Nancy Pelosi: Reckless Republicans are to blame for this economic catastrophe
Wednesday, 1 October 2008
When was the last time anyone ever asked you for $700 billion?
It's a staggering number. But only a part of the cost of the failed Bush economic policies to our country. Policies that were built on budget recklessness. When President Bush took office, he inherited President Clinton's surpluses – four years in a row, budget surpluses, on a trajectory of $5.6 trillion in surplus. And with his reckless economic policies, within two years, he had turned that around.
And now eight years later, the foundation of that fiscal irresponsibility, combined with an anything-goes economic policy, has taken us to where we are today.
[Republicans] claim to be free market advocates, when it's really an anything-goes mentality. No regulation, no supervision, no discipline. And if you fail, you have a golden parachute, and the taxpayer bails you out.
Those days are over. The party is over in that respect. Democrats believe in a free market. We know that it can create jobs, it can create wealth. But in this case, in its unbridled form, as encouraged by the Republicans – some in the Republican Party, not all – it has created not jobs, not capital, it has created chaos.
Let's get this straight. We have a situation where on Wall Street people are flying high, they are making unconscionable amounts of money. They make a lot of money, they privatise the gain; the minute things go tough, they nationalise the risk. They get a golden parachute as they drive their firm into the ground, and the American people have to pick up the tab. Something is very, very wrong with this picture.
But it just comes down to one simple thing. They have described a precipice. We are on the brink of doing something that might pull us back from that precipice. This is a bipartisan initiative that we are bringing to the floor. We have to have a bipartisan vote on this. That is the only message that will send a message of confidence to the markets. I know that we will be able to live up to our side of the bargain. I hope the Republicans will, too... And before long we will have a new Congress, a new president of the United States, and we will be able to take our country in a new direction.
Nancy Pelosi, Speaker of the US House of Representatives, was speaking before the bailout vote on Monday
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Looks like some Turkeys are stupid enough to vote for Christmas.
Posted by PrettyPolly | 01.10.08, 22:03 GMT
Pelosi saying the fault is the Republicans is the most ridiculas lie. What's funny is there's a youtube video of Republicans trying to regulate Fannie and Freddie years ago and the Democrates fighting it both emotionally and unintelligently. In this video Maxine Waters, a Democrat, is saying there is no problem with Fannie Mae and Freddie Mac.
People watch this youtube video and send it to all your friends. Let everybody know who is to blame for this govt. intrusion into the market place. Govt. said we will buy/guarantee all your subprime loans. The lending institutions went wild until the debt was too much.
The powers that be are not allowing me to post the youtube video so please please go to youtube and type in Fannie Mae and Freddie Mac hearings or something. Find the video and you'll see for yourself.
Posted by turkey | 01.10.08, 18:15 GMT
Actually this all started the day someone said let's invent a credit card. Since that day we have been educated and manipulated by banks, Governments and our own human nature to take an advance on our earnings and consume. Every government since the advent of "The Tick" economy has taken advantage of the taxation benefits, spent the proceeds and left the hangover to the future generation. Our time is up and the party is over. Over the years we have modified ways of selling these products, introduced better ways to entice us to spend, broadend the church of materialism. It has infected every aspect of our lives and we judge our worth on how much we can consume. We are now entering into a spiral of decline which simply will make us readdress our way of life. Anybody who thinks that this is the fault of one politician or one bank needs to wake up. Governments are going to fail finacially, Ireland may have just written its own death sentence with that guarantee. Challenging times.
Posted by James C | 01.10.08, 14:11 GMT
Actually, it was Bill Clinton who - from 1994 to 2000 - leaned on Fannie Mae to buy sub-prime loans. (See: "Minorities’ Home Ownership Booms" from the Los Angles Times of May 31, 1999 and "Fannie Mae Eases Credit" from the New York Times of 30 Sept, 1999)
The second article warns that, if there is a downturn in the economy, "the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry."
As one wag said: "What, you mean I CAN'T borrow my way out of debt?" It sounds like this wag might have been someone the Bush administration, but there is no evidence of that.
Posted by James | 01.10.08, 11:54 GMT
I can understand the doubt over the $700billion bail out. So far nobody seems to know - or the public is being kept in the dark - about the exact amount of toxic debt. Which banks are at risk? And for how much? Surely banks have accounts. Directors and accountants must know the financial position of their banks. So why don't they produce the numbers? Then the Government can assess each bank's position and work out the best way to recapitalize them. It may be a rights issue, and directors and shareholders stumping up the money. Or The Government takes an equity stake and restructures the bad home loans through lower rates or an extension of time to avoid mass foreclosures.
Unfortunately the rush to pass the bill suggests a handout to friends of Mr Paulson and Mr Bush in Wall Street. The frenzy of speculation which has led to the stock markets diving and rising irrationally has little to do with the real economy which is out there on Main Street. What is needed is trust and confidence.
Posted by peterfieldman | 01.10.08, 10:46 GMT
Forbes have 378 new millionaires and the overall riches have increased by a staggering %. of trillions even now in crash. The Peoples Revolt to Congress this week was brilliant. Let the fat cats do bailouts not the public and of course Republicans are to blame .Not that it is stopping them to continue to conspire yet more illegal wars .
Posted by Duncan MacGregor | 01.10.08, 10:30 GMT