The financial deck of cards that was built into a house came crashing down due in large part to lack of over site and understanding of regulation.
This was accomplished systematically by the Clinton Administration toward the end of the 90's and brought to a whole new level by the Bush White House.
During Clinton's 2nd term in office an attempt was made to increase loan accessibility for low-income buyers which resulted in Fannie Mae, the nation's largest home mortgage underwriter, relaxing credit requirements on the loans it would purchase from other banks and lenders.
To review:
Sub prime Lending= loans to high-risk borrowers with poor credit.
High-Risk FICO score= 620< lower credit risk characteristics of the typical sub prime borrower.
Sub prime loans can offer borrowers with poor credit a chance to own a home or repair damaged credit, but comes at a price of higher interest rates and increased fees. It is not by chance when a person is hit with late fees on their credit card account causing overdrafts to their credit limit, resulting in overdraft charges. These higher fees offset the lender for the increased costs associated with servicing high risk clients.
Everyone has dirt on their hands for the degradation of the financial system. Sub prime predatory lenders and the continued lack of effective government oversight have taken the brunt of the blame in the media but others also at fault are mortgage brokers for guiding borrowers into irresponsible loans, appraisers for inflating housing values and Wall Street investors for backing sub prime mortgage securities without verifying the strength of the underlying loans.
Borrowers should also be criticized for entering into loan agreements they could not fulfill and were only approved for the loan because of falsified and unverified financial records.
We seem to be on a ten to fifteen year cycle of booms and busts. Maybe the answer is curbing growth in annual GDP by increasing taxes and creating a larger safety net for citizens willing to take high risks.
The lesson here can be summed up in the words of Thomas Jefferson, "A nation that expects to be ignorant and free, expects what never was and never will be."
Saturday, March 14, 2009
Tuesday, March 10, 2009
Give Stem Cells A Chance
I’m not going to get into an argument about whether or not I think an embryo is a human life. I will argue that the majority of the representatives in the House and Senate voted to allow the federal funding of stem cell research of human embryos.
These representatives of the people were stopped by one man who knew all too well the pen is mightier than the sword.
George W. Bush made it his personal mission to stop the federal funding of stem cells because of ideology. Good for him, he stuck to his guns. Unfortunately for the rest of us the former president didn’t have his finger on the pulse of the nation and with one fell swoop of the veto pen, ended the discussion.
George Washington understood the importance of getting fresh blood and new ideas into the executive office. This is evidenced by his willingness to relinquish power after only two terms. Without that precedent being set it is possible that term limits would never have been established and G.W. Bush could terrifyingly be serving out his third term. The very idea makes me shudder so let's be rid of such egregious thoughts and move on to greener pastures.
From the East Wing of the White House, President Barack Obama announced recently the removal of restrictions on federal funding of embryonic stem cell research put in place by the Bush administration.
“At this moment, the full promise of stem cell research remains unknown…but that potential will not reveal itself on its own. Medical miracles do not just happen simply by accident. They result from painstaking and costly research,” Obama said.
Stem cells are the body's master cells, the source of all cells and tissue, including brain, blood, heart, bones and muscles. Embryonic stem cells come from days-old embryos and can produce any type of cell in the body. Scientists hope to exploit the transformational qualities of stem cells to treat a variety of injuries and diseases including cancer and cystic fibrosis.
The goal is to quickly undo the legacies of the Bush era that Obama sees as holding back progress, particularly those motivated by politics or religion. The decision was a clear repudiation of the approach taken by the current president’s predecessor.
There is this guy I keep reading about. His name is Albert Einstein and he is known to have espoused many profound thoughts in his time.
“Science without religion is lame, religion without science is blind,” Einstein said.
But I’m sure Bush has a better comprehension of the cosmos than the a**hole who proved space is curved.
Tell me which way to the ranch cause I hear there's some brush that needs to be cleared.
Ahh, somewhere in Texas a village finally has its idiot back.
These representatives of the people were stopped by one man who knew all too well the pen is mightier than the sword.
George W. Bush made it his personal mission to stop the federal funding of stem cells because of ideology. Good for him, he stuck to his guns. Unfortunately for the rest of us the former president didn’t have his finger on the pulse of the nation and with one fell swoop of the veto pen, ended the discussion.
George Washington understood the importance of getting fresh blood and new ideas into the executive office. This is evidenced by his willingness to relinquish power after only two terms. Without that precedent being set it is possible that term limits would never have been established and G.W. Bush could terrifyingly be serving out his third term. The very idea makes me shudder so let's be rid of such egregious thoughts and move on to greener pastures.
From the East Wing of the White House, President Barack Obama announced recently the removal of restrictions on federal funding of embryonic stem cell research put in place by the Bush administration.
“At this moment, the full promise of stem cell research remains unknown…but that potential will not reveal itself on its own. Medical miracles do not just happen simply by accident. They result from painstaking and costly research,” Obama said.
Stem cells are the body's master cells, the source of all cells and tissue, including brain, blood, heart, bones and muscles. Embryonic stem cells come from days-old embryos and can produce any type of cell in the body. Scientists hope to exploit the transformational qualities of stem cells to treat a variety of injuries and diseases including cancer and cystic fibrosis.
