Tuesday, November 25, 2008

Peter Schiff Was Right.



Listen to Peter Schiff being humiliated by these conservatives. The irony is that he was right and they were utterly wrong. I love the moronic comment that "subprime mortgages are a tiny problem" and that "the American economy has never been in better shape". Why do people continue to listen to these right wing morons?

Hat tip to Crooks and Liars.

11 comments:

nichoju80 said...

Peter Schiff is all over you tube with common sense and sound economics. Also check out Jim Rogers.

Kel said...

Will do! Thank you..

Chris B from NC said...

Yes. Peter Schiff is right, and has been for years. But let's not make this a partisan issue. BOTH sides are guilty. Remember it was the Democrats who pushed for the relaxation of lending practices for years that led to the housing bubble and subsequent burst. They were the ones trying to deregulate the system. And it's the Democratic controlled Congress that keeps voting to bail these corporations out using inflation and debasement of US currency. And as Peter Schiff has repeatedly stated, Obama's plan of socializing the system is only going to make it worse. Obama's plan is no different than Jimmy Carter's--and we all no how well that worked. The government needs to get out of the way!

Kel said...

Yes. Peter Schiff is right, and has been for years. But let's not make this a partisan issue.

The Republicans have - ever since Reagan - been calling for deregulation, deregulation, deregulation.

Sure, the Democrats wanted to encourage more lending for people to buy their own home but no-one asked mortgage lenders to lend money to people who they must have known could not afford the loan and then sell the risk on to someone else.

The market needs to be regulated as people are greedy. And I couldn't disagree with you more on the subject that the government needs to get out of the way, the government has to intervene or there will be a total collapse of the financial system.

Chris B in NC said...

"no-one asked mortgage lenders to lend money to people who they must have known could not afford the loan and then sell the risk on to someone else."

WHAT?????????????

The Democrats have been screaming for DECADES for lending institutions to loosen the requirements for people to secure a mortgage. It started with the 1977 Community Reinvestment Act under Carter. How is that not the REAL deregulation? They are the ones that used Freddie and Fannie to guarantee the risky loans they encouraged the lenders to make. Meanwhile the Republicans like Chris Shays of Connecticut were blowing the whistle on this practice dating back to 2001.

It's apparent that you only cherry pick Schiff's points that conveniently appear to favor a left-wing agenda. The reality is that Schiff has said over and over that Obama's policies will hammer home the final nails in the coffin.

The problem with liberals is they think history began with the 2000 election. They are victims of their own ignorance.

Chris B in NC said...

http://www.youtube.com/watch?v=jB9fuIvksLw

Watch this and Schiff will explain what too much government involvement and regulation in a free market system will bring.

Kel said...

The Democrats have been screaming for DECADES for lending institutions to loosen the requirements for people to secure a mortgage.

Asking that mortgages be made more easily available is certainly not what I've been reading as the cause for the subprime mortgage crisis. Rather it was the deliberate selling of mortgages to people who could not afford to pay them back. Certain brokers did this and then sold the dodgy mortgages on to other companies.

That's what I'm reading was behind the subprime mortgage crisis.

The problem with liberals is they think history began with the 2000 election. They are victims of their own ignorance.

And the partisan attack follows... And you are ignoring the fact that the party which has been calling for deregulation since Reagan was the Republican party.

And, as you think Obama's plan is so insane - despite the fact it's being replicated by governments all over Europe - what would your answer be? Do nothing? Just allow the chips to fall where they may even if that means the collapse of our banking system?

Chris B in NC said...

