What's next for the U.S. economy? Dow down 504 points, Lehman Bros. files for bankruptcy, McCain and Obama speak up

Facts do matter. Context matters. The point of the post was to talk about our concerns about multiple businesses tanking in one week. Yes, Congress has a share of the responsibility for lax or non-existent oversight of the financial industry. There is also a concern that the U.S. cannot (and for some folks) should not bail out private businesses.

It has come to my attention that there are some people, not naming names, who for a multiplicity of reasons do not like or endorse Obama for President. I hear that a few folks find the idea of McCain for President equally as repulsive.

I get it. But that is not what we started out talking about. There are liberals here. There are Independents/Undeclared voters here. There are Conservatives and Libertarians. And all of those folks also known as Americans, are being affected by the business practices on Wall Street.

We all will have tax money diverted to these same companies to prop up their survival. When you see a family losing their their home are you going to ask if they are a Obama or McCain supporter? Will you have more sympathy for the person who just lost a job this week because they have a conservative point of view?

Many of us are willing to stay and discuss. The discussion is not easy. Talking about money, finance and our interconnectedness is not easy. Hearing the other person's point of view. Hard.

Do what you have to do.
Gena - Out On The Stoop ( http://outonthestoop.blogspot.com )

Anne, Don't waste your time with these cheerleaders. They are only doing what Barack Obama publicly instructed them to do:  "I want you to argue with them and get in their face."  Facts don't matter. They don't know how Wilmette ties into Chicago (maps, anyone?). They don't know that the average income here is skewed by a few by-the-lake residents, such as the Legendary Tony Rezko.They don't understand that Wilmette peple don't shoot from the hip, and that they probably don't say anything unless either they know Barack Obama or people who know him and his wife or worked with him. Spend your time where you are appreciated and leave these people to their bubble. They are strictly NOKD.

Publia

Michael Greenberger ( http://www.npr.org/templates/story/story.php?story... )breaks it down for you and me:

Deregulation supports risky business
>
Banks get involved in risky lending (aka subprime mortgage debacle).  In the mortgage mess, they wrote loans to unqualified people and reassured them that they WOULD be able to pay their mortgages because they wanted to churn commissions.

>

Banks lose money on foreclosures and defaulted loans.

>
Banks tell shareholders and depositors, "Don't worry about us, we're insured!  Your money is safe!"
>
Oops.  Their insurance is with AIG ( http://www.csmonitor.com/2008/0918/p01s01-usec.htm... ).
>
If AIG fails, then banks fail.  So, banks can't make loans.  No mortgages. No car loans.  No student loans. No small Business loans.  We have no idea how this is going to affect credit card rates yet.  And your bank account (checking, savings) is at risk. (Watch WaMu if you want to know how close to home this is.)

>
"But wait!" you say. "My deposit is insured by the FDIC up to $100k!"
>
But the FDIC is running low on money ( http://masteryourcard.com/blog/2008/09/02/interest... ) because it has already loaned money to banks which have already failed.
>
FDIC says that they need to go to the United States Treasury because they need more money to insure your and my deposit accounts.
>
Where will the US Treasury and the FDIC get their money?  They will raise taxes.  Obama wants to raise taxes for those who singles who make more than $200K and families with more than $250K per year.  McCain says he won't raise taxes at all, but even Greenspan says that is not possible for McCain to follow through on. 

We already owe billions to China (thanks, GWB!) and, believe me, we don't want China as our landlord.

 How did this happen?

Deregulation takes away the safety barrier that usually prevents other people playing with our money.  Our pensions, our 401ks, our savings.  So, thank anyone in the government who pushed for deregulation of the markets for this weeks' fun ride and any future repurcussions.

For example, Phil Gramm ( http://en.wikipedia.org/wiki/Phil_Gramm#Banking_De... ).

Of Gramm-Leach-Bliley Act ( http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Ac... ) in 1999, which was created to reduce government regulations in existence since the Great Depression separating banking, insurance and brokerage activities.  You know, the regulations put in place after the Great Depression to prevent another Great Depression?  Yeah. Gramm-Leach-Biley took those regulations--that safety barrier--away. 

This Act was pushed through Congress by Gramm (R-TX) and Leach (R-IA).  It passed a Republican Senate and Republican House with more than two-thirds of a majority vote.  This prevented Clinton from being able to veto it (a 2/3's vote renders a bill veto-proof).

And Phil Gramm?  He is the chief economic adviser to John McCain's campaign.  Yeah, THAT John McCain.  The one running for president.  Thanks Phil! Thanks John!!!  Great job, guys!  Woot! 

You have to wonder after the events of the last two days on Wall Street.

