[LA_Renter]

I agree with SD Realtor the Fannie and Freddie thing has Democratic hands all over it so we can safely lay blame on both parties. It is tempting to blame Bush for everything, most of that has something to do with anger over foreign policy. Here is critique of the Bush administration in the form of a letter to Obama from Bill Gross at Pimco, a long time registered Republican.

“Dear President Obama:

You have inherited a mess. Your predecessor, fixated on emulating a former Republican icon from a far different economic era, chose to emphasize tax cuts for the rich and excessive consumption for all Americans. He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love. Over eight years, he failed to put forth a coherent energy policy. He needlessly invaded Iraq and lowered worldwide esteem for this nation as a symbol of freedom and benevolence.”

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+July+2008.htm

It is this part that stands out to me

“He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love.”

It pains me to read this because I am an independent that leans Libertarian. The words free markets and deregulation always had positive connotations to me. It seems to me that many of the seeds of loose lending standards rest with the Democrats, allowing financial institutions to leverage 30, 40 50 times, rest with the MO of this administration. The result was a perfect storm of handing out bad loans and leveraging them to the hilt.

Now whether you like it or not Laissez-faire capitalism is now officially on trial. I guess its the result of the whole melt down of the western financial credit market thing. Fair enough. My fear is that the pendulum swings too far back the other way into Keynesian economics. Read Republican Bill Gross’s letter to Obama and its pretty much suggesting pump-priming of cutting taxes, increasing government borrowing, and spending during an economic down-turn which is classic Keynesian economics or better known as Stagflation. There has to be a better way to all this.

[LA_Renter]

I agree with SD Realtor the Fannie and Freddie thing has Democratic hands all over it so we can safely lay blame on both parties. It is tempting to blame Bush for everything, most of that has something to do with anger over foreign policy. Here is critique of the Bush administration in the form of a letter to Obama from Bill Gross at Pimco, a long time registered Republican.

“Dear President Obama:

You have inherited a mess. Your predecessor, fixated on emulating a former Republican icon from a far different economic era, chose to emphasize tax cuts for the rich and excessive consumption for all Americans. He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love. Over eight years, he failed to put forth a coherent energy policy. He needlessly invaded Iraq and lowered worldwide esteem for this nation as a symbol of freedom and benevolence.”

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+July+2008.htm

It is this part that stands out to me

“He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love.”

It pains me to read this because I am an independent that leans Libertarian. The words free markets and deregulation always had positive connotations to me. It seems to me that many of the seeds of loose lending standards rest with the Democrats, allowing financial institutions to leverage 30, 40 50 times, rest with the MO of this administration. The result was a perfect storm of handing out bad loans and leveraging them to the hilt.

Now whether you like it or not Laissez-faire capitalism is now officially on trial. I guess its the result of the whole melt down of the western financial credit market thing. Fair enough. My fear is that the pendulum swings too far back the other way into Keynesian economics. Read Republican Bill Gross’s letter to Obama and its pretty much suggesting pump-priming of cutting taxes, increasing government borrowing, and spending during an economic down-turn which is classic Keynesian economics or better known as Stagflation. There has to be a better way to all this.

[LA_Renter]

I agree with SD Realtor the Fannie and Freddie thing has Democratic hands all over it so we can safely lay blame on both parties. It is tempting to blame Bush for everything, most of that has something to do with anger over foreign policy. Here is critique of the Bush administration in the form of a letter to Obama from Bill Gross at Pimco, a long time registered Republican.

“Dear President Obama:

You have inherited a mess. Your predecessor, fixated on emulating a former Republican icon from a far different economic era, chose to emphasize tax cuts for the rich and excessive consumption for all Americans. He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love. Over eight years, he failed to put forth a coherent energy policy. He needlessly invaded Iraq and lowered worldwide esteem for this nation as a symbol of freedom and benevolence.”

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+July+2008.htm

It is this part that stands out to me

“He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love.”

