Is this current worldwide financial crisis the logical conclusion of reaganomics?

No, it's the result of people not bothering to learn their history. In the 1920s people threw all their money into investments that they thought would just keep going up in value indefinitely, they were wrong and it cause an economic crisis.



In the 1990s people did the same thing, thinking that all of their investments would never lose their value and when it came time to retire there would be a small fortune there to live on. They too never realized that the economy is cyclical and now everyone is paying the price for their ignorance and refusal to learn what happened in this country 80 years ago.Is this current worldwide financial crisis the logical conclusion of reaganomics?No it's the logical conclusion of perverted government policy in what should be a free market.



The housing bubble and it's aftermath rose from market distortions created by the federal reserve, government backing of Fannie and Freddie, the department of housing and urban development, and the federal housing authority.



This exact ignorance about blaming free market and turning to government control of the situation is exactly what is exacerbating this situation. GSE's are not free market institutions. Banks are not free market institutions. The government is 100 percent responsible for this problem. Sorry, but that's the way it is. You will see government intrusion continue and you will see the problem spiral out of control.Is this current worldwide financial crisis the logical conclusion of reaganomics?
America, the historically highest point of development of world capitalism, has been transformed into the center of world capitalism has become the center of its deepening crisis.



The outright failure of so-called ‘neo-liberalism’, the economic dogma followed by almost every capitalist government, was epitomized by the dramatic actions taken urgently by the champions of privatizations, of Reaganomics and Thatcherism in the US and UK, themselves.

Is this current worldwide financial crisis the logical conclusion of reaganomics?Exactly. The Great Depression was a result of Lazier Faire economics and Reaganomics is essentially an ideology that strives for a free market similar to Lazier Faire. Less regulation in order to get a market economy where the market can flow freely without any rules.



By the way, to the one above me saying it's because of lenders giving loans to those that don't qualify, that has to do with the Credit Default Swaps which is a result of Deregulation of the Financial industry.
In the U.S. it was more the result of Clintonomics which essentially stated that it was a right to own a home, there was no thought given to whether the person to afford to own a home and lending institutions were pressured by the government to give out loans to people who would not be able to pay them back. After years of this and billions given out in bad loans it was bound to collapse at some point. Fannie Mae and Freddie Mac were constantly being pressured by people in government like Barney Frank to keep this practice going even when things began to unravel. Since everything is tied together it's hard to have one sector of the economy take such a huge hit without it having an impact on the whole thing.Is this current worldwide financial crisis the logical conclusion of reaganomics?NO the current financial crisis is the result of Globalization and the Banks wanting to become the world's unelected leaders.

The Lisbon Treaty in Europe is the formation of a United European State which makes the Banks more powerful than the governments. In fact it gives the bankers the ability to usurp national laws!

Obama sponsored a "Global Poverty Act" which gives control of the United States to the United Nations. The financial crisis handed money to the banks out of thin air. That means every dollar that everyone has is worth less because more dollars are in circulation. Who has those dollars? The BANKS! What are they doing with that money? Buying out smaller more viable banks! The banks are taking control of the entire world, usurping the laws of nations, forming global currencies and becoming unelected leaders. As in the old Oligarchy monarchy system and in order to have any rights or freedoms we MUST stop them!!!

http://www.youtube.com/watch?v=zp7UHYbCf…



http://video.google.com/videoplay?docid=…



http://dailyreferendum.blogspot.com/2008…



http://praguemonitor.com/2008/11/07/over…



http://www.anarkismo.net/newswire.php?st…



November 18, 2008



LaTourette asks Paulson to reconsider National City bailout snub







U.S. Rep. Steven C. LaTourette (R-OH) today demanded that Treasury Secretary Henry Paulson reconsider the decision to deny National City Bank any funding from the bailout, and asked that National City be given its share of bailout funding that was steered to PNC.





LaTourette, who twice voted against the $700 billion bailout and raised concerns of how it would be administered, angrily blasted Paulson for allowing Comptroller of the Currency John Dugan to decide National City’s fate when the bailout law does not provide any authority to the Comptroller. LaTourette said the law gives authority to Paulson alone and only mentions the Comptroller’s office once in the 300-plus page law. Under the law, the Treasury Secretary is told to “consult” with the Comptroller.





LaTourette pointed out that National City is the only bank among the nation’s 25 largest to be denied funding, and its buyer, PNC, is the only one getting government funds to buy a bank. PNC is slated to get $7.7 billion from the Troubled Asset Relief Program (TARP), including National City’s share of funding.