The goal is to quickly undo the legacies of the Bush era that Obama sees as holding back progress, particularly those motivated by politics or religion. The decision was a clear repudiation of the approach taken by the current president’s predecessor.
There is this guy I keep reading about. His name is Albert Einstein and he is known to have espoused many profound thoughts in his time.
“Science without religion is lame, religion without science is blind,” Einstein said.
But I’m sure Bush has a better comprehension of the cosmos than the a**hole who proved space is curved.
Tell me which way to the ranch cause I hear there's some brush that needs to be cleared.
Ahh, somewhere in Texas a village finally has its idiot back.
Wednesday, March 4, 2009
The Pull-Out Method
The way the United States has dealt with Iraq is a lot like the results of a teenage grope fest and a broken prophylactic in the back seat of a car.
First we enter under false pretenses, get drunk on power, suddenly realize we don’t have nearly enough protection but still decide we’re already here so we might as well just pump and pray. The problem is that when we finally decide to pull out, a few thousand soldiers are always left behind.
In his first official statement about how he intends to end one of the longest and costliest wars in U.S. history, President Obama said he will bring the war in Iraq to an end but with a caveat. Not everyone will go home.
The Marines of Camp Lejeune, N.C. had a front-row seat as the president laid out his vision for Iraq over the coming months and years.
His plan is to have all combat troops out of the theatre and on their way home by the end of August 2010 with a contingent of 35,000 to 50,000 troops remaining behind to assist in non-combat roles.
Theoretically these non-combat personnel will aid in training Iraqi security forces, help carry out counterterrorism missions and protect U.S. military and civilian personnel. The distinction between combat and non-combat is somewhat of a misnomer. The threats U.S. forces face will be just as real a year from now as they are today. Remaining troops will be armed with more than just flower power and a peace pipe.
The liberal left decries that we aren’t leaving soon enough, the neo-con right wishes we could stay forever. Me? I’m just happy that we are finally going to allocate our military resources where they belong, like searching for Bin Laden and Al-Qaeda in Afghanistan and Pakistan. Let’s go after those guys. It’s got to be safer than blowing our load on the Iraqis.
First we enter under false pretenses, get drunk on power, suddenly realize we don’t have nearly enough protection but still decide we’re already here so we might as well just pump and pray. The problem is that when we finally decide to pull out, a few thousand soldiers are always left behind.
In his first official statement about how he intends to end one of the longest and costliest wars in U.S. history, President Obama said he will bring the war in Iraq to an end but with a caveat. Not everyone will go home.
The Marines of Camp Lejeune, N.C. had a front-row seat as the president laid out his vision for Iraq over the coming months and years.
His plan is to have all combat troops out of the theatre and on their way home by the end of August 2010 with a contingent of 35,000 to 50,000 troops remaining behind to assist in non-combat roles.
Theoretically these non-combat personnel will aid in training Iraqi security forces, help carry out counterterrorism missions and protect U.S. military and civilian personnel. The distinction between combat and non-combat is somewhat of a misnomer. The threats U.S. forces face will be just as real a year from now as they are today. Remaining troops will be armed with more than just flower power and a peace pipe.
The liberal left decries that we aren’t leaving soon enough, the neo-con right wishes we could stay forever. Me? I’m just happy that we are finally going to allocate our military resources where they belong, like searching for Bin Laden and Al-Qaeda in Afghanistan and Pakistan. Let’s go after those guys. It’s got to be safer than blowing our load on the Iraqis.
Monday, March 2, 2009
Palestinian Aid Summit
Here we go again...
With closed borders, a bombed out infrastructure and civilian casualties mounting everyday, the people of Gaza are crying out for aid.
The international community has come together in an attempt to help the Palestinian people who were left shattered in the wake of the Israeli offensive into Gaza that occurred in January.
World leaders are attending a conference in Egypt to discuss the future of Gaza and the Palestinians are hoping for a little more than $2 billion in reconstruction aid. The United States, European Commission and the Gulf Arab States have pledged more than $3 billion, but with carrots and sticks attached.
U.N. Secretary General Ban Ki Moon said the first goal is to open the border crossings so aid can be received by Palestinians, but said it was imperative that illegal weapons don't flow into Gaza.
As I am writing this, reports are coming in that Hamas has again begun lobbing rockets into the south of Israel essentially ending the cease-fire.
Secretary of State Hillary Clinton made it clear that reconstruction aid was part of a larger picture of pushing forth peace in the Middle East.
“Our response to today’s crisis in Gaza cannot be separated from our broader efforts to achieve a comprehensive peace…that brings us close to our shared goals,” Clinton said.
Israel and the Hamas-led government in the Gaza Strip were not invited to the summit against Egypt’s wishes, which was hosting the event.
While conventional wisdom may hold that you bring in the two pugnacious states to work out their differences, the international community has obviously decided that both countries are acting too childish and at least for now don't deserve a seat at the table.
While conventional wisdom may hold that you bring in the two pugnacious states to work out their differences, the international community has obviously decided that both countries are acting too childish and at least for now don't deserve a seat at the table.
