Global creditors end U.S. spending spree

This is the first article I have read on this subject that I absolutely agree with. But lets be clear: lenders lent because they thought there was profit in the lending when in fact, the lending should never have been done. But do we see another issue developing here? Is the U.S. Government, wanting to keep its lines of credit open, going to pay some of those loans off? I am betting they do, and when they do, they will have to print money.

George Soros and the Liberal Democrats wanted a finanacial diaster so badly that they created one. Americans have become so dumbed down, it is George Soros and the liberal Democrats and make no mistake, Obama is in his back pocket, trying to collapse the dollar and destroy the Constitution therefore paving the way for Soros's 'World Government' and 'Open Society'. Four years ago, Soros promised he will knock America off it's pedestal.

I doubt Soros created this diaster, however he will probably benefit from it. No, the public and the federal government created it. We are reaping what we deserve. Most of us have to much debt. Wages,savings and the real cost of living have been laging because the federal reseve has been lying about the true cost of inflation by issuing lowball, unreal CPI statistics for the past ten years. We have not objected because the stock market and the increase prices of housing always bailed us out, until now. Now, we are really screwed. The stock market is not going to bail us out as the housing market will not bail us out either. The CPI will continue to under estimate inflation thus the cost of living will really be 6 to 10% higer then actual. Unless the fed starts being realistic about inflation thus allowing for higher wages our stardard of living will countine to decline. We are in for a painful and rude awaking for the next few years. Avoid debt and save, save, save.

Well, I like to know what role immigrants, legal and otherwise, played in this. The new immigrants came here to make fast cash any way they could. In California, they were big players in this mess, acting as real estate agents and loan brokers. They also took out a lot of the stated income, no-doc, and pay option ARM loans. AS times get tough, many are just packing up and returning to the mother country, having strip mined what they could from our economy, and leaving huge debts behind. What makes me angry is that I learned all these lessons Hanson talked about from my parents, who grew up during the depression. Yet I had to live in the times. So I now have a house I bought (but could afford) at an inflated price and a 401K, along with other investment accounts, loaded now with stocks of greatly diminished value. Hope my '98 Honda Civic and health holds up another fifteen years.

A clear article that explains how we got into this mess. Greed seems to be raising its head once more. Too bad the Congress can not live within its income - sorry I forgot they want to get reelected with our and foreign moneys. Jim Atkin

the us is broke we have lived beyond our means for the last 40-50 years,our chickens have come home to roost,this is because of failed democratic policies

There is no need to panic; God has a plan if you will use it. God warned against our debt, insurance, and credit system. Going against His wisdom to correct a system that is against His guidance is not wisdom. It cannot work. We have had recurrent crises from the same systems including 1930s, 1960s, 1987, and others. This system is the root cause of our employment system that creates pollution, energy crisis, disease, wars, financial crisis, bondage, stress, global warming fears, food crisis, immigration, health care needs, social security requirements, crime and other world problems. There is no good reason to continue the system. God has solutions to world problems we created by ignoring His wisdom. We can turn away from our employment lifestyle that created the above world problems and end the problems with one strategy. We can begin a retirement lifestyle of creating a garden paradise where all our needs are in our neighborhoods. There is no wisdom in working 40 to 60 years or more of our life before retiring. God has a retirement lifestyle. Imagine having all your time available to repair your neighborhoods beginning with your own needs. Quickly we would have clean, friendly, safe and productive communities. The banking system God designed is done through the churches; they would provide the money for repairing and providing for the community for those of their church. It is a magnificent system of recirculation of the same cash. Unbelievers can have their own systems that meet all their needs. This cuts out the multitudes of middlemen that make everything more expensive. God's kingdom is doing things His way; if we do not want it now, how can we expect to have it later? Pray for it; God will provide.

The article touches on Fannie Mae and Freddie Mac, but not on their centrality to the crisis. They accounted for half the U.S. mortgage market--they were making trillions of dollars' worth of loans that should never have been made. If they hadn't "rolled the dice" on low-income borrowers so many times (the words are Barney Frank's), this disaster would be a lot smaller --and we might not be in it at all. Here's hoping that when we dump the era of cheap credit in the ash heap of history, that the era of loading up future generations with the cost of today's political patronage will be dumped alongside it. Just don't count on Barack Obama to be the guy to do it.

truthspeaker1 wrote: Fannie Mae and Freddie Mac never made a single loan that was not their mission. ***************************** Their mission, as implemented beginning in the early '90s, was faulty and misguided. It was their mission that "shielded" lenders from the downside risk of making bad loans. Sadly, we're all going to pay the price for Fannie's and Freddie's mission.

It really is time for people to go to jail. Today it seems that America is like a ship sailing in very rough seas. The ocean that she is sailing is full of people, Americans, ready to make a difference and put their shoulders to the problems facing America. However, as we all know, oceans are full of sharks and this ocean is so infested with sharks that it is named the Media Ocean. Consider: The Good Ship America, The Media Ocean and The Obama Iceberg at: http://zachjonesishome.wordpress.com/2008/10/10/the-good-ship-america-the-media-ocean-and-the-obama-iceberg/