It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by Pjotr
I like THIS speech more.
Here he gives us the reason for the mess he (together with his financial geniuses) made. Everybody should have a beautiful home, he said, and F and M made it possible for him.
IT is a beauty, isn't it.
Originally posted by Flash_dancer
What is not mentioned in his speech is what caused the problems or how to fix them.
First, how did our economy reach this point? Well, most economists agree that the problems we're witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad because our country is an attractive and secure place to do business.
This large influx of money to U.S. banks and financial institutions, along with low interest rates, made it easier for Americans to get credit. These developments allowed more families to borrow money for cars, and homes, and college tuition, some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.
Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit, combined with the faulty assumption that home values would continue to rise, led to excesses and bad decisions.
Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.
Optimism about housing values also led to a boom in home construction. Eventually, the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell, and this created a problem.
Borrowers with adjustable-rate mortgages, who had been planning to sell or refinance their homes at a higher price, were stuck with homes worth less than expected, along with mortgage payments they could not afford.
As a result, many mortgage-holders began to default. These widespread defaults had effects far beyond the housing market.
See, in today's mortgage industry, home loans are often packaged together and converted into financial products called mortgage-backed securities. These securities were sold to investors around the world.
Many investors assumed these securities were trustworthy and asked few questions about their actual value. Two of the leading purchasers of mortgage-backed securities were Fannie Mae and Freddie Mac.
Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk.
The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses.
Before long, these securities became so unreliable that they were not being bought or sold. Investment banks, such as Bear Stearns and Lehman Brothers, found themselves saddled with large amounts of assets they could not sell. They ran out of money needed to meet their immediate obligations, and they faced imminent collapse.
Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt.
Originally posted by Ketzer22
reply to post by dawnstar
What the hell are you talking about "we can't sit in school without being medicated?" That's one of the most sweeping statements I've ever heard and it is quite offensive. I ask you to revoke that statement and quit eating up my social security fund.
Originally posted by whiteraven
Originally posted by Ketzer22
reply to post by dawnstar
What the hell are you talking about "we can't sit in school without being medicated?" That's one of the most sweeping statements I've ever heard and it is quite offensive. I ask you to revoke that statement and quit eating up my social security fund.
Both statements had blanket generalities in them.
I just heard a Rep. from Louisiana state that he fronted a bill that offered $1000. dollars to every women who gets her tubes tied.www.nola.com...
We are beginning to see how a society breaks down.
We move toward bio survival as a mamalian pack mentality takes hold.
This can also be termed nationalism.
I am fascinated.
Originally posted by alphabetaone
"Did we REALLY need a $3000.00 TV to watch the superbowl once per year? In fact, did we REALLY need more than ONE of those?
Did we REALLY need a 750i in our driveways because, if we didnt, then Johnny next door would stop taking our kids with theirs to soccer practice?
Did we REALLY need 10,000 Square feet for me, my wife and my daughter because, well, Johnny has it?
Did we REALLY need to have SIX cell phones (one for me my wife and daughter in our 10,000 square foot house, and 1 as backup in case primary breaks)?
Did we REALLY need to buy Laura Ashley because a) Johnny and his wife have them b) because they just feel better ?
Did we REALLY need to have SEVERAL Console Gaming systems in our homes to match each of the $3000.00 TV's to be put to good use when we're NOT watching the superbowl on them one time per year?"
I mean folks, anyone who knows me, KNOWS I CAN NOT STAND the current administration, and wholly, our elected officials, however SINCERELY we do have to ALSO lay as much blame on ourselves for our over-indulgence and greed, and a HORRIBLE pride such that we TOO put ourselves in front of that proverbial "oncoming car" without getting out of the way (as someone stated earlier in this thread), as much as we should blame those that we had hoped would look out for OUR interests so we could maintain that over-indulgence.
Fair is fair in my opinion...