It pains me to read this because I am an independent that leans Libertarian. The words free markets and deregulation always had positive connotations to me. It seems to me that many of the seeds of loose lending standards rest with the Democrats, allowing financial institutions to leverage 30, 40 50 times, rest with the MO of this administration. The result was a perfect storm of handing out bad loans and leveraging them to the hilt.

Now whether you like it or not Laissez-faire capitalism is now officially on trial. I guess its the result of the whole melt down of the western financial credit market thing. Fair enough. My fear is that the pendulum swings too far back the other way into Keynesian economics. Read Republican Bill Gross’s letter to Obama and its pretty much suggesting pump-priming of cutting taxes, increasing government borrowing, and spending during an economic down-turn which is classic Keynesian economics or better known as Stagflation. There has to be a better way to all this.

[LA_Renter]

I agree with SD Realtor the Fannie and Freddie thing has Democratic hands all over it so we can safely lay blame on both parties. It is tempting to blame Bush for everything, most of that has something to do with anger over foreign policy. Here is critique of the Bush administration in the form of a letter to Obama from Bill Gross at Pimco, a long time registered Republican.

“Dear President Obama:

You have inherited a mess. Your predecessor, fixated on emulating a former Republican icon from a far different economic era, chose to emphasize tax cuts for the rich and excessive consumption for all Americans. He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love. Over eight years, he failed to put forth a coherent energy policy. He needlessly invaded Iraq and lowered worldwide esteem for this nation as a symbol of freedom and benevolence.”

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+July+2008.htm

It is this part that stands out to me

“He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love.”

It pains me to read this because I am an independent that leans Libertarian. The words free markets and deregulation always had positive connotations to me. It seems to me that many of the seeds of loose lending standards rest with the Democrats, allowing financial institutions to leverage 30, 40 50 times, rest with the MO of this administration. The result was a perfect storm of handing out bad loans and leveraging them to the hilt.

Now whether you like it or not Laissez-faire capitalism is now officially on trial. I guess its the result of the whole melt down of the western financial credit market thing. Fair enough. My fear is that the pendulum swings too far back the other way into Keynesian economics. Read Republican Bill Gross’s letter to Obama and its pretty much suggesting pump-priming of cutting taxes, increasing government borrowing, and spending during an economic down-turn which is classic Keynesian economics or better known as Stagflation. There has to be a better way to all this.

[LA_Renter]

I agree with SD Realtor the Fannie and Freddie thing has Democratic hands all over it so we can safely lay blame on both parties. It is tempting to blame Bush for everything, most of that has something to do with anger over foreign policy. Here is critique of the Bush administration in the form of a letter to Obama from Bill Gross at Pimco, a long time registered Republican.

“Dear President Obama:

You have inherited a mess. Your predecessor, fixated on emulating a former Republican icon from a far different economic era, chose to emphasize tax cuts for the rich and excessive consumption for all Americans. He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love. Over eight years, he failed to put forth a coherent energy policy. He needlessly invaded Iraq and lowered worldwide esteem for this nation as a symbol of freedom and benevolence.”

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+July+2008.htm

It is this part that stands out to me

“He promoted deregulation and free markets when, in fact, the markets and their institutions needed tough love.”

It pains me to read this because I am an independent that leans Libertarian. The words free markets and deregulation always had positive connotations to me. It seems to me that many of the seeds of loose lending standards rest with the Democrats, allowing financial institutions to leverage 30, 40 50 times, rest with the MO of this administration. The result was a perfect storm of handing out bad loans and leveraging them to the hilt.

Now whether you like it or not Laissez-faire capitalism is now officially on trial. I guess its the result of the whole melt down of the western financial credit market thing. Fair enough. My fear is that the pendulum swings too far back the other way into Keynesian economics. Read Republican Bill Gross’s letter to Obama and its pretty much suggesting pump-priming of cutting taxes, increasing government borrowing, and spending during an economic down-turn which is classic Keynesian economics or better known as Stagflation. There has to be a better way to all this.

