the
Community Reinvestment Act, that forced an increase in the number of loans

to these people and the aggregate dollar amounts loaned.-- Larger loans to
people with less income in areas where the collateral value would go down
instead of up. (Clinton should have had his mind on the long range effects
of this instead of Monica and a good cigar.) This was in response to
pressure from "community organizer." Can you think of a former Community
organizer running for president? Hint - he's a Democrat


* In 1999 Mr. Clinton signed to repeal the Glass-Steagall act which
had protected taxpayers since the Great Depression.


* In 2003 President Bush tried to propose a change in regulatory
control over Freddie Mac and Fannie Mae and place both companies under the
control of the Department of the Treasury, but was voted down by the liberal
democrats led by Barney Frank. Remember the name Barney Frank, he is one of
Obama's top two economic advisors the other is Jim Johnson who

was the head of Freddie Mac and walked away with $24,000,000.


* Now, Mr. Obama and his liberal cronies are spinning the facts so you will

believe that all our financial problems are because of Bush's failed economic

policy. However, OBAMA'S two MOST TRUSTED ECONOMIC ADVISERS TO

HIS CAMPAIGN are the very people that were in control of Freddie Mac- Jim Johnson $24,000,000 and Fannie Mae - Franklin Raines $90,000,000 in 6 years).

In addition, since 1989 their have been several politicians who have received

campaign donations and kick backs from these two failed institutions. The #1 recipient is Senator Chris Dodd-D RI and the runner up is none other than Senator Barrack Obama who received the second largest amount of donations (over $500,000) which is phenomenal because he has only been in the Senate for 3 years.


When Enron went belly up, we demanded Senate hearings and investigations.
Why aren't the Democrats demanding the same with these companies?

But, oh yeah, I forgot. It is Bush's fault! (Yeah, Right, Sure it is).
Just ask a Banker.


I am Jerry Teasley, banker, and I approved this email.
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Re: A look at the financial crisis

Postby sawtooth » Tue Sep 30, 2008 9:18 am

Despite the absence of a bail out the Dow is up 200 points today currently.

Atleast it was an election year because it seemed that some of our elected officials listened to what the folks back home were saying.

Let the market correct itself. Let the banks who gave the money go bankrupt. Let the investors who bought the mortgages lose their money due to their own POOR decisions.

Time for the government to quit helping out everyone who makes poor choices.

Check out this site for more info.

http://www.opensecrets.org/
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Re: A look at the financial crisis

Postby Rube » Tue Sep 30, 2008 6:30 pm

I agree...the market will correct itself. It is one of the great things about a free market economy....especially when a free market economy is allowed to operate without unnecessary gov't regulations. If you can't afford it, well......you just can't afford it. It is not the duty of the government to provide every soul with things they can't afford.......but if they continue, I got a list of things I want...... :D
TEAM BUCK STOPPERS

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