5 Comments so far

1. kittyladyoregon March 14th, 2007 5:28 pm

   Henry Paulson probably does not remember that the Social Security tax was increased in the 1980’s in order to fund the baby boomers retirement. Everyone has paid this additional tax for over 20 years.
   Paulson is in lala land and hasn’t a clue, as GWB and Cheney et al do not have as to what an ordinary US citizen has to do just to keep food on the table, let alone health care and a roof over their heads.
   Now the gas prices are out of sight, but theose nabobs in their limos do not have to worry. Profits are high. The minimum wage is still stuck at $5.15 per hour. Of course the economy is terrific for them. Unfortunately, the other 99% do not find it so wonderful.

2. Gail March 14th, 2007 7:46 pm

   “Is this what Paulson means by, “the strongest economy in 32 years”?”

   Actually, what he really meant was that this is the strongest “trickle-up” economy in 32 years.

   “The current train wreck unfolding in the sub-prime lending sector provides a good preview as to what will happen to the entire credit-financed bubble economy when the funding dries up. Contrary to the self-serving rhetoric of Wall Street and housing industry shills, the entire mortgage sector is not insulated from sub- prime. In fact, sub-prime is just the tip of the credit iceberg. Beneath the surface lie similar problems in Alt-A and prime loans, where borrowers also relied on adjustable rate mortgages to purchase over-priced homes that they could not otherwise afford.” –by Peter Schiff,
   Euro Pacific Capital

   Guess who is going to pay for this train wreck?……the mortgage brokers who made fortunes from this anything-goes lending mania? Nay, not in a trickle-up economy where you have a Freddie-Mac government that covers ass for the corporate elite.

   “We The People”, the taxpayers of this nation will end up paying for this fiasco/scam as we did with the Savings and Loan Scandal. This one however could amount to trillions instead of billions.

   But here’s some good news from the Washington Post: “Massachusetts’ top securities regulator, Secretary of State William Galvin, said yesterday that he issued subpoenas to two Wall Street investment banks, UBS Securities and Bear Stearns, as part of a probe into whether the firms’ researchers ignored the mounting problems among subprime lenders.”

   It will be interesting to see what becomes of this investigation.

3. Lobo Gris March 15th, 2007 7:46 am

   While not getting into as much detail as I sometimes do about the root causes here is the truth about the economy. Mr Paulson, Bernacke and the rest of them have the same figures. They are all public, there is nothing secret about them.

   The economic collapse of the U.S. Our current account deficit is right around 4 trillion dollars, our trade deficit is quickly approaching 1 trillion dollars a year. Our total debt is alnmost 9 trillion dollars. We have a negative savings rate for the first time since the great depression. The money supply is being inflated by 11% a year with a GDP growth of between 2% and 3% The housing bubble is bursting. And guess what, our creditors are quickly becoming tired of lending money to what they see as an increasingly bad credit risk. What does all this mean to us, the average American? We are going to get hit with a double whammy. When our creditors, China and the other foreign nations that hold the majority of our debt, decide enough is enough and decide to quit lending it is likely that the dollar will be devalued and will be replaced as the worlds standard currency, probably by the Euro. Now a devalued dollar wouldn’t necessarily be all bad because it would make exports cheaper and increase employment, except for the fact that we have been de-industrialized and don’t make anything to export anymore. In addition with a devalued currency all those cheap imported goods will suddenly become much more expensive. Then for the second part of the double whammy, anytime the money supply is overinflated to the extent it is now it always without fail leads to inflation. Inflation that will further reduce buying power because each dollar will be worth less. The end result? A much reduced standard of living for the majority of Americans. The people that have become rich because of this betrayal excepted.

   Lobo Gris

4. bnxokipecoxu December 12th, 2007 10:53 am

   tithocypesina…

   extivoponewy…

5. bnwazecezaxi January 1st, 2008 12:51 pm

   tithatowowipe…

   exkunawytaci…

Join the discussion:

You must be logged in to post a comment. If you haven't registered yet, click here to register. (It's quick, easy and free. And we won't give your email address to anyone.)