Full Version: Bush Administration ignored meltdown warnings
Why should anyone be surprised.
As much as I agree that the coming economic meltdown was ignored - even encouraged - by the Bush administration, I have difficulty with saying that the "fundamentals" of the economy are, or were ever unsound.
It was negligence of the fundamentals of economics that caused the meltdown.
Society has an unwritten agreement with financial institutions: you behave and we leave you alone; give us prosperity and you get your freedom.
That agreement was violated. Now rules need to be enforced. It will take some serious commitment for Obama to implement that with the economic team he has selected.
I'm willing to wait and see.
Delaying the recision of the Bush tax cuts is worrying but not a deathnell. However not imposing and/or enforcing some strict regulation of non-bank loan institutions - at the same time as restructuring current and past onerous loans - could send a message to the markets that they only have to wait him out. If so the result will not be pretty. The environment and world peace are in the balance. I really hope he handles this.
It was negligence of the fundamentals of economics that caused the meltdown.
Society has an unwritten agreement with financial institutions: you behave and we leave you alone; give us prosperity and you get your freedom.
That agreement was violated. Now rules need to be enforced. It will take some serious commitment for Obama to implement that with the economic team he has selected.
I'm willing to wait and see.
Delaying the recision of the Bush tax cuts is worrying but not a deathnell. However not imposing and/or enforcing some strict regulation of non-bank loan institutions - at the same time as restructuring current and past onerous loans - could send a message to the markets that they only have to wait him out. If so the result will not be pretty. The environment and world peace are in the balance. I really hope he handles this.
QUOTE(sportinlife @ Dec 1 2008, 06:32 PM) 
...It was negligence of the fundamentals of economics that caused the meltdown.
Society has an unwritten agreement with financial institutions: you behave and we leave you alone; give us prosperity and you get your freedom.
That agreement was violated. Now rules need to be enforced. It will take some serious commitment for Obama to implement that with the economic team he has selected...
Society has an unwritten agreement with financial institutions: you behave and we leave you alone; give us prosperity and you get your freedom.
That agreement was violated. Now rules need to be enforced. It will take some serious commitment for Obama to implement that with the economic team he has selected...
Yup, & don't forget the Securities Exchange Act of 1934 & the Securities Act of 1933, which were enacted after the crash of '29. Seems that the fallout of deregulation violated both of these Acts in so many ways. As the old saying goes, "Burn me once...burn me twice..." Hopefully we've learned our lesson!
Edited for the following:
Plus, there's also the GAAP, GAAS, & COPE all of which apply to CPAs/auditors. These, too, were violated especially during the whole ENRON, Arthur Andersen meltdown. That's why I think all of these f**king crooks should go to prison, especially those @ the very top. They f**king knew better! Made fools of us that's for sure & now we're paying for it up the yin-yang, literally!!!
QUOTE(SCTrojan @ Dec 2 2008, 12:01 PM)
QUOTE
[edit] Exemptions from reporting because of national security
Section 13(
(3)(A) of the Securities Exchange Act of 1934 provides that "with respect to matters concerning the national security of the United States," the President or the head of an Executive Branch agency may exempt companies from certain critical legal obligations. These obligations include keeping accurate "books, records, and accounts" and maintaining "a system of internal accounting controls sufficient" to ensure the propriety of financial transactions and the preparation of financial statements in compliance with "generally accepted accounting principles."
On May 5, 2006, in a notice in the Federal Register, President Bush delegated authority under this section to John Negroponte, the Director of National Intelligence. Administration officials told Business Week that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office.[1]
Seems Bush is going out with a bang not a whimper.Section 13(
(3)(A) of the Securities Exchange Act of 1934 provides that "with respect to matters concerning the national security of the United States," the President or the head of an Executive Branch agency may exempt companies from certain critical legal obligations. These obligations include keeping accurate "books, records, and accounts" and maintaining "a system of internal accounting controls sufficient" to ensure the propriety of financial transactions and the preparation of financial statements in compliance with "generally accepted accounting principles."On May 5, 2006, in a notice in the Federal Register, President Bush delegated authority under this section to John Negroponte, the Director of National Intelligence. Administration officials told Business Week that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office.[1]
QUOTE
Supreme Court Justice Louis Brandeis coined the phrase “sunlight is the best disinfectant,”
Sunlightis only the beginning of disinfection.I'd like to see someone interested in law enforcement at the SEC and Treasury. 2008's Audit firms that should be the subject of an audit.
QUOTE(sportinlife @ Dec 2 2008, 06:46 PM)
Seems Bush is going out with a bang not a whimper...
More like "passing the buck."
Another consequence of Bullshitenomics will be more regressive taxation by states and municipalities. Philly already has one of the highest income taxes in the country for a large city and talk of reducing it is stalled indefinitely. Still the housing crisis hasn't affect city real estate prices nearly as much as elsewhere.
Still the government is running a record deficit and, from what I've read, will be doubling parking meter fees in 2009 sometime. Virtually all of the city's taxes, like many around the country, are essentially flat - meaning they are more of a burden on the working class that can ill afford them.
And now they look set to creep - if not leap - as the misery trickles down.
Unfunded mandates were his specialty. Now we have unlegislated mandates as well. Not a single federal law had to be changed to bring about these local increases - just negligence of current regulation of the thieves in the financial industry who we would shoot on sight if they tried to rob our houses, but can only wince and winge at while they steal tax dollars.
Still the government is running a record deficit and, from what I've read, will be doubling parking meter fees in 2009 sometime. Virtually all of the city's taxes, like many around the country, are essentially flat - meaning they are more of a burden on the working class that can ill afford them.
And now they look set to creep - if not leap - as the misery trickles down.
Unfunded mandates were his specialty. Now we have unlegislated mandates as well. Not a single federal law had to be changed to bring about these local increases - just negligence of current regulation of the thieves in the financial industry who we would shoot on sight if they tried to rob our houses, but can only wince and winge at while they steal tax dollars.
It's not surprising. They received an intelligence report during the summer of 2001 entitled "bin Laden determined to strike U.S." and in the report contained the little nugget that there was a possibility of commericial airlines being used as missles.
They did nothing.
Oh wait...they did do something, they stopped flying commerical airlines.
They did nothing.
Oh wait...they did do something, they stopped flying commerical airlines.
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