[LA_Renter]

Well its good to see so many of these young parents with such high confidence in their income prospects. I agree with many of the points that peterb makes about recessions and unemployment. IMO that will be the last shoe that will drop in this debacle. If you are independently wealthy then you will be pretty safe weathering this housing market. If you are a young family dependent on income from a business large or small I suggest you sit down and think this thing through. The crux of the debate about this housing correction/crash seems to have found its way to the desirable areas of California with good schools. We are getting to the nuts and bolts of how the upper middle class will be impacted in this. I grew up in a WASPY upper middle class household so I understand some of the assumptions about life one can make coming from this background. In light of the current set of circumstances that we find ourselves it is my opinion that some of these assumptions may (in many cases already have) prove financially devastating. Basically that assumption is that “nothing really bad can happen to me”, a belief that we are entitled to a certain standard of living that in many cases we have known all of our lives.

Now sit back and try to grasp the magnitude of what we are witnessing right now. This is beyond a housing debate. We are witnessing basically what amounts to the collapse of the western financial credit structure as we know it. The only reference point we have to such an event is the financial turmoil of the Great Depression. Now this event could….bear with me….this event could impact you. If you are dependent on a business for income as many of these people including myself that are competing for these homes and lifestyle are, whether you like it or not you are at risk of getting swept up in the inevitable economic carnage that has yet to show its true impact. The final chapter of this housing bubble may just be the worst. Just my two cents.

[LA_Renter]

Well its good to see so many of these young parents with such high confidence in their income prospects. I agree with many of the points that peterb makes about recessions and unemployment. IMO that will be the last shoe that will drop in this debacle. If you are independently wealthy then you will be pretty safe weathering this housing market. If you are a young family dependent on income from a business large or small I suggest you sit down and think this thing through. The crux of the debate about this housing correction/crash seems to have found its way to the desirable areas of California with good schools. We are getting to the nuts and bolts of how the upper middle class will be impacted in this. I grew up in a WASPY upper middle class household so I understand some of the assumptions about life one can make coming from this background. In light of the current set of circumstances that we find ourselves it is my opinion that some of these assumptions may (in many cases already have) prove financially devastating. Basically that assumption is that “nothing really bad can happen to me”, a belief that we are entitled to a certain standard of living that in many cases we have known all of our lives.

Now sit back and try to grasp the magnitude of what we are witnessing right now. This is beyond a housing debate. We are witnessing basically what amounts to the collapse of the western financial credit structure as we know it. The only reference point we have to such an event is the financial turmoil of the Great Depression. Now this event could….bear with me….this event could impact you. If you are dependent on a business for income as many of these people including myself that are competing for these homes and lifestyle are, whether you like it or not you are at risk of getting swept up in the inevitable economic carnage that has yet to show its true impact. The final chapter of this housing bubble may just be the worst. Just my two cents.

[LA_Renter]

Well its good to see so many of these young parents with such high confidence in their income prospects. I agree with many of the points that peterb makes about recessions and unemployment. IMO that will be the last shoe that will drop in this debacle. If you are independently wealthy then you will be pretty safe weathering this housing market. If you are a young family dependent on income from a business large or small I suggest you sit down and think this thing through. The crux of the debate about this housing correction/crash seems to have found its way to the desirable areas of California with good schools. We are getting to the nuts and bolts of how the upper middle class will be impacted in this. I grew up in a WASPY upper middle class household so I understand some of the assumptions about life one can make coming from this background. In light of the current set of circumstances that we find ourselves it is my opinion that some of these assumptions may (in many cases already have) prove financially devastating. Basically that assumption is that “nothing really bad can happen to me”, a belief that we are entitled to a certain standard of living that in many cases we have known all of our lives.

