Paying Attention?

[briansd1]

[quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]

Exactly. That’s where the debt increases came from.

State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.

That’s fiscal policy.

*

Monetary policy is Federal Reserve action.

CA renter, you really need to separate fiscal and monetary policy to understand how it all works.

The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.

It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).

[sdduuuude]

Another great analogy – from

http://dollarcollapse.com/articles/is-this-it-or-can-they-fool-us-again/:

[quote=dollarcollapse.com]History will show, of course, that an unfettered printing press is actually economic heroin, inducing happy dreams at first but requiring ever higher doses until it finally kills its victim. Over the past three decades, the doses of debt have grown to near-fatal levels … [/quote]

[sdduuuude]

Another great analogy – from

http://dollarcollapse.com/articles/is-this-it-or-can-they-fool-us-again/:

[quote=dollarcollapse.com]History will show, of course, that an unfettered printing press is actually economic heroin, inducing happy dreams at first but requiring ever higher doses until it finally kills its victim. Over the past three decades, the doses of debt have grown to near-fatal levels … [/quote]

[sdduuuude]

Another great analogy – from

http://dollarcollapse.com/articles/is-this-it-or-can-they-fool-us-again/:

[quote=dollarcollapse.com]History will show, of course, that an unfettered printing press is actually economic heroin, inducing happy dreams at first but requiring ever higher doses until it finally kills its victim. Over the past three decades, the doses of debt have grown to near-fatal levels … [/quote]

[sdduuuude]

Another great analogy – from

http://dollarcollapse.com/articles/is-this-it-or-can-they-fool-us-again/:

[quote=dollarcollapse.com]History will show, of course, that an unfettered printing press is actually economic heroin, inducing happy dreams at first but requiring ever higher doses until it finally kills its victim. Over the past three decades, the doses of debt have grown to near-fatal levels … [/quote]

[sdduuuude]

Another great analogy – from

http://dollarcollapse.com/articles/is-this-it-or-can-they-fool-us-again/:

[quote=dollarcollapse.com]History will show, of course, that an unfettered printing press is actually economic heroin, inducing happy dreams at first but requiring ever higher doses until it finally kills its victim. Over the past three decades, the doses of debt have grown to near-fatal levels … [/quote]

[CA renter]

[quote=briansd1][quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]

Exactly. That’s where the debt increases came from.

State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.

That’s fiscal policy.

*

Monetary policy is Federal Reserve action.

CA renter, you really need to separate fiscal and monetary policy to understand how it all works.

The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.

It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).[/quote]

I understand the difference between monetary and fiscal policy; you need to understand that they’ve been working in concert. That’s why I always refer to the Fed/govt — they are both part of the problem.

Our public debt is affected by the loss of revenue — even though corporations are making RECORD PROFITS…those “tax cuts” are part of the bailout, too — but it’s also affected by the various expenditures and guarantees we’ve made.

We also have to understand that a large portion of the losses that will eventually be borne by taxpayers aren’t yet known. All the FHA and GSE refis and new purchases that were made during a period when home prices were being artificially inflated (to get these mortgages off the private balance sheets, and foisted onto the taxpayers shoulders) are a huge default risk, IMHO. I highly doubt the final numbers will be good for taxpayers. BTW, how much of what’s held on the Fed’s balance sheet is guaranteed (or will by guaranteed) by taxpayers? I’ll bet the Fed itself will end up with fairly minor losses compared to what the govt will end up taking.

AGENCY SUBTOTALS TOTAL DISBURSED TOTAL MAX. AT-RISK TOTAL OUTSTANDING
Treasury $816.1 billion $5.79 trillion $458.1 billion
FDIC $0.7 billion $10.0 billion $0.7 billion
Federal Reserve $3.95 trillion $8.06 trillion $1.08 trillion
GRAND TOTAL: $4.76 TRILLION DISBURSED $13.87 TRILLION MAX. AT-RISK $1.54 TRILLION OUTSTANDING

http://www.sourcewatch.org/index.php?title=Total_Wall_Street_Bailout_Cost

[CA renter]

[quote=briansd1][quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]

Exactly. That’s where the debt increases came from.

State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.

That’s fiscal policy.

*

Monetary policy is Federal Reserve action.

CA renter, you really need to separate fiscal and monetary policy to understand how it all works.

The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.

