Palin shows "experience" by calling Freddie & Fannie "too expensive to the taxpayers"

Discussion in 'Politics, Religion, Social Issues' started by Thomas Veil, Sep 8, 2008.

  1. Thomas Veil macrumors 68020

    Thomas Veil

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    #1
    Jesus H. Christ, I'm less experienced in politics than Palin, and even I wouldn't say something this stupid!

    Sarah Palin, ladies and gentlemen!!
     
  2. Mindflux macrumors 68000

    Mindflux

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    #2
    They're about to both become taxpayer funded. We're going to bail them out to the tune of $200 BILLION dollars.

    Did you bother to research that first?
     
  3. Thomas Veil thread starter macrumors 68020

    Thomas Veil

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  4. mkrishnan Moderator emeritus

    mkrishnan

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    #4
    I think the look on McCain's face when that comment came out is the most telling part....
     
  5. leekohler macrumors G5

    leekohler

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    #5
    Umm....yeah- what TV said.
     
  6. yg17 macrumors G5

    yg17

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    #6

    Your post is worthless without pics and/or video ;)

    edit: And......nevermind! I'm an idiot for not clicking the link.
     
  7. leekohler macrumors G5

    leekohler

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    Wow- she's the perfect Republican candidate! She's as daft as Bush! :D
     
  8. Schtumple macrumors 601

    Schtumple

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    #8
    Exactly what I thought

    In a completely unrelated note, I haven't really read up much on McCain, does he always have that look of mild confusion, or was that just because of what Palin was saying?
     
  9. leekohler macrumors G5

    leekohler

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    #9
    No- that was definitely a look of terror. :) No wonder they don't want her doing interviews.
     
  10. Thomas Veil thread starter macrumors 68020

    Thomas Veil

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    #10
    Just as good: the rest of the article from Huffington. I quote:

     
  11. Sky Blue Guest

    Sky Blue

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    #11
    geeze, the media is so MEAN, give her a break!
     
  12. SMM macrumors 65816

    SMM

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    McCain will blow a circuit if it turns out Palin makes more mistakes than he does. I guess we shall see in time.
     
  13. mactastic macrumors 68040

    mactastic

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    #13
    Yes Sarah, Freddy and Fannie were costing the taxpayers too much. And the Founding Fathers put the words "under God" into the pledge of allegiance.

    The depth of her knowledge is simply astounding. You could almost cover a nickel in that pool...
     
  14. Desertrat macrumors newbie

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    #14
    Gaffe? 'Scuse me, but she's 100% correct. These were private corporations that the government had previously only implied were government supported. Hell's bells, the stock traded on the open market, and the Execs spent over $170 million in lobbying Congress, these last dozen or so years. And the fired execs have walked away with some $28 million in Golden Parachutes.

    The taxpayer is now on the hook for all those trillions of dollars of mortgage paper, of which at least $200 billion is known to already be worthless--with more to come. $5.8 trillion in paper? I'm losing track at all the numbers which have been spoken of in the financial press.

    All those 401ks and retirement/pension funds which owned stock in F&F have lost all but the remaining $1 per share of stock value. (I haven't checked today's market.) Paulson has said the bonds are guaranteed by you, the taxpayer, but the stockholders are on their own.

    So: How is she wrong?

    'Rat
     
  15. Thomas Veil thread starter macrumors 68020

    Thomas Veil

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    She said that two private corporations were getting too expensive for the taxpayers.

    She had no clue about everything you just said. She thought Fannie and Freddie were government agencies all this time.

    I don't get what is so hard to understand about that.
     
  16. bobber205 macrumors 68020

    bobber205

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    #16
    :rolleyes::rolleyes::rolleyes:

    We're not saying she's wrong but dense for even saying it's expensive. DUH. It's not like it just hit 1 billion or something.
     
  17. Desertrat macrumors newbie

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    #17
    "She said that two private corporations were getting too expensive for the taxpayers."

    Exactly. That's what they were: Private corporations. They were not government agencies, although it has been long believed that the government would not allow them to fail. That helped immensely in F&F being able to get money at below-market interest rates, among other things. Same sort of deal as what the government did for Chrysler in the Lee Iacocca era. Same sort of deal that's likely to go down for GM and FoMoCo.

    F&F hold somewhere around 80% to 90% of all mortgage paper. If they had been allowed to fail, you damned right it would have been too expensive. Trouble is, the government takeover is also too damned expensive. We're talking the financial stability of the whole world's economic systems.

