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And those yelling about the debt, cannot cry and whine about taxes. Do the math, debt is created by revenues being lower than spending. The way to reduce debt is to either cut spending or raise taxes.
This is where you are completely wrong. The Government needs to lower taxes and lower government spending thus reducing the size of the government.
History had taught us the Federal Government is inefficient and the private sector is much more efficient. We saw this with the recovery from the mini depression of the early 1920's. Government spending AND taxes were cut by 40 percent over two years. We saw unemployment go from 11 to under 4 percent.
This is where you are completely wrong. The Government needs to lower taxes and lower government spending thus reducing the size of the government.
History had taught us the Federal Government is inefficient and the private sector is much more efficient. We saw this with the recovery from the mini depression of the early 1920's. Government spending AND taxes were cut by 40 percent over two years. We saw unemployment go from 11 to under 4 percent.
A little late to the party.
You should have told that to Reagan 30 years ago buddy.
And what's up with your selective and revisionist history?
"The usual explanations include numerous factors, especially high consumer debt, ill-regulated markets that permitted overoptimistic loans by banks and investors, the lack of high-growth new industries,[1], and growing wealth inequality, all interacting to create a downward economic spiral of reduced spending, falling confidence, and lowered production.[2]"
"The hedge fund bought the riskiest portion of a kind of securities known as collateralized debt obligations -- CDOs. If housing prices kept rising, this would provide a solid return for many years. But that's not what hedge funds are after. They want outsized gains, the sooner the better, and Magnetar set itself up for a huge win: It placed bets that portions of its own deals would fail.
Along the way, it did something to enhance the chances of that happening, according to several people with direct knowledge of the deals. They say Magnetar pressed to include riskier assets in their CDOs that would make the investments more vulnerable to failure. The hedge fund acknowledges it bet against its own deals but says the majority of its short positions, as they are known on Wall Street, involved similar CDOs that it did not own."
"When he was nominated to head the SEC in 2005, his work at the firm of Latham & Watkins prior to being elected to Congress was highlighted in a video featuring comic actor Greg Germann, dealing with his defense of a massive Ponzi scheme that should have disqualified him from the SEC post.
That same year in Congress, Cox pushed a change in securities law -- the Private Securities Litigation Reform Act -- which made it more difficult for defrauded investors to get their money back in court.
Consumer Watchdog also highlighted Cox's troubling record on consumer and investor protection issues and the over $500,000 in campaign contributions he has received from companies he would regulate at the SEC. "
”Mr. Baker’s concern that Freddie may be racking up losses by overpaying for mortgages derives from his suspicion that the government might be encouraging it to do so as a way to bolster the operations of mortgage lenders.
That would make Fannie’s and Freddie’s mortgage-buying yet another backdoor bailout of the nation’s banks, Mr. Baker said, and could explain the government’s reluctance to include them in the reform efforts now being so hotly debated in Washington.
“If they are deliberately paying too much for mortgages to support the banks,” Mr. Baker said, “the government wants them to be in a position to keep doing that, and that would mean not doing anything about their status until further down the road.”
"Fannie and Freddie helped grease the nation’s housing machinery before and during the boom years, scooping up loans from all corners of the country. The more of these that Fannie and Freddie bought, the easier it was for banks to write new mortgages.
To protect themselves from getting piles of garbage loans shoveled their way when they buy mortgages, Fannie and Freddie require lenders or loan servicers to sign contracts requiring those firms to repurchase loans that don’t meet certain standards relating to borrower incomes, job status or assets. Loans that were extended fraudulently, or deemed to have been predatory, are also candidates for buybacks.
Surprise, surprise: banks don’t want to repurchase these loans. So when Fannie or Freddie identify problem mortgages and request repayment, a battle royal begins. Banks may argue, for example, that the repayment requests have flaws of their own.
But for us as taxpayers, watching this battle from the sidelines, one growing concern is how aggressively Fannie and Freddie will pursue their requests. If banks refuse to buy back flawed loans, taxpayers will have to cover more of the losses."
I think what the USA should do is default on all of its debt, then cut all federal programs and taxes by 80%+, default on all US bonds and all debts that the USA has currently has. no more funded and unfunded debt at all.
I personally do not want an unfunded debt of 108 trillion to pass onto my children.
If you do not think we have 108 trillion in unfunded debt and 13 trillion in funded debt, then take a look here.
I think what the USA should do is default on all of its debt, then cut all federal programs and taxes by 80%+, default on all US bonds and all debts that the USA has currently has. no more funded and unfunded debt at all.
I personally do not want an unfunded debt of 108 trillion to pass onto my children.
If you do not think we have 108 trillion in unfunded debt and 13 trillion in funded debt, then take a look here.
You can't cut the deficit by raising taxes. Why? Because the government has a very strong history of when raising taxes, it just spends the extra money away nullifying the original intent of raising taxes to pay down debt
I don't think the US defaulting is an option, else we could really fall off the cliff and go into a 2nd Great Depression.
And with the advanced weapons we have now, a third WW could be the final strike out for the human race and our planet.
Lets not go there.
I think defaulting on our national debt is a real option, and one that should not be left upon the shoulders of future generations.
get rid of 80%+ of all federal programs and reduce taxes by the same amount and see a boom come to the USA. the only bad part of it is that the USA would not be able to borrow money from any other country for at least a century or so. I dont see anything bad from that atall.
I think defaulting on our national debt is a real option, and one that should not be left upon the shoulders of future generations.
get rid of 80%+ of all federal programs and reduce taxes by the same amount and see a boom come to the USA. the only bad part of it is that the USA would not be able to borrow money from any other country for at least a century or so. I dont see anything bad from that atall.
The problem the US has is that lender countries are enablers by supplying them with money every time the US asks. The US government will only become fiscally responsible when lending countries stop playing the role of enabler
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