What’s even more sad after I see all these clowns like Barney Frank(this guy really looks weird, like some outraged gay owl), Chris Dodd, etc, who were the very people whose corrupt defense of Fannie and Freddie eventually caused the housing and financial bust, now walk around freely in even greater power, with no accountability at all.

How stupid can Obama voters get????

Even Nouriel Roubini, the guy whose prediction of a subprime housing bust came true after getting his timing wrong by 3 years, says Obama is so intelligent, has great vison and is so capable, and america is so fortunate to have him. It was after reading Roubini in early 2007 that I started to get defensive in the markets, but obviously Roubini isn’t that smart and has been taken in by this cunning liar with a silver tongue(to some gullible people).

I really think you americans are in deep now.

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I think we have to place the bulk of the blame for this crash mostly on the democrats.

1)subprime lending started under the CRA(community Reinvestment Act) under Carter. Well meaning, but later it became a political monster. Banks were forced to loan to various communities with poor credit history and poor earnings, as part of political welfare.

2)Subprime mortgages were allowed to be securitized and sold as mortgage-backed securities under Clinton. This allowed unhappy banks to pass the risk of default of the subprime mortages they were forced by democrats to make, onto other parties. Suddenly banks realized they could make mortgages out of the air and sell them away for a nice profit. Find a vagrant on the street, give him a 100% mortage, then securitize it and sell it into the market. Easy money.

3)Fannties and Freddie went wild buying trillions of mortgage-backed securities, creating a huge market for them. Fannie and Freddie are democrat supported and directed institutions, their boards packed with Clinton-era advisors and supporters of the DNC. When others tried to regulate Fannie and Freddie to stop their insane buying of bad mortgage-backed securities, such efforts were blocked in the House by democrats.

4)Fannie and Freddie busted, triggering a knock-on effect on the swaps held by AIG, the other mortgage-backed securities held by investment banks, everybody got burnt.

As Mccain said, My Friends, even from SEAsia we know who is to blame……that’s why we think rather poorly of Obama and his gang of cronies.

This subprime crisis has hardly anything to do with Bush. Fannie and Freddie went wild during the last 2-3 years, and by then dems controlled the House and nobody could stop Fannie and Freddie from imploding because the dems were protecting Fannie and Freddie from efforts to regulate them.

A classic case of political stupidity on the part of your democratic party.

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Blast: Perhaps you would like to go back to the posts at this site where the good economic news from the last few years was chronicled and give us the links to the comments you left praising Bush?

If not, then get ready for some payback.

You Bush haters wrote the rules and we are merely playing it accordingly.

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Lightbringer, no I am speaking to the bs involved in the whole argument to blame Obama one way or another. Bush is president and he is responsible for the actions of this government which has been a sleep at the switch on 9/11 and again for the financial crisis. Oh, and it is just like I did not blame Bush for economic problems he had after the Clinton tech bubble burst… but Bush has been president for nearly 8 years, so he owns this.

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Altho I am betting that oil will go up in price, I don’t subscribe to the peak oil theory and I think it will not be that difficult to find and extract an increasing supply of oil. I just think that demand, during growth periods, will be more than the supply coming out. I don’t see shortages or countries fighting each other over oil assets.

I am also not very sure about the fossil fuel theory of oil. The abiotic theory seems to be coming back into fashion in some places. If there is any truth to this theory, then basically our oil will never run out.

If it really gets that bad, I still don’t see the large countries fighting each other, even thru proxies. The threat of wider warfare is just too costly, and there are other sources like cheap brazilian ethanol(which is the only viable biofuel) that can be brot in once the politics allow.

However, I’m not a military person either by interest or training, I’ve just gone thru the basics like most other people…..

So if u feel that china is a threat, that’s your opinion and I respect it. I could be wrong myself also. Given the horrible battles the chinese have had against the americans in vietnam and korea, I can well understand it. But I honestly think things have changed.
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Incidentally, today I managed to get a real laugh out of the guys in my trading room, which sometimes is like a tomb when we see the market go down and we are caught the wrong way.

One guy was complaining he had to kill a black cobra in his garden last nite. At that point I was reading about Obama wanting to roll back the Bush tax cuts, so I said, “Why kill it??? Why not just call it ‘Obama’ and keep it as a pet???”

That really got everyone laughing…..no PC in a trading room of 200 chinese.

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Let’s just say that instead of a threat, China’s massive military buildup is a “concern.”

I’m looking ahead 10 or 20 years to when petroleum resources are scarce and competition for them becomes a life or death struggle. In the 20th Century we saw what happens when the dominant power (in that case Japan) demanded more energy supplies.

I am not saying China has the same imperial ambitions as pre-war Japan, but if the U.S. decides to give up it’s superpower status and let the balance of power in the region slip it would invite conflict.

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This post got stuck in spam and another one is in moderation… so I hope I am not duplicating these posts.

Sigmundrinkeck, I have to agree with you one more time. Obama’ economy plan will ruin America. He wants to destroy Capitalism. Read what Rupert Murdoch says about him.

