Why Wall Street Crashed! What YOU NEED to KNOW!

Credit Defaut Swaps‘ <<<<Watch the Video

Watch the video first and when you are through you will want to know more about the “Commodity Futures Modernization Act of 2000” and here are your answers.  

The “Commodity Futures Modernization Act of 2000” 

(H.R. 5660) was introduced in the House on Dec. 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.^[2]

The companion bill (S.3283) was introduced in the Senate on Dec. 15th, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen.Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.

Given the above-stated chronology, it would appear that the House and Senate versions of the bill were introduced just prior to the Christmas holiday in December of 2000, following George W Bush’s (first) election (in November of 2000), while then-President Clinton was serving out his final days as President. The bill was never debated by the House or Senate. The bill by-passed the substantive policy committees in both the House and the Senate so that there were neither hearings nor opportunities for recorded committee votes. In substance, it appears that the leadership of the Republican-controlled Senate and House incorporated the deregulation of credit default swaps into an omnibus budget bill (without hearings or recorded votes)at a time when the outgoing president was in no position to veto anything. The following article suggests that Bill Clinton and Alan Greenspan endorsed this law The Bet That Blew Up Wall Street though Clinton’s position in 2000 is only suggested, not confirmed or made clear in the report.

The Republican leadership of the House incorporated“The Commodity Futures Modernization Act of 2000(H.R. 5660)” by reference, as Section 1(a)(7), in a long and complex conference report to the 11,000 page long “2000 omnibus budget bill” formally known as “The Consolidated Appropriations Act for FY2001(Labor, Health and Human Services, and Education Appropriations Bill) (H.R. 4577).”157 Democrats and 133 Republicans voted for the appropriations bill. 51 Republicans and 9 Democrats opposed the appropriations bill vote results in the house. The Senate version passed by “Unanimous Consent.” President Clinton signed it into Public Law (106-554) on December 21, 2000

I know it is probably only me, but why is it that Phil Gramm’s name keeps coming up in every major scandal surrounding lots of money leaving American’s pockets and entering his?  

Enron? Wall Street? who will be next on Senator McCain’s chief economic advisors trail of skidrowed American’s or Wealthy Politicians be?  Is this really the kind of person we want in the White House?  Is this John McCain’s choice for sound economical advise?  John seems to think so, me I think… not so much.  My guess is he would be our next Treasury Secretary, he probably couldn’t do much damage there.  

If you want to do some digging on Gramm you will find all sorts of skeletons and crazy part is they aren’t even in the closet.

Why are the Blogs full of Hate and Lies?

I responded to James at another Blog; but felt maybe it may be of interest to others, I find to nerve racking that in a time of crisis the most popular Blogs are about Obama and whether or not he’s American, or Muslim, or Arab, or Christian or any other number of silly right wing lies.  So James felt that our government has no affect on our economy and that everything would be okay. 

James, it is ironic about the dollar and its gains as temporary as it may be. Our money is not backed by anything anymore, simply put it is dependent on debt, and spending. That would probably be the main reason why after 9/11 we were told to go shopping by our fearless leader W. 

When gas went over $4 and many Americans figured out that they were a $1 bill away from bankruptcy, they put their credit cards back in their wallets.   The excessive driving has stopped, eating out everyday has stopped, and people are tightening their belt everywhere. We are an economy based on spending, borrowing, and consumption. We do not manufacture anymore, except for housing, we do like a nice big home. 

A lot of people just found out that they never could afford the home they live in and with values going backwards are faced with a decision; stay or not. Their homes no longer being an asset, but a liability; so there will be those that walk away and others that do not, it will probably depend on how upside down they have become; by borrowing against it and banks being so willing to loan. 

The more people that walk away the deeper the financial crisis will become and since most homeowners pay their property taxes here in Oregon and other states with their payments, the States tax dollars will decrease, the money for roads and schools and every other State sponsored function is going to have less money. This will cause our local taxes to rise; I believe they want to increase it 21% here in Washington County at least that was the last number I heard.  

It has everything to do with a government that chooses for one reason or another to not pay attention to the products that the banks were selling to its Citizens. Mr. Greenspan testified on Thursday and said the error that was made in economic plan and the deregulation of the free market, was that no one accounted for the injection of greed. I keep a smile on my face every time a Pundit comes along and says in front of a judicial committee the things I have been talking about for a few weeks.

You and others may dismiss what I am saying as if I knew nothing on the topic. That is fine I have no issue with that, those who know me well typically will listen as they have known me to be right in the past.  Mark my words the storm is coming, the writing is on the wall.  If you can get debt free I would highly recommend it.  If not hold on tight because most credit cards have clauses that allow companies to raise your interest rates to whatever they like with no notification and little if any cause.