http://news.yahoo.com/s/ap/20080403/ap_on_bi_go_ec_fi/economy

The sky might not be falling, yet, but the economy is NOT the picture of health you want it to be. But just keep whistling past that graveyard and HOPE the economy doesnt get worse before November. But it will, ’cause I think bushco is out of short term fixes…

rant off/

Bubbles happen.

What was wrong was the fear of litigation was very high, when loans to lower income groups were being evaluated.

“Williams, who took over the reins of Clinton’s campaign in early February, served as a director on the board of the Woodbury, N.Y.-based Delta Financial Corp. from April 2000 until the firm declared bankruptcy in December, according to Securities and Exchange Commission records.

She was originally recruited by former New York City Deputy Mayor Bill Lynch, a Delta consultant. Her assignments were to create a new code of “best practices,” and to improve the company’s crisis management operation in the wake of state and federal predatory lending probes that resulted in a $12 million payout to borrowers.

Her hiring coincided with stepped-up Delta outreach efforts in minority communities, where the company made a large number of its loans, an initiative that included parties for homeless children and mortgage seminars in Brooklyn and Queens.

Williams, 53, isn’t the only Clinton insider who made money from an industry the candidate has demonized. A month ago, The Wall Street Journal reported that Clinton ally and former HUD secretary Henry Cisneros grossed more than $5 million in stock sales and board compensation from Countrywide Financial, one of the nation’s largest subprime lenders.”

http://www.electiongeek.com/blog/2008/03/30/clintons-campaign-director-maggie-williams-was-director-for-failed-sub-prime-lender/

I only say that you are a chicken little, and that the sky is NOT falling.

There are many factors contributing to the “housing bubble” — interest rates are a factor, yes.

However, so is the deductability of home mortgage interest, which I support by the way.

Mostly, however, I have to focus on the fact that the vast majority of mortgages are in very good shape, and that the financial problems were with the multiple layers of leverage against many of the loans that did go bad.

And as for your shot at Bush?

You are a typical partisan.

Everything bad that happens is the fault of George Bush.

Everything good that happens is just pure luck?

Lower tax rates, lower capital gains rates, no terrorist attacks since 9-11 — all of these things have helped the economy.

But, I admit, I am from the school that sees the President as a “bit player” in economic matters.

The President is a player, where the economy is concerned, but a small player, in relative terms.

What did bush the lesser have to do with any employment gains. Greenspan let interest rates stay low and created a debt bubble in housing. But you knew that already. THe bubble fueled real estate construction all the little goodies needed to fill up the mcmansions that twits like you can’t really afford. Have a nice day.

And yes grain prices are high, but so are inputs like fertilizer and fuel. And the weather hasnt been very kind, and the crop isnt even out of the field yet for this year.

Economic jewel? hehehehehehehehehehehehehehheheheheh.

I guess that is why we have to PAY Cessna to stay here?

Most of the Bear Stearns problem was due to a “run” — market panic, irrational actions of people who were affraid.

Without that fear in the market, Bear Stearns would have survived on its own.

If Bear had gone under?

1.) SIPC insurance would kick in, to “insure delivery” of securities in billions of stock and bond “street name” certificates held by Bear Stearns. Still, the ability of Bear Stearns clients to access those certificates, in everything from Pepsico to Boeing to Kansas Turnpike bonds would have been an open question. How long would it take for regulators to take over and allow an orderly transfer of brokerage accounts away from Bear Stearns?
2.) Municipal financing is a HUGE part of Bear Stearns business. Not just 30 year muni bond underwriting, but also short term, municipal money market type financing. As stated before, Bear Stearns brokerage accounts, held in the name of “innoncent” investors, who had NOTHING to do with the mortgage business, also would hold Muni Bonds.
3.) If Bear Stearns had failed, and people had trouble accessing their stock and bond accounts, and municipalities who were expecting financing were stranded, and massive layoffs began to happen, and fears about brokerage accounts in general infected the markets? — Well, every brokerage firm in the NATION would soon experience a mad panic, a “run” would spread to many different financial firms.

Yes, the Federal Government did an excellent job where Bear Stearns is concerned.

JP Morgan is responsible for paying back the Fed on the Bear Stearns deal.

Annie Moose

You are a chicken little and highly partisan. Did you give Bush any compliments at all, when we went through 52 consectutive months of rising employment?

Why?

We are going through a DEMOGRAPHIC change. Society is getting older. The boomers are hitting retirement age.
These demographic shifts, more than anything else, explain what we are going through right now.
The “peak home buying years” are behind most of the boombers.
The “peak investing years” are behind most the boomers.
The “peak spending years” are behind most of the boomers.

The peak?
In all catagories, it is ages 45 to 50.

Of course, with people living longer, and with immigration, we have other variables to consider.

