We judged that a sudden, disorderly failure of Bear would have brought with it unpredictable but severe consequences for the functioning of the broader financial system and the broader economy, with lower equity prices, further downward pressure on home values, and less access to credit for companies and households.
quote by Timothy Geithner
Submitted by Lucian Velea
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Life in Paradise: 21st Century Style
2000-2001
The “dot com” bubble bursts
Recession
9/11/2001
America attacked!
Our way of life is threatened
Fear sets in
Financial institutions vulnerable!
Economy in a nose dive
What to do?
Everybody fly the flag from your home.
Save housing - Save the economy!
First, everybody needs a home.
The madness begins.
2002-2003
Create laws to increase minority homeownership
California gives birth to the ARMs* and NINJA** loans
Accounting irregularities at Fannie Mae (FNMA) & Freddie Mac (FDMAC) ***
Doors open for Wall Street to invest in Main Street
Without those pesky government regulations
Homeownership increases
...“After all ever since the Great Depression, home values have ALWAYS gone up
And everybody pays their mortgage ”…
WARNING! WARNING! DANGER! DANGER!
AREN”T HOME PRICES INCREASING FASTER THAN INCOME?
…...“No problem; it only takes a little creative mortgage financing and Wall St loves those high yielding mortgages…..
HIGHER RISK - HIGHER YIELD!
Pension funds love high yield.
Buy more and more....
…...“After all ever since the Great Depression, home values have ALWAYS gone up
And everybody pays their mortgage ”…..
WARNING! WARNING! DANGER! DANGER!
AREN”T PENSION FUNDS ONLY ALLOWED TO BUY AAA RATED INVESTMENTS?
...“Problem solved...banks pay the salaries at the Rating Agencies and Ratings Agencies in turn lower the standards to obtain a AAA rating”...
WARNING! WARNING! DANGER! DANGER!
WHO’S WATCHING THE “HEN HOUSE” WHO’S MINDING THE STORE?
...“Who cares?
Everyone is happy
Millions of new jobs created
Millions of new homeowners
Millions of dollars for bankers
Millions of dollars for Wall St
And everyone owns a home on Main St
Money is flowing
Everyone wins! ”…
WARNING! WARNING! DANGER! DANGER!
AREN”T HOMES BECOMING LESS AFFORDABLE?
2004 -2005
...“Pressure Government to create more creative loans and even lower down payments with even higher yields and make more bucks”…
A new mortgage is born, Euphemism: THE PAY OPTION NEGATIVE AM ARM Loan
...Easy to sell… You chose your own payment! You chose your interest rate! ...
WILL WALL ST BUY THESE LOANS?
….“You bet! Wall St loves these high yield mortgages. They package these loans as CDOs***** and sell them to Pension Funds, Municipalities, Foreign Governments etc
Spread the risk - Harvest the yield! …
Now Fannie Mae & Freddie Mac want back in on the action
...“After all ever since the Great Depression, home values have ALWAYS gone up
And everybody pays their mortgage ”
Everyone wins! …
The country is now infected with AFLUENZA
...“We need even more mortgages. Pressure Government to lower credit qualifications, raise borrowing limits, allow less equity positions. Let homeowners use their homes as ATMs+++”...
WARNING! WARNING! DANGER! DANGER!
WHERE IS THE SEC? WHERE IS THE FED? *****
...“Banks will police themselves” says the SEC
“Homeownership is up.
The Standard of Living is up
It is good” says the Fed...
...“After all ever since the Great Depression, home values have ALWAYS gone up
And everybody pays their mortgage ”...
CAN THIS LAST? WON”T HOMES PRICES HAVE TO COME DOWN OR INCOMES GO UP? .
2006 – 2007
Prices too high.
Average home unaffordable
Fewer home buyers.
Prices sinking
ARM’s resetting
Sub prime borrowers defaulting
Ninja loans failing.
Banks taking in less
Fewer dollars to lend
Layoffs beginning
Homes over-mortgaged
Appraising for much less
Equity gone
No equity - No sale
The downward spiral begins
Existing incomes static
Mortgage payments climbing
Homes losing value
Appraising lower
Jobs being lost
Unemployment rising
Banks failing
Wall St collapsing
Investment yields disappearing.