LaTourette said between the nearly $8 billion subsidy from the government and a new $5 billion tax break, PNC is effectively getting National City for “free.”





“This Civil War-era bank survived the Great Depression yet it couldn’t survive eight weeks of your bailout!” LaTourette said.





Paulson refused to discuss the particulars of National City’s financial health or how the deal unfolded. Paulson said the TARP program was designed for “healthy banks” and is “not to be used to prop up failing banks or banks that might fail.”





“In my experience I have seen institutions that meet capital ratios but the market loses confidence in them,” Paulson said, adding he was speaking generally and not of National City’s situation.





LaTourette argued that if the market lost confidence in National City it was because of the Comptroller’s decision to deny bailout funding to it – a decision that is widely perceived as meaning a bank is “not a survivor.” LaTourette said the bank’s directors were forced into a merger at a fire sale price.





Paulson said his office does not make decisions on TARP participation and instead approves applications based on recommendations from regulators, such as the Comptroller of the Currency. In a heated exchange, LaTourette told the Secretary that his explanation contradicts what the Comptroller’s office has said.





LaTourette said he has an October 28 letter from Currency Comptroller John Dugan that says Treasury makes final decisions, not his office. The letter states: “in terms of eligibility for capital investments under the TARP program, the Department of Treasury establishes the criteria and makes final decisions about which institutions receive capital.”





Paulson defended the use of TARP funding for bank acquisitions, saying that banks that are in “distress” can be acquired by a “well capitalized bank.” LaTourette pointed out that National City’s Tier 1 Capital, the general gauge of a bank’s ability to cover loan losses, was 11 percent while PNC’s was 8.2 percent. The Feds consider a bank well capitalized at 6 percent, and any bank at 4 percent is considered failing.





LaTourette demanded that Paulson reconsider the decision to deny National City almost $4 billion on TARP funding. Paulson argued that he’s never seen an application from National City and didn’t make the decision, but LaTourette screamed it was because the Comptroller “told the CEO not to file an application!”





LaTourette again pressed Paulson to review the National City deal and John Dugan’s involvement. Paulson defended Dugan, but said he would take it up.





“I’m very happy to discuss it with him,” Paulson said.





LaTourette said afterward that he was “not at all satisfied” by Paulson’s responses and will seek a meeting with the President.





LaTourette also announced that Paulson’s office yesterday responded to a sweeping public records request he made on October 30 regarding the National City-PNC deal. LaTourette asked for all records by November 10th, but Treasury said yesterday it does not have records and cannot compel the Comptroller of the Currency to turn them over. The letter further stated that Treasury was “unable to locate records reflecting an application by National City Bank for funding.”





At the start of the hearing, LaTourette submitted a detailed statement to the Committee outlining his concerns about the TARP program as it relates to National City Bank. The statement is posted at www.house.gov/latourette.

http://latourette.house.gov/NewsRoom.asp…Is this current worldwide financial crisis the logical conclusion of reaganomics?
Yes it is indeed!



And any morons talking about this being a result of banks lending to try and increase minority home ownership are nothing but pathetic racist like their counterparts Sean Hannity and Rush Limbaugh who feel unless you're a white male neocon you don't deserve the "American Dream" no matter how hard you work your a** off sun up til sun down. The thing these morons never mention is that during the Clinton administration no one had any problems at all making those mortgage payments, that's because we had smart quality and very competent leadership at the helm that had our economy in the black. Only to hand over a $127 Billion surplus to a moron that took us backwards to "Reaganomics" and is now handing the President Elect a $2 trillion deficit. By the way idiots there are plenty of whites in fact more than 3 to 1 ratio of minorities that are in foreclosure now, and have already lost their homes. It doesn't matter what color or culture you are, we're all Americans and what the Bush Administration has allowed to happen to this nation is a blatant crime! And you idiots wanted to on a witch hunt after Bill Clinton just because he creeped on his wife? Please! You're so pitiful!
Throughout the entire history of the United States, it has never functioned as a pure Capitalist society and markets have never been free.



Since the world has never tried Capitalism, how can one say it has failed?









Milton Friedman, quotes about Economics:

Underlying most arguments against the free market is a lack of belief in freedom itself.

Is this current worldwide financial crisis the logical conclusion of reaganomics?
Try reading sometime. Left to right, up and down. Sound letters together to make words. Regan said that government had to get out of the way to allow markets to do what they need to. The markets will always go up and down. It's called ECONOMICS!
no it is the logical conclusion of attempting to force the banks to increase minority home ownership by giving loans to people that don't qualify