Slog
News & ArtsSunday, January 10, 2010
Politics The Other Ticking Time Bomb
Posted by Christopher Frizzelle on Sun, Jan 10, 2010 at 2:27 PM
Yeah, yeah, you're sick of reading about how we need to reform Wall Street—that's why you need to read Frank Rich's column today. Your being sick of reading about this topic is a problem. "What we don’t know will hurt us, and quite possibly on a more devastating scale than any Qaeda attack," Rich writes.
1
Knowing this country's propensity for waiting until disaster strikes before we do what we knew we should have, don't hold your breath. When there is no political will and the forces of greed hold all the cards, including a corrupt Senate,
you can bet disaster will come. Greed has destroyed many a great civilisation. Since people never change, we can be no different unless the system can function as a stop gap. The American people must be made to realise it was the Republicans who gave us two of our great financial disasters and it will be the Republicans that will fight any meaningful change.
you can bet disaster will come. Greed has destroyed many a great civilisation. Since people never change, we can be no different unless the system can function as a stop gap. The American people must be made to realise it was the Republicans who gave us two of our great financial disasters and it will be the Republicans that will fight any meaningful change.
2
Yes well said Vince. This is all very obvious to the casual observer. But since so many Americans are more concerned with their "Idols" or fat people losing weight, or someone surviving something, they are not observing any thing of meaning happening in DC or NYC.
Bread and the Circus, it worked in ancient Rome and it's working as smoothly now.
Bread and the Circus, it worked in ancient Rome and it's working as smoothly now.
3
@2, no this our collapse. In the 5th century barbarians stormed the gates of Rome and 16 centuries later we fall to financial barbarians.
Like I've always said: why fight the collapse? Just sit back and enjoy the ride!! We're experiencing history in the making kids!!
Like I've always said: why fight the collapse? Just sit back and enjoy the ride!! We're experiencing history in the making kids!!
4
"why fight the collapse? Just sit back and enjoy the ride!!"
There is truth in that statement. I have been attempting to understand just who is going to absorb the massive and continuing losses we are experiencing in the unwinding of the U.S. housing market. You don't lose twenty to thirty percent of the value of perhaps your largest national asset without feeling some profound pain. Yet no one seems willing to either discuss or attempt to understand this fundemental problem. The Fed continues to backstop home loan mortgage backed securties, but regional banks are continuing to fail. I am of the opinion we'll continue to see regional banks continue to fail and I am unsure how long the Fed will backstop those mortgages. I believe they have already extended this once. At some point it will end. Then what? Whatever it is, I think the potential is there for the economy to become very ugly. We are really traveling in unknown territory.
There is truth in that statement. I have been attempting to understand just who is going to absorb the massive and continuing losses we are experiencing in the unwinding of the U.S. housing market. You don't lose twenty to thirty percent of the value of perhaps your largest national asset without feeling some profound pain. Yet no one seems willing to either discuss or attempt to understand this fundemental problem. The Fed continues to backstop home loan mortgage backed securties, but regional banks are continuing to fail. I am of the opinion we'll continue to see regional banks continue to fail and I am unsure how long the Fed will backstop those mortgages. I believe they have already extended this once. At some point it will end. Then what? Whatever it is, I think the potential is there for the economy to become very ugly. We are really traveling in unknown territory.
5
@4, and it's not just the housing market. Have you been paying attention to your 401K plan? And the best part? We're all sitting back enjoying it. Now excuse me, I'm going to finish watching one of the episodes of Star Trek TOS where Uhura sings to Kevin Reiley. *Nichelle Nichols: the unsung diva of the 60's*
6
I agree with Rich (and do so often).
A lot of these scandals were do to lack of enforcement of existing rules, not because of any political bent.
A beefed up SEC would go a long way to making things right.
I agree with Rich (and do so often).
A lot of these scandals were do to lack of enforcement of existing rules, not because of any political bent.
A beefed up SEC would go a long way to making things right.
7
Ok, so I care. I read this article, I get all fired up, I have a drink with my friends and expound on the subject. Maybe I write some e-mails - to my Senator, to the editor (wait, no I can't, there aren't any more newspapers) ... and so what? I'm not a financial-regulator type - there is absolutely nothing I can do about this other than keep voting for folks who keep saying they'll do something.
I really don't see the point. I'll read Frank Rich's article, and then I'll go find some pictures of cute animals with dumb captions to make myself feel better.
I really don't see the point. I'll read Frank Rich's article, and then I'll go find some pictures of cute animals with dumb captions to make myself feel better.