It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).[/quote]

I understand the difference between monetary and fiscal policy; you need to understand that they’ve been working in concert. That’s why I always refer to the Fed/govt — they are both part of the problem.

Our public debt is affected by the loss of revenue — even though corporations are making RECORD PROFITS…those “tax cuts” are part of the bailout, too — but it’s also affected by the various expenditures and guarantees we’ve made.

We also have to understand that a large portion of the losses that will eventually be borne by taxpayers aren’t yet known. All the FHA and GSE refis and new purchases that were made during a period when home prices were being artificially inflated (to get these mortgages off the private balance sheets, and foisted onto the taxpayers shoulders) are a huge default risk, IMHO. I highly doubt the final numbers will be good for taxpayers. BTW, how much of what’s held on the Fed’s balance sheet is guaranteed (or will by guaranteed) by taxpayers? I’ll bet the Fed itself will end up with fairly minor losses compared to what the govt will end up taking.

AGENCY SUBTOTALS TOTAL DISBURSED TOTAL MAX. AT-RISK TOTAL OUTSTANDING
Treasury $816.1 billion $5.79 trillion $458.1 billion
FDIC $0.7 billion $10.0 billion $0.7 billion
Federal Reserve $3.95 trillion $8.06 trillion $1.08 trillion
GRAND TOTAL: $4.76 TRILLION DISBURSED $13.87 TRILLION MAX. AT-RISK $1.54 TRILLION OUTSTANDING

http://www.sourcewatch.org/index.php?title=Total_Wall_Street_Bailout_Cost

[CA renter]

[quote=briansd1][quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]

Exactly. That’s where the debt increases came from.

State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.

That’s fiscal policy.

*

Monetary policy is Federal Reserve action.

CA renter, you really need to separate fiscal and monetary policy to understand how it all works.

The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.

It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).[/quote]

I understand the difference between monetary and fiscal policy; you need to understand that they’ve been working in concert. That’s why I always refer to the Fed/govt — they are both part of the problem.

Our public debt is affected by the loss of revenue — even though corporations are making RECORD PROFITS…those “tax cuts” are part of the bailout, too — but it’s also affected by the various expenditures and guarantees we’ve made.

We also have to understand that a large portion of the losses that will eventually be borne by taxpayers aren’t yet known. All the FHA and GSE refis and new purchases that were made during a period when home prices were being artificially inflated (to get these mortgages off the private balance sheets, and foisted onto the taxpayers shoulders) are a huge default risk, IMHO. I highly doubt the final numbers will be good for taxpayers. BTW, how much of what’s held on the Fed’s balance sheet is guaranteed (or will by guaranteed) by taxpayers? I’ll bet the Fed itself will end up with fairly minor losses compared to what the govt will end up taking.

AGENCY SUBTOTALS TOTAL DISBURSED TOTAL MAX. AT-RISK TOTAL OUTSTANDING
Treasury $816.1 billion $5.79 trillion $458.1 billion
FDIC $0.7 billion $10.0 billion $0.7 billion
Federal Reserve $3.95 trillion $8.06 trillion $1.08 trillion
GRAND TOTAL: $4.76 TRILLION DISBURSED $13.87 TRILLION MAX. AT-RISK $1.54 TRILLION OUTSTANDING

http://www.sourcewatch.org/index.php?title=Total_Wall_Street_Bailout_Cost

[CA renter]

[quote=briansd1][quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]

Exactly. That’s where the debt increases came from.

State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.

That’s fiscal policy.

*

Monetary policy is Federal Reserve action.

CA renter, you really need to separate fiscal and monetary policy to understand how it all works.

The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.

It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).[/quote]

I understand the difference between monetary and fiscal policy; you need to understand that they’ve been working in concert. That’s why I always refer to the Fed/govt — they are both part of the problem.

Our public debt is affected by the loss of revenue — even though corporations are making RECORD PROFITS…those “tax cuts” are part of the bailout, too — but it’s also affected by the various expenditures and guarantees we’ve made.

We also have to understand that a large portion of the losses that will eventually be borne by taxpayers aren’t yet known. All the FHA and GSE refis and new purchases that were made during a period when home prices were being artificially inflated (to get these mortgages off the private balance sheets, and foisted onto the taxpayers shoulders) are a huge default risk, IMHO. I highly doubt the final numbers will be good for taxpayers. BTW, how much of what’s held on the Fed’s balance sheet is guaranteed (or will by guaranteed) by taxpayers? I’ll bet the Fed itself will end up with fairly minor losses compared to what the govt will end up taking.