If John McCain had gotten his way in 2000, or 2004, and Social Security was in risk-based private investments (like stocks), what would senior citizens be facing down right now?  Just curious.

Some of the most interesting coverage and best explanations I've heard of the fallout from the last few days has been on the following radio programs.  So, if you want to hang with the guys around the watercooler and hold up your end of a conversation about this, these are a "must listen":

Aftermath of this weekend's financial storm ( http://www.chicagopublicradio.org/Content.aspx?aud... )

Worldview 9/16/08 ( http://www.chicagopublicradio.org/Program_WV.aspx )

And, if what has happened with the housing crisis mess could in any way, shape or form be an entertaining audio program, leave it to Ira Glass to make it so:

The Giant Pool of Money ( http://www.thisamericanlife.org/Radio_Episode.aspx... )

A special program about the housing crisis produced in a special collaboration with NPR News.
We explain it all to you. What does the housing crisis have to do with the turmoil on Wall Street? Why did banks make half-million dollar loans to people without jobs or income? And why is everyone talking so much about the 1930s? It all comes back to the Giant Pool of Money.

We're rearranging our finances right now to see if we can afford to buy stock right now.

Yes, buy.

There are some incredible deals to be had at this moment.

We are already pretty diversified.  Even though the last few days have been pretty shocking, most of our stocks across four retirement portfolios are still up since we bought in.  The wildest ride is for our Emerging Markets stocks and the stocks tied to the S&P500.  But even the S&P 500 stocks aren't as bad as they were in '03.  One of our short term investment stocks is still going gangbusters, even in this down market, and was up today.

Our trick to holding the panic at bay is to do what Lisa is recommending.  Diversify.  I've been rebalancing my portfolio every few years, and I was socking money away in my 401k since I was 23. But I won't rebalance until the market pulls out of this nosedive.  We buy low and sell high, even though my nerves often needle me during the low points.  

If you are much closer to retirement than we are, that will require different tactics entirely.

Jane Becker!

"The bottom line is, it won't be helpful to play politics with this situation. It goes beyond political ideology."

Spill Jane - what're you reading and what do you recommend?

Lisa Stone
BlogHer Co-founder ( http://www.blogher.com/member/lisa-stone )
Surfette ( http://surfette.typepad.com )

BlogHer is non-partisan but our bloggers aren't! Follow our coverage of Politics & News ( http://www.blogher.com/topic/politics-news ).

Diversification, diversification, diversification, even if I have to cut each red cent into thirds. I agree -- not pulling out what little I have, but am going to think hard if/when I can about real estate and $$$$aving. I never do enough of the latter.

Lisa Stone
BlogHer Co-founder ( http://www.blogher.com/member/lisa-stone )
Surfette ( http://surfette.typepad.com )

BlogHer is non-partisan but our bloggers aren't! Follow our coverage of Politics & News ( http://www.blogher.com/topic/politics-news ).

...made national news today. I woke up to the announcement that the legislature broke its deadlock, but may earn a Gubernator-ial veto. From SFGate.com ( http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2... ):

"The budget, already a record-breaking 78 days late, would close a gap of about $17 billion for the fiscal year that began July 1 without imposing new taxes. It does, however, require taxpayers to make earlier payments to the state government..."

I didn't vote for Schwarzenegger, but I do like the way he's demanding budget reform. I'm so tired of the partisan politics that detract from real policy-making -- and I'm convinced that's what the governor's trying to do. My favorite proof? That Treasurer Bill Lockyer (a former state senator and Democrat) can agree this closely on the budget. From the same article:

"Schwarzenegger wasn't the only state official to criticize the plan. Treasurer Bill Lockyer, a Democrat, said at a finance conference in San Francisco this morning that the budget was absurd, irresponsible and "gives gimmicks a bad name."

"It's banana republic financing," Lockyer said. The spending plan relies on "phony money and phony estimates," he said."

Lisa Stone
BlogHer Co-founder ( http://www.blogher.com/member/lisa-stone )
Surfette ( http://surfette.typepad.com )

BlogHer is non-partisan but our bloggers aren't! Follow our coverage of Politics & News ( http://www.blogher.com/topic/politics-news ).

I have to agree -- Anne/Backyard Conservative, can you connect your links to the conversation I began yesterday? I don't see how bomb-throwing at a candidate with which you disagree addresses the issues here.

Lisa Stone
BlogHer Co-founder ( http://www.blogher.com/member/lisa-stone )
Surfette ( http://surfette.typepad.com )

BlogHer is non-partisan but our bloggers aren't! Follow our coverage of Politics & News ( http://www.blogher.com/topic/politics-news ).

