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My view: You are to blame for credit crisis
52 comments | Read story
Denise | 2:08 a.m. Oct. 1, 2008
Good letter in form and idea. However, not ALL of us have been living beyond our
means. I'm upset that after buying a modest home, vehicle, and disciplining
myself to have no credit card balances - I get to pay for others short sighted
decisions. Gee, Thanks.
Nelson | 2:10 a.m. Oct. 1, 2008
What really irratates me about this article is not every one in America live
beyond our means, yet you lump us together and put blame in all of us. What even
irratates me more is the arrogant way of thinking you seem to have. Yes in
general the consumer is just as responsible for the mess we are all in but in my
opinion that dosent excuse the lenders for practicing unethical buisness, What I
mean by this knowingly giving out loans that the consumer couldnt afford so they
can collect as much intrest as they could and when they have taken all they
could they forclose and collect the equity as well. sounds kind of like how the
mafia works. And where was the government through all of this? They wern't
governing. I find it hard to beleive that noone saw that this was coming and
couldnt do anything to stop it. But even above all of that what disgusts me is
the consumer pays for this and the C.E.O.s of the failed buisness walk away with
a bailout of taxpayers money. Epic Failure.
Mad II | 7:26 a.m. Oct. 1, 2008
Mr Cook paints with a pretty broad brush. I live modestly BUT within my means
and have an excellent credit rating. Why should I be forced to bail out bankers
and people that have no self control when it comes to lending and borrowing
money? We used to hold people responsible for their actions. What happened to
those values? There are a bunch of folks that should pay for the state of this
economy, either through bankruptcy or jail time. I certainly am not one of
them.
Comments continue below
liberal Larry | 7:30 a.m. Oct. 1, 2008
I think the altitude must be muddling the author's thinking process. He is
getting two very different issues mixed up. We are all responsible for our
personal finances, but the federal government is largely responsible for the
collective economy. The cranky, conservative, anti-government crowd, is to
blame for this current fiasco. Not only is the Bush/Cheney, administration very
pro deregulation, but they have a real history of encouraging very lax oversight
by federal agencies, like FEMA, the EPA, etc. Capitalism is fueled by greed and
self interest, which are strong motivators, but they must be tempered with wise
over sight.
Utah Independent | 7:57 a.m. Oct. 1, 2008
Right.
Let's blame those folks who just wanted a little piece of the pie for themselves. Who wanted to share in the American Dream. Who wanted to partake just a little bit in the prosperity that seemed to be bursting forth all around them.
Don't blame the lenders who lured them to live beyond their means with too-good-to-be-true credit terms.
Don't blame the fat cats who made Billions off these deals.
Don't blame the President who continually throws good money after those fat cats.
Sure, these folks made a bad decision. Who tried to counsel them about it first? Not the lenders, government nor the fat cats.
Let's blame those folks who just wanted a little piece of the pie for themselves. Who wanted to share in the American Dream. Who wanted to partake just a little bit in the prosperity that seemed to be bursting forth all around them.
Don't blame the lenders who lured them to live beyond their means with too-good-to-be-true credit terms.
Don't blame the fat cats who made Billions off these deals.
Don't blame the President who continually throws good money after those fat cats.
Sure, these folks made a bad decision. Who tried to counsel them about it first? Not the lenders, government nor the fat cats.
Roland Kayser | 7:58 a.m. Oct. 1, 2008
Yes, I admit it, its my fault. I dreamed up collateralized debt obligations and
credit default swaps. I encourage the investments banks to leverage themselves
to a 33 to 1 ratio. I told the Wall Street CEOs that an annual bonus that was
more money than the annual income of every reader of this paper combined was a
just reward for their exemplerary leadership. Sorry about all that, what was I
thinking?
RedShirt | 8:02 a.m. Oct. 1, 2008
To "liberal Larry | 7:30 a.m." it was the increased government
regulation/involvement that created Fannie and Freddie. It was the government
regulators not doing their jobs that allowed this to happen (the head of the
regulators was a Chris Dodd). A former head of Fannie Mae helped select Biden
as VP, and now is advising Obama about housing.
Fannie and Freddie were created by Jimmy Carter, and had their rules relaxed under Bill Clinton. They bowed to groups like ACORN to give out loans to people who couldn't afford them, all under the guise of making it so that every american can own a home.
Since you are so anti-conservative, answer this: If Democrats are so wonderful and have all of the answers, why is Michigan under a 4 year recession, and why is it that Utah (during the same time) had high job growth and low unemployment? Could it be that socialism doesn't work? If you think that socialism works, look at the yahoo finance page, and the article that states that in Europe record low unemployment is 7.1%.
Fannie and Freddie were created by Jimmy Carter, and had their rules relaxed under Bill Clinton. They bowed to groups like ACORN to give out loans to people who couldn't afford them, all under the guise of making it so that every american can own a home.