Now sit back and try to grasp the magnitude of what we are witnessing right now. This is beyond a housing debate. We are witnessing basically what amounts to the collapse of the western financial credit structure as we know it. The only reference point we have to such an event is the financial turmoil of the Great Depression. Now this event could….bear with me….this event could impact you. If you are dependent on a business for income as many of these people including myself that are competing for these homes and lifestyle are, whether you like it or not you are at risk of getting swept up in the inevitable economic carnage that has yet to show its true impact. The final chapter of this housing bubble may just be the worst. Just my two cents.

[LA_Renter]

Well its good to see so many of these young parents with such high confidence in their income prospects. I agree with many of the points that peterb makes about recessions and unemployment. IMO that will be the last shoe that will drop in this debacle. If you are independently wealthy then you will be pretty safe weathering this housing market. If you are a young family dependent on income from a business large or small I suggest you sit down and think this thing through. The crux of the debate about this housing correction/crash seems to have found its way to the desirable areas of California with good schools. We are getting to the nuts and bolts of how the upper middle class will be impacted in this. I grew up in a WASPY upper middle class household so I understand some of the assumptions about life one can make coming from this background. In light of the current set of circumstances that we find ourselves it is my opinion that some of these assumptions may (in many cases already have) prove financially devastating. Basically that assumption is that “nothing really bad can happen to me”, a belief that we are entitled to a certain standard of living that in many cases we have known all of our lives.

Now sit back and try to grasp the magnitude of what we are witnessing right now. This is beyond a housing debate. We are witnessing basically what amounts to the collapse of the western financial credit structure as we know it. The only reference point we have to such an event is the financial turmoil of the Great Depression. Now this event could….bear with me….this event could impact you. If you are dependent on a business for income as many of these people including myself that are competing for these homes and lifestyle are, whether you like it or not you are at risk of getting swept up in the inevitable economic carnage that has yet to show its true impact. The final chapter of this housing bubble may just be the worst. Just my two cents.

[LA_Renter]

Well its good to see so many of these young parents with such high confidence in their income prospects. I agree with many of the points that peterb makes about recessions and unemployment. IMO that will be the last shoe that will drop in this debacle. If you are independently wealthy then you will be pretty safe weathering this housing market. If you are a young family dependent on income from a business large or small I suggest you sit down and think this thing through. The crux of the debate about this housing correction/crash seems to have found its way to the desirable areas of California with good schools. We are getting to the nuts and bolts of how the upper middle class will be impacted in this. I grew up in a WASPY upper middle class household so I understand some of the assumptions about life one can make coming from this background. In light of the current set of circumstances that we find ourselves it is my opinion that some of these assumptions may (in many cases already have) prove financially devastating. Basically that assumption is that “nothing really bad can happen to me”, a belief that we are entitled to a certain standard of living that in many cases we have known all of our lives.

Now sit back and try to grasp the magnitude of what we are witnessing right now. This is beyond a housing debate. We are witnessing basically what amounts to the collapse of the western financial credit structure as we know it. The only reference point we have to such an event is the financial turmoil of the Great Depression. Now this event could….bear with me….this event could impact you. If you are dependent on a business for income as many of these people including myself that are competing for these homes and lifestyle are, whether you like it or not you are at risk of getting swept up in the inevitable economic carnage that has yet to show its true impact. The final chapter of this housing bubble may just be the worst. Just my two cents.

[LA_Renter]

peterb

What you are saying does not sound too tin-foil-hat to me. Now I would have probably thought so last year. But in light of what we are seeing unfold before us I don’t think so now. It’s this statement that stands out

“But if you look at the magnitude of the problem, I dont see how payback will not be a beotch for the immense credit abuse of the last 10 years or more.”

Now look at this chart that was posted on BigPicture concerning the tally of Federal Rescues.

http://bigpicture.typepad.com/comments/files/marsh-1260×1681.jpg

Lets all sit down and think about this for a minute…………we are witnessing an unprecedented shock to the global financial system….Period. Wo do not yet know the ramifications of this event on the real economy bailout or no bailout. Everyone of us from the posters on this board to halls of congress, to the federal reserve and the treasury dept are sailing in totally uncharted waters. Please do not underestimate the gravity of the situation we face. This is not the time to make rosy assumptions about ones prospects for current or future income. My advice is to let the dust settle.