This is what I don't get about McPalin-backing conservatives: you continue to spread LIES that have been debunked by credible, independent sources hoping that one of the lies will stick in a non-critically-thinking voter's mind and lead to one more McPalin vote. But at what cost? Is this really what McCain has to resort to to win? Will he be able to live with himself in the end? Will you? This tactical approach is very dangerous.

I, too, expect more from a BlogHer political editor. You can contain the untruths and smears to your personal blog. The fact that you are using this omni-partisan forum to spread McCain's agenda of lies is very unprofessional and extremely disturbing. I suggest you stick to comparing the two candidates on the issues. Don't you think you owe that to BlogHer readers?

Stefania Pomponi Butler

I blog:
CityMama ( http://citymama.typepad.com )
Kimchi Mamas ( http://kimchimamas.typepad.com )
MOMocrats ( http://momocrats.typepad.com )

Ok -- I was reading all the above and can see that we're all feeling angry at the state of where we are.  Neither side is blameless.  However . .

In all of it, I did not see mention that Mc Cain was one of the Keating 5 -- you know that last banking debacle due to Republican de-regulation.  Remember the S&L loan scam?  I do; millions down the tube all in the name of let the market set the rules. 

And here we are again different time different scam -- same m.o. -- let the market set the rules -- and who prospers?  The few big conglomerates who have enough capital to buy out the losers -- us.  Pretty soon we'll have one bank and we can thank those deregulators for that.  

While, I'm disheartened by the donations that Obama and some of the Democrats have taken -- I'm am heartened that they talk out against deregulation. 

I just don't understand how Mc Cain can talk with any credibility on this subject and no one brings up the Keating 5.  

unfit mutha

because motherhood should not have to be a onesize fits all job description

You're off topic, you're being deliberately inflamatory instead of continuing the discussion, and now you're flagrantly lying too? Obama's co-sponsorship of the Biden-sponsored US Senate Bill 1738 which protects children against sexual predators online ( http://www.govtrack.us/congress/bill.xpd?bill=s110... ) has nothing to do with "sex education." It's to prosecute predators and improve the Internet Crimes Against Children Task Force, among other things. To twist it any other way is verging on sick.

I would think one of the BlogHer political editors would hold herself to a higher standard in these threads. 

Mom-101 ( http://mom-101.blogspot.com )
( http://coolmompicks.com )

I thought the Washington Post did an excellent analysis of the events leading up to the Fannie/Freddie take over ( http://www.washingtonpost.com/wp-dyn/content/artic... ).

This is really a bipartisan mess, with the less experienced and knowledgeable Congressional members (of both parties) being taken for a ride by shrewd, and greedy, members of the financial community.

I do believe this demonstrates the importance of greater, rather than less, oversight, especially when tax payer money is at stake; when the financial health of the country is at stake. This throwing open the doors of the federal coffers and hoping that the free market will behave itself is naive, at best; completely irresponsible at worst.

However, both parties have to accept responsibility for this disaster.

Please don't repeat assertions that have been proven to be false. In addition, instead of repeating sentences of others, I'd like to hear some original content from you.

Lastly, what do your links have to do with the topic of this post? 

Please don't copy and paste pages of text into comments. A link to the source is all that's necessary, and we're not having to scroll endlessly through text that you didn't originate.

Yes, both Republicans and Democrats benefited from Fannie/Freddie contributions. Including both Obama and McCain. Now, what was the point you're trying to make? That we shouldn't vote for either? That our Congress is the best money can buy?

Here's a few more variables: The war in Iraq, remember that? That costs 12 BILLION dollars each month! Really 12 billion each month. Bush borrowed money from the Chinese to help finance it, so we owe them lots of $$. When the country had lots of debt, Bush had more hare-brained ideas about de-regulation which eliminated safeguards and ultimately led to this. Remember how all these same Wall Street folks were getting huge bonuses when the cash was flowing in from the sub-prime mortgages?   This is what happens when a lie about Weapons of Mass Destruction causes a war, where people die and it costs lots of money, and then people try to fix the money problem with more incompetence. If you like seeing this type of domino effect, then by all means vote for another person, like John McCain, who also favors deregulation and who lies.  

As fate would have it news of the largest chapter 11 bankruptcy in history comes across the radio as I was sitting at the stop light, drilling my 10th grader on the the Western Civ test she was scheduled to have in another hour.

As fate would have it the first test of the school year would be on the rise and fall of the Roman Empire. The chapter she was reading at the moment the NPR story came on the radio read: "The Roman Empire did not fall to one superior enemy. Rather the Empire died the death of a thousand cuts, which included, among other things, economic decay through hoarding of bullion, barbarian looting
of the treasury, and trade deficita; military decay through attrition
and disorganization; and the lack of trustworthy leaders."

