Recently I read an article in the Wall Street Journal where Citigroup Inc., Robert Rubin said, that this economic crisis we find ourselves in could not have been predicted or prepared for.
“Nobody was prepared for this,” Mr. Rubin said in an interview. He cited former Federal Reserve Chairman Alan Greenspan as another example of someone whose reputation has been unfairly damaged by the crisis.
All I can say is BS! And if he is being honest, Citicorp deserves to go under.
The last time we find ourselves in the same type of mess was the 80’s under Reagan & GHW Bush! It involved the SAME variable rate mortgages. Only this time it involved the Savings & Loans Industry which it took down with it.
It also involved large tax cuts for the rich, a reduction in capital gains taxes and the same trickle down economics that the current administration has perpetuated for the past 8 years.
Ironically, GW Bush’s first business failure in the way of a failed Savings & Loan happened during this same period. So you would think that he would have learned something.
Actually there isn’t much difference between what happened then and now. The main difference today is that these highly risky mortgages were snapped up by mainstream banks, retirement funds, and various other financial organizations.
People say that the people who got these mortgages should not have gotten them in the first place. Balderdash. It just shows they don’t understand what happened in the first place. In fact the housing boom was one of the industries that was actually growing our economy.
Most of the people with these mortgages were doing just fine. They were making their mortgage payment on time thinking everthing economically speaking was fine. That’s what people get for not paying attention. Because the economy has not been fine for quite some time.
The problem occurred when the economic problems started showing up and as a result interest rates increased thereby increasing these mortgage rates. All of a sudden people found themselves with mortgage payments that were double or triple what they had been paying and they could not keep up.
The Bush Administration has been lying about the economy for years. They report certain economic numbers which are not accurate but sound good. Then they come back months later and revise these numbers. Information that never makes it onto the front page or the MSM reports on. Instead it gets buried. All of this just to artificially prop up the stock market so the rich can get richer.
In fact, they actually weakened the lending rules before this whole house of cards came tumbling down.
“Expect fallout, expect foreclosures, expect horror stories,” California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.
People seem surprised that the Manufacturing index drops to 26-year low. Why? If they had been paying attention, they would know that manufacting jobs have been going overseas for years. In fact the only new jobs that have been created have been in the service sector. That’s retail sales, waitresses, etc. Really good job for someone to pay back that overpriced degree that they took out a student loan for.
Yes, all this was terribly predicatable. In fact, there were some of us that predicted this very result when GW Bush took over the White House. Because when a Bush resides in Washington, the rich get richer, the poor get poorer and the middle class has to foot the bill. Remember that in 4 years when Jeb Bush runs for POTUS.
Will we learn this time? Can we demand that Congress makes these variable rate mortgages illegal so we don’t have to go through this cycle a third time? Can we demand that our government gives us the truth about the economy instead of the bait and switch numbers they have been reporting? Can we demand accountability from the MSM in their reporting? And mostly can we pay attention and take some responsibility for what’s going on in our country instead of eating and drinking and pretending like everything’s okay and there is no tomorrow?
Our government is suppose to be of the people, by the people and for the people. It can’t be or won’t be if we don’t participate and hold others accountable. To just keep changing faces will not be enough if we don’t do our part.