April 16, 2009
Professor Obama sums up the Great Housing Bubble and PANIC of 2001 - 2009 in 49 minutes
I hope even you haters watch this speech. But of course, you won't.
For the rest of you, the ones with brains, enjoy the speech. A perfect summation of what happened, how it happened, what happened after it happened, and what's happening.
The only part he left out was naming an Independent Special Prosecutor, rounding up the guilty and seeing Mozilo hauled off to jail. He better be working on that one.
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By the time he realizes he needs to start rounding up the Mozilos it will be too late. He doesn't realize he would own this country for the next 8 years if he would just round up all the fraudsters and march them straight to Guantanamo. The masses will only become more restless and we want to see heads in the guillotine.
Us haters have heard the speech. The only problem with this "brilliant" speech is that Obama is doing exactly what he needs to do to make all of these problems WORSE!!
He speaks well, he says all the right things but it is his ACTIONS that are the problem!!
Readership we can believe in!
that teleprompter is amazing.
I heard the speech. And, despite voting for da udder guy, I though the speech was great. Covered most of what we've outlined on the various bubble blogs since 2005.
Too bad the speech is just a bunch of words, and not reflective of actual policy, which seems to be heading the opposite ways.
Watch, oh mortals, for the perils of the charismatic speaker.
from Ben's HBB:
Is the US Russia? The question seems provocative, if not outrageous. Yet the person asking it is Simon Johnson, former chief economist at the International Monetary Fund and a professor at the Sloan School of Management at the Massachusetts Institute of Technology. In an article in the May issue of the Atlantic Monthly, Prof Johnson compares the hold of the “financial oligarchy” over US policy with that of business elites in emerging countries. Do such comparisons make sense? The answer is Yes, but only up to a point.
“In its depth and suddenness,” argues Prof Johnson, “the US economic and financial crisis is shockingly reminiscent of moments we have recently seen in emerging markets.” The similarity is evident: large inflows of foreign capital; torrid credit growth; excessive leverage; bubbles in asset prices, particularly property; and, finally, asset-price collapses and financial catastrophe.
“But,” adds Prof Johnson, “there’s a deeper and more disturbing similarity: elite business interests – financiers, in the case of the US – played a central role in creating the crisis, making ever-larger gambles, with the implicit backing of the government, until the inevitable collapse.” Moreover, “the great wealth that the financial sector created and concentrated gave bankers enormous political weight.”
Now, argues Prof Johnson, the weight of the financial sector is preventing resolution of the crisis. Banks “do not want to recognise the full extent of their losses, because that would likely expose them as insolvent … This behaviour is corrosive: unhealthy banks either do not lend (hoarding money to shore up reserves) or they make desperate gambles on high-risk loans and investments that could pay off big, but probably won’t pay off at all. In either case, the economy suffers further, and, as it does, bank assets themselves continue to deteriorate – creating a highly destructive cycle.”
You may be a true believer.
I am not.
Obama's just talking out of both sides of his mouth.
For a supposedly clued up guy who KNOWS what the problems are, WTF is he doing the opposite.
Hah, what a lot of flannel, saying the banks lending money to people who can't afford the loans and now telling everyone to go out and borrow.
Hey, I got news for you, Mr Dumbnuts, why don't you TELL the banks to continue to LEND to those who CAN'T afford to repay the loans they have already got.
Pssssssst..... There are a lot more bankrupts around too, why don't you tell the banks to lend to them too.
They can use the new loans to pay off the old loans.
LOL
edenz
Sounds like Obama's speech writer has been reading the housing panic archives.
Plagierism!
RayNLA
Don't Tax Me Bro!
RayNLA
Who cares if he knows the problem.
Does any one believe that his stimulus plan will be productive?
Does any one outside of DC and Wall Street think that the FED/Treasury's plan of bailing out banks is anything but a scam.
keith, we're not haters; he talked about cutting government debt and he's drinking kool-aide since his administration is borrowing millions.
he's a great cheerleader but we need players.
if he actually believes what he says his policies would be different.
that's my rational conclusion to the speech.
Of course, the stimulus plan is working.
Ben Bernanke saw some new shoots.
Or was it weeds ?
And the Prez thinks there may be some pitfalls ahead although he is optimistic.
Its OK man, just throw another few trillions and that will solve the problem.
Remember universal healthcare coverage ?
Heh heh, the Messiah misread the teleprompter, what he meant was universal wealthcare coverage for the banks!
edenz
So we're gonna solve the problem of an orgy of wreckless borrowing and spending with......even more borrowing and spending?????
Are you on crack, Keith?
"The only part he left out was naming an Independent Special Prosecutor, rounding up the guilty and seeing Mozilo hauled off to jail. He better be working on that one."
He's not working on it. He's one of them, the elites. Rounding up the criminals who caused this mess would help restore confidence, but it won't happen.
You also forget that the banksters and the REIC broke a lot of state laws, and guess what, no one's being prosecuted at the state level either. Both GOP and Dem attorney generals across the country are responsible.
He conveniently left out another part Keith, the end game that has played out under his Treasury Secretary. This is where BAC, Goldman, WFC, and others were paid twice as AIG collapsed. Yes, these assholes had puts on AIG along with the "insurance" they purchased from AIG for billions in swaps. When AIG was bailed out by Treasury, they collected on the insurance and made additional billions on their short positions. Now they are reporting "record earnings" - LOL - of course they are, they looted the U.S. Treasury to get them!