Since you are so anti-conservative, answer this: If Democrats are so wonderful and have all of the answers, why is Michigan under a 4 year recession, and why is it that Utah (during the same time) had high job growth and low unemployment? Could it be that socialism doesn't work? If you think that socialism works, look at the yahoo finance page, and the article that states that in Europe record low unemployment is 7.1%.
Dave | 8:03 a.m. Oct. 1, 2008
Capitalism told bankers not to make loans to people who could not afford the
payments. The Government, starting in 1977, told them they hadto, inthe name of
"fairness". Who is to blame?
Wrong | 8:07 a.m. Oct. 1, 2008
Its all
Bush's fault...and the neocons
Bush's fault...and the neocons
Lilrichard | 8:10 a.m. Oct. 1, 2008
A little sensitive folks, he must have struck a nerve. A wise man once told me
we all like being lied to. When asked what he meant he explained we run and buy
carpet when we are told it comes with free labor. We purchase goods when we
will not have to pay anything for it until next year. All the time thinking we
are getting a good deal. The truth hurts we are in a way responsible for this.
Hard Facts | 8:49 a.m. Oct. 1, 2008
Nobody gets lured without already having convinced themselves that they are
entitled. Sorry if you just wanted a piece of "the American Dream",
but it doesn't come free. The Constitution guarantees the pursuit of
happiness, not the free obtaining of it.
The writer is dead on target. Others may be guilty of greed and avarice as well, but we make the decisions and sign the papers. Ultimately we do what we want to do. Their complicit guilt does not mean we are innocent. No matter how correct the writer may be, many will refuse to look in the mirror. It will ALWAYS someone else's fault for them. Everybody wants to go to heaven, but nobody expects to die?
The writer is dead on target. Others may be guilty of greed and avarice as well, but we make the decisions and sign the papers. Ultimately we do what we want to do. Their complicit guilt does not mean we are innocent. No matter how correct the writer may be, many will refuse to look in the mirror. It will ALWAYS someone else's fault for them. Everybody wants to go to heaven, but nobody expects to die?
Grover | 9:00 a.m. Oct. 1, 2008
Two things: The truth hurts and we are still a country that in denominated by
majority rule. No one wants to be at fault for anything. We want to be a
"no fault" society and yet the world doesn't work that way. We
want to blame anyone, everyone but me. Again, it matters not who we blame but
whom history will say had the most influence for bad or good.
Finally, saying "I am a good person. I pay my bills. I live within my means. Don't count me in for the blame." counts for nothing if more than half of the population has been living as the author of the article describes. No politician who needs a vote is going to look them in the eye and say it. No media outlet who needs their patronage is going to say it (unless they are quoting some other person (a.k.a. Phil Grahm) who is saying it. So who is left to point the finger, unless we look in the mirror and admit to being the guilty party.
Finally, saying "I am a good person. I pay my bills. I live within my means. Don't count me in for the blame." counts for nothing if more than half of the population has been living as the author of the article describes. No politician who needs a vote is going to look them in the eye and say it. No media outlet who needs their patronage is going to say it (unless they are quoting some other person (a.k.a. Phil Grahm) who is saying it. So who is left to point the finger, unless we look in the mirror and admit to being the guilty party.
DCH | 9:00 a.m. Oct. 1, 2008
Yes, it is true that those consumers who have been "living beyond (their)
means" are a large part of the problem. And while that may be a majority
of the population, it is not all-inclusive. So, those who decided to buy cars
and/or homes they could not really afford, should deal with the consequences of
that risk they took. Specifically, reposessions and foreclosures are a natural
consequence for such people. These losses are essential to the free market
resetting itself and making it so this doesn't happen again next decade!
As for me, I bought a home 3 years ago that was priced well under the limits for which I was "pre-approved" - a range I knew I could handle. I bought a new car 2 years ago, and just finished paying it off well in advance of the loan's term. The only debt I have is my (fixed) mortgage, and I live well within my means, saving for the future. What is my reward? Government bailouts cause rapid inflation, and I pay more for food to feed my family!
Thanks!
As for me, I bought a home 3 years ago that was priced well under the limits for which I was "pre-approved" - a range I knew I could handle. I bought a new car 2 years ago, and just finished paying it off well in advance of the loan's term. The only debt I have is my (fixed) mortgage, and I live well within my means, saving for the future. What is my reward? Government bailouts cause rapid inflation, and I pay more for food to feed my family!
Thanks!
nick | 9:16 a.m. Oct. 1, 2008
Speak for yourself, Kent.
My car is paid off. My modest home will soon be paid off.
I pay my credit cards off in full every month.
I don't put my money in "Have I got a sweet deal for you!" Wall Street firms.
If it were up to me, every Wall Street "golden parachute" granted in the past decade would be retroactively taxed at 100% and all executive compensation greater than 40x that given to any company's lowest-paid employee would also be taxed at 100%, retroactive for the past ten years.
