Palin, On the Ongoing Financial Crisis 25 comments
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In response to the largest de facto nationalization in US history, we have this example of Governor Palin's comprehension of this issue (ABC News):
Saturday in Colorado Springs, Colo., Alaska Gov. Sarah Palin said, "The fact is that Fannie Mae and Freddie Mac have gotten too big and too expensive to the taxpayers. The McCain-Palin administration will make them smaller and smarter and more effective for homeowners who need help."
I can't even start to dissect what's wrong with this statement, so I will let the reader assess Palin's understanding of the role of the GSEs in the financial system. From my perspective, I would have hoped to have more comprehension from a candidate at a time when the estimate of a resulting $300 billion taxpayer liability is viewed as plausible.
For some informed discussion, see Calculated Risk, as well as Nouriel Roubini.
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This article has 25 comments:
Here's my take on the candidates:
Obama: Has no clue, but keeps his mouth shut most of the time.
Bidden: Has a clue, but never got anywhere with it.
McCain: See Bidden.
Palin: Has no clue and can't keep her mouth shut.
My choice for President? Shai Agassi of Project Better Place. He has a clue, is going to do something with it and when he speaks you feel inspired.
You all know that every reporter who can get her attention is going to ask a question they hope she answers poorly. If you polled the great American public on fannie and freddie you'd find that most of them are clueless. Not only about their being taken over, but why it was necessary and more importantly how it happened.
The machinations of money escape most people who aren't involved with it on a daily basis. She didn't have a need to thoroughly understand the largest "de facto nationalization in US history" before Monday and I'd guess that none of the people involved in that decision bothered to brief either camp: Obama or McCain.
She is bright and gutsy and, guys, SHE is going to help McCain win.
Embrace her.
Here's a little piece about the hypocrisy running that party of fools:
www.comedycentral.com/...
Funny if it weren't so TERRIFYING.
As someone who has followed her career, my view is that Palin is focused on government spending public money is a way that at least has a semblance of wisdon and accountability. At root, she's a government "cutter" and not a government "grower."
Yeah, she spent money as the Mayor of Wasilla... at a time when the town about doubled in population and grew out into the boondocks. A lot of the spending was during the boom-boom real estate mushroom, for which Fanie & Freddie take a good share of the blame.
Alaskans talk about a place called "Los Anchorage," and I think you can figure out where that comment is coming from. Alaskans are torn over willy-nilly growth, especially in a climate where nature is a lot less forgiving than in SoCal. So deep down, you ought to know that Palin understands that Los Anchorage concept very well.
And I have a hunch that if Gov.Palin has any input, Fannie & Frddie will get busted up and sold off in pieces to smaller, more nimble and far better-managed banking institutions. Really, Fannie & Freddie outlived their purpose many years ago. They were nothing but fiscal dinosaurs, waiting for the asteroid with their name on it.
"It just goes to show you whenever the government messes around in the free market it ends in disaster, with the taxpayer paying to clean up the mess. John McCain has a plan for minimising the cost, and making sure Congress doesn't replace this disaster with a "new/improved" disaster that will bite the next generation. Ask him about it sometime."
Punt. Hey, she's only going to be the powerless VP... it's McCain we'll have to endure.
McCanin/Palin should offer a simple solution at the town hall meetings: "Folks, what would you do if your expenses were more than your income?" The same thing Fan/Fred are telling homebuyers to do; cut your expenses and save up for a down payment.
Why not just state that every government department (including all those off-balance sheet items) is going to freeze hiring and spending at the same level of inflation used to calculate Social Security payments. Ultimately, we might get the budget under control. At least the citizens of this count ry could understand the logic of it. If not, we don't stand much of a chance except with a revolution.
Fannie & Freddie have been way too expensive to the American taxpayer. You had execs reaping $15MM paycheck while being asleep at the wheel. Now you have the US Gov'ts bailout. How can you not agree Palin's statement on that point?
Are they too big? Well, that comment may be interpreted in a number of ways. The mortgage market is huge, and FNA & FRE played an important function in providing low cost mortgage financing to US homebuyers. How big should FNA & FRE be? Dunno. But I think Palin's comment w/r/t size was more focused on cost than any other metric. JMO.
I just don't get how you people can put any of these choices in power. Look at the last 8 yrs and what happened with Bush.
So you want some non-qualified yahoo from the sticks with no real-world experience to be number 2 if old man McCain kicks the bucket? Are you posting from a cave in Afghanistan or Iran?
Actually you did not say anything! Wonder why you post??
Crash is guaranteed unless you have a very good idea of what's going on.
Where he thought these other institutions were, I don't know.
Now, of course, he has backed off that "position" because he's an absolute fraud.