AGENCY SUBTOTALS TOTAL DISBURSED TOTAL MAX. AT-RISK TOTAL OUTSTANDING
Treasury $816.1 billion $5.79 trillion $458.1 billion
FDIC $0.7 billion $10.0 billion $0.7 billion
Federal Reserve $3.95 trillion $8.06 trillion $1.08 trillion
GRAND TOTAL: $4.76 TRILLION DISBURSED $13.87 TRILLION MAX. AT-RISK $1.54 TRILLION OUTSTANDING

http://www.sourcewatch.org/index.php?title=Total_Wall_Street_Bailout_Cost

[CA renter]

[quote=briansd1][quote=pemeliza] The huge drop in tax receipts because of the weak economy. The government is not willing to cut spending to compensate for revenue drops.[/quote]

Exactly. That’s where the debt increases came from.

State and local governments must have balance budgets so they have been cutting. State and local cuts roughly amounted to the Federal stimulus.

That’s fiscal policy.

*

Monetary policy is Federal Reserve action.

CA renter, you really need to separate fiscal and monetary policy to understand how it all works.

The Federal Reserve (Fed) buys financial assets to inject liquity into the economy. Eventually, they sell the assets at a profit or loss. The Fed has made big profits.

It’s important to not confuse the Fed with the Federal governnment (the Feds which refers more to Federal law enforcement).[/quote]

I understand the difference between monetary and fiscal policy; you need to understand that they’ve been working in concert. That’s why I always refer to the Fed/govt — they are both part of the problem.

Our public debt is affected by the loss of revenue — even though corporations are making RECORD PROFITS…those “tax cuts” are part of the bailout, too — but it’s also affected by the various expenditures and guarantees we’ve made.

We also have to understand that a large portion of the losses that will eventually be borne by taxpayers aren’t yet known. All the FHA and GSE refis and new purchases that were made during a period when home prices were being artificially inflated (to get these mortgages off the private balance sheets, and foisted onto the taxpayers shoulders) are a huge default risk, IMHO. I highly doubt the final numbers will be good for taxpayers. BTW, how much of what’s held on the Fed’s balance sheet is guaranteed (or will by guaranteed) by taxpayers? I’ll bet the Fed itself will end up with fairly minor losses compared to what the govt will end up taking.

AGENCY SUBTOTALS TOTAL DISBURSED TOTAL MAX. AT-RISK TOTAL OUTSTANDING
Treasury $816.1 billion $5.79 trillion $458.1 billion
FDIC $0.7 billion $10.0 billion $0.7 billion
Federal Reserve $3.95 trillion $8.06 trillion $1.08 trillion
GRAND TOTAL: $4.76 TRILLION DISBURSED $13.87 TRILLION MAX. AT-RISK $1.54 TRILLION OUTSTANDING

http://www.sourcewatch.org/index.php?title=Total_Wall_Street_Bailout_Cost

[The-Shoveler]

So this goes along with my theory that TPTB want it this way.

So is anyone surprised ? really ?

Michigan leaders in the fight against the foreclosure crisis reacted strongly Sunday to revelations that mortgage giant Fannie Mae appears to have been pushing banks to foreclose on homeowners rather than continue negotiating loan modifications.
The story broke in the Detroit Free Press, which reported it had been given some 2,300 internal records and memos from Fannie Mae. Those documents included indications that lenders should proceed to foreclosure sales rather than allow any time for modifications, and memos which indicate the company was threatening to charge a penalty to lenders who allowed foreclosures to wait too long before they were executed.
Particularly troubling was the fact that these memos came at the same time that Fannie Mae officials were testifying before Congress that they were doing everything in their power to prevent foreclosures.
“I am thoroughly disgusted by the actions of Fannie Mae,” said Ingham County Register of Deeds Curtis Hertel, who is currently suing Fannie Mae and other lenders arguing that they failed to pay Ingham county millions of dollars in title transfer taxes. “What these internal documents show is that while Fannie Mae was being bailed out by taxpayers they were systematically pushing for citizens to be foreclosed. The reason for this is even worse. Right now we as taxpayers pick up the cost of every foreclosure, because we pay Fannie Mae’s loss in the foreclosure process. In other words they actually get paid more for a foreclosure than for a reasonable modification.

