Ron Paul Knew This was Coming, Cramer Explains Why

[kyleAF]

It's not just Bush. This trend was set long long ago, and each politician just gets the same advice from the experts: 'do what we can without thinking too hard about the future".

 

[mjp1025]

Somehow I don't think they have enough money to fix it.

Whaddaya mean? Can't they print all they want?

 

[Tedhunter]

It's not so much Bush or his administration's fault, specifically. There are deep flaws in our country's economic policy that go back to 1913 (when the Federal Reserve Act was snuck into the Constitution). Americans have lived so long with fraudulant economics (like the income tax and fractional reserve banking) that many people see them as perfectly natural.

 

[michaelwise]

Special types of insurance companies insure $2.4 trillion of municipal bonds, mortgage bonds, and commercial paper. These insurance companies are out of money to pay on the bonds that have gone bad. All the other stuff they insure is no longer insured, therefore all the other stuff is not worth as much and the value of such must written down, or sold off at current market value. It's going to get very ugly.

 

[JRegs85]

The severity of this recession remains to be seen. It's an election year, so the federal government will do anything to prop up the economy. I think they'll just add some more debt and make the future collapse that much worse.

 

[michaelwise]

The severity of this recession remains to be seen. It's an election year, so the federal government will do anything to prop up the economy. I think they'll just add some more debt and make the future collapse that much worse.

They do something stupid and foreigners decide to stop buying our bonds, it's game over.

 

[RonRules]

If you want to solve problems, and they are real problems, what you can do TODAY is to fund the MLK moneybomb.

Write an email to your 10 wealthiest friends and ask them to donate.sol

 

[amonasro]

They do something stupid and foreigners decide to stop buying our bonds, it's game over.

That's what happened this morning right? Investors not putting their faith in Bush's "plan" to save us from recession.

 

[expatinireland]

Special types of insurance companies insure $2.4 trillion of municipal bonds, mortgage bonds, and commercial paper. These insurance companies are out of money to pay on the bonds that have gone bad. All the other stuff they insure is no longer insured, therefore all the other stuff is not worth as much and the value of such must written down, or sold off at current market value. It's going to get very ugly.

Further if the mortgage and bond insurers go belly up the banks will be unable to make any loans for repackaging and the economy will hit the wall.

What Cramer is suggesting here does make sense. Instead of using 150 billion for a short term stimulus it is far better to address a systemic problem with those funds.

This problem of course was caused by the Greenspan FED and other regulatory agencies not doing their job. They kept a blind eye to the development of the derivatives markets and banks and other financial institutions becoming under capitalised. Greenspan will be right next to Bush in the History books when blame is apportioned for the economic abyss that we are about to fall into.

 

[michaelwise]

I think most people really don't understand what this means. If the did, they would be making some serious lifestyle changes.

 

[Soccrmastr]

Find the video of ROn Paul on cramers show.. he LOVES Ron Paul

 

[BeFranklin]

I am quite sure we have a 1:9 system. Which makes it even worse.

I misread your message. I thought it said 10 to 9.

 

[evandi]

Further if the mortgage and bond insurers go belly up the banks will be unable to make any loans for repackaging and the economy will hit the wall.

What Cramer is suggesting here does make sense. Instead of using 150 billion for a short term stimulus it is far better to address a systemic problem with those funds.

This problem of course was caused by the Greenspan FED and other regulatory agencies not doing their job. They kept a blind eye to the development of the derivatives markets and banks and other financial institutions becoming under capitalised. Greenspan will be right next to Bush in the History books when blame is apportioned for the economic abyss that we are about to fall into.

Cramer is saying that the government needs to bail out people who fuck up.

That just encourages more carelessness and makes the problem worse, and has nothing to do with a free market economy. Free market economies fix themselves.

What we have here with artificially low interest rates is not a free market economy, but Cramer has always wanted the interest rates even lower.

He is a swindling tool. No one benefits form lower interest rates but the careless people who get to borrow to save their asses.

 

[Dustancostine]

I think most people really don't understand what this means. If the did, they would be making some serious lifestyle changes.

I am in retail and am scared as shit. 2007 was down 10% from 2006 and Jan 2008 is already down 15% from Jan 2007. I have cut my spending to the bare bones and trying to put away as much as possible. Been buying gold and silver like crazy.

 

[PaultheSaint]

buy guns, lots of ammo, gold, and lots of raymen noodles.

 

[Rhys]

It's true about insurers... they're broke. They oversold protection to the Banks.

 

[RonRules]

Cramer is right about this. This would be the most cost efficient, targeted bail out. I hate bail outs, but the govt caused the problem in the first place and they need to fix it.

BTW, totally unrelated, but please take the following poll from the Orange County GOP:

www.ocgop.org/

Many of us will be attending tonight's OC GOP meeting at the Irvine Marriott (see meetup group posting) and this poll will send a positive Ron Paul message.

Please also donate to Ron Paul before 9:00 p.m. tonight:

www.RonPaul2008.com

Thank you.

 

[Paul.Bearer.of.Injustice]

If the government wants to fix this (which it should since it is responsible), then it's the government that needs to suffer by cutting departments to equalize.
But they'll just print the money and you and I will end up funding this through inflation anyway

 

[Greg in VA]

We have reached the "Minsky Moment"...this is everyone's homework assignment in Austrian economics, google Minsky Moment, or wiki it. If I recall correctly I believe the good Dr. has used the phrase.

 

[tsetsefly]

I misread your message. I thought it said 10 to 9.

for the wrong reasons, what he loves about Paul is that he critcizes the FED, cramer also criticizes the fed, but because he wants lower interest, not because they print money, he actually wants them to print more!