Arkady's Thoughts

The first 250 billion is now being allocated. So far I have mixed feelings about this. I am elated that they are not buying up garbage (toxic) mortgages and instead using the money to inject the banks with liquidity. This is important as it guarantees their solvency and that banks will continue to operate. This should alleviate the credit crunch that is precisely what is grinding our economy into a halt. I assume however that this ownership is a temporary measure. We do not want our govt to dictate the bank's policies - that will be a disaster. If they plan to do the same thing as Japan did, at the very least they can learn from Japan's mistakes. Nationalizing banks must be a swift and temporary measure to provide confidence and a source of security to the ailing banks. Buying up mortages is the worst thing they can do because it just rewards bad behavior. I heard talks that some Democrats proposed refinancing loans to a new lower adjusted rate. This is horse shit and ...

Folks, The media wants you to believe that the GOP and their deregulation ruined this country. Countless of explanations are all over the web and their counter-explanations to boot. The truth is far more sinister. A large group of the senate and congress believed that the poor have struggled way too much and implemented mechanisms of Social Engineering. They felt that the less priveleged deserved houses too. Utilizing a much neglected 1977 law (Community Reinvestment Act) and a 1995 revised bill they enabled community organizing groups like ACORN, NACA, LaRaza, MAHA etc to extract hundreds of millions from banks. Many liberals claim that the CRA is just a right-wing scapegoat, but they are lying as they often do. They are neglecting that the groups have provided a massive number of loans through their own off-shoot housing programs. No one, including the govt can quantify how many loans were issued via CRA. Let me tell you, every poor town in the Boston area is defaulting like c...