And the next time anyone starts bellyaching about "socialism" and the superiority of the "free" market I'm going to show them today's newspapers headlines about the bailout and slap them on the nose with it.
My car is paid off. My modest home will soon be paid off.
I pay my credit cards off in full every month.
I don't put my money in "Have I got a sweet deal for you!" Wall Street firms.
If it were up to me, every Wall Street "golden parachute" granted in the past decade would be retroactively taxed at 100% and all executive compensation greater than 40x that given to any company's lowest-paid employee would also be taxed at 100%, retroactive for the past ten years.
And the next time anyone starts bellyaching about "socialism" and the superiority of the "free" market I'm going to show them today's newspapers headlines about the bailout and slap them on the nose with it.
Ultra Bob | 9:24 a.m. Oct. 1, 2008
Spoken like a true conservative republican.
GWB | 9:25 a.m. Oct. 1, 2008
What did George Bush say to America in response to 9/11???
"Go shopping!!!"
So, following Mr. Cook's line, we are to blame for listening to the President and following his advice.
Oh, and Dave, when you say "Capitalism told bankers not to make loans to people who could not afford the payments. The Government, starting in 1977, told them they hadto, inthe name of "fairness". Who is to blame?" you conveniently forget one point.
Congress told Bankers that they had to be fair in not using race or home location. Also, the majority of foreclosures are not in the inner city and low income areas addressed by the Community Redevelopment Act you mention,. The foreclosures are in the suburbs where the CRA did not apply.
Government did not tell them they had to give no-doc loans, no down loans, no credit check loans, and 125% LTV loans. That was a credit tool created by the Gramm-Leach-Bliley act that deregulated the finacial industry.
Unfortunately, you have bought into the Rush/Hannity talking point to distract you from the reality that it is the failure of the conservative deregulation movement that has lead us to the brink.
"Go shopping!!!"
So, following Mr. Cook's line, we are to blame for listening to the President and following his advice.
Oh, and Dave, when you say "Capitalism told bankers not to make loans to people who could not afford the payments. The Government, starting in 1977, told them they hadto, inthe name of "fairness". Who is to blame?" you conveniently forget one point.
Congress told Bankers that they had to be fair in not using race or home location. Also, the majority of foreclosures are not in the inner city and low income areas addressed by the Community Redevelopment Act you mention,. The foreclosures are in the suburbs where the CRA did not apply.
Government did not tell them they had to give no-doc loans, no down loans, no credit check loans, and 125% LTV loans. That was a credit tool created by the Gramm-Leach-Bliley act that deregulated the finacial industry.
Unfortunately, you have bought into the Rush/Hannity talking point to distract you from the reality that it is the failure of the conservative deregulation movement that has lead us to the brink.
Utahn in Michigan | 9:31 a.m. Oct. 1, 2008
to redshirt: You have been listening to Limbaugh for waaay to long. The economic
downturn in Michigan has more to do with the automobile companies closing up
shop than any liberal/conservative governance. The question that everybody in
this election needs to be asking is this. "Do I want 4 more years of the
same failed policies?" McCain the "Maverick" has voted with the
republican party over 95% of the time.
Arnold | 10:05 a.m. Oct. 1, 2008
Mr Cook you might live beyond your means but I don`t. Don`t blame the big
lending agentcies and your bad credit decisions on me.
Tony | 10:18 a.m. Oct. 1, 2008
Great letter! Although everyone didn't participate in feeding at the
trough, many did. The reality is that a lot of people were looking to live
beyond their means and now are looking for the government to bail them out. The
best thing that could happen to this nation is a recession/depression. It would
hurt a lot, but many people would come out of it with a more practical attitude
about money.
RedShirt | 10:23 a.m. Oct. 1, 2008
To "Utahn in Michigan | 9:31 a.m." so, why are the auto companies
shutting down shop there? Could it be the taxes are too high? Also, what are
they doing to attract new business. From what I have read, they keep increasing
taxes, which drives business away.
You don't like McCain because he agrees with Bush 95% of the time, yet Obama has voted down party lines 98% of the time.
Obama wants us to get us to look more like Europe. Their record unemployment was 7.1%, and some countries have unemployment rates near what the US had during the great depression. Is that what you want?
You don't like McCain because he agrees with Bush 95% of the time, yet Obama has voted down party lines 98% of the time.
