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US Government Partly to Blame for the Financial Crisis

Discussion in 'Political Discussion' started by weswelker#83, Sep 22, 2008.

  1. weswelker#83

    weswelker#83 In the Starting Line-Up

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    According to Angela Merkel, the US government's multi-billion dollar rescue package comes much too late. The chancellor accused the United States of mismanaging the credit crisis: The Bush administration only fueled the crisis through its obstinacy.
    Washington/Berlin - The US government is, in its own words, lobbying "aggressively" for support for its multi-billion dollar rescue package - but until now, the plans from Washington to rein in the credit crisis are encountering mainly skepticism and unvarnished criticism.
    Unusually sharp language reached the White House from Germany: Chancellor Merkel accused the US administration of serious failures and logjams.
    "I criticize the self-control of the financial markets - unfortunately, they have long resisted voluntary regulations, supported by the governments in the UK and the US", Merkel told the "M├╝nchner Merkur". During the German G8-presidency last year, she already pressed for greater transparency in financial dealings, rating agencies and hedge funds. The anglo-saxon countries, however, did not sufficiently support these proposals.

    At an event in Linz, Merkel made unmistakably clear that she means primarily the US: Merkel indirectly attacked the Bush administration, arguing that through its obstinacy it has drawn other industrialized nations into the credit crisis. Many EUropean countries imposed strict controls on the banking sector at an early stage - such as when granting loans. In doing so, everyone was counting on the cooperation of the US, Merkel said.

    "We, of course, properly did the right thing, implementing a nice EU directive into national law in the face of many complaints from small businesses - and and when the day arrived, the Americans said, "Not us", the chancellor complained. "This cannot work in the international arena." The consequences must now be borne far beyond the US and the UK, Merkel complained.

    The chancellor demanded stronger rules for financial markets. Europe must "now insist that we get more transparency in financial markets, that we get clear rules, and that crises such as the current one do not recur". Finance Minister Peer Steinbr├╝ck also demanded stricter rules. In an interview with German television (ARD), he also did not rule out an international agency that fixes the rules.

    The EU Commission has already announced proposals for improved regulation of the financial markets .....

    "Failure and Arrogance" of the Americans

    The US government is making a total of $700 billion available in order to purchase bad loans from financial institutions in order to secure their existence. A law being negotiated this weekend under high pressure in Washington is supposed to be passed this week. As a result, the US national debt will increase to $ 11.3 trillion dollars.

    US Finance minister Henry Paulson on Sunday recommended that othercountries adopt a similar rescue package such as that proposed by the US government. "They should do this", Paulson said, and he confirmed that the US plans to "aggressively" lobby for such a package. He was optimistic that several countries would follow the example of the United States.

    Germany, but also the UK, are resisting the US model. "I have doubts, whether this approach is the most intelligent", CDU party vice chairman Michael Meister (CDU) told "Handelsblatt": The US government, with its $700 billion rescue package is potentially laying the foundation for the next crisis, just as it did with the massive interest rate reductions by the Federal Reserve after September 11, 2001, which planted the seeds for the current turbulence.
    SPD vice chairman Joachim Po├č (SPD) also rejected calls from the US for German participation in the rescue package. "The Americans cannot now make Germany pay for their failure and their arrogance. In Germany, no similar approach is planned nor necessary," said Po├č. He declined to speculate whether a rescue package is necessary for the US: this is a matter for the Americans, he said.




    Thanks to DT ,translated from german SPIEGEL edition:
    German Source
    Bankenchaos: Merkel gibt US-Regierung Mitschuld an Finanzkrise - SPIEGEL ONLINE - Nachrichten - Wirtschaft
     
  2. Fogbuster

    Fogbuster Pro Bowl Player

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    I thought there were copyright limits on the number of graphs that one can copy and post here??

    Anywho: Merkel is German. Though Obama got a rock-star's welcome at this summer's beer and wiener Augustfest drink-in at Berlin, that does NOT make Angela Merkel an authority on America. For those who did not know.

    Third: if anyone wants to start a blame game for the financial mess we are in, PLEASE bring it. This mess has its roots in the relaxation of credit standards that retail banks adopted over the past fourteen years. Look it up. Now, we need only go back to who was president of the U.S. fourteen years ago, who was pressing mightily to relax these banking standards (to pander to his constituency), and we have our culprit.

    Now, who wants to go first??

    //
     
  3. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Awesome Wes! Man, am I glad to hear other countries telling how stupid our government is. I'm not saying that tongue-in-cheek either. I really am glad because it's the truth.

    This package the government officials and US citizens who blindly believe it's the right thing to do are for lack of a better term, COMPLETE IDIOTS.

    Anyone who backs this plan without understanding it is just ignorant.
     
    Last edited: Sep 22, 2008
  4. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey


    I do, I do!!

    First of all, Wes' post is mainly about the idiocy of the $700 billion plan. And what European nations are saying is "Who TF is America to suggest that they do the same thing?"

    I agree with them. We aren't the brightest bulb on the circuit at the moment. Whether it is the repubicans or democrats who are at fault is irrelevant. The bottom line it this world wide crisis is America's fault.

    Your turn buster.
     
