Posted on Dec 1, 2015
More like Reagan than FDR: I’m a millennial and I’ll never vote for Hillary Clinton
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ME? Bash Hillary Clinton?
More like Reagan than FDR: I’m a millennial and I’ll never vote for Hillary Clinton
I never thought I'd be encouraging people to not vote for the Democratic nominee for president. But I am.
(There is a lot of good stuff in this article. The part about the banks is the clearest explanation of those problems I have seen so I include that. Her foreign policy is for lack a better term - insane.)
The Banks and Wall Street:
Hillary’s approach to taxes mirrors her approach to the big banks and Wall Street: She wants to target the immediate threats while leaving in place the underlying problem that the banks are too big and have too much influence. Often citing AIG, and explaining that it is “not a bank,” Clinton scores a lot of points among fiscal conservatives, as well as uninformed Democrats. Let me fill in the gaps right now that allow people to accept Hillary’s weak stance on financial reform.
This is essentially what was going on prior to the subprime mortgage crisis in the United States:
Let’s say I’m a lender and I work at one of the six mega-banks in America.
1) I actively look for poor folks who I know have little education, and I try to sell them a loan to buy a house, at a “teaser” interest rate that would skyrocket after a few years. The reason I target people like this is because I get paid on commission for how many loans I turn out, and there are more of these people than there are qualified buyers.
2) I take out an insurance policy on the loan from a company like AIG.
3) I then take the loan, and package it with other loans given to similarly unqualified buyers (which also have insurance policies attached to them).
4) I then bring these debt packages to a rating agency like S&P (whom I pay per product). If they don’t give me my triple A rating, I’ll find one of their competitors who will, and because I represent one of the six mega-banks created by Bill Clinton allowing interstate banking, and his repeal of Glass-Steagall, which allowed the merger of commercial and investment banks, I exert enough influence on the rating agencies to generate a race to the bottom. They will all give me AAA ratings.
5) I take my AAA-rated subprime product and sell it for what it would be worth if everyone paid off their loans. The problem, of course, is that they most likely won’t be able to pay them off. However, I don’t care because as soon as I sell it for a huge payout, it ain’t my problem — and either way, I have insurance.
6) My bank has basically an unlimited license to gamble with other people’s money, and as a result lenders are making huge profits.
Of course, this whole model went belly-up when people began defaulting on their payments. Nobody was sure what they were holding on to, or the actual value of their assets. This is why the banks needed to be bailed out, and why they stopped issuing loans. Another unintended consequence was that these banks were also where most Americans kept their money — money that lenders were gambling with — a direct result of the repeal of Glass-Steagall."
Walt
More like Reagan than FDR: I’m a millennial and I’ll never vote for Hillary Clinton
I never thought I'd be encouraging people to not vote for the Democratic nominee for president. But I am.
(There is a lot of good stuff in this article. The part about the banks is the clearest explanation of those problems I have seen so I include that. Her foreign policy is for lack a better term - insane.)
The Banks and Wall Street:
Hillary’s approach to taxes mirrors her approach to the big banks and Wall Street: She wants to target the immediate threats while leaving in place the underlying problem that the banks are too big and have too much influence. Often citing AIG, and explaining that it is “not a bank,” Clinton scores a lot of points among fiscal conservatives, as well as uninformed Democrats. Let me fill in the gaps right now that allow people to accept Hillary’s weak stance on financial reform.
This is essentially what was going on prior to the subprime mortgage crisis in the United States:
Let’s say I’m a lender and I work at one of the six mega-banks in America.
1) I actively look for poor folks who I know have little education, and I try to sell them a loan to buy a house, at a “teaser” interest rate that would skyrocket after a few years. The reason I target people like this is because I get paid on commission for how many loans I turn out, and there are more of these people than there are qualified buyers.
2) I take out an insurance policy on the loan from a company like AIG.
3) I then take the loan, and package it with other loans given to similarly unqualified buyers (which also have insurance policies attached to them).