"Asking that mortgages be made more easily available is certainly not what I've been reading as the cause for the subprime mortgage crisis. Rather it was the deliberate selling of mortgages to people who could not afford to pay them back. Certain brokers did this and then sold the dodgy mortgages on to other companies."-----------------------------------------------

Maybe you should stop watching all the know-nothing talking heads in the left wing media and start watching actual Congressional hearings. The lending institutions were encouraged to loosen the standards for lending mostly by Democrats who believed that every American should have their own house--whether they could afford it or not. The government facilitated this process by using Freddie and Fannie to guarantee risky loans that banks gave out. This practice has been going on for years. When the Fed irresponsibly cut interest rates to 1%(ridiculously low) in a lame attempt to fend off any recession, it brought down the default margin on these loans to around 4%. That meant that any bank who had 4% of their loans go into default would fall into the red. As we know, the default rate has greatly exceeded 4%. So what do you think happened to the banks that were encouraged by politicians to make these loans?

Most of the greed comes from those who felt entitled to live beyond their means and purchase mortgages they knew they couldnt afford--because they believed they should have as much as the other guy. The Democrats are masters at using class warfare to create conflict between those with money and those without. They villify success. Now Obama is propsing measures that would suspend forclosures which will only encourage more people to stop making mortgage payments on their overvalued properties. They'll save tens if not hundreds of thousands by just walking away and letting the government absorb that debt.

Of course the government is broke and the only money they have left is what they print.

Go ahead, watch more Schiff and enlighten yourself.

Chris B in NC said...

"And you are ignoring the fact that the party which has been calling for deregulation since Reagan was the Republican party."

For 30 years, the government has been pushing lending instituions to loosen sound lending practices of the past--you know, where you were only given a loan with proof that you could pay it back--and coercing them to make risky loans to those with bad credit and low income to expense ratios while using Freddie and Fannie as an insurance policy for these loans.

Democrats like Barney Frank and his crowd thought everyone should be given a loan regardless of income. The Fed accomodated them by reducing interest rates to 1%.

Christopher Shays and a majority of Republicans wanted stricter guidelines on lending practices dating back to 2001.

Who are the real "de-regulators"?

If you haven't noticed, Democrats have controlled Congress since Jan. 2007.

Chris B in NC said...

And, as you think Obama's plan is so insane - despite the fact it's being replicated by governments all over Europe - what would your answer be? Do nothing?

As Ronald Reagan once correctly said,"The government cannot control an economy without controlling people". Nationalization is what Europe and the USA are doing right now in an attempt to "save the economy". This is nothing more than taking the debt off of large corporations and dumping it on taxpayers. It's what Hugo Chavez did in Venezuela in order for the government to grow and take more control over the people he governs. Is that what you want for America?

"Just allow the chips to fall where they may even if that means the collapse of our banking system?"

How can a banking system that is run by the Federal Reserve collapse. They control the printing presses. It's an illusion. They have the capability at anytime of inflating their way out of debt. They have suckered people into believing that the number of dollars you posses is all that matters. But what good are those dollars if they won't buy you anything? What good will a $500 paycheck be when a gallon of milk costs you $12.50?

What people dont realize is that the government cannnot "save the economy" because they destroyed it in the first place. They have no resources to baill anyone out. They have no money. the only money they have is what they steal from you through direct taxes or what they inflate out of you once they start printing dollars like crazy. That's what's happening right now. The government is destroying the value of the dollar by printing endlessly the amount of dollars they are spending.

True capitalism involves risk and failure. The government is refusing to allow the failures to happen. So to say capitalism isn't working is false. The government refuses to let it work. In a true capitalist system those who mismanage business fail and go out of business, while the succesful survive, prosper and profit. This is the natural cycle that is interupted whenever the government steps in to save someone at the expense of another. What the government is doing now is really corporatism and to an extent facism.

And if a bank fails, it doesnt mean there is no bank. It just means someone else will come in, buy up assets through bankruptcy and attempt to run it better than the previous management.

Kel said...

I see that you are a true Reaganite and appear not to have noticed that the philosophy which recently collapsed was Reaganism.

And, like a true right winger, you imply that it is not Reagan's policies which are failing, it is that the government are not allowing them to work.

People are greedy, which is why markets need to be regulated.

And I see that, like Michelle Malkin, you believe that business's should be allowed to fail even if that resulted in millions being made unemployed and the country suffering another great depression.

It's no surprise that your party was booted out of office.