    Last edited: Sep 22, 2008
  5. weswelker#83

    weswelker#83 In the Starting Line-Up

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    Last edited: Sep 22, 2008
  6. weswelker#83

    weswelker#83 In the Starting Line-Up

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    Perhaps they ( Europe and Germany) learned their lesson about usurers and debt merchants during WWI and WWII. That's what happens when you elect people that aren't self-serving, lawyer scumbags who are bought and paid for.
    Interesting notes in that article about how they requested the US to require financials to have more disclosure at G8, yet of course we didn't listen. It sounds like the US has had plenty of "warning signs," yet our administration has stubbornly and stupidly looked the other way.
     
    Last edited: Sep 22, 2008
  7. weswelker#83

    weswelker#83 In the Starting Line-Up

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  8. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    More great news Wes...thanks buddy!:mad: I can't believe this;

    "The credit default swap market is the ultimate bubble, and it is about to collapse," the managing director of Institutional Risk Analytics, Christopher Whalen, said. "It is a Ponzi scheme, and is basically the same method as a bookie uses."

    And it's about to collapse? I would have to say not another fukkcing dime to help this one out. I'm sure even BF and RW would agree with that.

    Watching that interview, I don't know how people wouldn't be able to see that Peter Shciff is the only one talking reality. The other guy who said we're not in a recession got everyeone else laughing. I thought that was a riot.
     
    Last edited: Sep 22, 2008
  9. weswelker#83

    weswelker#83 In the Starting Line-Up

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    You can't make a promise that is not backed by CAPACITY.The hedgies who wrote these swaps had zero capital (for all intents and purposes) behind their actions - their inducement was fraudulent in the first instance, as there was never capacity to perform.
     
    Last edited: Sep 22, 2008
  10. Real World

    Real World Moderator Staff Member

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    Merkel is a saving face. Germany is suffering, and has been suffering, from a recession, and difficult economic period, over the last few years. Part of their problem stems from the US removing bases in Germany, and moving them to Romania. Another problem is german manufacturing struggling with sales in the US, due to a down economy, and a stronger Euro. Anyone who thinks that this is somehow George Bush's fault is genuinely missing the boat on what is a 10+ year process. This crisis didn't happen over night. This crisis happened over a couple of decades of credit based purchases, lowered interest rates, relaxed lending requirements, and the artificial growth increase in home ownership. This isn't any one man's doing or responsibility.
     
  11. PatsWSB47

    PatsWSB47 Veteran Starter w/Big Long Term Deal

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    #12 Jersey

    This is where I chuckle. Our administration along with the do nothing democratically controlled congress you mean don't you Wes? Now they're coming out of the woodwork pointing fingers at each other. That includes McCain and Obama.
     
  12. STFarmy

    STFarmy In the Starting Line-Up

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    Yeah but it's like blaming Cassel for yesterday; it's easy to do and takes no thought!
     
  13. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I'll second your thoughts here.
     
  14. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    Bush will fix everything in October, Mccain/Sarah will go to the White House, Messiah Jug Ears & Lovely Michelle will have Thanksgiving dinner with Uncle Jeremiah.

    GOD DAMN AMERICA
     
  15. weswelker#83

    weswelker#83 In the Starting Line-Up

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    When wallstreet gave multi Millions dollars support to bush Campaigns in 2000 and 2004 , yes , the White House is part of this mess.
    And good for the Germans. They didn't play the housing bubble game.
     
  16. FreeTedWilliams

    FreeTedWilliams pfadmins PatsFans.com Supporter

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    #75 Jersey

    The US Governmet is not Partly to blame, they are completely at blame.

    And that blame lands right at the feet, of the three Democrat Senators, who stopped the reforms that would have heeded this crisis, and in turn took MILLIONS from fannie/freddie for doing so....

    From Bloomberg:

    Bloomberg.com: News


    The three Democrats, Clinton< Dodd, and OBAMA!!!!
     
  17. weswelker#83

    weswelker#83 In the Starting Line-Up

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    The AUTHOR of this article:
    He is an adviser to Republican Senator John McCain of Arizona in the 2008 presidential election. The opinions expressed are his own.



    Hey moderator , do you think we are stupid ???

    Wake up ...... :D
     
  18. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    In all honesty, the partisanship on this issue is moot. We can all agree that it WAS our governments fault to a large extent and that the fine lady from Germany is correct.
     
  19. FreeTedWilliams

    FreeTedWilliams pfadmins PatsFans.com Supporter

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    #75 Jersey

    What in the article is false??????????

    Do you believe that somehow forcing banks to make sub-prime mortgages to people who have no ability to pay it back was a good idea?

    Did McCain sponcer a bill that would have avoided all of this??

    Is Obama the 2nd biggest benefactor from FannieMae??

    Did the Democrats not kill the bill on a party line vote??

    Did Greenspan not say that Fannie/Freddie had to be curtialed or it would lead to fianancial ruin??

    Which one of these statements are false???
     
  20. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Based on your answer......


    If there are facts in the article that are in error please point them out.

    Sis you think B Frank's sister were going to point out how the dems screwed up (and made millions in the process)?

    This is not a case of failure of the market it is a case of the govt messing up the market by trying to use the market for their socail programs
     

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