Wednesday, February 25, 2009
Legalize Marijuana
Victor Hugo once famously wrote that “more powerful than the march of mighty armies is an idea whose time has finally come.”
With a $42 billion deficit looming over California it may be time for a paradigm shift. I’m talking about some serious outside-the-box thinking--so far outside the box that we will be practically back in it.
By that I mean this idea is really a no brainer. Legalize marijuana and tax the living snot out of it. It’s not as if the federal government even has the resources to effectively control the illegal sale and consumption of this prolific herb. So let’s join hands and let bygones be bygones.
With the idea of legalizing marijuana now more popular nationwide than republicans in Congress, according to the latest CNN/Time poll, California has demonstrated once again that it is light-years ahead of the rest of the country.
Assemblyman Tom Ammiano, D-San Francisco, introduced legislation on Monday to legalize marijuana and earn perhaps $1 billion annually by taxing it. Quintin Mecke, Ammiano's press secretary said the proposed bill "would remove all penalties in California law on cultivation, transportation, sale, purchase, possession, or use of marijuana, natural THC, or paraphernalia for persons over the age of 21." The bill would additionally prohibit state and local law officials from enforcing federal marijuana laws.
Ammiano's bill calls for "establishing a fee on the sale of marijuana at a rate of $50 per ounce." Mecke said that would bring in roughly $1 billion to the state coffers, according to estimates made by marijuana advocacy organizations. "The Marijuana Control, Regulation and Education Act (AB 390)" is a simple matter of fiscal common sense.
Now, what were we just talking about?
With a $42 billion deficit looming over California it may be time for a paradigm shift. I’m talking about some serious outside-the-box thinking--so far outside the box that we will be practically back in it.
By that I mean this idea is really a no brainer. Legalize marijuana and tax the living snot out of it. It’s not as if the federal government even has the resources to effectively control the illegal sale and consumption of this prolific herb. So let’s join hands and let bygones be bygones.
With the idea of legalizing marijuana now more popular nationwide than republicans in Congress, according to the latest CNN/Time poll, California has demonstrated once again that it is light-years ahead of the rest of the country.
Assemblyman Tom Ammiano, D-San Francisco, introduced legislation on Monday to legalize marijuana and earn perhaps $1 billion annually by taxing it. Quintin Mecke, Ammiano's press secretary said the proposed bill "would remove all penalties in California law on cultivation, transportation, sale, purchase, possession, or use of marijuana, natural THC, or paraphernalia for persons over the age of 21." The bill would additionally prohibit state and local law officials from enforcing federal marijuana laws.
Ammiano's bill calls for "establishing a fee on the sale of marijuana at a rate of $50 per ounce." Mecke said that would bring in roughly $1 billion to the state coffers, according to estimates made by marijuana advocacy organizations. "The Marijuana Control, Regulation and Education Act (AB 390)" is a simple matter of fiscal common sense.
Now, what were we just talking about?
Take the Money and Shut It
The sheer hypocrisy of the Republican Party can be seen in the story of "The Little Red Hen." The GOP did not want to help bake the bread, but that will not stop them from wanting to participate in eating the bread.
Members of Congress should have the courage of their convictions. If they voted against the stimulus package, then they should refuse any funding being directed toward their state or district. After all, if you think that all federal spending is damaging, there are easy ways to reduce it.
The first idea that comes to mind is don't take federal money. It drives me crazy to hear republican pundits, governors, senators et al. espouse that their being against the stimulus money does not preclude them from taking federal dollars.
"This bill is loaded with wasteful deficit spending on the majority's favorite government programs," Minority Whip Eric Cantor, R-Va., said.
What about the wasteful deficit spending of the Bush years on the GOP's favorite programs like massive tax cuts for the top 1 percent of the population? Not to mention the bridge to nowhere and all the other GOP pork. States whose senators opposed the bill should get zero from it, not a penny.
"The Daily Show" with Jon Stewart is right on with this zinger.
“That’s like saying I don’t believe in gay rights but if that guy in the cowboy hat over there is giving out free b***jobs who am I to not get in line,” Stewart quipped.
Members of Congress should have the courage of their convictions. If they voted against the stimulus package, then they should refuse any funding being directed toward their state or district. After all, if you think that all federal spending is damaging, there are easy ways to reduce it.
The first idea that comes to mind is don't take federal money. It drives me crazy to hear republican pundits, governors, senators et al. espouse that their being against the stimulus money does not preclude them from taking federal dollars.
"This bill is loaded with wasteful deficit spending on the majority's favorite government programs," Minority Whip Eric Cantor, R-Va., said.
What about the wasteful deficit spending of the Bush years on the GOP's favorite programs like massive tax cuts for the top 1 percent of the population? Not to mention the bridge to nowhere and all the other GOP pork. States whose senators opposed the bill should get zero from it, not a penny.
"The Daily Show" with Jon Stewart is right on with this zinger.
“That’s like saying I don’t believe in gay rights but if that guy in the cowboy hat over there is giving out free b***jobs who am I to not get in line,” Stewart quipped.
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