If the economy is so bad, why are tax receipts up?

[Gaspar]

Of course you blame Obama for lower house prices. Maybe you should look up actual facts.

http://en.wikipedia.org/wiki/United_States_housing_bubble

National home sales and prices both fell dramatically in March 2007 — the steepest plunge since the 1989 Savings and Loan crisis. According to NAR data, sales were down 13% to 482,000 from the peak of 554,000 in March 2006, and the national median price fell nearly 6% to $217,000 from a peak of $230,200 in July 2006.

Chief economist Mark Zandi of the economic research firm Moody's Economy.com predicted a "crash" of double-digit depreciation in some U.S. cities by 2007–2009. In a paper he presented to a Federal Reserve Board economic symposium in August 2007, Yale University economist Robert Shiller warned, "The examples we have of past cycles indicate that major declines in real home prices—even 50 per cent declines in some places—are entirely possible going forward from today or from the not-too-distant future."

It must be comforting to simply blame Obama for everything, even for things that happened before he even announced his campaign for the Presidency.

Who are you talking to.  I don't blame him for lower house prices.  We were in a bubble and housing prices were and still are way overinflated. Lending was cheap and our friends at Freddy and Fanny made it easy for first home buyers that could barley afford their apartments to go buy 200K houses.  The only person I blame for that is Bawney.

It was the impetus for the recession.

[erfalf]

Who are you talking to.  I don't blame him for lower house prices.  We were in a bubble and housing prices were and still are way overinflated. Lending was cheap and our friends at Freddy and Fanny made it easy for first home buyers that could barley afford their apartments to go buy 200K houses.  The only person I blame for that is Bawney.

It was the impetus for the recession.

I'm currently reading "The Big Short" by Michael Lewis (of Liar's Poker & Moneyball fame). You should give it a read. It's pretty entertaining (the personalities that is), but it will make your blood boil when you realize how clueless all of these people were when it came to sub-prime securities. They either weren't smart enough or they were so ignorant to let it happen. I lean toward the latter. Boggles the mind that our government not only didn't see this coming and didn't set up proper regulation, but it bailed them out after the fact, like it was their fault or something. Nauseating.

[Gaspar]

I'm currently reading "The Big Short" by Michael Lewis (of Liar's Poker & Moneyball fame). You should give it a read. It's pretty entertaining (the personalities that is), but it will make your blood boil when you realize how clueless all of these people were when it came to sub-prime securities. They either weren't smart enough or they were so ignorant to let it happen. I lean toward the latter. Boggles the mind that our government not only didn't see this coming and didn't set up proper regulation, but it bailed them out after the fact, like it was their fault or something. Nauseating.

They were warned 17 times starting in 2001 of exactly what would happen.  Each time that warning was countered by Mr. Bawney Frank assuring congress and the American people that there was "NO BUBBLE."

2001

April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

2002

May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac.  (OMB Prompt Letter to OFHEO, 5/29/02)

2003

January: Freddie Mac announces it has to restate financial results for the previous three years.

February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them."  As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market.  ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03).

September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.

September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.

October: Fannie Mae discloses $1.2 billion accounting error.

November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk."  To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE."  (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03).

2004

February: The President's FY05 Budget againhighlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator:  "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore...should be replaced with a new strengthened regulator."  (2005 Budget Analytic Perspectives, pg. 83)

February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted."  Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator."  (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04).

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system.  Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs:  Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System."  (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04).

2005

April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America... Half-measures will only exacerbate the risks to our financial system."  (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05).

2007

July: Two Bear Stearns hedge funds invested in mortgage securities collapse.

August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions.  Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options."  (President George W. Bush, Press Conference, The White House, 8/9/07).

September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.

September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years.  Median sale price of existing homes fell six percent from the year before.

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission.  The GSE reform bill passed by the House earlier this year is a good start.  But the Senate has not acted.  And the United States Senate needs to pass this legislation soon."  (President George W. Bush, Discusses Housing, The White House, 12/6/07).

2008

January: Bank of America announces it will buy Countrywide.

January: Citigroup announces mortgage portfolio lost $18.1 billion in value.

February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully."  (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08).

March: Bear Stearns announces it will sell itself to JPMorgan Chase.

March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages."  (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08).

April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by ... helping people stay in their homes."  (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08).

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans."   (President George W. Bush, Radio Address, 5/3/08).
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator."  (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08).
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans."  (President George W. Bush, Radio Address, 5/31/08).
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac."  (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08).

July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

[erfalf]

You know who I blame as much as if not more than Fannie & Freddie (Bahnee)... S&P & Moody's. There was even a story in this book that Moody's just used the model that Goldman gave them to rate a bond that Goldman wanted rated AAA. Mind boggling.

[guido911]

Figured this thread would work for this dumb@ssed opinion from a lib on PBS. This sort of thinking is why that POS PBS needs to be taken out back and put out of our misery.

http://newsbusters.org/blogs/noel-sheppard/2012/07/07/mark-shields-republicans-havent-raised-taxes-21-years-and-irresponsib

[nathanm]

Yes, PBS should be canned because they dare to represent a slightly wider spectrum of political thought than Fox News. You're in top form today, Guido.

The fact of the matter is that only the Left and their media minions want higher taxes; the vast majority of Americans don't.

This could be rephrased as "only the Left and their media minions want to pay the bill for what we consume; the vast majority of Americans don't." Of course, that would be almost as much of a lie. The fact is that most Americans don't even know what they pay, so they have no basis on which to form an opinion about the level of taxation. They, quite accurately, feel unsteady financially. After all, they make less (after inflation) now than they did before Reagan took office. Hell, they make less in real terms than they did when Bush II took office! Unfortunately for them, the Bush tax cuts were not nearly enough to offset this loss in income.

So yeah, they feel squeezed. Perhaps someday the media might let them in on the little secret as to why they feel that way, but that wouldn't do well for any of the media conglomerates.

[heironymouspasparagus]

Figured this thread would work for this dumb@ssed opinion from a lib on PBS. This sort of thinking is why that POS PBS needs to be taken out back and put out of our misery.

http://newsbusters.org/blogs/noel-sheppard/2012/07/07/mark-shields-republicans-havent-raised-taxes-21-years-and-irresponsib

Noel Sheppard is the one who should be put out of our misery by taking his carp of the net.  He obviously has no understanding of the budget and spending bill process.  He made a snide and completely ignorant statement about Mark Shields not knowing when Bush raised taxes - saying it was 1990 rather than Shields statement of 1991.

The bill he signed in Nov 1990, was for the fiscal year 1991 -earliest effective date in the bill was Jan 1, 1991.  Which means the bill he signed raised taxes in 1991.  So Shields actually was correct and Sheppard shows us how he is so eat up with the Kool-Aid, that he is either lying intentionally, or just the typical ignorant we hear from that side.

And many of the provisions took effect after Sep 30, 1991, and some in 1992, so I guess Shields was a little bit wrong because some of that was later in 1992 and beyond.