BARACK OBAMA COULD WORSEN CRISIS

NEWS Corporation chairman Rupert Murdoch says B. Hussein Obama’s economic solution is “crazy.” His tax policies are not at all logical.

His projection to “hand out tax rebates to most Americans and to increase taxes for people earning more than $250,000″ is not on target at all per Glenda Korporaal’s “Barack Obama ‘could worsen crisis’: Rupert Murdoch” per The Australian Business with the Wall Street Journal.

Murdoch stated that B. Hussein’s promise to give tax rebates to 95 percent of Americans was “rubbish.”

That’s strong language. But it’s time that reasonable voters get the truth-in-the-face or our Republic will soon be destroyed by the arch deceiver, B. Hussein.
B. Hussein is off the charts on most of his agendas because of the bottom line — he’s not experienced in anything but style and glitz. He’s all showmanship and connections with terrorist ties and the Islamic underground.

As Sarah Palin stated simply, B. Hussein is “dangerous.”

“Americans are exceptionally concerned about their wallets right now. Rightly so. Therefore, on that front, when an expert like Mudoch speaks “crazy” and “rubbish” concerning the mask Muslim who wants to sit in the Oval Office, that warning should be shock enough to knowledgeable Americans.

Murdoch “rejected suggestions that Tuesday’s US election could act as a circuit breaker for the current crisis of confidence in world financial markets.

Making it worse is exactly what inexperienced B. Hussein and cadre will do to the Republic. They simply don’t have the know-how. They are jesters. They are shadow boxers. They are superficial to the limit. The are devilment in the flesh. Not good for the USA.”

Read “Barack Obama ‘could worsen crisis’: Rupert Murdoch” at http://www.theaustralian.news.com.au/business/story/0,28124,24584219-643,00.html

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Again I agree with you on Obama’ economy plan. He want to destroy capitalism and he will. Look what Rupert Murdoch thinks of it:

NEWS Corporation chairman Rupert Murdoch says B. Hussein Obama’s economic solution is “crazy.” His tax policies are not at all logical.

His projection to “hand out tax rebates to most Americans and to increase taxes for people earning more than $250,000″ is not on target at all per Glenda Korporaal’s “Barack Obama ‘could worsen crisis’: Rupert Murdoch” per The Australian Business with the Wall Street Journal.

Murdoch stated that B. Hussein’s promise to give tax rebates to 95 percent of Americans was “rubbish.”

That’s strong language. But it’s time that reasonable voters get the truth-in-the-face or our Republic will soon be destroyed by the arch deceiver, B. Hussein.
B. Hussein is off the charts on most of his agendas because of the bottom line — he’s not experienced in anything but style and glitz. He’s all showmanship and connections with terrorist ties and the Islamic underground.

As Sarah Palin stated simply, B. Hussein is “dangerous.”

“Americans are exceptionally concerned about their wallets right now. Rightly so. Therefore, on that front, when an expert like Mudoch speaks “crazy” and “rubbish” concerning the mask Muslim who wants to sit in the Oval Office, that warning should be shock enough to knowledgeable Americans.

Murdoch “rejected suggestions that Tuesday’s US election could act as a circuit breaker for the current crisis of confidence in world financial markets.

“‘To some extent it is beyond the power of politicians,’ he said. ‘You are going to find that the politicians are very limited in what they can do: they can make it worse but they can’t stop it.’”

Making it worse is exactly what inexperienced B. Hussein and cadre will do to the Republic. They simply don’t have the know-how. They are jesters. They are shadow boxers. They are superficial to the limit.

The are devilment in the flesh. Not good for the USA.”

Read “Barack Obama ‘could worsen crisis’: Rupert Murdoch” at http://www.theaustralian.news.com.au/business/story/0,28124,24584219-643,00.html

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Correction: the Yuan isn’t pegged to the US dollar as of now(couple of years ago it was), it is actually managed like the singapore dollar, that is weighted to a basket of currencies. I don’t deal with the Yuan much and usually think in singapore dollars when I am working.
However what I said still is largely valid, because up to 2005, the mainland had linked its domestic monetary policy to that of the US dollar.
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Craig, I must agree with you.

Well, maybe I am biased when I say China is no threat, but I can tell you those chinese that live near to western assets were bit scared after 911. In many SEAsian countries, the local police managed to round up these groups of jihadists, and the group nearest to me got caught because they had sent a video to afghanistan, where it was found by the american military, about wanting to bomb american assets in Singapore. I watched the video, it was something like a holiday video of some city, except that the jihadi guy was talking in a matter-of-fact tone about where to put the bomb to get the best effect to kill those americans, instead of where to eat the best food. They also had grand plans about hijacking airliners and crashing them into the airport.

These guys are really dangerous and need to be all killed and defeated completely.

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Post-Scriptum: China is wise. They know that to avoid war, they have to be ready. With their huge Army, nobody feels like attacking them. Israel is alson wise, they did the same thing.

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