Two people made statements yesterday regarding the financial situation the U.S. encountered, how it happened, and what needs to be done. Alan Greenspan testified before the Financial Crisis Inquiry Commission and Ben Bernanke made a speech to the Dallas Chmaber of Commerce. Both men held or are holding key positions in government and both are becoming far more aggressive in the positions the are taking and recommendations they are making. Both are telling anyone who will listen that the financial situation faced by the U.S. is dire and presents an immediate threat to both our way of life as well as our strength as a nation.

Then there's our Secretary of the Treasury, Tim Geithner. Where is he these days? Well, if you pay attention to the news and try and put two and two together, there might be an explanation. He's on an unscheduled and unannounced trip to China to "visit with" senior members of their finance administration. Do you think it might have anything to do with the Chinese remaining on the sidelines during last week's disastrous auction of Treasury bonds, notes and bills? Or the knowledge that there has been NO movement by our government to reign in spending or reduce the deficit? The days of other countries beating a path to our door to seek our friendship is drawing to a close. Now we find our senior government officials traveling to other countries with hat in hand. What should we expect, being the largest debtor nation on the planet?

People had better listen to what is being said and what senior members in our government are doing. Those that can do something about the situation--those we elect to go to Washington--better listen even more carefully and begin to act.

If I had to summarize what both Greenspan and Bernanke said in plain English, it would go something like this...

• Financially, the United States is in deep s__t and getting deeper every month.

• The cause of the financial crisis was predictable, but Congress continued to encourage irrresponsible behavior even after repeated forewarnings.

• Nothing has been done to prevent another financial crisis from happening, and the chances are almost certain one will happen again, and maybe sooner rather than later.

• The American way of life is severely threatened, as is our ability to remain a meaningful world power.

• What is needed is significantly greater government regulation of the financial industry. In fact there are institutions whioch again are grwoing very large and are actually "too big to permit to fail".

• We cannot continue spending and creating larger and larger budget deficits. The effect of an aging U.S. population generating less income while at the same time demanding more and more healthcare and social security benefits cannot continue for very much longer.

Pay attention to these news reports, folks. Read between the lines. Then listen to the nonsense that will be the response of our elected representatives. Some will say that we don't need any more government control of our lives, that the free markets can resolve the problem. Others will say that we simply cannot dramatically cut social spending. They will try to "out soundbite" one another with neither side presenting a viable plan. What they WILL be trying to do is to appeal to your emotions in order to gain your vote to re-elect them.

Listen to this news. Read the Wall Street Journal. Read The Economist. Turn off the political entertainment shows. For every piece from a political blog that you read, try to seek one out from a blog from the opposing side, in an attempt to get the whole picture. Definitely don't listen to the soundbites of people who are in office and trying to get re-elected. Be very careful about what you beleive from others running for office.

We'd better start...no, I'm wrong...we'd better BE paying attention to what's going on if we have even a chance of avoiding very unpleasant changes to our lifestyle and that of our kids and grandkids.

Originally Posted by Villages Kahuna

Two people made statements yesterday regarding the financial situation the U.S. encountered, how it happened, and what needs to be done. Alan Greenspan testified before the Financial Crisis Inquiry Commission and Ben Bernanke made a speech to the Dallas Chmaber of Commerce. Both men held or are holding key positions in government and both are becoming far more aggressive in the positions the are taking and recommendations they are making. Both are telling anyone who will listen that the financial situation faced by the U.S. is dire and presents an immediate threat to both our way of life as well as our strength as a nation.

Then there's our Secretary of the Treasury, Tim Geithner. Where is he these days? Well, if you pay attention to the news and try and put two and two together, there might be an explanation. He's on an unscheduled and unannounced trip to China to "visit with" senior members of their finance administration. Do you think it might have anything to do with the Chinese remaining on the sidelines during last week's disastrous auction of Treasury bonds, notes and bills? Or the knowledge that there has been NO movement by our government to reign in spending or reduce the deficit? The days of other countries beating a path to our door to seek our friendship is drawing to a close. Now we find our senior government officials traveling to other countries with hat in hand. What should we expect, being the largest debtor nation on the planet?

People had better listen to what is being said and what senior members in our government are doing. Those that can do something about the situation--those we elect to go to Washington--better listen even more carefully and begin to act.

If I had to summarize what both Greenspan and Bernanke said in plain English, it would go something like this...

• Financially, the United States is in deep s__t and getting deeper every month.

• The cause of the financial crisis was predictable, but Congress continued to encourage irrresponsible behavior even after repeated forewarnings.

• Nothing has been done to prevent another financial crisis from happening, and the chances are almost certain one will happen again, and maybe sooner rather than later.

• The American way of life is severely threatened, as is our ability to remain a meaningful world power.

• What is needed is significantly greater government regulation of the financial industry. In fact there are institutions whioch again are grwoing very large and are actually "too big to permit to fail".

• We cannot continue spending and creating larger and larger budget deficits. The effect of an aging U.S. population generating less income while at the same time demanding more and more healthcare and social security benefits cannot continue for very much longer.

Pay attention to these news reports, folks. Read between the lines. Then listen to the nonsense that will be the response of our elected representatives. Some will say that we don't need any more government control of our lives, that the free markets can resolve the problem. Others will say that we simply cannot dramatically cut social spending. They will try to "out soundbite" one another with neither side presenting a viable plan. What they WILL be trying to do is to appeal to your emotions in order to gain your vote to re-elect them.

Listen to this news. Read the Wall Street Journal. Read The Economist. Turn off the political entertainment shows. For every piece from a political blog that you read, try to seek one out from a blog from the opposing side, in an attempt to get the whole picture. Definitely don't listen to the soundbites of people who are in office and trying to get re-elected. Be very careful about what you beleive from others running for office.

We'd better start...no, I'm wrong...we'd better BE paying attention to what's going on if we have even a chance of avoiding very unpleasant changes to our lifestyle and that of our kids and grandkids.

1, I would also recommend reading the "Economist"...even though from England..it helps me understand (if I read slow)

2. Repeal the health care bill in its entirety

3. Change the tax code to insure that 40% of our households are not using it as an income stream.

4. Enforce PAYGO and insure it stays intact.

Just a start

You left out a third person and his words Tueday. Paul Volcker, chairman of the newly formed Economic Recovery Advisory Board. Oh, by the way, their report is expected to come out after the November elections..


Taking a question at a New York Historical Society event Paul Volcker said the value-added tax "was not as toxic an idea" as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. "If at the end of the day we need to raise taxes, we should raise taxes," he said.



http://www.reuters.com/article/idUSTRE6355N520100406

Originally Posted by Bucco

1, I would also recommend reading the "Economist"...even though from England..it helps me understand (if I read slow)

2. Repeal the health care bill in its entirety

3. Change the tax code to insure that 40% of our households are not using it as an income stream.

4. Enforce PAYGO and insure it stays intact.

Just a start

Bucco: Very good points. I agree as a country we are in deep doo doo. If I ran my household the same way our country is going, I know I couldn't get a loan for anything.