Political Ramblings

[Matthew3590]

Heres a question. Why have the fed? We don't need them all they do is hurt the country. Get rid of them and use our own money.

 

[hemet dennis]

Pendulum swings both ways Hemet. Take care of me has replaced a society that knows how to take care of themselves. This is where the whole system fails. Founding fathers of this country had many warnings in their notes and quotes about giving control of the systems to the government and the people losing control of the overall system.

Do you remember the quote from President Kennedy ?

 

[rufus]

I think the problem goes back to the Community Reinvestment Act of 1977. At that time, banks would red line neighborhoods that did not seem to be a good mortgage risk. The federal government saw that as discrimination. This act was supposed to stop that. Banks were pressured to loan on doubtful properties to people with poor credit. If a bank denied a loan, ACORN would sue them and clean their clock.

Well, banks are not in business to lose money. They promptly invented the balloon payment and the adjustable rate mortgage. This worked as long as the market was good. When it went bad, it went bad in a big way.

My next door neighbor bought his house for $160,000. I bought mine in 1980 for $45,000. So, in my estimation, the house was way over valued when he bought it. He signed the contract with his thumb print. He was illiterate in both English and Spanish. He was illegal and only worked for cash only. He got the loan for the full amount. I wondered how, but I wished him well.

The balloon payment came due. The bank took back the house and put them out on the street. It sat empty for about a year. Then the house was sold to another illegal family. They paid $32,000 cash money for it.

God save us from the governments good intentions.

 

[hemet dennis]

Heres a question. Why have the fed? We don't need them all they do is hurt the country. Get rid of them and use our own money.

How has the FED hurt the country ? And what do you mean use our own money ?

 

[kstaven]

Do you remember the quote from President Kennedy ?

Which one specifically. Kennedy has many memorable quotes. Problem is I often see them taken out of context because most never chose to read the speech they where attached to.

 

[hemet dennis]

Quote:
The "ask not " one I think fits best.

 

[kstaven]

I think the problem goes back to the Community Reinvestment Act of 1977. At that time, banks would red line neighborhoods that did not seem to be a good mortgage risk. The federal government saw that as discrimination. This act was supposed to stop that. Banks were pressured to loan on doubtful properties to people with poor credit. If a bank denied a loan, ACORN would sue them and clean their clock.

Well, banks are not in business to lose money. They promptly invented the balloon payment and the adjustable rate mortgage. This worked as long as the market was good. When it went bad, it went bad in a big way.

My next door neighbor bought his house for $160,000. I bought mine in 1980 for $45,000. So, in my estimation, the house was way over valued when he bought it. He signed the contract with his thumb print. He was illiterate in both English and Spanish. He was illegal and only worked for cash only. He got the loan for the full amount. I wondered how, but I wished him well.

The balloon payment came due. The bank took back the house and put them out on the street. It sat empty for about a year. Then the house was sold to another illegal family. They paid $32,000 cash money for it.

God save us from the governments good intentions.

It was the same story for many U.S. citizens who where sold the illusion of home ownership and sold the illusion of turning a profit at the end because they where told saturation and the end of the party would never occur.

 

[rufus]

The Fed actually is an organization of member banks. It is not really a government entity, but a quasi governmental agency. Getting rid of it is pretty much impossible.

What I object to is the Fed fiddling with the money supply for political purposes. They run the interest rate down so low that people who save cannot make enough money to cover the cost of inflation. And then they have to pay taxes on what little they do earn. No wonder no one saves anymore.

When the Fed sets the discount rate so low to stimulate the economy, China borrows the money cheaply and then uses it to buy our industries. Those jobs then go overseas to China. Not only did we lose jobs, the Fed stimulated the economy of China, not the US.

Remember, Bank of America loaned it's tarp money out to China.

 

[kstaven]

The "ask not " one I think fits best.

It fits in many ways. Part of the problem is that people don't want to do that and the system itself doesn't want to relinquish the perceived control and perceived power they have over the masses. I would have more faith in that quote being effective if the populace as a whole smartened up and started working as a "community" rather than just being out for the individual and forgetting the consequences of continuing down that path.

 

[rufus]

This kind of reminds me of when Andrew Jackson shut down the second Bank of the United States. He also was conducting a war against the business community. He hated Nicolas Biddle, just like the Democrats hate the Koch brothers.