While things have been crumbling all around us here in our country for decades, our is the generation that gets to watch and experience the empire actually toppling and crashing to the ground. It happened under our watch. I'm not sure any of us could have prevented us. Those who stole the most and cared the least about the rest of us are probably not blogging about what they did. I bet they are not members of this blog. They simply leave it to the rest of us to make excuses and to point fingers, instead of just admitting that we've been f*%$.

Read Renita's Blog Since She Spends Way More Time on It Than She Should: http://www.somethingwithin.com/blog.

I am a person in Illinois.  All of my friends and neighbors are people in Illinois.  We don't feel that Obama has let us down.  We are quite proud of Obama.

The ethics bill is being hashed out by the Illinois Senate.  Obama is serving in the United States Senate.  Although proud of our state, we do not operate under the illusion that Illinois IS the United States.

I am not finding any reference to corrupt nepotism in the article that you cut and pasted into your blog.  Be careful that no one accuses you of "phoning it in" as a blogger, A.L. 

I can't even comment about your blog entry regarding the Annenberg Challenge, it is too difficult to decipher through all of the !!! and font changes and formatting changes.  But the activity of the Annenberg Challenge, to support reform through local school councils, was a very good idea from our viewpoint.  You know, the actual people who live in Chicago, send our children to CPS schools, and who work with CPS?  There were a lot of opponents to school reform at that level, including Mayor Daley (a fellow Democrat!).  But the attempts to get more power into the hands of local school councils was, and continues to be, important.

Yes, Obama supported age and developmentally appropriate sex ed for kindergarteners.  (The legislation is pretty clear on the age and developmentally appropriate standard.) Which at that age addresses issues of "inappropriate touch" and avoiding sexual predators and the accurate names for body parts as well as respect for others. 

I believe that I went through something similar in kindergarden and first grade (in rural Ohio!) with "Patch the Pony" where we watched filmstrips about stranger danger, etc.  I can find NO reliable source linking SIECUS to this legislation by way of Obama. But I'm open to seeing any evidence of his proposal to use SIECUS.  And, as I am reviewing the SIECUS lesson plans ( http://www.sexedlibrary.org/lessonplans.html ) (which gives more specific ages for topics taught), I am not seeing anything wrong with what is suggested for Age 5.  In fact, I think this is a very responsibly and respectfully created curriculum.

How did I attack you?  I said you live in a very nice, very white town.

That you didn't live in Chicago.

And linked to where you listed your occupation as homemaker.

That is considered a personal attack....how?

and that we no longer have a representative government. That big business and political PACs have total control over the policies and legislation of this country.

Therefore, there is no point in choosing any candidate for president because Congress will only listen to those entities that fill their political and personal purses.

Hmmm. Based on the activities of lobbyist Jack Abramoff, sneaky political PACs and Republican members of Congress yes, you have a point. And no, I didn't forget that Democrats pioneered the process of pay for vote/consideration.

It start with ethics. It continues with good business and not putting your firm in jeopardy with practices that ultimately could destroy it. In government it starts with true leadership and having a structure that prevents voter influence by outside entities. After the first six years in congress how was the Republican leadership in these matters?

Yes, McCain and Obama took money from Fannie and Freddie Mae. Keep looking both may have received money from questionable sources or special interest that you don't like.

However, it was a series of bad business and un-ethical decisions that cause this financial meltdown. People making bad or informed decisions caused this meltdown. Selling inflated loan with little or no collateral caused this meltdown.

Congress was a factor but they didn't start this fire.

Gena - Out On The Stoop ( http://outonthestoop.blogspot.com )

For someone who posts anonymously miteegirl how nice to go for the personal attacks.

I do not view the NY Times as a trustworthy source. Here's mine ( http://www.opensecrets.org/news/2008/09/update-fan... ). It is nonpartisan ( http://www.opensecrets.org/about/index.php ). The people who fund it ( http://www.opensecrets.org/about/funders.php ), if anything lean to the left.