No way out!
2008 –2009
Elect a new administration with a RESCUE PLAN!
….“Spend more money Acquire more debt”….
WARNING! WARNING! DANGER! DANGER!
*ARM: Adjustable Rate Mortgage,
** NINJA loan: No Income, No Job or Assets
*** FNMA & FDMAC: Federal National Mortgage Corporation & Federal Home Loan Mortgage Corporation
**** CDO Collateral Debt Obligations
****** SEC: Securities & Exchange Commission & Federal Reserve System
+++ATM: Automated Teller Machine
poem by Nancy Chambers
Submitted by Poetry Lover
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He that raises a large family does, indeed, while he lives to observe them, stand a broader mark for sorrow; but then he stands a broader mark for pleasure too.
quote by Benjamin Franklin
Submitted by Lucian Velea
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In the financial system we have today, with less risk concentrated in banks, the probability of systemic financial crises may be lower than in traditional bank-centered financial systems.
quote by Timothy Geithner
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The rest of the world needs the US economy and financial system to recover in order for it to revive. We remain at the center of global economic activity with financial and trade ties to every region of the globe.
quote by Timothy Geithner
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Truths Introduced Have Come To Stay
It is no longer what 'you' want to accomplish,
That is wished to erase those consequences faced.
Those consequences to be faced,
Are here to stay.
Truths introduced do not fade away.
The picture you view is much broader today.
And the players behind the scene once kept unseen,
Are increasingly getting impatient...
With facts being disguised as temporary discomforts.
Or little 'white' lies unmasked to expose one's innocence,
To unfold!
It is no longer what 'you' want to accomplish,
That is wished to erase those consequences faced.
Those consequences to be faced,
Are here to stay.
Truths introduced do not fade away.
To continue the doing of those same games to be played.
The picture you view is much broader today.
And the players behind the scene once kept unseen,
Are increasingly getting impatient...
With facts being disguised as temporary discomforts.
Or little 'white' lies unmasked to expose one's innocence,
To unfold!
Truths introduced do not fade away.
Not today.
Truths introduced have come to stay...
And,
Enlighten.
poem by Lawrence S. Pertillar
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Prices are going up. Unemployment is continue to go up. And we have not had the necessary correction for the financial bubble created by our Federal Reserve system.
Democrats believe we must have comprehensive health care reform that includes giving the federal government authority to negotiate lower prices with drug companies.
quote by Jim Clyburn
Submitted by Lucian Velea
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Economic Turns
As the economy continues to turn, many investments fall and burn,
Fueled by an investor’s greed; moved to a want beyond their need.
Money itself is not what’s evil, or does it cause economic upheaval,
But man’s selfish drive for gain, which moves nations to fiscal pain.
It’s the love of money at the heart, of where problems get their start,
That love of money and more loot, that produces inside an evil root,
Seeding in hearts covetousness, far from The Lord’s Righteousness,
A lust and greed, leading men astray, down a dark and broader way.
Looking to be rich for financial relief, pierces a heart with much grief,
Filling a heart with worldly lust, for items destroyed by moth and rust.
While ignoring the things of God, affixing a heart on this earthly sod,
Losing all God’s perfect peace, for this world’s system, that’ll cease.
You can’t serve two masters friend, as only one will stand in the end,
Man cannot serve money and God, Christ said, with a confident nod.
Many griefs are wrapped in sorrow, vacillating from spend to borrow,
While the real thing spent is a life, being mastered, by financial strife.
Just how does it benefit men, to gain the world, but be condemned?
Even if your savings don’t fall, why gain the world to lose your soul?
For all the wealth that you see, will never witness the light of eternity,
While men that invest in the Lord, will continue with Him forevermore.