4) I then bring these debt packages to a rating agency like S&P (whom I pay per product). If they don’t give me my triple A rating, I’ll find one of their competitors who will, and because I represent one of the six mega-banks created by Bill Clinton allowing interstate banking, and his repeal of Glass-Steagall, which allowed the merger of commercial and investment banks, I exert enough influence on the rating agencies to generate a race to the bottom. They will all give me AAA ratings.
5) I take my AAA-rated subprime product and sell it for what it would be worth if everyone paid off their loans. The problem, of course, is that they most likely won’t be able to pay them off. However, I don’t care because as soon as I sell it for a huge payout, it ain’t my problem — and either way, I have insurance.
6) My bank has basically an unlimited license to gamble with other people’s money, and as a result lenders are making huge profits.
Of course, this whole model went belly-up when people began defaulting on their payments. Nobody was sure what they were holding on to, or the actual value of their assets. This is why the banks needed to be bailed out, and why they stopped issuing loans. Another unintended consequence was that these banks were also where most Americans kept their money — money that lenders were gambling with — a direct result of the repeal of Glass-Steagall."
Walt
More like Reagan than FDR: I’m a millennial and I’ll never vote for Hillary Clinton
Posted from salon.com
Posted 9 y ago
Responses: 7
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The author lost me when he said he would write in sanders. That is all the proof you need that he is a lost soul. He scored some good points on Hillary and her record but his solution (Bernie) is no solution at all.
The author is another "I want free healthcare, free tuition, a $15 minu in wage" and every other crackpot leftist position on the docket. Hillary is too conservative for him. That is laughable.
On banking he conveniently forgets the federal governments role in this lending of money to people that could not afford it. Anyone remember Freddie and Fannie? This is another leftist diatribe by someone even further left than Hillary.
The author is another "I want free healthcare, free tuition, a $15 minu in wage" and every other crackpot leftist position on the docket. Hillary is too conservative for him. That is laughable.
On banking he conveniently forgets the federal governments role in this lending of money to people that could not afford it. Anyone remember Freddie and Fannie? This is another leftist diatribe by someone even further left than Hillary.
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Cpl Dr Ronnie Manns
MSgt (Join to see) - Well I guess we are going to just have to agree to disagree. You say do nothing but I consider lower the deficit, healthcare, biggest VA budget, lower unemployment, equal pay to name a few as doing something. Trump doing something, yeah I guess so.
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MSgt (Join to see)
Cpl Dr Ronnie Manns - I'm a little confused here or maybe you simply changed lanes without signalling. The budget deficit has been lowered not because of any direct actions taken by this administration, we have low unemployment thanks to the lowest labor participation rates since the Carter years, ACA is a joke because health insurance does not equal healthcare, a bigger budget will not fix the problems with the VA when leadership is not willing to make the needed changes in order to make the VA efficient and they have actively blocked the bills that would do that. Please explain what you mean by equal pay? A janitor should make the same as a neurosurgeon or are you referencing that false number of women making 76% of what a man makes?
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I must say, when I first read the title of this article, I turned up my nose but after reading all of it, my nose went down but my eyebrows went up. Certainly gives one a lot to think about and I hope all who read it does not pre-judge it as I did but give it a chance to sink in before deciding.
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I worked for large international banks when this happened. Most of this is spot on. The underlying issue was Freddie and Fannie creates the loans. They got bundled and sold off as AAA instruments that many banks then purchased.
When the banks opened up the super structure they then had 100s of bad loans. Now mortgage factoring laws kicked in and banks had to keep more capital in the fault - hence why it was called a ceedit crisis.
It all boils down that both parties use the housing market to build up the economy and all bubbles must break sooner or later.
I would not vote for Hiliary as a vet - government documents at the State level are automatically classified as secret - if she did not know that then she is simply too incompetent to be the Commander In Chief - as simple as that and no politics needs to be involved.
When the banks opened up the super structure they then had 100s of bad loans. Now mortgage factoring laws kicked in and banks had to keep more capital in the fault - hence why it was called a ceedit crisis.
It all boils down that both parties use the housing market to build up the economy and all bubbles must break sooner or later.
I would not vote for Hiliary as a vet - government documents at the State level are automatically classified as secret - if she did not know that then she is simply too incompetent to be the Commander In Chief - as simple as that and no politics needs to be involved.
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