Obama wants us to get us to look more like Europe. Their record unemployment was 7.1%, and some countries have unemployment rates near what the US had during the great depression. Is that what you want?
irony | 10:29 a.m. Oct. 1, 2008
The writer ignores the aggressive marketing of these interest-only mortgages and
ARMs that homebuyers were told by lenders that they could afford and would save
them money. It's easy to say they were living beyond their means, but it is
also possible to say that they trusted supposed experts who advised them their
purchases were in their means. The author and
RedShirt coneniently ignore Rhil Gramm's deregulation removing the firewalls between banking, insurance, and other parts of the financial industry without which this wouldn't have happened. He attributes the current economic woes of Michigan to Democrats, not on the decisions of auto company CEOs that led to loss of customers to Japan. I'm sure overall, Michigan has brought in trillions more income and millions more jobs than Utah ever did - do you credit the Democrats for that. It is a non-sequitur. There is plenty of irresponsibility to go around, as many other readers have pointed out. The US public was eagerly encouraged by Wall St. and the administration to put up the money for them to gamble with, and is being asked to cover the losses.
RedShirt coneniently ignore Rhil Gramm's deregulation removing the firewalls between banking, insurance, and other parts of the financial industry without which this wouldn't have happened. He attributes the current economic woes of Michigan to Democrats, not on the decisions of auto company CEOs that led to loss of customers to Japan. I'm sure overall, Michigan has brought in trillions more income and millions more jobs than Utah ever did - do you credit the Democrats for that. It is a non-sequitur. There is plenty of irresponsibility to go around, as many other readers have pointed out. The US public was eagerly encouraged by Wall St. and the administration to put up the money for them to gamble with, and is being asked to cover the losses.
Utahn in Michigan | 11:13 a.m. Oct. 1, 2008
Redshirt, the corporate tax rate in Michigan is 4.95% which is not the lowest,
but certainly isn't the highest, and oh by the way the Utah rate is 5%.
"irony" is correct in his assessment that the corporate decisions had
more to do with the job loss in Michigan than did the democrats. The Obama
energy plan for example creates jobs while at the same time reducing our
dependence on foreign oil. The plan accomplishes this by investing in biofuel
technology, hybrid vehicles, renewable power generation, safe nuclear energy to
name a few, all of these ideas create new high paying jobs. The McCain plan
provides for more domestic drilling, which only increases the oil company
profits. We do not have the capability to produce enough oil for our needs which
means that under the McCain plan we would still be dependent on foreign oil. So
it seems to me that the Obama plan actually has the best chance of creating more
jobs and reducing unemployment. Again, stop listening to talk radio.
Good Editorial! | 11:24 a.m. Oct. 1, 2008
Though I am part of the problem with my own credit card debt and second mortgage
and car payment, I couldn't agree with him more generally.
As a US History teacher who sometimes takes a moment in class to do Current Events I read his letter. To me much of it is right on the mark. Though he implemented government programs for sure to battle the economic woes of the time, I'm sure FDR in his weekly fireside chats, talked about the need for personal sacrifice and patience and doing one's part to combat the Depression. And with the Depression, the common people were mostly blameless as it was truly a Wall Street problem, unlike today's situation which the crisis is truly a combination of Wall Street, government ineptness and the people themselves making poor decisions because of out-of-control consumerism.
At first I told my students the "you" might be the adults in their lives, their teachers, parents, etc., but then the discussion did take a new focus and we discussed how many of them have cell phones, i-pods, x-boxes etc. that were probably paid through their parents credit cards--now all of sudden the YOU took a different meaning...
As a US History teacher who sometimes takes a moment in class to do Current Events I read his letter. To me much of it is right on the mark. Though he implemented government programs for sure to battle the economic woes of the time, I'm sure FDR in his weekly fireside chats, talked about the need for personal sacrifice and patience and doing one's part to combat the Depression. And with the Depression, the common people were mostly blameless as it was truly a Wall Street problem, unlike today's situation which the crisis is truly a combination of Wall Street, government ineptness and the people themselves making poor decisions because of out-of-control consumerism.
At first I told my students the "you" might be the adults in their lives, their teachers, parents, etc., but then the discussion did take a new focus and we discussed how many of them have cell phones, i-pods, x-boxes etc. that were probably paid through their parents credit cards--now all of sudden the YOU took a different meaning...
Perfect People | 11:25 a.m. Oct. 1, 2008
I am so happy I live among such perfect people.
from a buckskinned attorney | 11:47 a.m. Oct. 1, 2008
"Despite the democratic rhetoric we hear and believe, we have become
enslaved. All of us are trapped by a complex web of corporate and governmental
behemoths called "The New Slave Master"
that today controls our airways, educates our children, and manages every facet of our lives. The best we can do is declare our personal independence and move on." - Gerry Spence, "Give Me Liberty! - Freeing Ourselves in the Twenty-first Century."
that today controls our airways, educates our children, and manages every facet of our lives. The best we can do is declare our personal independence and move on." - Gerry Spence, "Give Me Liberty! - Freeing Ourselves in the Twenty-first Century."
GWB | 12:13 p.m. Oct. 1, 2008
RedShirt, apparently you don't get out much. When you ask "Utahn in
Michigan" "why are the auto companies shutting down shop there? Could
it be the taxes are too high?" you apparently haven't read the news
much.