Capital Eye ( http://www.opensecrets.org/news/ )

END HIDING BLOG HEADER -->

( http://www.opensecrets.org/news/ )

Update: Fannie Mae and Freddie Mac Invest in Lawmakers

Published by Lindsay Renick Mayer on September 11, 2008 11:26 AM

| Permalink ( http://www.opensecrets.org/news/2008/09/update-fan... )
| Comments (7) ( http://www.opensecrets.org/news/2008/09/update-fan... )

When the federal government announced two months ago that it would prop up mortgage buyers Fannie Mae and Freddie Mac, CRP looked at ( http://www.opensecrets.org/news/2008/07/top-senate... )
how much money members of Congress had collected since 1989 from the
companies. On Sunday the government completely took over the two
government-sponsored enterprises, and we've returned to our data to
bring you the updates, this time providing a list of all 354 lawmakers
who have gotten money from Fannie Mae and Freddie Mac ( http://www.opensecrets.org/orgs/summary.php?cycle=... )
(in July we posted the top 25). These totals are based on data released
electronically from the FEC on Sept. 2 and include contributions to
lawmakers' leadership PACs and candidate committees from the
floundering companies' PACs and employees. Current members of Congress
have received a total of $4.8 million from Fannie Mae and Freddie Mac,
with Democrats collecting 57 percent of that. This week we also wrote
about how much money lawmakers had invested of their own money in the companies ( http://www.opensecrets.org/news/2008/09/congressme... ) last year--a total of up to $1.7 million.

All Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008

Name
Office
State
Party
Grand Total
Total from
PACs
Total from
Individuals

Dodd, Christopher J
S
CT
D
$165,400
$48,500
$116,900

Obama, Barack
S
IL
D
$126,349
$6,000
$120,349

Kerry, John
S
MA
D
$111,000
$2,000
$109,000

Bennett, Robert F
S
UT
R
$107,999
$71,499
$36,500

Bachus, Spencer
H
AL
R
$103,300
$70,500
$32,800

Blunt, Roy
H
MO
R
$96,950
$78,500
$18,450

Kanjorski, Paul E
H
PA
D
$96,000
$57,500
$38,500

Bond, Christopher S 'Kit'
S
MO
R
$95,400
$64,000
$31,400

Shelby, Richard C
S
AL
R
$80,000
$23,000
$57,000

Reed, Jack
S
RI
D
$78,250
$43,500
$34,750

Reid, Harry
S
NV
D
$77,000
$60,500
$16,500

Clinton, Hillary
S
NY
D
$76,050
$8,000
$68,050

Davis, Tom
H
VA
R
$75,499
$13,999
$61,500

Boehner, John
H
OH
R
$67,750
$60,500
$7,250

Conrad, Kent
S
ND
D
$64,491
$22,000
$42,491

Reynolds, Tom
H
NY
R
$62,200
$53,000
$9,200

Johnson, Tim
S
SD
D
$61,000
$20,000
$41,000

Pelosi, Nancy
H
CA
D
$56,250
$47,000
$9,250

Carper, Tom
S
DE
D
$55,889
$31,350
$24,539

Hoyer, Steny H
H
MD
D
$55,500
$51,500
$4,000

Pryce, Deborah
H
OH
R
$55,500
$45,000
$10,500

Emanuel, Rahm
H
IL
D
$51,750
$16,000
$35,750

Isakson, Johnny
S
GA
R
$49,200
$35,500
$13,700

Cantor, Eric
H
VA
R
$48,500
$46,500
$2,000

Crapo, Mike
S
ID
R
$47,250
$40,500
$6,750

Frank, Barney
H
MA
D
$42,350
$30,500
$11,850

Bean, Melissa
H
IL
D
$41,249
$34,999
$6,250

Bayh, Evan
S
IN
D
$41,100
$16,500
$24,600

McConnell, Mitch
S
KY
R
$41,000
$40,000
$1,000

Maloney, Carolyn B
H
NY
D
$39,750
$16,500
$23,250

Dorgan, Byron L
S
ND
D
$38,750
$30,500
$8,250

Miller, Gary
H
CA
R
$38,000
$31,500
$6,500

Rangel, Charles B
H
NY
D
$38,000
$14,750
$23,250

Tiberi, Patrick J
H
OH
R
$35,700
$32,600
$3,100

Bunning, Jim
S
KY
R
$33,802
$29,650
$4,152

Stabenow, Debbie
S
MI
D
$33,450
$32,000
$1,450

Chambliss, Saxby
S
GA
R
$33,250
$22,500
$10,750

Menendez, Robert
S
NJ
D
$31,250
$30,500
$750

Enzi, Mike
S
WY
R
$31,000
$27,500
$3,500

Van Hollen, Chris
H
MD
D
$30,700
$11,000
$19,700

Landrieu, Mary L
S
LA
D
$30,600
$20,000
$10,600

Murray, Patty
S
WA
D
$30,000
$23,000
$7,000

Clyburn, James E
H
SC
D
$29,750
$26,000
$3,750

Crowley, Joseph
H
NY
D
$29,700
$25,500
$4,200

Sessions, Pete
H
TX
R
$29,472
$24,000
$5,472

McCrery, Jim
H
LA
R
$29,000
$26,000
$3,000

Hooley, Darlene
H
OR
D
$28,750
$19,500
$9,250

Royce, Ed
H
CA
R
$28,600
$4,000
$24,600

Renzi, Rick
H
AZ
R
$28,250
$28,000
$250

Lieberman, Joe
S
CT
I
$28,250
$11,500
$16,750

Baucus, Max
S
MT
D
$27,500
$21,000
$6,500

Moore, Dennis
H
KS
D
$26,550
$25,500
$1,050

Coleman, Norm
S
MN
R
$24,690
$12,000
$12,690

Matheson, Jim
H
UT
D
$24,500
$24,000
$500

Schumer, Charles E
S
NY
D
$24,250
$1,500
$22,750

Durbin, Dick
S
IL
D
$23,750
$14,000
$9,750

Rogers, Mike
H
MI
R
$22,750
$21,000
$1,750

Lynch, Stephen F
H
MA
D
$22,500
$13,500
$9,000

Rockefeller, Jay
S
WV
D
$22,250
$5,000
$17,250

Smith, Gordon H
S
OR
R
$22,000
$20,000
$2,000

Mikulski, Barbara A
S
MD
D
$21,750
$16,500
$5,250

McCain, John
S
AZ
R
$21,550
$0
$21,550

Obama rakes it in. ( http://backyardconservative.blogspot.com/2008/09/b... )

Obama let down the people of Illinois. Absent on Ethics ( http://backyardconservative.blogspot.com/2008/09/o... ). Backed corrupt nepotism ( http://backyardconservative.blogspot.com/2008/09/u... ). Totally mismanages an opportunity for Chicago School Reform ( http://backyardconservative.blogspot.com/2008/08/o... ).Supported Sex Ed for kindergartners. ( http://amyproctor.squarespace.com/blog/2008/9/14/o... )

blog.candelariasilva.com

Good and plenty!

It has a federal notice on each window. It states that its is now federal property and the former occupants have been evicted. No curtains, nothing but bits of the former tenants property. I'm guessing it was a Freddie or Fannie Mae property.

It was just a simple house but it was a family's home. There will be more like it. The property values in the area will drop. People are being uprooted. Not everyone has a place to go, so there will be an increase in the homeless population.

A couple thousand people lost their jobs and careers today. Someone's retirement income has just tanked. How do I know if the money I've worked for isn't going to be swallowed up by a bank that crashes and burns? Yes, FDIC will kick in but for how long can it do that? How many more financial institutions are going down?

F*ck the politics and posturing. No one, not conservative, libertarian or liberal will go unaffected. Either we allow the market to correct itself via the free market system and we all suffer or we have governmental intervention and we all suffer.

If anyone has a better option I'd love to hear it. You can't blame a political candidate, Obama or McCain, for systemic corporate greed and malfeasance. Nor should those responsible get golden parachutes financed by the U.S.

Gena - Out On The Stoop ( http://outonthestoop.blogspot.com )

The policies which led to this failure were architected under the Clinton administration--much as I, a fervent Clinton supporter, hate to admit it.  A lot of people benefitted from the loose financial policies which opened up the mortgage market---and which are at the root of this failure (risky mortages, hedge funds, etc.).  And not just Main Street either--a lot of politicians on both side of the aisle closed their eyes, put out their hands and received those risky mortgages. 

 The bottom line is, it won't be helpful to play politics with this situation.  It goes beyond political ideology. 

Jane Becker

http://thedamedomain.blogspot.com ( http://thedamedomain.blogspot.com/ )

Anne Leary lives in Wilmette, Illinois, a northern suburb of Chicago which is 89.7% white, 8% Asian and only 0.56% black.  The median income for a Wilmette family is $123,000.

There is no poverty in Wilmette, no diversity.  It is a rather pretty, well-tended, well off little town.  My father-in-law was born there and has family there.

It in no way resembles Chicago.

Anne is a self-described homemaker ( http://www.opensecrets.org/indivs/search.php?name=... ).

I cannot find any reference to Anne having met or worked with Obama, nor having lived in Chicago. As far as I can see, Anne did not live in Obama's district while he was an Illinois Senator.  However, Obama is one of the Senators from the State of Illinois and Ms. Leary does live in our state.

The people on the bottom, in the middle and on the top are all linked.  Having had the corporate world held up to me in my non-profit world as somehow being wiser, I've always felt deeply that there was a lot of lies, cover-ups, and fast money being made with no long-term view or safe-guards.

In addition to the importance of safe-guards, we have to have a return to ethics in both the corporate and non-profit sector.  If the deepest mission of a  corporation is to make money and the folks that are supposed to be watching out for us, i.e., the government, aren't doing their jobs - then you will continue to have the dismantling of institutions.

