The Right Guy Show

An old fashioned libertarian’s view on the world

Archive for the ‘Freddie Mac’ Category

Is Paul Volcker Looking For a Job?

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I know Ben Benanke has already been confirmed as fed chief again, but when I read Paul Volcker’s article in The New York Times, he really dances around the concept of “too big to fail”. He really doesn’t, in my estimation, make a good case for bailing out banks, or any other private entity. Just that “Aggressive action by governments and central banks — really unprecedented in both magnitude and scope — has been necessary to revive and maintain market functions.” He really doesn’t disagree with Obama much, and doesn’t really offer a solution other than “protection against the outliers”.  While we should limit the possible effect hedge markets have on banking, I do not see the need to bail the banks out in the future. They will have learned nothing from this experience. May be banking and hedge funds need to be separate entities, and have rules about what can be invested in hedge funds along with how and who. The hedge funds inversely leveraged the debt to the point of it being toxic to everyone. It’s like turning a stick of dynamite into a 50 megaton bomb.

What is missing here is a solution that the banks should have come up with as opposed to having their hand out. It wasn’t forthcoming. Volcker either is pitching for a future seat as chairman of the fed when Bernanke get the bus backed over him, or he’s trying to stay on the inside with Obama. Nothing really changes in either case. It’s more of the Wesley Mouch big government largesse to banks at our expense and detriment. We do not exist because of banks, but the reverse, and the same can be said of the government. It’s about time corporations and government recognize the proper relationship and realize they serve us, not themselves. We also have to take responsibility for voting in self-absorbed, self-agrandizing, and selfish politicians that pass acts like the CRA, and go after corporations because they will not operate outside of good business practices. Lest’s be clear here: The government enable people at large to borrow money they knew they could not pay back, and live beyond their means for a short while. The banks followed suit because of fear of being litigated against or in violation or the CRA. On top of this we had government lending institutions like freddie and fannie leading the way with bad lending practices, and then when the shit hit the fan, the bad loans were securitized into instruments the hedge funds tried to bury, there you have the stick of dynamite transmogrified into tsar bomba. To add to it, politicians like Barney Frank and Chris Dodd to mention only two, benefited with special preferential loans fro lending institutions. The only people left out in the cold to clean up afterwards were the american people not caught up in the mortgage bubble mania.

We don’t don’t need Paul Volcker or Ben Bernanke. We certainly don’t need Alan Greenspan. If Milton Friedman was alive, I’d say give him a shot, but he’s dead. If it were up to me, I’d have a sit down with Dr. Thomas Sowell and ask him what he thought. Too bad it isn’t up to me, because now we’ll have the FDR II show for the next 3 years. We remember how that went.

Thank you for reading this blog.

Written by James Lagnese

January 31, 2010 at 11:04 am

Barney Frank: A study in weaselology

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The pure, unadulterated sfacime.

Barney Frank likes to change the rules to suit him. Now that the power may be slipping from the democrats, he wants to change the rules so the democrats can keep the power. This guy is as phony as a $3 bill. He’s also the same person that refused to pass regulation to reign in fannie and freddie:

My only question is, does this guy have teeth? I think he’s needs to spend some time away from the habitrail.

Thank you for reading this blog.

Written by James Lagnese

January 19, 2010 at 6:36 pm

The Financial Mess: Whose Fault is it?

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It’s interesting that the same scumbags, like Barney Frank, who is one literally, denounced efforts to prevent the problems and they now blame the Bush administration. Too many democrats were benefiting from Fannie and Freddie to stop the insanity. Here it right from their own mouths. They can’t hide from their own words. Now were are left paying for their mistakes. 
Thank you for reading this blog. 

Written by James Lagnese

January 18, 2009 at 10:36 am

Who is to blame?

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This might settle it.  What do you think? Comments welcome.

Written by James Lagnese

September 26, 2008 at 10:40 pm

George Bush the Communist

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Today, the government bailed out Fannie Mae and Freddie Mac. They basically took them over and now they are run by the government. When Chavez does this, he is a rotten communist, when Putin does this, he’s considered evil. On top of this, the board of directors for these corporations and their executives aren’t being prosecuted, investigated or even castigated. When Enron screwed up, they hung them out to dry and went after the management. That was the right thing to do. Now we have a situation that cries out, duplicity. Now the big three automakers are making noise that they want preferential loans to bail them out. Now why did Bush and the government do this? They will say that with our economy in the state that it is, we can’t afford this instability. I think there are two additional reasons that need to be examined One, the world is moving towards a more socialist political economy, with government more involved with business. America is sliding towards this. Additionally, the 2008 presidential election looms and an economic failure during the Bush administration would make a McCain/Palin victory impossible. As much as I’d rather see them get elected than the Neo-Com socialist O’Stymie and his boy blunder Biden, I think it bears some truth. All Bush needs to do now is don the red beret.

Thank you for reading this blog.

Written by James Lagnese

September 8, 2008 at 7:38 pm