Medical Insurance for the employees and families costs $1500 for every car GM makes. They can relocate just across the border in Canada and reduce this to $0. GM and other automakers actually favor some form of national healthcare.
Yes, you heard me, a Big Business is in favor of nationalizing healthcare because it will make them more competitive.
Every other automaker besides GM, Chrysler, and Ford is located in a country with national healthcare programs and it makes the US companies LESS competitive.
That my friend, is why Daimler dumped the Chrysler portion, because it was a money loser.
Medical Insurance for the employees and families costs $1500 for every car GM makes. They can relocate just across the border in Canada and reduce this to $0. GM and other automakers actually favor some form of national healthcare.
Yes, you heard me, a Big Business is in favor of nationalizing healthcare because it will make them more competitive.
Every other automaker besides GM, Chrysler, and Ford is located in a country with national healthcare programs and it makes the US companies LESS competitive.
That my friend, is why Daimler dumped the Chrysler portion, because it was a money loser.
Jeffrey | 1:25 p.m. Oct. 1, 2008
See? Don't you see? It's not your fault at all! It's all yours!
Yes, yes, we were overeager on granting loans to everyone and their favorite pet while telling them they could afford it, and we did fight for less and less regulation to allow us to flood the economy with bad debt, and we did pay our CEOs exorbitant amounts of money while we were failing, and we did make bad investments with your money, but it was YOU who let us do it!
See? What do you have to say for yourself? Oh, and could you just sign this check real quick?
Sincerely,
the Bankers and Speculators
Dr. Donald Blake | 1:56 p.m. Oct. 1, 2008
re: Nelson | 2:10 a.m. Oct. 1, 2008
I hate blanket statements & generalities as much as the next guy.
Yet, there was enough greed, arrogance, & stupidity by enough people at every level where Mr Cook has a valid point.
I hate blanket statements & generalities as much as the next guy.
Yet, there was enough greed, arrogance, & stupidity by enough people at every level where Mr Cook has a valid point.
Come on... | 2:18 p.m. Oct. 1, 2008
Come on people...
To those of you who said, "It's not me. I live within my means.": Can't you see that the author wasn't talking to you? Clearly NOT EVERYBODY is financially irresponsible, but I think it's safe to say that the majority of our country is! Our indebtedness is at an all time high! (Utah is among the worst states in the nation for this.) The authors point truly wasn't directed at every individual. He was obviously counting on a little shock value to help people see that Washington is not the only source of this problem.
To those of you who blame government, have you stopped voting for long-time incumbents of both parties? Get them out and get some fresh blood into Washington and you might be amazed what problems can be solved!
To those of you who said, "It's not me. I live within my means.": Can't you see that the author wasn't talking to you? Clearly NOT EVERYBODY is financially irresponsible, but I think it's safe to say that the majority of our country is! Our indebtedness is at an all time high! (Utah is among the worst states in the nation for this.) The authors point truly wasn't directed at every individual. He was obviously counting on a little shock value to help people see that Washington is not the only source of this problem.
To those of you who blame government, have you stopped voting for long-time incumbents of both parties? Get them out and get some fresh blood into Washington and you might be amazed what problems can be solved!
Johnny 69 | 2:20 p.m. Oct. 1, 2008
This letter deflects blame..... I am not to blame. I vote for politicians who
believe in regulating the capitalists on Wall St. and Board Rooms who run amok.
I am not motivated by profit. I believe we should put people before profit
always and healthcare for all. From this letter I see the letter writer has a
basic believe that human beings are depraved (very Puritan/Republican) and it
could never be the fault of the Mammonites who run the avarice and usery
industry (the capitalists.)
Ernest T. Bass | 2:54 p.m. Oct. 1, 2008
Don't blame me. I bought a small house that I can afford, I don't have
credit card debt and I did NOT vote for bush.
Greedy republicans are to blame.
Greedy republicans are to blame.
Simplistic | 2:57 p.m. Oct. 1, 2008
Painfully simplistic analysis. Overspending and over-consumption contributed to
the problem as a result of aggressive advertising and promotion and the selling
of "the American Dream" to everyone. But that was not the FUNDAMENTAL
problem.
Unwise deregulation of the lending markets was the foundation of the problem. This lead to serious improprieties by the lenders: 60% of sub-prime loans were second mortgages of people in homes they could afford. Of those loans to new purchases 65% of the sub-prime loans were to people who qualified for conventional loans. The deliberate foisting of these loans on unwary consumers was a bigger problem than those who attempted to purchase homes they could not afford.
Bush most certainly gets credit for the problem by taking advantage of the deregulation by encouraging unwise homeownership in his "The Ownership Society." Then from Alan Greenspan on multiple times the opportunity to prevent this crisis were ignored.
The "Free Marketeers" forget that the basic requirements for the free market is appropriate regulation. That was eliminated and that was the source of the problem.