[The-Shoveler]

So this goes along with my theory that TPTB want it this way.

So is anyone surprised ? really ?

Michigan leaders in the fight against the foreclosure crisis reacted strongly Sunday to revelations that mortgage giant Fannie Mae appears to have been pushing banks to foreclose on homeowners rather than continue negotiating loan modifications.
The story broke in the Detroit Free Press, which reported it had been given some 2,300 internal records and memos from Fannie Mae. Those documents included indications that lenders should proceed to foreclosure sales rather than allow any time for modifications, and memos which indicate the company was threatening to charge a penalty to lenders who allowed foreclosures to wait too long before they were executed.
Particularly troubling was the fact that these memos came at the same time that Fannie Mae officials were testifying before Congress that they were doing everything in their power to prevent foreclosures.
“I am thoroughly disgusted by the actions of Fannie Mae,” said Ingham County Register of Deeds Curtis Hertel, who is currently suing Fannie Mae and other lenders arguing that they failed to pay Ingham county millions of dollars in title transfer taxes. “What these internal documents show is that while Fannie Mae was being bailed out by taxpayers they were systematically pushing for citizens to be foreclosed. The reason for this is even worse. Right now we as taxpayers pick up the cost of every foreclosure, because we pay Fannie Mae’s loss in the foreclosure process. In other words they actually get paid more for a foreclosure than for a reasonable modification.

[The-Shoveler]

So this goes along with my theory that TPTB want it this way.

So is anyone surprised ? really ?

Michigan leaders in the fight against the foreclosure crisis reacted strongly Sunday to revelations that mortgage giant Fannie Mae appears to have been pushing banks to foreclose on homeowners rather than continue negotiating loan modifications.
The story broke in the Detroit Free Press, which reported it had been given some 2,300 internal records and memos from Fannie Mae. Those documents included indications that lenders should proceed to foreclosure sales rather than allow any time for modifications, and memos which indicate the company was threatening to charge a penalty to lenders who allowed foreclosures to wait too long before they were executed.
Particularly troubling was the fact that these memos came at the same time that Fannie Mae officials were testifying before Congress that they were doing everything in their power to prevent foreclosures.
“I am thoroughly disgusted by the actions of Fannie Mae,” said Ingham County Register of Deeds Curtis Hertel, who is currently suing Fannie Mae and other lenders arguing that they failed to pay Ingham county millions of dollars in title transfer taxes. “What these internal documents show is that while Fannie Mae was being bailed out by taxpayers they were systematically pushing for citizens to be foreclosed. The reason for this is even worse. Right now we as taxpayers pick up the cost of every foreclosure, because we pay Fannie Mae’s loss in the foreclosure process. In other words they actually get paid more for a foreclosure than for a reasonable modification.

[The-Shoveler]

So this goes along with my theory that TPTB want it this way.

So is anyone surprised ? really ?

Michigan leaders in the fight against the foreclosure crisis reacted strongly Sunday to revelations that mortgage giant Fannie Mae appears to have been pushing banks to foreclose on homeowners rather than continue negotiating loan modifications.
The story broke in the Detroit Free Press, which reported it had been given some 2,300 internal records and memos from Fannie Mae. Those documents included indications that lenders should proceed to foreclosure sales rather than allow any time for modifications, and memos which indicate the company was threatening to charge a penalty to lenders who allowed foreclosures to wait too long before they were executed.
Particularly troubling was the fact that these memos came at the same time that Fannie Mae officials were testifying before Congress that they were doing everything in their power to prevent foreclosures.
“I am thoroughly disgusted by the actions of Fannie Mae,” said Ingham County Register of Deeds Curtis Hertel, who is currently suing Fannie Mae and other lenders arguing that they failed to pay Ingham county millions of dollars in title transfer taxes. “What these internal documents show is that while Fannie Mae was being bailed out by taxpayers they were systematically pushing for citizens to be foreclosed. The reason for this is even worse. Right now we as taxpayers pick up the cost of every foreclosure, because we pay Fannie Mae’s loss in the foreclosure process. In other words they actually get paid more for a foreclosure than for a reasonable modification.

[Author]

Posts