Gary this is part of masterpiece essay written by retired Fortune EVP. I can send the rest if you’re interested.
Excerpts- Let me remind you what happened in 2004 when a Democrat Congress created a bill that declared all had the right to own a home. While noble, it is not a right to own a home; it is a right to earn a home. To make it happen, they told the banks they had to change their lending rules, which increased the loan risks. The banks pushed back and said it would destroy the banking and lending systems. So, Congress said, “OK, we will do this; you give the loans, and the US government will insure them.” Wall Street, seeing that, went to the banks and said, “We will buy up your bad loans since there is no risk based on the US government covering the loans.” Of course, by 2008, the real estate market, the banking system, and Wall Street were now falling apart because of a horrible Democrat policy that Bush should have vetoed. While it sounded good, it changed the rules of banking that had existed for the previous four hundred years, generated by European banking norms. The result of that one policy was so bad that the Treasury went to Congress and said, “Look, we are $10 trillion in debt, and our entire financial system is about to collapse in days, and we need $1 trillion right now, or by next week we will fail,” meaning the nation will fail. Congress pushed back and said, “We must have oversight,” to which they were told, “We have 72 hours to save the nation, and we do not have time for your oversight; we only have time to act and fix what you broke. As the Treasury, we will pick who wins and who loses to save the nation.” And so they did. Because Bush was president, he got blamed, but if you look at Congress, who created the mess, you have a good idea of all the players who nearly broke the nation.
Since that time, what did we learn? Well, nothing. We are now $36 trillion in debt, three and a half times more, waiting for the day when someone in Treasury says the whole system is about to collapse. We have no choice but to do a few simple things and do them quickly.
Gary this is part of masterpiece essay written by retired Fortune EVP. I can send the rest if you’re interested.
Excerpts- Let me remind you what happened in 2004 when a Democrat Congress created a bill that declared all had the right to own a home. While noble, it is not a right to own a home; it is a right to earn a home. To make it happen, they told the banks they had to change their lending rules, which increased the loan risks. The banks pushed back and said it would destroy the banking and lending systems. So, Congress said, “OK, we will do this; you give the loans, and the US government will insure them.” Wall Street, seeing that, went to the banks and said, “We will buy up your bad loans since there is no risk based on the US government covering the loans.” Of course, by 2008, the real estate market, the banking system, and Wall Street were now falling apart because of a horrible Democrat policy that Bush should have vetoed. While it sounded good, it changed the rules of banking that had existed for the previous four hundred years, generated by European banking norms. The result of that one policy was so bad that the Treasury went to Congress and said, “Look, we are $10 trillion in debt, and our entire financial system is about to collapse in days, and we need $1 trillion right now, or by next week we will fail,” meaning the nation will fail. Congress pushed back and said, “We must have oversight,” to which they were told, “We have 72 hours to save the nation, and we do not have time for your oversight; we only have time to act and fix what you broke. As the Treasury, we will pick who wins and who loses to save the nation.” And so they did. Because Bush was president, he got blamed, but if you look at Congress, who created the mess, you have a good idea of all the players who nearly broke the nation.
Since that time, what did we learn? Well, nothing. We are now $36 trillion in debt, three and a half times more, waiting for the day when someone in Treasury says the whole system is about to collapse. We have no choice but to do a few simple things and do them quickly.