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"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."

Frederic Bastiat

THE FINANCIAL CRISIS DIDN'T START WITH LEHMAN BROTHERS

By
Neal Boortz
@ September 16, 2009 8:20 AM
Permalink | Comments (8) | TrackBacks (0)

With the anniversary of the collapse of Lehman Brothers, there has been a lot of talk about the current state of our financial system one year later. With Obama's talks on Wall Street, and Barney Frank still banging the drum for more regulation ... let us not forget two extremely important entities that got this bull rolling: Fannie Mae and Freddie Mac.

In fact, here is a little factoid that the mainstream media will probably not tell you. A report from the Government Accountability Office says that "privatizing the government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac could mitigate the systemic economic risk caused by the federal government's guarantees to the now-defunct mortgage giants, but that the benefits of privatization could be reversed by government efforts to insure private-sector mortgages."

Oh no! Not privatize! Where's the government? How is the government to save people? How is the government going to make people more dependent if we privatize?



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What others are saying

  • Club-a-Liberal
    WOW.
    i'm sure they're investigating what happened. they just don't want to tell the people what happened. of course most people want to talk of joe from SC than use their brains talking about anything that needs deep thought.

    if you take the country as a whole, i wish they would have run the banks and destroyed our financial system. that way we could build it right from the ground up. if you that the people i'm glad that didn't happen.

    i think china did it
  • Re:Club
    Most countries out there cannot defeat the USA with traditional weapons and means..
    It has been mentioned (not by me), that the Chinese have had there way in meddling with our economy...with their manipulations of their own markets and ours..
    Bring down the giant without firing a shot.

    I tend to doubt it though as their survival, at least at the moment depends on ours...
    though they have less, as a nation, to lose then us..the fall is shorter to the bottom.
    We, on the other hand, would curl up and die without our hairdryers, WWIIs, cell phones and starbucks...

    just a random thought, Im sure Ivan can speak better on this..
  • Carlos
    the market anarchists talk about corporate capitalism or monopoly capitalism, which is capitalism run by the state.
    Many of the wonder drugs promoted endlessly on American television, including Viagra, come from British, Swiss or Japanese labs.
  • Conspiracy
    In January 2009, Democrat Rep. Paul Kanjorski, chairman of Capital Markets subcommittee,was on CSPAN and took a call from an irate caller about the financial crisis. He spilled the beans on what happened on 9/14/09.

    FACT - He said there was a huge run on the banks within one hour to the tune of billions. Treasury pumped in $100B to no avail. There was an orchestrated attack on our financial system. Kanjorski said that he met with Paulson and Bernanke and they had to shut down the money markets or the entire US economic system would've collapsed. The global economic system would have collapsed by the end of the day if no action was taken. Remember Bush later that day making cryptic comments about "market manipulators will be prosecuted" What does that mean? The FDIC limit was raised to $250K that day also. What was going on?

    So, the obvious question is, Who orchestrated this attack?? Why no investigation?

    Consider, this was one week after the GOP convention, where McCain got a HUGE bump in the polls. Things weren't looking good for Obama.

    Could it have been Soros? Otehr countries? Who? Bottom line: that crisis turned the whole campaign over to Obama? Why are we not investigating this? Soros made his fortune by doing the same thing to England where brought the Bank of England down.

    IVAN, have you seen this? TSHIRTDOC, what say you?

    Here is the video:

    http://www.youtube.com/watch?v=pD8viQ_DhS4
  • re. Tshirt-doctor.com
    There will be winners and losers in a capitalist economic system, but I'm convinced that the overall quality of life in a capitalist economic system will always be superior to that of a socialist one.
    That being said, mass production manufacturing, (Fordism), is a system that will eventually fail. As Piore and Sabel opine, specialization and innovation are the only means by which an economy can continue to grow.
    The democratic party and their enablers, (unions), stand in the way of specialization and innovation. Unions suck all the money they can out of a company's bottom line, inhibiting R&D. Union policies prevent workers from bettering themselves individually by suggesting of aiding in the developement of innovative systems. The union philosophy is to keep on doing the same thing for as much money as can be extorted from the company for as long as possible in order to keep those union dues rolling in to the big union poobahs who make sure that the democrat party gets enough to be able to provide their complete support.
    Where was your computer, I-Pod, GPS device, refrigerator, camera, etc., etc., made?
  • Credit 'crises'
    This is kind of related, but I heard on the news this morning that banks are tightening credit and requiring a 20% down payment for a home loan. OMG, how awful!!! You mean to tell me that the homeowner has to bring some money to the table too! What a tragedy! NOT!
    Also we need to get this through our collective thick heads in this county that home ownership is not the 'be all/end all' that politicians make it out to be.
  • it goes back farther than that
    of course its from a market anarchist website. just a piece of it:

    Great Depression as “the normal outcome of the workings of the American economic system.” It was the culmination of the “stagnationist tendencies inherent in monopoly capitalism,” and far from being a deviation from economic normality was “the realization in practice of the theoretical norm toward which the system is always tending.” Fortunately for corporate capitalism, World War Two postponed the crises for a generation or so, by blowing up most of the plant and equipment in the world outside the United States. William Waddell and Norman Bodek, in The Rebirth of American Industry, describe the wide-open field left for the American mass-production model: General Motors, Ford, General Electric and the rest converted to war production and were kept busy, if not prosperous, for the next four years. When the war ended, they had vast, fully functional factories filled with machine tools. They also had plenty of cash, or at least a pocket full of government IOUs. More important, they also had the entire world market to themselves. The other emerging automobile makers, electric product innovators, consumer product companies, and machine tool builders of Europe and Asia were in ruins.
    The destruction of capital postponed the crisis of overaccumulation until around 1970, when the industrial capacity of Europe and Japan had been rebuilt. By that time, according to Piore and Sabel, American domestic markets for industrial goods had become saturated.

    Financialization was a way of dealing with a surplus of productive capacity, whose output the population lacked sufficient purchasing power to absorb, because almost all increases in productivity had gone to increasing the wealth of the upper class.

    ...the problem with debt-inflated consumer demand was was that there was barely enough demand to keep the wheels running and absorb the full product of overbuilt industry even when everyone maxed out their credit cards and tapped into their home equity to replace everything they owned every five years.

    they get into this economics thingy. just as we should. i hadn't realized that the US economy was the worlds only functioning economy at the end of WW2. and it shifted our economy one way.

    you can read it---> http://c4ss.org/wp-content/uploads/2009/09/Decline-and-Fall-of-Sloanism.pdf

    http://c4ss.org/content/category/studies
  • MSM
    How would you know whether the mainstream media reports it or not? All people do on this board is cry about it? Surely if the republican-biased media doesnt report about this then you wouldnt be watching it to begin with.
    Liberal-media is the same as an east coast bias w/ sports media, it doesnt exist. It is just what losers and crybabies complain about when the person(or team) they support suck.
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