Mr. Smart Guy, the one who can read a t-prompter like nobody else, seems to have missed this plunder and pillage scheme. Guess he's not so smart after all.
Yes, he sums up what happened, then he says we need to get credit flowing again. He is either retarded or corrupt.
Paralysis of analysis is how I sum up his detailed and eloquent lecture. Like many academics, Obama tends to equate knowing with doing. Anyone who has ever started a business or served in the military understands that actions speak louder than words.
My daughter, a freshman in college, voted for Obama. We had dinner with her recently and I asked her if she still thinks her vote was the right choice. Her reply? "Dad, he's trying to fix things, but it doesn't seem like he knows what to do".
Knowing the problem is not the same as dealing with the problem.
I think you are missing that he leaves out his own culpability in the bubble: as a community activist pushing loans for low income folks who never should have had them and supporting ACORN in its extortion of banks and Congress.
BO's an empty suit.
I like the guy, he's very personable. But he's only just learning how the financial markets work. You'll know he's figured it out for himself when he calls Geithner into his office and asks him what the hell kind of advice he has been giving him. I think he wants to do the right thing. I just dont think he knows what it is yet. And while he learns on the job the fraud and looting of our banking system will continue.
2001-2009????
It ain't fixed yet, I think you need to move that right side number out a ways 5-10 years maybe.
You really have become a Kool-Aid drinker...
Where's the rage? That's right we are all about making it all better. Watch the pretty speech. A little bactine, a kiss on the boo boo, now run along...
I'm more and more tending to side with people who think this is all a massive conspiracy by TPTB - Bilderbergers, those guys in the owl cult in California, Illuminati, whatever you want to call them - the oligarchs, plutocrats - whoever is pulling this massive scheme to grab all of the world's wealth. Lex Luthor? I don't know who is responsible for all of this, but the following chain of events stinks to high heaven:
- Repeal of Glass-Steagal
- Deregulation of banks/ accounting rules
- The "Ownership Society"/ relaxing of lending standards
- MSM touting house flipping/ fueling the real estate bubble
- GS & co hedging their bets that the bubble would burst and succeeding wildly, then taking government money to the tune of billions for "bailouts" because they were "too big to fail"
What next? Who do we blame for this? It seems that it's not a Democrat or Republican issue, but the fact that both sides are corrupt through and through, and our elected representatives have screwed the masses so that they could be placed and kept in power thanks to those that control MSM, big campaign contributions, lobbyists, etc.
Should I buy shares in Alcoa now, because the tin-foil hat people have been right all along?
It's fucking crazy!
Economic Law > Hope
.
I dont care if he gets what happened, he is making it so much worse. When youre paying $5 gas next year, tis because of what he is doing NOW!
testing, testing
The independent special prosecutor should be Elizabeth Warren.
http://tinyurl.com/d2lbt9
I swear to God the sun shines out this woman's ass.
She is brilliant yet understandable and actually, at times, kinda funny on this John Stewart clip.
I'm telling you Elizabeth Warren is truly special. Obama is not this special even in his wildest dreams.
Okay, I listened to half of it.
Obama is very well-meaning. And it takes a pretty smart person to understand and summarize the elaborate Keynesian view of economic crises and the Great Depression. But Keynesians are still wrong.
Check out Murray Rothbard's "The Panic of 1819". Obama states that history has shown that crises are extended when governments fail to react early and decisively to get credit flowing again. Wrong.
Continuing to extend credit to unprofitable ventures (like housing development, pets.com, etc) prevents the necessary correction of capital misallocations.
As I have said before, Obama is a smart guy but he is operating from a fundamentally flawed intellectual framework. Too much borrowing and lending was the problem. Obama said so himself. So how can it also be the solution? It just can't.
Yesterday my wife found out that I had been having an 8 year affair with my neighbor. She was mad and was about to leave me. After carefully choosing my words, (I knew this day would come) I told her it would be a bad choice to leave me. I told her our love was too big to fail. I also said that it would get better if we kept trying to make it work. Finally after a few moments of silence, I told her the only solution to my adultery was for me to commit more adultery. She said that she had never thought of it that way and promised never to threaten to leave me again... Well talk to you guys later--- gotta go screw my other neighbor!!!!
He's basically saying we need to get people borrowing again, which is crazy. The people are taking a break from spending (borrowing) so the gov't is filling in for a little while and by giving a the banks a dollar, they can create almost ten times that (inflation).
And what exactly do the other countries buy from us?
Not only is he full of it, his purple lips freak me out.
What next? Who do we blame for this?The cap-and-trade/global warming Ponzi scheme is what's next. Have you noticed that they're pushing this like crazy? EPA just made the announcement today. Simple way to transfer more taxpayer money into the NWO coffers in Europe.
No wonder bankrupt UK is begging for this scam to pass in the US. The UK has been predatory throughout its history (i.e., India, Africa, Caribbean, the US) and they still want to live off America. Europeans are leeches (Germany is the exception). And if you think that the Fed was secretive about our money and its affairs, you have seen nothing yet with the carbon tax heist. You will never see where that money goes; it'll disappear in Europe, like most of the bailouts to AIG.
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