Cindy Sheehan: Cindy Sheehan’s Soapbox

1. paulie cannoli Post author | February 16, 2009

   Damn, I was planning to listen to this and forgot.

   Anyone catch it?
2. paulie cannoli Post author | February 15, 2009

   CEOs propped up by the regime’s corporate welfare (direct and indirect), corporate personhood, etc – yes.

   The regime did much to push easy credit, with its guarantees of ‘bailouts’ ….

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   WHAT CA– USED THE MORTGAGE MELTDOWN?
   By Michael Cloud
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   Mainstream Opinion Leaders told us that the Mortgage Meltdown triggered the Wall Street collapse.

   “DE-REGULATION!” – many of them said – caused the Mortgage Meltdown.

   De-regulation? Is that what they call tax-funded, government-guaranteed, high-risk home loans?

   Is that what they call government-backed loans to un-screened borrowers, to NON-credit worthy individuals, in excessive amounts – with profits going to reckless and irresponsible lenders – with taxpayers forced to cover losses?

   If all mortgage risks, liabilities, losses, and profits had been borne by private buyers and sellers – how many of these mortgage loans would have been made?

   Because small government means private enterprise: private risk and liability, private loss and profit.

   Big Government means reckless and irresponsible lending and borrowing. And the financial meltdowns they ignite.

   Independent Institute published a revealing research report on the Mortgage Meltdown.

   The report shows:

   * NO difference between foreclosure rates of prime and sub-prime loans.

   * “The main driver of foreclosures was Adjustable Rate Mortgages, both prime and sub-prime.”

   * Mortgages requiring smaller down payments and NO income verification – “no documentation loans” and “liar loans” – were the ignition points of the meltdown.

   http://tinyurl.com/3hpop7

   What’s the small government solution?

   First, let’s put the problem in proportion.

   “Nearly 40 percent of all residential properties in the United States, owner-occupied and rental units, are not mortgaged but are owned free and clear,” revealed a 2001 joint research project by the U.S. Census Bureau and Department of Housing and Urban Development.

   http://www.census.gov/prod/2005pubs/censr-27.pdf

   Of the 60% of homes that do have mortgages, somewhere between 6% and 8% of this 60% are in default or foreclosure. 3.6% to 4.8% of all homes are in default or foreclosure. Over 95.2% are paid for or current on their payments.

   Second, do NOT punish the innocent. These 95.2% of buyers and owners did NOT cause NOR contribute to the mortgage problems of those who made bad borrowing choices. Nor did the tens of millions of home and apartment renters cause or contribute to the mortgage problems of the 3.6% to 4.8% of borrowers. They should NOT be taxed to cover the losses of reckless and irresponsible buyers and lenders.

   Third, there is NOT one big mortgage foreclosure problem shared by 300 million Americans. There are 3 million to 4 million separate and individual mortgage problems – each problem shared by the mortgage lender and the borrower. Each mortgage can be re-negotiated, compromised, liquidated, or worked out by the creditors and debtors.

   Fourth, mortgage companies and investment companies that own these defaulted and foreclosed mortgages will need to sell off their assets for their current market value — and take a loss. Between 2000 and 2002, those who over-invested in over-valued dot.com

   companies lost over $1 trillion – and Americans were NOT taxed to cover the losses. Today, those who over-lent or over-borrowed or over-invested in over-valued homes — need to take their own losses, and NOT tax prudent, cautious, and responsible home-owners and renters for being sensible.

   Fifth, hundreds of thousands of street smart buyers and sellers are already snapping up foreclosed and abandoned homes. Bargain hunters are buying good homes at great prices.

   What’s the small government solution? End ALL government loans, loan subsidies, and loan guarantees. Each mortgage lender and borrower must be 100% responsible and liable for their loan. They alone will be at risk.

   Millions of free and responsible men and women can and will work out millions of micro-solutions to the mortgage problems. Because the small government solution is private enterprise solutions.

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   WHY GOVERNMENT ‘STIMULUS SPENDING’ DOESN’T WORK
   by Frederic Bastiat and Henry Hazlitt
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   Some people succeed by re-inventing the wheel. Governments usually fail by re-inventing the flat tire.

   Let two free market writers show you the fallacy behind government ‘stimulus spending.’

   “What is Seen and What is Not Seen” by Frederic Bastiat.

   About 7 minutes reading:

   http://www.econlib.org/library/Bastiat/basEss1.html

   ‘Economics In One Lesson’ by Henry Hazlitt.

   Read the preface, Chapter 1: ‘The Lesson’, and Chapter 2: ‘The Broken Window.’

   About 8 minutes reading:

   http://www.fee.org/library/books/economics.asp

   OR:

   http://www.fee.org/pdf/books/Economics_in_one_lesson.pdf

   When you’re done reading, why not come up with a small government proposal of your own and try it on a few friends?

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3. Valshannar February 15, 2009

   Incompetent CEOs helped, although massive military spending really doesn’t help either.
4. paulie cannoli Post author | February 15, 2009

   In turn, all the military overspending was a big part of what led to the economic crisis, and what is helping to continue and worsen it.

   That is, indeed, one very scary vicious cycle.
5. Valshannar February 15, 2009

   There is a “scary” increase in military recruitment because of the economic crisis. The military offers a steady paying job, something people need.

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