The financial crisis in the US cannot be laid at the feet of the Republicans. The decision to go to war, a big drain on the US, was backed by the Democrats as well, while the melt down of the financial sector is a worldwide phenomenon, of which the sub-prime loans are but an extreme expression
All the major industrialized nations are in the same position: record government and personnel debt, job losses, the slashing of wages and conditions and the destruction of the manufacturing sector that has moved offshore in search of cheap labor. The build up of debt commenced in the 80’s, by the 2003 the US made the decision to go to war to secure the resources of the Middle East to offset the financial slide. The Bush administration is responsible for heinous crimes against humanity, but they are not responsible for a systematic global financial meltdown (although they are doing nothing to help those most in need). On Sep 9, 7:29 am, VT Sean Lewis <[EMAIL PROTECTED]> wrote: > Republicans and McCain if things are going so well, > why the $5 Trillion Freddie Mac and Fannie Mae Bailout? > > The tax cuts should have gone to the middle class, > not the richest Americans. It is very clear that trickle down > did not work. > > It is very clear it is the American middle class who need the > help. > > It is very clear that after 6 years of the Bush Tax cuts the > 11 Million jobs and the prosperity Bush Promised these tax > cuts would bring never happened. > > The bottom line is that the Americans who will have to PAY > for this bailout will be the MIDDLE CLASS, because the > Republicans want to make the Tax Cuts to the Rich Permanent. > > Is this the change McCain talks about, because he supports > the Bush Tax cuts. > > Fannie, Freddie deal helps some borrowers, not all By J.W. > ELPHINSTONE, AP Business Writer > Mon Sep 8, 1:27 PM ET > > The government's historic bailout of Fannie Mae and Freddie Mac on > Sunday will be good news to homebuyers and some homeowners hoping to > refinance if it leads to lower mortgage rates, as experts expect. > > But for homeowners already behind on their mortgage payments, or who > owe more than their homes are now worth, the plan unveiled Sunday by > Treasury Secretary Henry Paulson offers little in the way of extra > relief. > > "The bailout will give the mortgage industry a stability that we > haven't had in a couple of years," said Rich Cosner, president of > Prudential California Realty. "But frankly no, it won't help > (struggling borrowers) to refinance." > > Fannie Mae and Freddie Mac play a critical and increasingly dominant > role in the mortgage market. The companies buy mortgage loans from > banks and package those loans into securities that they either hold or > sell to U.S. and foreign investors. That allows traditional lenders > like Bank of America, Wells Fargo and Washington Mutual to make more > loans. > > Together, Fannie and Freddie own or guarantee about $5 trillion in > home loans, about half the nation's total. But an alarming number of > those loans started going into default, draining the companies' > financial reserves and sending a chill through credit markets > worldwide. As investors grew more skittish, borrowing costs started > rising. > > By placing Fannie and Freddie into a conservatorship, the government > is promising investors that the companies' debt is as safe as the > Treasury Department's. > > While not a cure-all, the bailout is still a step in the right > direction, industry observers say. It will at least "keep the lanes in > the mortgage freeway open," said Greg McBride, a senior financial > analyst at Bankrate.com, possibly putting the market on the road to > recovery. > > If mortgage rates fall, that will attract more potential buyers into > the market, which, in turn, will help to prop up home prices, he said. --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