Unwise deregulation of the lending markets was the foundation of the problem. This lead to serious improprieties by the lenders: 60% of sub-prime loans were second mortgages of people in homes they could afford. Of those loans to new purchases 65% of the sub-prime loans were to people who qualified for conventional loans. The deliberate foisting of these loans on unwary consumers was a bigger problem than those who attempted to purchase homes they could not afford.
Bush most certainly gets credit for the problem by taking advantage of the deregulation by encouraging unwise homeownership in his "The Ownership Society." Then from Alan Greenspan on multiple times the opportunity to prevent this crisis were ignored.
The "Free Marketeers" forget that the basic requirements for the free market is appropriate regulation. That was eliminated and that was the source of the problem.
Southern Utah Resident | 3:11 p.m. Oct. 1, 2008
Well said Mr. Cook, thankyou.
Most Utahn's know better, many of them go to mormon churchs were they are taught over and over to say out of debt, don't get an equity loans, live within your means and they just refuse to listen to sound, time tested advise.
Most Utahn's know better, many of them go to mormon churchs were they are taught over and over to say out of debt, don't get an equity loans, live within your means and they just refuse to listen to sound, time tested advise.
MEB | 3:13 p.m. Oct. 1, 2008
GWB - Interesting. So, instead of paying (effectively) $1500 per automobile in
Health Insurance costs, we could have Nationalized Health Care and they could
get it for 'free'? Where do you think the money comes from to pay for
the Nationalized Health Care? Increased taxes. Either they raise taxes on
Corporations like the Automakers, or they raise taxes on you and I to pay for
it.
Option #3 is they don't pay for it, but instead add it to the debt. Since Obama has stated that 'a Balanced Budget will have to wait', he may be looking at the third option.
Either way, to say that the cost of health care for the employees of a corporation like GM or Chrysler just evaporates into thin air is nothing more than slight of hand.
Option #3 is they don't pay for it, but instead add it to the debt. Since Obama has stated that 'a Balanced Budget will have to wait', he may be looking at the third option.
Either way, to say that the cost of health care for the employees of a corporation like GM or Chrysler just evaporates into thin air is nothing more than slight of hand.
Anonymous | 3:49 p.m. Oct. 1, 2008
My Dad used to tell me this:
Republicans are always on the side of big corporations.
Democrats are always on the side of the little guy.
The rest of the country can now see how true this is.
Republicans are always on the side of big corporations.
Democrats are always on the side of the little guy.
The rest of the country can now see how true this is.
TB | 3:53 p.m. Oct. 1, 2008
Stay in Switzerland my man. If you are only bright enough to see the consumers
as the problem, I am not impressed. If it was only a mortgage issue, this
wouldn't be near the mess it is. I would guess most folks don't
fundamentally understand how the market works (not to say I fully understand it
either) The housing crises is only the tip of the iceberg. When homes are closed
on, the mortgage is often sold. It can then be chopped and bundled with other
mortgages (called mortgage backed securities) financial institutions will then
package these securities for sale around the globe and in the U.S. The companies
that buy these securities will then use the value to leverage further debt, at
times 30 to 1, meaning a 10,000$ security is used to secure 300,000 dollars
worth of capital. There is another market, the derivative market where these
same companies can buy insurance against downside risk. These insurance
companies are really not regulated and the contracts are one off. There is 453
TRILLION dollars of insurance liability out there and perhaps a hundreth of that
as cash available to pay claims. All our fault? get a clue switzerland dude.
Re "Ernest T. Bass | 2:54 p.m" | 4:30 p.m. Oct. 1, 2008
Ernest T. Bass | 2:54 p.m,
You bought the smallest house you could afford? What, did the price go up with the smaller house?
And since you are perfect and had nothing to do with this crisis... it is automatically not your fault and all Bush and the Republican's fault? As always, your logic is based on political rhetoric (and way out there at that).
So... by your logic, If Obama is elected the problem will go away, right?
And if I don't vote for Obama... anything bad that happens in the next 4 years I can just automatically blame on Obama and the Democrats???
So... nothing bad will ever happen again if Obama is elected? and if it does it's 100% his fault, and if I didn't vote for him, I have no responsibility for anything from then on??? What sound logic!
You bought the smallest house you could afford? What, did the price go up with the smaller house?
And since you are perfect and had nothing to do with this crisis... it is automatically not your fault and all Bush and the Republican's fault? As always, your logic is based on political rhetoric (and way out there at that).
So... by your logic, If Obama is elected the problem will go away, right?
And if I don't vote for Obama... anything bad that happens in the next 4 years I can just automatically blame on Obama and the Democrats???
So... nothing bad will ever happen again if Obama is elected? and if it does it's 100% his fault, and if I didn't vote for him, I have no responsibility for anything from then on??? What sound logic!
personally reponsible | 7:50 p.m. Oct. 1, 2008
Why not let all the irresponsible pay for their own actions? That would mean
that individuals as well as big banks who acted irrsponsibliy in overextending
themselves would pay and those who didn't wouldn't.