However, the “birth dearth” happened after the post WW2 baby boom. We have very few people entering these peak economic patterns.

“Its not your Father’s retirement” says the American Express advertising.

I agree to a point.

But some adjustments had to come.

The markets are simply adjusting to changing demographics and changing economic needs.

And, again, real estate is correcting from a “bubble” that can not be blamed on any one person or party.

And, the Federal Government is now looking at a broader role over what used to be, almost exclusively, a state matter: The financing, appraisal, sale and transfer of real estate.

Wall Street starts to rebound yesterday and what happens - Bernanke shoots down the economy so we cry -alas, alas the sky must be falling.

Don’t be manipulated by the MSM in this election cycle. The numbers don’t support recession. The economy has slowed down, it will rebound it always has and as long as our elected officials don’t hit us with higher taxes on individuals and corporations it always will.

You surely don’t let logic get in the way of your arguments. Imports are getting costlier, duh, I know that from paying gas at the pump, and my heating bill, and other expenses that are higher because of freight charges. And lower interest rate from FED has not changed my interest rate either. Dollar is the weakest in that thirty years. Even Canadian dollar is worth more than one US Dollar (used to be worth 62 cents, not too long ago.)

And your logic is that Whitewater deal, (less than $200,000) where Repblicons (spelling not in-correct) spent $50 millions to investigate (and found nothing against Hillary) comapres to $30 billion dollar FED bailout to corporate America?

Today, Ben Bernake confessed in front of Congress that Fed Reserve may not have proper collateral against the loan it gave to JP Morgan. Fed has not properly valued all complex assets in Bear Stern books that it used as collateral. So if valautions are wrong, down goes tax payer money. And yet you conclude that tax payers will get this loan money back? How? Are you looking at the same crystal ball that showed WMDs in Iraq to Bush and Cheney?

Logic is not very strong point with you.

And tell me, where does $1 Billion per day war in Iraq figure in your calcualtions?

not-econ101

Impeach Bush

Don’t be fooled by the relatively low 4.8% unemployment rate. Other measures, such as the number of people only working part-time, are a sign of recession.

http://money.cnn.com/2008/04/02/news/economy/jobs_outlook/index.htm?postversion=2008040208

Please explain why……

I don’t think any ’save our souls’ program will work until we address this. Economics are economics - that doesn’t change. What changes is the way the news media reports the financial picture and the ‘chicken little’ speeches we hear daily.

Will this ‘recession’ never end?

Area’s unemployment rate dips in February
BY DAN VOORHIS
The Wichita Eagle
The Wichita area had an unemployment rate of 3.8 percent in February, according to the federal Bureau of Labor Statistics, down from 4.3 percent in January and 4.5 percent in February 2007.

The national unemployment rate was 5.2 percent, up from 4.9 percent in January.

The numbers were not seasonally adjusted.

You are very well versed in neoclassical economics. I applaud your efforts. I hope you understand that everything you have been taught about Econ is based upon us living under the Federal Reserve and us being consumers till we die.

I always enjoy you repeating the same tired rhetoric from Economics classes I took in college. I think it would behoove you to learn free market economics. You may see that what we have now in America is far from free. How can you be free, if you don’t have a free market? It’s impossible.

Go to http://www.misesdotorg if you really want to learn real economics for free citizens.

And if it was a loan, what is the loan interest rate? Will I be getting a check back any time soon?

Like the $1,200 economic incentive rebate I don’t need and do not want (but will not give back to the treasury to pay off the national debt). It will allow me to reduce my dollar cost averaging of my Roth IRA catchup contribution and instead make a onetime lump sump deposit. Since I’m not getting it until late in the year I wouldn’t have helped “grow the economy” anyway.

Econ says,

“However, “Bear Stearns” was not, really, “bailed out””

Kinda of like she’s just a little pregnant.

The low dollar is actually INCREASING exports.

The low dollar is actually DECREASING imports.

These things have a way of correcting themselves.

The Fed and the Treasury Department are BOTH doing a super job, dealing with this problem.

It is a problem with many, many causes.

Illegal activity will be uncovered, no doubt. But illegal activity did not cause the problem.

The economy has transfered the mortgage financing business from local firms to Wall Street.

However, the regulation of mortgages and the regulation of real estate sales and real estate appraisal ahs remainded, primarily, a state and local function.

It is time for the regulatory systems to modernize.

That is what the Bush administration is trying to do.

Bear Stearns stock used to trade at near $170.00 per share.

At most, shareholders will get about $10.00 per share.

And, them money was LOANED to Morgan to by Bear Stearns.

Here’s a couple of linkies to the “mcmansion problem”.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/03/15/BU7NVIT2O.DTL

http://www.huffingtonpost.com/2007/08/07/mortgage-crisis-hits-wide_n_59450.html

And before you start whining about huffpo, it’s a REPRINT from the Wall Street Journal.