No one could have predicted: Bush is the new Hebert Hoover

C

Cypress

Well-known member
Thank God, we didn't vote for Al Gore or John Kerry! My greatest fear isn't a tragic and unneccessary three trillion dollar war, or the worst economic downturn in half a century -- my greatest fear is a fully funded children's health insurance program, returning to Clinton-esque economic policies, and more pro-Roe v. Wade SCOTUS justices!


Recession is here, economist declares

Feldstein heads key forecasting group Slump may be worst since World War II

The United States has already slipped into a deep recession that could be the most serious since World War II, said Martin Feldstein, president of the Cambridge group that is considered the official word on economic cycles.

"The situation is bad, it's getting worse, and the risks are that the situation could be very bad," Feldstein said in a speech yesterday at a financial industry conference in Boca Raton, Fla.


http://www.boston.com/business/articles/2008/03/15/recession_is_here_economist_declares/
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Fears That Bear Stearns’s Downfall May Spread

March 17, 2008

The cash squeeze that brought Bear Stearns to its knees is fanning fears that other investment banks might be vulnerable to the crisis of confidence gripping Wall Street.

Investors are bracing for another volatile week in the markets as bankers and policy makers deal with the fallout from their bid to rescue Bear Stearns.

For now, the prospect of a new wave of consolidation in the beleaguered financial services industry seems remote. That is because would-be acquirers and everyday investors alike have lost faith in the values that Wall Street firms are placing on their own assets.

Of particular concern are the so-called marks placed on mortgage-linked investments like those that undid Bear Stearns, prompting a run on the firm that led the Federal Reserve and JPMorgan Chase to throw Bear Stearns a financial lifeline last week.

James E. Cayne, the chairman of Bear Stearns, mused eight years ago that he might consider selling the 85-year-old bank for a lofty price of four times what it values itself on its books. But now such a notion seems absurd — and not just for Bear Stearns.

The unhappy experience of Bear Stearns proves that it is a lack of confidence, not capital, that ultimately topples even the savviest financial institutions.

“Once you have a run on the bank you are in a death spiral and your assets become worthless,” said David Trone, a brokerage analyst at Fox Pitt Kelton.

http://www.nytimes.com/2008/03/17/business/17econ.html?hp
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Except Hoover didn't tapdance while the walls were coming down, declare "Republicans are going to have a great election this year!," and wax romantic about a hellish war.

I think Bush is certifiably insane. I don't think I will ever get over the fact that voters made him a 2-term President. It will affect my assessment of average American intelligence for the rest of my days.
 
Oncelear, I think we should get back to talking about Pastor Jeremiah Wright, and forget about what republican policies have wrought.
 
Well like Hoover Bush does have the point of view that the government can stop a recession... Result: stopped NO.. delayed.. YES. Eventually the market forces cannot be held back any longer.

Next we should start calling recession stricken towns 'Bushville'
 
Chapdog said:
Well like Hoover Bush does have the point of view that the government can stop a recession... Result: stopped NO.. delayed.. YES. Eventually the market forces cannot be held back any longer.

Next we should start calling recession stricken towns 'Bushville'
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We can't stop business cycles. But government can and does, take the hard edges off them, with prudent fiscal policies, and OVERSIGHT. Fact.

If this does become the worst economic downturn in half a century, bush voters can look at themselves in the mirror and take the blame.
 
Yeah, Bush is such an ardent free-marketeer that he caused the recession. We've never had a president who believed so much in the markets.
 
Cypress said:
We can't stop business cycles. But government can and does, take the hard edges off them, with prudent fiscal policies, and OVERSIGHT. Fact.

If this does become the worst economic downturn in half a century, bush voters can look at themselves in the mirror and take the blame.
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Who wants oversight and the rest when the big players can act recklessly, reap huge profits, bonuses and the like and when the ax finally falls the American taxpayer is there to bail you out? You know, privatize the profits, socialize the risk.

It's moral hazard on the grandest scale imaginable.

And the best part of the whole deal is that the Fed will bail these fuckers out with any additional regulation so we can do this again sometime all under the guise of the "free market."
 
im no bush apologist.. but fair is fair.. their is plenty of blame to spread around including some of the Clinton administration policies put in place that resulted in the subprime mess.

What I CAN tell you is that this is no time to be spending on a war, a magical healthcare plan, or any other massive government spending.. we are fast approaching WW2 Debt@GDP.
 
697px-US_Public_debt_per_GDP_1791-2006.svg.png


We should institue universal healthcare as one step to save our economy money.
 
Well 6 months ago everything was fine according to the experts, with some chance of a slight recession . Now the worst recession since WW2. What will be the story in another 6 months ? :shock:
 
uscitizen said:
Well 6 months ago everything was fine according to the experts, with some chance of a slight recession . Now the worst recession since WW2. What will be the story in another 6 months ? :shock:
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Because whenever the "experts" say that there is a chance of recession, and it happens, it is just because they are in the pocket of corporations.
 
Watermark said:
Because whenever the "experts" say that there is a chance of recession, and it happens, it is just because they are in the pocket of corporations.
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Yeah, they were too busy cashing in. Here's the bonuses that Wall Street handed out over the last few years:

1999 - 13.4 billion
2000 - 19.5 billion
2001 - 12.8 billion
2002 - 10.1 billion
2003 - 16.2 billion
2004 - 18.6 billion
2005 - 21.5 billion
2006 - 33.9 billion
2007 - 32.0 billion


Guess who gets left holding the bag.
 
Watermark said:
Yeah, Bush is such an ardent free-marketeer that he caused the recession. We've never had a president who believed so much in the markets.
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It is not free market to subsidize companies. This is one of the most misused phrases in economics.
 
Phew! We can all rest easy. Bush just said that they're "on top of the situation." Just like he said before Katrina.

That was a close one.
 
BS closed at $30 on friday I think and JPM bought them for $2 ? Or do I have the story messed up ?
And how does that FED loan guarantee to BS thru JPM work anyway , since JPM bought them ?
 
uscitizen said:
BS closed at $30 on friday I think and JPM bought them for $2 ? Or do I have the story messed up ?
And how does that FED loan guarantee to BS thru JPM work anyway , since JPM bought them ?
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The guarantee is to JPM, who apparently was reluctant to make the acquisition even at the severely discounted price without the fed guaranteeing BSC's "less liquid assets" (Read: steaming pile of horseshit).

. . . adding, you are correct on the price, $2 bucks a share on a stock that closed at $30 on Friday for overall value of roughly $250 million for a company that has physical assets in excess of $1 billion (prime Manhattan commercial real estate).
 
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