Didn't we have a system like that in place already? Those who went bankrupt were not allowed to borrow again (at least for seven years or so)- the ordinary people and small businesses anyway!
Government just wants to make it clear that the rules are different for the super-rich.
Have you noticed, by the way, that the big corporations that run most TV news reporting, (CBS, NBC, CNN etc) always encourage debt and banking.
For exampple, we are chastised when spending levels are down, there is hand-wringing when home prices become affordable, and rejoicing when homes are out of the reach of the people (except by their going in over their heads). Now their is scolding for us when we say "No" to the big banks.
Government (and news reporting) is "of the big banks, by the big banks, and for the big banks". Think about it!
Didn't we have a system like that in place already? Those who went bankrupt were not allowed to borrow again (at least for seven years or so)- the ordinary people and small businesses anyway!
Government just wants to make it clear that the rules are different for the super-rich.
Have you noticed, by the way, that the big corporations that run most TV news reporting, (CBS, NBC, CNN etc) always encourage debt and banking.
For exampple, we are chastised when spending levels are down, there is hand-wringing when home prices become affordable, and rejoicing when homes are out of the reach of the people (except by their going in over their heads). Now their is scolding for us when we say "No" to the big banks.
Government (and news reporting) is "of the big banks, by the big banks, and for the big banks". Think about it!
@anonymous 3:49 | 8:21 p.m. Oct. 1, 2008
Who's your daddy? Barak Obama?
Ernest T. Bass | 9:30 p.m. Oct. 1, 2008
Re: ETB
I know this much. For 20 of the past 28 years republicans have been in the White House and for much of that time they controlled the House and Senate as well. Yet we have MASSIVE problems. Repugs are to blame for the 11 Trillion dollar deficit. They are to blame for an unessesary war. They are to blame for deregulation of the banking system. Yes, repugs are mostly to blame for this mess.
What is you point about the price of a home? You're logic makes no sense.
I know this much. For 20 of the past 28 years republicans have been in the White House and for much of that time they controlled the House and Senate as well. Yet we have MASSIVE problems. Repugs are to blame for the 11 Trillion dollar deficit. They are to blame for an unessesary war. They are to blame for deregulation of the banking system. Yes, repugs are mostly to blame for this mess.
What is you point about the price of a home? You're logic makes no sense.
Mean? | 9:45 p.m. Oct. 1, 2008
What do you mean, I mean, I was just trying to live up to a means. I think thats
what I mean.
veedub | 11:18 p.m. Oct. 1, 2008
Great letter. The majority of Americans have bought into the dream of easy
credit and living beyond their means. We should all take a look at ourselves and
see where we can improve, not whine about how we were tricked into too much debt
and unaffordable mortgages. There were those who warned us against it--the LDS
church leaders, for decades, and others, like Dave Ramsey, who were laughed at
and ignored for years, and no doubt someone will disparage them now, which leads
back to the fact that most of us have become addicted to a lifestyle that we
can't afford.
Re "Ernest T. Bass | 9:30 p.m." | 10:30 a.m. Oct. 2, 2008
The point on the price of a home is... You said, "I bought the smallest
house that I can afford". What, you couldn't afford a smaller house?
You couldn't afford a shack or a trailer home?
BTW
I paid off my home by the time I was 35 and have been enjoying being completely debt free ever since (including no car loans, student loans, etc, ever). You would probably consider me to be a "Repug", but I don't see how I am responsible for everything bad that happens in the world.
I think you need to put your party-rhetoric asside from time to time and start seeing people as individuals instead of "Repugs" or "Democrats".
BTW
I paid off my home by the time I was 35 and have been enjoying being completely debt free ever since (including no car loans, student loans, etc, ever). You would probably consider me to be a "Repug", but I don't see how I am responsible for everything bad that happens in the world.
I think you need to put your party-rhetoric asside from time to time and start seeing people as individuals instead of "Repugs" or "Democrats".
We voted these guys in! | 12:32 p.m. Oct. 2, 2008
If we blame government ultimately we have ourselves to blame because "we
the people" put these guys into office. I'm sure the incumbents for
this year's election will be reelected at around a 90% clip. Then we can
start whining again.
And by the way, when we go and sign those mortgage papers am I the only person guilty of just signing every piece of paper as fast as I can to get it over with? Am I the only guy that perhaps stupidly blindly trusted "mortgage experts." How about the next time you close on a home that you say, hey, let me have the papers, I'm going to take them home, give them a careful read and come back with sincere questions AND ONLY THEN I will sign them.
Perhaps many do pay our bills but what about the credit card debt we rack up. Consumerism of the personal individual has contributed mightily to the problem. Yes, not everyone out there is the YOU certainly, but the American people (in general) are accomplishes in what is certainly a complex problem where politicans, greedy wall street persons, and the individual citizen have culpability.