I recommend reading the Money issue of Lapham's Quarterly.  Money only has value if people agree it does.  In and of itself it is worth nothing.  It is only a conduit. 

I'm 'bout to be like my grandmother and keep the very few $ I have left in a safe deposit box and in various hidden places.

Let me return to where I began - we are all linked in the economy and in the world together and while I have never been any where near rich, it bothers me when rich people screw it up for the rest of us.  It bothers me that I don't feel secure.  I am hoping I am resilient enough to survive this economy.

blog.candelariasilva.com

Good and plenty!

Honestly, I have a hard time trusting a guy (John McCain) whose top economic advisor was Phil Gramm. While in the Senate, Gramm was directly involved in creating legislation that made credit derivatives like credit default swaps possible. These are the types of vehicles that allowed banks get rid of the risk of underwriting loans. Basically, mortgage lenders could make the loans, package them in securities and enjoy the commissions without the risk. Hence, the reason that mortgage lenders were gung-ho about approving anyone and everyone. They didn't have to deal with the risk. The investment banks that bought these securities took on the risk. McCain gets his economic advice from a guy that thought these types of policies were good ideas.

Anyway, like Vered, I'm keeping my stocks in. Most of my holdings (in my retirement account mainly) are fundamentally sound and should recover when the bear market ends. And it should end well before I need my retirement accounts in 30 years.

This Time, It's Personal ( http://www.bloggingprofessional.blogspot.com )

Yielding Wealth ( http://www.yieldingwealth.com )

How do you know?  Have you met the man?  Do you live in Chicago?  Have you worked on any of his campaigns, or those opposing him?  WHERE'S THE BEEF?  Because I have done all of those things, and I see NO indication that you are right.  And I'm a registered Republican.

Well, not all of them. The rest are contributing wildly to his campaign in record numbers. 

http://www.cnn.com/2008/POLITICS/09/09/mccain.lobb...

http://abcnews.go.com/Blotter/story?id=4210251

Mom-101 ( http://mom-101.blogspot.com )
( http://coolmompicks.com )

Ah yes.  So McCain has received more from Fannie Mae and Freddie Mac than Obama has.  (And both contribute to EVERYONE running for office quite heavily.)

McCain 

$169,000 directly  and Freddie Mac's board member Geoffrey T. Boisi and Fannie Mae lobbyist Richard F. Hohlthave raised between$100,000-250,000 for McCain.

Obama

$122,850 directly and Jim Johnson (former CEO of Fannie Mae) was involved in Obama campaign for 7 whole days on the VP selection committee before stepping down.

Source ( http://nytimes.com/2008/09/10/us/politics/10fannie... )

Anne.  As someone whose "family has a tradition of journalism", you should know better than to present only half of a story from a questionable source.   Because what you are doing isn't journalism.  It's more like rumor-mongering and gossiping.

How is that denial working for you, Anne? :)

John McCain’s connections to the two mortgage companies are more numerous [than Obama's]. His campaign manager, Rick Davis, headed the Homeownership  Alliance, an advocacy group for the two lenders. His close adviser,  Charlie Black, is a long-time lobbyist whose firm represented Freddie Mac.
Two of McCain’s bundlers, supporters who help raise large amounts of money for the campaign, have ties to Fannie Mae. Robert H. Holt is a lobbyist for the firm, and Wayne Berman is managing director of Ogilvy Government Relations, which also represents the company.

A third McCain bundler, Geffrey T. Boisi, is a director of Freddie Mac.

At least 20 McCain fundraisers have lobbied on behalf of Fannie Mae and Freddie Mac, netting at least $12.3 million in fees over the past nine years.

the corrupt machine in Chicago. He became part of it. Never challenged corruption in Washington.

Unlike John McCain.

Just to be clear. You believe people should hold Barack Obama partially responsible for this calamity in some way because Fannie Mae donated money to his campaign (~$106,000, chump change amount considering how much money ordinary citizens have donated to his campaign). You also think Obama should answer for someone formerly associated with his campaign who got a questionable loan through Countrywide and do penance because he used to work for a law firm that had Rezko as a client and also used to be the neighbor of Rezko ( http://www.suntimes.com/news/watchdogs/757340,CST-NWS-watchdog24.article ), who also donated money to Obama's senate campaign that Obama later donated to charity when he learned more about Rezko's background.

Using your implied logic, I suppose we could say that home owners who had their loans guaranteed through Fannie Mae are part of the problem even though they had nothing to do with the regulations that failed to work, or that if my neighbor turns out to be dishonest and I bought a lot from him once then I am dishonest by association, or if a lady received money from a benefactor that later went into bankruptcy that the lady is somehow to be blamed, in part, for her benefactor's failure to manage money properly. Is that what you're saying?

