Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (71860)	9/11/2009 1:54:41 PM
From: jlallen	6 Recommendations Read Replies (1) \| Respond to of 224729

Fannie and Freddie should have been regulated. The mortgage business should have been regulated. They are regulated, dipstick....

To: Kenneth E. Phillipps who wrote (71860)	9/11/2009 2:00:30 PM
From: Jorj X Mckie	2 Recommendations Respond to of 224729

You make my case. Fannie and Freddie should have been regulated. The mortgage business should have been regulated. I think you may need to do a little research into how Fannie and Freddie came into existence and how they operate. Keywords for you: "Congressional Oversight", "Barney Frank", "Clinton Administration", "Government-Subsidized", "Government Sponsored Enterprise (GSE)". Fannie and Freddie's mere existence as congressionally chartered business entities is the antithesis to "free market" and "capitalism"

To: Kenneth E. Phillipps who wrote (71860)	9/11/2009 2:08:22 PM
From: JakeStraw	3 Recommendations Respond to of 224729

Top 4 Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008 1. Christopher J Dodd 2. John Kerry 3. Barack Obama 4. Hillary Clinton

To: Kenneth E. Phillipps who wrote (71860)	9/11/2009 3:23:10 PM
From: JakeStraw	Respond to of 224729

The Bush administration actually called for tighter regulation of the government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac. Much if not all of the problems with Freddie & Fannie could have been prevented by a bill co-sponsored by John McCain and supported by all the Republicans and opposed by all the Democrats in the Senate Banking Committee in 2005. That bill, which the Democrats stopped from passing, would have prohibited the GSEs from speculating on the mortgage-based securities they packaged. The GSEs' mission allegedly justifying their quasi-governmental status was to package or securitize such mortgages, but the lion's share of their profits—which determined top executives' bonuses—came from speculation.

To: Kenneth E. Phillipps who wrote (71860)	9/12/2009 10:35:35 AM
From: Hope Praytochange	Respond to of 224729

Federal deficit hits $1.38 trillion through August Federal deficit climbs higher into record territory, hits $1.38 trillion in first 11 months By Martin Crutsinger, AP Economics Writer On Friday September 11, 2009, 5:53 pm EDT WASHINGTON (AP) -- The federal deficit surged higher into record territory in August, hitting $1.38 trillion with one month left in the budget year. The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits. Treasury Secretary Timothy Geithner and other administration officials have sought to address those concerns by insisting that once the recession is over and the financial system is stabilized, the administration will move forcefully to get the deficits under control. Republican critics contend the administration does not have a credible plan to address future deficits. "The $9 trillion question is when will the White House do more than just pay lip service to tackling these jaw-dropping deficits that threaten our economic stability," House Republican Leader John Boehner of Ohio said in a statement. "Piling more and more debt on future generations while massively increasing federal spending is not a response." Private economists worry the country could face the grim prospect of seeing interest rates soar in future years and the dollar weaken as foreigners dump their U.S. holdings. The Treasury Department said Friday that last month's deficit was $111.4 billion, below the $152 billion that economists expected. Still, the imbalance added to a flood of red ink already accumulated through the recession and massive spending needed to stabilize the banking system. The Obama administration last month trimmed its forecast for this year's deficit to $1.58 trillion, from an earlier $1.84 trillion. The recovery of the banking system led to the reduced estimate as it meant the administration did not need to get an additional $250 billion in bailout support for banks. The $1.58 trillion estimate for the full budget year signals that that administration expects the imbalance in September to be around $200 billion. That would be a sharp deterioration from September 2008 when the government closed out that budget year with a $45.7 billion surplus. Many private economists have slightly smaller deficit estimates for the full year but all agree that 2009 will be a record-holder by a large margin. The previous record deficit in dollar terms was $454.8 billion last year. The administration's revised budget forecasts issued last month also underscored how much the government's fiscal picture has deteriorated. It is now projecting the deficit over the next decade will total $9 trillion, $2 trillion more than its estimates from a few months ago. The deterioration partly reflects the country's deep recession, the worst since the 1930s. That downturn has cut into government receipts and pushed up spending in such areas as unemployment benefits and food stamps, along with the cost of fighting wars in Iraq and Afghanistan. In addition, the government is using a $787 billion economic stimulus program passed by Congress last February to jump-start growth and is spending massive amounts from the $700 billion financial bailout package passed in October 2008 to stabilize the financial system. The Treasury Department budget report for August showed the government collected $145.5 billion in revenues, a drop of 7.3 percent from August 2008. It marked the 16th consecutive month that revenues have been lower than the previous year, a string that reflects how much the recession, which began in December 2007, has cut into personal income and corporate taxes. Spending in August totaled $256.9 billion, down 4.5 percent from the year before. However, that comparison was misleading because the deficit last month was lowered by timing shifts which saw some payments shifted into July because Aug. 1 fell on a Saturday. Primarily because of the timing shifts, last month's deficit was 0.5 percent lower than in August 2008. For the first 11 months of the budget year, spending totals $3.26 trillion, up 18.7 percent from a year ago, while tax receipts fell 16.1 percent to $1.89 trillion. The spending increases include the administration's estimate that $174.2 billion has been tapped from the financial bailout fund and another $84.9 billion went toward propping up mortgage giants Fannie Mae and Freddie Mac. In addition, federal spending on unemployment benefits totaled $104.7 billion through August, up from $41.4 billion in the year-ago period.