And again, we voted them in...
And by the way, when we go and sign those mortgage papers am I the only person guilty of just signing every piece of paper as fast as I can to get it over with? Am I the only guy that perhaps stupidly blindly trusted "mortgage experts." How about the next time you close on a home that you say, hey, let me have the papers, I'm going to take them home, give them a careful read and come back with sincere questions AND ONLY THEN I will sign them.
Perhaps many do pay our bills but what about the credit card debt we rack up. Consumerism of the personal individual has contributed mightily to the problem. Yes, not everyone out there is the YOU certainly, but the American people (in general) are accomplishes in what is certainly a complex problem where politicans, greedy wall street persons, and the individual citizen have culpability.
And again, we voted them in...
Kent Cook | 1:33 a.m. Oct. 8, 2008
As some have noted... clearly, if you have been living within your means,
purchased a sensible home and have used discipline in buying your cars, you are
not the target of the article. In fact, I congratulate you and wish we were all
more like you. We need more of you. Clearly a short article requires painting
with a large brush to make the point. Thank you, to all who ARE responsible and
have made great financial decisions. The point of the article is that if we all
had been more like you, we wouldn't be in this mess.... regardless of how
much regulation or control exists.
John Kirkham | 9:35 p.m. Oct. 8, 2008
Well said Mr. Cook!
Midwest Momma | 4:40 p.m. Oct. 9, 2008
Mr. Cook...Amen! Thank you for being bold enough and brave enough to hit it
right on the head. The whole country (even those of us in the midwest) at some
point have or have had to rely on this government, the credit, credit scores,
mortgage companies, WHATEVER to look over our shoulder and tell us what we can
and can't do. I think the bailout is blowout and that we have just sealed
our country debts to where we've been forced into a recession. Look at the
stock market today. How many thousands or millions will not be able to afford
to live at home and now will have to go back to work. Do we get excited because
this will help our job situation or do we look at the big picture? I would love
to hear all about your big painting on the big canvas someday. You seem like a
very intellectual man who really has done some soul searching for himself, his
family, and his future.
Barry Pulley | 10:37 p.m. Oct. 13, 2008
Part 1: When Mr. Cook stated "But there is one person noticeably
unmentioned in this game of blame � you," he obviously
wasn't saying everyone is to blame. There are those of us who have no
credit card debt, buy and drive used cars exclusively, don't go out to eat
very often, live in a house that isn't nearly as nice as what the
Jones' live in (but does provide shelter from the elements), buy foods in
bulk and cook from scratch - instead of processed/frozen meals, regularly set
aside at least 10% of their income in savings, and a whole host of other
practices which are just plain intelligent. If you felt his article was directed
at you, it probably was, because you obviously feel guilty! On the other hand,
if you're doing all or most of those things I just listed, he wasn't
talking about you. Unfortunately, there are a huge number of people who buy into
the advertising of mortgage lenders, credit card companies, and fast food
businesses for that matter. Just because you read something in print or see it
on TV doesn't mean it's true, or good for you!
Barry Pulley | 10:43 p.m. Oct. 13, 2008
Part 2: You may say our government and the politicians are responsible for the
mess we're in. But ultimately, we are to blame, because we've allowed
them to destroy the constitution and this great country. Most people just
can't seem to understand that the two parties are just different heads on
the same monster. For years now, Republicans and Democrats have been leading the
country in the same basic direction: toward bigger and bigger government; more
and more socialism, globalism, corporatism, and foreign interventionism; and the
dismantling of constitutional liberties. Yet, voters continue to think that they
are voting for "change" when they vote for a Republican or Democrat.
This is truly insane! We have allowed this to happen by not reading and
understanding the consitution and original writings of our founding fathers,
then voting for those who will defend our constitution. We (if you feel guilty,
I'm talking about you) are too concerned about being continuously
entertained by ESPN on our 56" plasma TV's, renting and watches
DVD's, or going out to the movies - or any other entertainment which
concerns us more than freedom
Barry Pulley | 10:50 p.m. Oct. 13, 2008
Part 3: The financial situation is bad, but it's going to get worse. What
you do in the next month will determine how well you and your family weather the
storm. So, what should you do? First of all, if you have any money in savings
and little or no food in your home, go out as quickly as you can and buy a lot
of food that will store well. Second, find a presidential candidate who actually
believes in the constitutionally limited role of government, and make sure you
vote for him. The Republicans and Democrats don't meet that requirement.
Third, write down a list of any other necessary non-food items that you might
buy from the grocery store or Wal-Mart, take more money out of savings, and buy
them - just in case. You may think this is alarmist, but think about something.
If I'm wrong, you'll have more food and other commodities in your
home, which you'll eventually be able to use anyway. If I'm right,
you could save your own life, as well as the lives of every member of your
family. Are you a gambler? I'm not. Good article Mr. Cook!
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