Bernanke: Premature Fiscal Tightening Risky

[Jermyn Davidson]

Originally Posted by coadie

CRA. 1977. You dems can't follow history?

I say again, a little stronger, to put a sizeable amount of blame for today's situation on a President that served 30 years ago is foolish.

There have been too many opportunities between 1979 and 2007 (when things started to get bad) for America to have avoided what has happened.


Leave Carter out of this.


Let's blame Clinton, Bush Sr, and GWB-- between the three of them there has been more than 20 years to avoid what started to happen in 2007.

As if what Carter did in his short time could not have been corrected by Reagan's 8 year reign.

For the record, GWB's actions at the end of his Presidency is what helped to keep America from going into another Great Depression. President Obama wisely followed his example-- both acting under the expertise and advice of economists smarter than most, if not all posters on AFF when it comes to financial matters.

[coadie]

Originally Posted by Jermyn Davidson

I say again, to put a sizeable amount of blame for today's situation on a President that served 30 years ago is foolish.

There have been too many opportunities between 1979 and 2007 (when things started to get bad) for America to have avoided what has happened.


Leave Carter out of this.

Let's blame Clinton, Bush Sr, and GWB-- between the three of them there has been more than 20 years to avoid what started to happen in 2007.

For the record, GWB's actions at the end of his Presidency is what helped to keep America from going into another Great Depression. President Obama wisely followed his example-- both acting under the expertise and advice of economists smarter than most, if not all posters on AFF when it comes to financial matters.

I am not dishonest enough to leave Carter out of this. You may be.

This week we saw Obama on all the news shows blaming banks for the credit crisis saying that "you guys caused the problem" and calling them "fat cats."

This is the height of hypocrisy. Let me remind everyone that banks only operate within the regulatory environment that politicians create for them. All throughout the 80's and 90's, leftist groups led by ACORN harassed banks with protests, boycotts and lawsuits, falsely claiming banks were "discriminating" against minorities in terms of their lending practices.

The allegations were bogus. Banks do discriminate, however, against people with shaky finances regardless of race. And they should. Banks are not a welfare program. They're a business. They make lending decisions based on hard numbers such as a person's credit rating. That really don't care what race a person is; if someone's credit history gives a bank reason to believe its loan will be paid back, they'll make the loan. However, this was all before Congress started to meddle in banks' lending decisions.

Many of the 60's activists ended up getting involved with groups that harassed banks and filing lawsuits against them. Some of these suits were successful in that they often ended in settlements in which the banks agreed to make high risk loans to people who simply were not credit worthy. Eventually, this movement led to Congressional legislation called the Community Reinvestment Act, which applied even more pressure onto banks to make lending decisions based not on fiscal worthiness but on "diversity." And that was the beginning of the credit crisis.

So lets be clear here. Banks have been forced to make high risk loans as a result of years of protests, legislation, boycotts, and the CRA act. And who was involved with all of this? Why, our very own anointed one. Barack Obama.

You extreme liberals don't get it. Obama used legislation from Carter to shakedown banks and force loans in bad neighborhoods to people that didn't have money or jobs.

Case Name
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory Illinois
Case Summary
Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.

U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 338 (N.D. Ill. 1995).

The parties voluntarily dismissed the case on May 12, 1998, pursuant to a settlement agreement.
Plaintiff’s Lawyers Alexis, Hilary I. (Illinois)FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Clayton, Fay (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Cummings, Jeffrey Irvine (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Love, Sara Norris (Virginia)
FH-IL-0011-9000
Miner, Judson Hirsch (Illinois)
FH-IL-0011-7500 | FH-IL-0011-9000
Obama, Barack H. (Illinois)

JD is completely wrong again.

[coadie]

Originally Posted by Praxeas

Bernanke? Wasn't he for the trillion dollar bailout that didn't create any jobs but helped the wealthy bankers prop their banks up?

It wasn't deficit cutting that put us in the recession.

We have a huge huge unsustainable deficit that YOU have to pay back. And so why would you believe that crud?

Former prosecutor, Alan Grayson wants details on the $553 billion in foreign central bank liquidity swaps that were issued last Fall in response to the global financial crisis. These swaps grew from $24 billion at end of 2007 to $553 billion at the end of 2008.

Bernanke won't disclose which banks in Europe got half a trillion dollars from our children.

3,000 dollars per citizen to NZ citizens.

[Praxeas]

Originally Posted by Jermyn Davidson

Again, Bernanke and many others believe that it was the government's intervention at a key point in this struggle that saved the country, economically speaking.


They have history to back them up. The same experts cite the government's lack of intervention in the beginning that allowed the Great Depression to become so great.

JD, after spending a trillion of the tax payers money do you really expect these guys to say "oops, my bad. We spent your money and it did no good"?

BTW we did a bail out at the beginning, remember? Under Bush? And it just got worse and worse under Obama

[coadie]

Also hit hard were Rust Belt manufacturing regions such as Detroit, Cleveland and Allentown, Pa., where the poverty rate soared from 19 percent to 29 percent.

Nationally, the government reported last month that 14.3 percent of people in the U.S., or 1 in 7, now live below the poverty line, which is $21,954 for a family of four. Among the working-age population, poverty is at 12.9 percent, the highest since the 1960s, when the government launched a national war on poverty.

Based on unemployment rates that remain near 10 percent, many analysts predict increases in the U.S. poverty rate for at least two more years, with the suburbs continuing to post large gains.

http://www.breitbart.com/article.php...show_article=1

http://www.youtube.com/watch?v=P36x8rTb3jI

Obama has doubled the poverty rate. The socialist agenda hurts the ones they claim to help.

[Jermyn Davidson]

These people were going to get hurt anyway-- the country nearly went into our 2nd financial depression!


The quick action of Bush at the end of his term, followed by the wisdom of Obama and his advisors at the begining of his term up to now helped to steer America away from a repeat of history.



It was the government spending (bailouts, etc) that kept America afloat.

This is why Bernanke is saying that it would be risky to cut spending now, but in the near future, we wil have to cut spending.