    Or have you not been paying attention, these last nine or ten months? Nothing I have said in this or any other posts or threads about economics has been other than public information. I'm no bloomin' guru about this.

    bobber205, adding $5.8 trillion to government obligation strikes me as just a wee tad expensive. So does the known $200 billion in bad paper--which will eventually become part of the federal deficit. You pay taxes? It's your burden, as well as the burden for all other taxpayers.

    'Rat
     
  18. atszyman macrumors 68020

    atszyman

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    #18
    No, it's going to be the burden of our children, grandchildren, and great grandchildren if the GOP keeps running this country the way we've been going for the last 7+ years. Although I'm not sure who they're going to get to loan us that much money...
     
  19. Sedulous macrumors 68000

    Sedulous

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    No, you are missing the point. Palin's comments were suggesting that government bureaucracy of F & F were the cause of their downfall. These were not government agencies and were privately held. This goes to show that privatization of everything is not always a surefire solution.
     
  20. Ugg macrumors 68000

    Ugg

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    What caused them to fail along with all the other pyramid-scheme-based bank wannabes is a total and utter lack of government oversight. Admittedly, it started under Clinton but bushco's "faith" in the ability of the market to police itself is about telling as the "Mission Accomplished" banner. To bushco, greed always trumps common sense.
     
  21. Desertrat macrumors newbie

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    #21
    Sedulous, I hate to tell you, but private banks have been loaning money since people first figured out about banks. Things rocked along okay until governments figured out about central banks, owned/operated by governments.

    Fannie Mae was an FDR creation. The original idea was to enable home ownership by those who otherwise couldn't afford to borrow. While a private corporation, the unspoken deal was that the government would stand behind it if things went wrong.

    Congress has had full oversight since the 1930s. The idea that "more regulation" will accomplish anything is exactly like re-doing an experiment in the same method as before but expecting a different result. Contributory to this whole debacle is legislation for "oversight" passed during the Reagan administration as a reslut of the S&L fiasco--when it was not the Republican party who ran Congress. (I normally don't interject Party into commentary of this sort, but I thought I'd just point it out.)

    If government is so neatsy-poo about oversight and controlling our money, answer me this: How is it possible that what cost a nickel in 1913 now costs a dollar? Hmmm? (Actually, it's worse. A 1940s nickel cuppa coffee is now $1.60 at Shoney's.)

    You want to give more power to the folks who gave you the Patriot Act, TSA, Echelon, etc., etc.? Who have eroded the buying power of your money to the point that the whole world is in deep doo-doo? (Okay, not those who can sell oil, but...)

    Anyhow, to repeat, Palin was correct on this item. Go get all irate about her views on some other subject.

    Stock tip: Don't buy F&F.

    'Rat
     
  22. Thomas Veil thread starter macrumors 68020

    Thomas Veil

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    Desertrat, maybe it looked to you like Palin was talking about the (at the time) proposed bailout, but from the article it sure sounds like she didn't understand the nature of Fannie and Freddie at the time she made the comment.

     
  23. Eric Piercey macrumors 6502

    Eric Piercey

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    #23
    The Fed is not part of the government. The Fed is owned by private banks. The dollar is worthless because every time the economy takes a downturn the Fed just injects more money into the system and lowers interest rates to stimulate borrowing. The government borrows from these private banks and the taxpayers pay for interest on that debt with approximately 1/3 of their income. In essence we're all slaves to the banks. The dollar will soon collapse completely and we'll be forced to accept anything... enter the Amero.
     
  24. Desertrat macrumors newbie

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    #24
    Eric, on paper, you're correct. The FedHead and the Treasury Secretary, however, pretty much dance to the same fiddler.

    Thomas Veil, I've been following all this economic stuff rather closely for several years, now. I don't pretend to fully understand all I know. And I'm an old retired guy, with all manner of free time to devote to watching all this economic goings-on.

    That a politician would have a less-than-perfect view doesn't bother me a bit. Nobody on this earth is an expert on everything. The idea that a candidate is to spontaneously answer any or all questions on every issue is just dumber'n hammered dirt.

    What's important to me is the overall view or ideas about how a system should generally work. The details are for subordinates--which is what created major flaws in LBJ's and Jimmy Carter's presidency; they got too heavily involved in the details.

    Parroting what's been force-fed by briefings is ridiculous...

    'Rat
     
  25. Much Ado macrumors 68000

    Much Ado

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    #25
    Less-than-perfect? That's about the biggest understatement I've ever seen on these forums.

    She completely and utterly misunderstood a basic economic concept, and this is just less-than-perfect?

    That's like mistaking Sunnis and Shias when talking about Ira... oh... wait...
     

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