8
What happened to 401 K's was indeed ugly and tragic, however their values have improved since the March meltdown. This isn't the case for housing and the mortgage markets. Housing prices will only improve on an marginal and incremental basis, and the mortgage markets have all
but collasped. Very few people in this country save for retirement or have 401k's, and I suspect the losses in 401K's while prolific are substantially much less than the loses incurred and have yet to be realized residential mortgages. Those losses scare the crap out of me.
FWIW, I don't have a 401k. I invest in individual corporate stocks, municipal and corporate bonds. I was not immune to the loses when they occured back in March, however I have probably recovered better than most holders of 401k's. To be honest, I never put a lot of faith in 401k's, however I am aware some folks simply don;t have a choice.
What happened to 401 K's was indeed ugly and tragic, however their values have improved since the March meltdown. This isn't the case for housing and the mortgage markets. Housing prices will only improve on an marginal and incremental basis, and the mortgage markets have all
but collasped. Very few people in this country save for retirement or have 401k's, and I suspect the losses in 401K's while prolific are substantially much less than the loses incurred and have yet to be realized residential mortgages. Those losses scare the crap out of me.
FWIW, I don't have a 401k. I invest in individual corporate stocks, municipal and corporate bonds. I was not immune to the loses when they occured back in March, however I have probably recovered better than most holders of 401k's. To be honest, I never put a lot of faith in 401k's, however I am aware some folks simply don;t have a choice.
9
well fuck. here we have an issue made for democrats
we have a president elected on CHANGE esp. lobyists
here we have a president with incredible oratory skills and inspirational charisma
here we know what the fuck to do, fucking put back glass seagal, blah blah blah
here we have democratics about to lose 20 seats in congress....
and he can't be fucking bothered to stir some fucking populist anger and take advantage of it and tell the truth aboutthe GOP (anbd face it, some Dems like Dodd) regulatory meltdown
so what the FUCK did we elect him for,
to ensure wall street bonuses?
we have a president elected on CHANGE esp. lobyists
here we have a president with incredible oratory skills and inspirational charisma
here we know what the fuck to do, fucking put back glass seagal, blah blah blah
here we have democratics about to lose 20 seats in congress....
and he can't be fucking bothered to stir some fucking populist anger and take advantage of it and tell the truth aboutthe GOP (anbd face it, some Dems like Dodd) regulatory meltdown
so what the FUCK did we elect him for,
to ensure wall street bonuses?
10
#8
I have a 401k and I've earned back all the money it went down, but only by investing solely in small and midcap stocks.
#8
I have a 401k and I've earned back all the money it went down, but only by investing solely in small and midcap stocks.
11
"#8
I have a 401k and I've earned back all the money it went down, but only by investing solely in small and midcap stocks."
Excellent, Mrs. Smith! I supect you have also spread your risk in your investments, too.
Now, what are your thoughts in regard to my previously stated concerns about realizing the current and future losses in residential housing and its effects on the economy?
I have a 401k and I've earned back all the money it went down, but only by investing solely in small and midcap stocks."
Excellent, Mrs. Smith! I supect you have also spread your risk in your investments, too.
Now, what are your thoughts in regard to my previously stated concerns about realizing the current and future losses in residential housing and its effects on the economy?
13
What we need right now, as someone already stated, is more populist anger.
On that note, I just got a hot tip on pitchfork stocks and torch futures.
On that note, I just got a hot tip on pitchfork stocks and torch futures.
16
Have a gander at this chart. After having done so, would you claim thing's have turned around?
Another other ticking time bomb:
http://bp3.blogger.com/_pMscxxELHEg/RxzD…
Another other ticking time bomb:
http://bp3.blogger.com/_pMscxxELHEg/RxzD…
18
This topic was covered last Friday on Bill Moyer's Journal.
http://www.pbs.org/moyers/journal/010820…
http://www.pbs.org/moyers/journal/010820…
Advertisement
Most Commented on Slog
-
Hating People Doesn't Make Them Thinner by Jen Graves
-
Los Angeles Gay Bar Bans Bachelorette Parties Until Marriage Equality Is Attained by David Schmader
-
Fill in the Blank by Grant Brissey
-
This Reminds Me of the Great Calculator Scare of the Late '70s/Early '80s by David Schmader
-
Idiot Tries to Defend Bigoted Anti-Gay-Marriage Preacher on Anderson Cooper by Paul Constant
-
Six Moms with Too Much Time on Their Hands and a Shitty Website Decide to Fight Gay Superheroes by Paul Constant
-
Why Mayor McGinn's Wife Canceled Her Family's Seattle Times Subscription by Eli Sanders
-
What the Hell Is Wrong With Seattle's Pride Parade? by Dominic Holden
-
The Saturday Morning News by Unpaid Intern
-
NYC Man Ticketed for Not Riding in the Bike Lane by Jonathan Golob
RSS
Facebook
Twitter
Comments (18) RSS