[LA_Renter]

peterb

What you are saying does not sound too tin-foil-hat to me. Now I would have probably thought so last year. But in light of what we are seeing unfold before us I don’t think so now. It’s this statement that stands out

“But if you look at the magnitude of the problem, I dont see how payback will not be a beotch for the immense credit abuse of the last 10 years or more.”

Now look at this chart that was posted on BigPicture concerning the tally of Federal Rescues.

http://bigpicture.typepad.com/comments/files/marsh-1260×1681.jpg

Lets all sit down and think about this for a minute…………we are witnessing an unprecedented shock to the global financial system….Period. Wo do not yet know the ramifications of this event on the real economy bailout or no bailout. Everyone of us from the posters on this board to halls of congress, to the federal reserve and the treasury dept are sailing in totally uncharted waters. Please do not underestimate the gravity of the situation we face. This is not the time to make rosy assumptions about ones prospects for current or future income. My advice is to let the dust settle.

[LA_Renter]

peterb

What you are saying does not sound too tin-foil-hat to me. Now I would have probably thought so last year. But in light of what we are seeing unfold before us I don’t think so now. It’s this statement that stands out

“But if you look at the magnitude of the problem, I dont see how payback will not be a beotch for the immense credit abuse of the last 10 years or more.”

Now look at this chart that was posted on BigPicture concerning the tally of Federal Rescues.

http://bigpicture.typepad.com/comments/files/marsh-1260×1681.jpg

Lets all sit down and think about this for a minute…………we are witnessing an unprecedented shock to the global financial system….Period. Wo do not yet know the ramifications of this event on the real economy bailout or no bailout. Everyone of us from the posters on this board to halls of congress, to the federal reserve and the treasury dept are sailing in totally uncharted waters. Please do not underestimate the gravity of the situation we face. This is not the time to make rosy assumptions about ones prospects for current or future income. My advice is to let the dust settle.

[LA_Renter]

peterb

What you are saying does not sound too tin-foil-hat to me. Now I would have probably thought so last year. But in light of what we are seeing unfold before us I don’t think so now. It’s this statement that stands out

“But if you look at the magnitude of the problem, I dont see how payback will not be a beotch for the immense credit abuse of the last 10 years or more.”

Now look at this chart that was posted on BigPicture concerning the tally of Federal Rescues.

http://bigpicture.typepad.com/comments/files/marsh-1260×1681.jpg

Lets all sit down and think about this for a minute…………we are witnessing an unprecedented shock to the global financial system….Period. Wo do not yet know the ramifications of this event on the real economy bailout or no bailout. Everyone of us from the posters on this board to halls of congress, to the federal reserve and the treasury dept are sailing in totally uncharted waters. Please do not underestimate the gravity of the situation we face. This is not the time to make rosy assumptions about ones prospects for current or future income. My advice is to let the dust settle.

[LA_Renter]

peterb

What you are saying does not sound too tin-foil-hat to me. Now I would have probably thought so last year. But in light of what we are seeing unfold before us I don’t think so now. It’s this statement that stands out

“But if you look at the magnitude of the problem, I dont see how payback will not be a beotch for the immense credit abuse of the last 10 years or more.”

Now look at this chart that was posted on BigPicture concerning the tally of Federal Rescues.

http://bigpicture.typepad.com/comments/files/marsh-1260×1681.jpg

Lets all sit down and think about this for a minute…………we are witnessing an unprecedented shock to the global financial system….Period. Wo do not yet know the ramifications of this event on the real economy bailout or no bailout. Everyone of us from the posters on this board to halls of congress, to the federal reserve and the treasury dept are sailing in totally uncharted waters. Please do not underestimate the gravity of the situation we face. This is not the time to make rosy assumptions about ones prospects for current or future income. My advice is to let the dust settle.

[Author]

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