It seems like a long stretch of implied guilt by thin association with a heavy dose of dirty innuendo to me. Karl Rove ( http://bigsole.blogspot.com/2008/09/karl-rove-says... ) would probably say that you didn't cross the line, however, as much as a McCain ad.

I believe voters should be much more concerned about John McCain's admission that he knows little about economics ( http://bigsole.blogspot.com/2008/09/flashback-for-... ) and yet is running for the presidency while we're in the midst of the worst economic crisis in decades. Voters should be alarmed that for a while McCain's crutch boy and economic adviser was Phil Gramm, the man who resigned from his McCain slot after calling America a nation of whiners regarding the economy, the same faltering economy he helped create.

Maybe we should take a look at why McCain thought Phil should be trusted with our economic future since Gramm has a far bigger connection to the banking industry than any of the people you try to smear over Obama. Gramm, while chairing the Senate banking committee, actually pushed through legislation that contributed to the mortgage meltdown, legislation that bank lobbyists helped to write.

So, the real good old boy network, the one that runs with McCain/Bush economic policies folded in their wallets, is what we should scrutinize here, not flimsy connections to developers and dismissed folks who got mortgage loans through means unrelated to Obama.

McCain isn't just part of the problem, he and his cronies are the problem.

Nordette ( http://blogher.org/blog/nordette ) is a Contributing Editor with BlogHer.com whose personal blog is hosted on another site at this link ( http://bigsole.blogspot.com ).

( http://blogher.org/blog/nordette )

I won't get into political issues here, but as far as finances go, I am still planning to ride it out and not pull out of the stock market. Hopefully I'm not making a huge mistake.

---

I blog at MomGrind ( http://momgrind.com/ )

I manage my kids' activities at UpToUs ( http://www.uptous.com/ )

Barack Obama (D-Fannie Mae) ( http://backyardconservative.blogspot.com/2008/09/b... )

Not bailing out some of these corporations would be much, much worse for your average person due to the way the markets have been set up to work.  The real issues have to do with Reagan's repealing all of the rules and protections that FDR had put in place.  People keep voting for the two parties and that kow-tow to big business and they are surprised?

I remember saying that the 1920s were repeating in the 1990s - but every one said that the old rules don't apply.  Well, actually, the old rules of behavior applied but the laws that had protected the idiots from themselves had been repealed to serve unending greed at the top.

Everyon seems to forget these lessons - including the governments who have invested heavily in these markets. This has put many people who were never before at risk at risk if these funds fail.  Privatization is always bad in government.  ALWAYS!

MLO / Melissa

Republicans have a huge problem giving what they call "hand-outs" to citizens of this country who are poor, hungry, unemployed, disabled, homeless, etc.  In those cases "welfare" is a dirty word.  But, bailing-out CEO's and multi-million dollar corporations, with the tax dollars of hard working Americans, that type of welfare is acceptable.  I just don't get it? 

It's a sad, sad day for 95% of this country.  Who is going to bail them out?  Shame on anyone against helping out the most needy of our citizens, but o.k. with bailing-out the multi-millionaires. 

Contributing Editor Catherine Morgan
at Catherine-Morgan.com ( http://catherine-morgan.com/ ), The Political Voices of Women ( http://politicsanew.com/ ), Care2 Election< ( http://www.care2.com/politics/features/ )

Once again the Corporate Welfare Deadbeats are going to come to Washington...or Warshington as John McCain calls it, hat in hand looking for more bailouts.  I know that so far the government hasn't jumped in with Lehman Bros, but give it time. 

Somehow, some way, once again we're going to have to pay for the corporate greed that's allowed to run amok when the governement, as many a Republican likes to say, unshackles big business so that they can let their profits trickle down to the rest of us.

What a joke!

Megan Smith ( http://www.blogher.com/haystackprofile/viewprofile... )
BlogHer Contributing Editor, TV/YouTube ( http://www.blogher.com/blog/megan-smith )
Megan's Minute: Quirky Commentary Around The Clock ( http://www.megansminute.com/ )

That real estate crash that hit everywhere else in the US but Manhattan? It's here. Just in time for the glut of luxury condos that are coming onto the market! Good times ahead.

Suzanne Reisman ( http://www.blogher.com/member/suzanne-reisman ), Contributing Editor - Feminism & Gender ( http://blogher.org/topic/feminism-gender )
Campaign for Unshaved Snatch (CUSS) & Other Rants ( http://cussandotherrants.com/ )