1 edit | reply to HiDesert
Re: I guess employment has CAPS at Comcast, too said by HiDesert:Sorry I did not mean to imply that all the banking crisis was due to conservative policy. Your right, the democrats are equally at fault for the sub prime fiasco.. But I still believe Greenspan's decision to deregulate mortage banking and his public announcement years back that Americas SHOULD get variable rate loans was a poor judgement call. Yes he actually said that. If there is one person that could be singled out for much of this problem it would be Greenspan for sure. Since the president of chairman of the federal reserve bank can control the money supply with lowering or increasing the federal discount rate. Deregulation of mortage banking got us to where we are today. Clinton did well to control spending but I agree he added much to the global open market policy whether you agree with that or not.. (I don't). I'll also add there needs to be more financial incentives for companies to do business in the states. Also, its important to remember that personal income tax code after the thirties was created to prevent single families to accrue supernormal wealth since that was shown to make such individuals have undo political influence. This only kicked in after over 2 million in earnings a year. All I am saying is roll back the tax code to where it was under Clinton. Everything is a balance and it went the other way too much. For example, income earners pay a much less tax rate then salaried individuals. Income earners generally comprise of more of the higher class so they consequently have been paying lower taxes which is not fair. Everyone should take a fair share of the tax burden. On the other talk points I hear ya. I don't have to agree with you nor do I want to try to convince you otherwise. Thats why we all vote.. Hopefully everyone turns out this time around.. laters.. One thing I will definitely strongly agree with you is, Greenspan's role in this. Frankly I have felt he was over-rated for many things, but maybe all fed chiefs are reactionary. It took him until the recession in '90 was actually here to recognize it and drop rates. The Asian currency crisis was aided in part because he was fighting inflation that wasn't nearly what he thought it was, and kept rates too high. Then he was hailed as a genius when he cut them 25 bps? Then he went way too high with rates going into the 2001 recession, which forced them way too low afterwards, and helped spur those ARMS you mentioned. So yes, I do really feel that while this wasn't the only issue, it was a major one. I also felt that rates probably went too high in the last cycle which made those ARMS even more dangerous. I do think that both Fed Chiefs should have had more foresight on that issue.
Sorry for coming off badly if I did, this really was a nice debate though. |
