Why It’s Worse Than You Think

For Daniel Gross: In reviewing your article "Smacking Fannie Mae" (2004) it would seem that you owe Ayn Rand's acolyte, Alan Greenspan, an apology. Maybe if people like you had not negated his conerns we wouldn't be in this mess right now. One thing Rand's followers explicitly understand is that GSE's are doomed to fail. Thanks to people like yourself, politicians and lobbyists we have a really big problem on our hands.

Us economic looks bleak ahead,this why americans must realise their American Dreams slipping away day by day since depression days.The troubles of mortgage finance giants are pushing up home loan rates to their higest levels in five years.While the us inflation is up since 17 years.the average interest rate.

The average rate for very big,so called 'Jumbo Loans' which cannot be sold to Fannie Mae and Freddie Mac was 7.8%,the highest since December 2000.
Loan rates are rising because of concerns in the financial markets about the future of Fannie Mac and Freddie Mac,which own the guarantee nearly half of the nation's US$12 Trillion mortgage markets to foreign bond investor.

The Washington can only try to stablise the Market by adding the cost is being passed on to comsumers via mortagage markets when,the the time US have the highest inflation ,unemployments,when personel income become flactuate.The rate hike is the greatest concern to home owners,whose mortgages required them to pay only the interest on thier lons for the few years.If such borrowers are unable to refinance into lower-cost loans,many of them will face the propects of having to pay both interest and principle at higher,adjustable rates.

Let's me show you example for borrowers with a US$400,000 loan,such a jump could send their monthly payments to US$2,338 from US$1,417 that estimate the mortage payment .Im wondering how on earth the americans going to face this reality of future.

US economy not going to be looks bleak "IF" the Confidence level with foreign fund manager is sinking day to day by removing out billion Fund out from US soil.

Only Obama policy looks much more brighter future for US to bring the confidence back in America compares to any John McCain policy.

For those of you who think that not everything can be sent overseas like the Superbowl and everything else, then think again! The Miss Teen USA Pageant 2008 (owned by Americans Trump and NBC/Universal (GE Corp) is sending out young ladies to the Bahamas this year. Why? Well, because most likely, it's cheaper for them to hold the pageant outside the USA! Budweiser has been sold to a foreign company, Levis Jeans are made in Asia, and our American flags are not even made here in the States. So, if American corporations can make more money by doing everything overseas, why not a pageant too?! Even if you're not a pageant fan, but what do you think holding the Miss Teen "USA" pageant out of country says to our young people who watch it? Ya, we say it's "Made the USA" but if it's cheaper to do something out of the country and will make you a buck, go for it! Do it overseas! Superbowl... it's next to be outsourced.

The Republicans are fiscally conservative?!! Are you f**ing kiddin me? Bush inherited a budget surplus and turned it into the nations highest deficit and a record $10 trillion in debt. And did this money go to underprivileged Americans? No it all went to the Saudis, Iraqis, Russians and Chinese.

According to JohnMcCain and his economic advisors, the economic problems are in 'our imagination' . Today a lady in Massachussetts just committed suicide because of these imaginary economic problems. These things only used to happen in third world countries and shows where America is going.

I cannot believe 40% of Americans still want to vote for McCain. Sometimes I wish they really get their wish and have another stupid Republican in the office then even God wont be able to save this country.

If you drive an import, drink imported beer or drink imported wine please do not complain when you lose your job and see your retirement fund go to near nothing. You have scorned the American worker and the ax is going to fall.

The ax is going to fall on this generation; welcome to the next Great Depression.

Too many Americans don't support the American working man. If you drive an import and drink imported beer and wine please don't complain when you lose your job and your retirement fund goes to near nothing.

Seems to me that the Bush administration is using any means necessary to prevent the economy from tanking during his watch, no matter the consequences. Let the ax fall on the next administration.

Interesting system of Capitalist that when things go wrong they get bailed out by the masses

"What goes up, must come down!" Your an idiot if you thought the "boom" times were going to last forever. The ecomony has always gone through ups and downs, it's Econ 101(for you people who went to college). Be more frugal then the typical American "pig" and you'll come out ahead when the economy picks back up in a couple years. This is good thing, it's going to cut away the dead-flesh on our economy and bring things into balance. The Ying and the Yang.

P.S. If your waiting for the federal government to fix your problems......please just disappear, and don't reproduce, you'll only be creating more idiots.

why do people bander about the term "communism" when they have no idea the meaning of the term let alone the fact that there has never been a communist state on dictatorships calling themselves communist.

oh ya rah rah capitalism, all is well and good if your apart of the super elite and screw everyone else

now what am i missing that it's a bad thing that people are not wasting as much money on things they don't need! isn't this a good sign.

The interesting thing about Gramms comments and is typical of Carly Fiorina, certainly GW and the majority of the GOP is it shows just how out of touch they are with Americans, All have said the ecomomy is just fine and growing.
I'm sure that is true in their small circle of friends, but for the other 98% of American it's not so fine.But McCain has made it clear he will continue Bush's version of trickledown economics now called "supply side economics, where the corporations are viewed as the supplier. Problem with this of course is the corporations are actually nothing but brokers of foreign made goods....China is the supplier and it's working very well for them.

Unlike past yyears Americans simply don't have the available cash to spend! Joe Public isn't going to buy a big screen TV if he can't pay the gas to drive to the store! These times are not like 2001 we are not going to buy our way out of this one.

Know why McCain wants to distance himself from former Senator Phil Gramm? It is not just because of Gramm's recent obnoxious remarks calling Americans "a nation of whiners" and that unemployed Americans are in "a mental recession." In fact, those remarks were so obnoxious that I wonder if they were engineered just to provide McCain an excuse for publicly distancing himself from Gramm. This issue is a lot deeper than it looks on the surface.

When Gramm was a Senator he was chair of the Committee on Banking, and in that capacity he was able to push through the legislation now known as the "Enron Loophole." This loophole allowed US investment banks to bypass the Federal regulations governing futures trading, and is the reason why the investment banks were able to falsely inflate the prices of oil, wheat, corn and other commodities through massive futures trading, causing your costs of gas, heating oil and food to go through the roof.

Gramm was a member of McCain's campaign team, but now Gramms' name is turning to mud. In addition to the Enron loophole, Gramm pushed through the Gramm-Leach-Biley Act in 1999, which got rid of the laws that seperate banking, insurance and brokerage activities in America. Essentially, this Act did away with all of the good laws written after the Great Depression to protect us from another Wall Street/Banking Industry collapse. That's right, Gramm stripped the system of it's safe guards nine years ago, and guess what? The value of the dollar has nose-dived, Wall Street is highly unstable, and we are in the midst of a recession.

Now you could say that this is not Gramm's fault, that he didn't know what the outcome of his actions would be. However, it turns out that the same investment banks that benefited from the Enron loophole and from the Gramm Act gave more than a million dollars to Gramm's campaign. Uh oh. A Congressional hearing is going to be convened to investigate this. And McCain wants to have noting to do with Gramm, wants us to forget that Gramm has been a key player on McCain's campaign team. Gramm was McCain's campaign CO-CHAIR and LEADING ECONOMIC ADVISER.

With Gramm in the driver's seat as his leading economic adviser, now you know why economists and analysts are saying that McCain's economic policy plans are untenable.