(Copyright ©09/2008)
Financial service providers act as the lubricating oil in the economy. They link consumers who want to invest their savings for a good return with companies who want to borrow on best terms for expansion.
quote by John Bruton
Submitted by Lucian Velea
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Even small cults are a serious cost on the world economy, to victims, their families, employers, friends, and credit-card companies.
quote by Keith Henson
Submitted by Lucian Velea
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Over the last six years, airlines have experienced severe financial pressure to leave smaller communities, making demands on the EAS program even greater.
quote by Nick Rahall
Submitted by Lucian Velea
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From The Left
As the world moves to the left, we must stay our course instead,
Pointing men towards the right, out of the dark, into God’s Light,
From the broader road indeed, we must help men see their need,
While we’re here upon this sod, and point all to The Truth of God.
It’s still the Lord God, who saves, from the road this world paves,
That road which is a broader way, that is getting darker every day,
This is where God’s Light comes in, to free all from a world of sin,
From that road to be condemned, a broad road designed by men.
That road today, is broader still, as men abandon God’s Holy Will,
With amoral opinions oh so strong, many turn from right to wrong,
Turning black and white to gray, adding more to man’s broad way,
Turning aside from God’s ways, seeking not His, but man’s praise.
The broad way, we can be assured, will be destroyed by our Lord,
As every Godless manmade path, will see God’s Righteous wrath,
As men deny God’s Eternal Truth, they set themselves for reproof,
Turning from The Word of God, they’ll see Christ’s Righteous Rod.
So we must be a Light for Christ, willing, for God, to pay the price,
Speaking out against that crowd, lifting The Word, high and proud,
Helping some men out of the night, from the left, back to the right,
Pointing men from the darker fray, back to The Lord’s Narrow Way.
(Copyright ©06/2009)
So when you go up against the Far Right you go up against the big financial special interests like the Halliburtons of the world, the big oil companies, the big energy companies who work so hard to rip us off.
quote by Barbara Boxer
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But the system of prices ruling the market not only transmits information in the light of which economic agents can mutually adjust their actions, it also provides them with an incentive to exercise economy in terms of money.
quote by Michael Polanyi
Submitted by Lucian Velea
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For me, the moral difficulties lie in the continual pressure brought to bear on my friends and immediate family, pressure which is not directed against me personally but which at the same time is all around me.
quote by Andrei Sakharov
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Pharmaceutical companies are enjoying unprecedented profits and access with this Administration. Yet the Republicans' prescription drug plan for seniors has been a colossal failure, and over 43 million Americans wake up every morning without health insurance.
quote by Jim Clyburn
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Credit crunch!
I hear no sound of joy or laughter
As the markets crash like thunder
Take a look at the whole financial bunch
Many made money on just a keypunch
Banks which once stood brave
Are now begging to be saved
With Governments pumping billions into banks
Because many claim to have empty money tanks
People’s savings are wiped off the record
Sit home! Sit home! Calculate what you can afford
For fast is this growing curse flowing
As the financial chaos wind keeps blowing
On each lip only two words are spoken
Credit-Crunch!
Behold the whole Financial Market is broken!
Copyright 2008 - Sylvia Chidi
poem by Sylvia Chidi
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Values are social norms — they're personal, emotional, subjective, and arguable. All of us have values. Even criminals have values. The question you must ask yourself is, Are your values based
upon principles? In the last analysis, principles are natural laws — they're impersonal, factual, objective and self-evident. Consequences are governed by principles and behavior is governed by values; therefore, value principles!
quote by Stephen Covey
Submitted by Veronica Serbanoiu
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Values are social norms — they're personal, emotional, subjective, and arguable. All of us have values. Even criminals have values. The question you must ask yourself is, Are your values based
upon principles? In the last analysis, principles are natural laws — they're impersonal, factual, objective and self-evident. Consequences are governed by principles and behavior is governed by values; therefore, value principles!
quote by Stephen Covey
Submitted by Veronica Serbanoiu
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Values are social norms — they're personal, emotional, subjective, and arguable. All of us have values. Even criminals have values. The question you must ask yourself is, Are your values based
upon principles? In the last analysis, principles are natural laws — they're impersonal, factual, objective and self-evident. Consequences are governed by principles and behavior is governed by values; therefore, value principles!
quote by Stephen Covey
Submitted by Veronica Serbanoiu
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