What the World Is Saying

A SERVICE BRINGING YOU THE BEST READERS' COMMENTS

FROM TOP NEWS SOURCES ON THE WEB

BUSINESS

ARCHIVES — MARCH 2010

[RETURN TO commentopia HOME PAGE]

MARCH 22, 2010 -- MARCH 28, 2010

MAESTRO GREENSPAN REGRETS THE FAILURE...

THE CRISIS by Alan Greenspan

More Greenspan, always in denial. The reason Greenspan, Bush, Barney Frank, Chris Dodd didn't know a bubble was forming was because they were only in Manhattan or D.C., talking to only government and elites. If they drove their own car and heard radio commercials for 110% LTV loans, no credit check, stated income -- I heard all of that for 3 years commuting in Southern California, and I was positive a bubble was swelling.

The critics should continue to pound this egotist who not only didn't remove the punch bowl from the party, but spiked it. 

Read the article NEW YORK TIMES/Greenspan concedes Fed failed to gauge bubble

<>

The view that 25 years of prosperity interrupted only by two short, shallow reccesions bred great confidence throughout the system then overconfidence, is persuasive to me.

Certainly low short interest contributed to the good times, but the central bank was only doing what every major political player - both parties, 99.9% of the press, virtually all elected officials, retail voters, wholesale influence buyers, business, labor, borrowers, and trade partners alike.

No one wanted a recession. It was Greenspan's job to deliver prosperity. He did.

He and others also warned of this precise outcome on several occasions. Many, many people had doubt about the boom over its 25 year life.

Those that acted on those doubts were financially and reputationally skewered because they moved too soon, often far too soon.

With very few exceptions, every adult that made a financial decision over the last generation is to blame. I'm guessing that we will learn not to do this again. For a while.

Read the article THE ECONOMIST/ It wasn't us

<>

Spotting a housing bubble is easy: if the median price of homes in a given area is 5 times the median income in that area - there's a bubble.

Alan Greenspan's big problem is that he read Ayn Rand's "Atlas Shrugged" - and mistook that work of fiction for reality. He needs to read "Goldilocks and the Three Regulatory Systems" for balance: "A Soviet-style regulatory system is too burdensome. Repealing all regulations leads to wild excesses due to market imperfections (such as "herd behavior"). The Canadian Banking regulations, however, worked out just right - no massive crash, still robust.

Read the article NEW YORK TIMES/Greenspan concedes Fed failed to gauge bubble

<>

In India, the central bank had to deal with low interest rates too. It did so by increasing the risk weightage to real estate sector which was clearly heading for a bubble. This in turn restricted the amount of money any bank could lend to this sector. They did it well in advance, and the investors and speculators (flippers) thought the central bank was playing spoilsport. Today, it seems that was master stroke. The bubble slowly deflated without crashing.

Read the article CNN MONEY/Greenspan and Bernanke still don't get it

<>

Ayn Rand must be very saddened by her disciple. He should be shouting about the virtues of his not enforcing regulations, letting the animal spirits run free. The housing bubble was the manifestation of Sheriff Alan's wild west Wall Street and financial system.

The Great Recession is mostly due to lack of the rule of law, not the super low interest rates for a decade. Don't be distracted by his excuses. He had the power and responsibility to protect us all. He failed. Ayn Rand's philosophy failed. Wall Street got rich. The American taxpayers got screwed.

Read the article NPR/Greenspan on the Housing Bubble: Not my fault

MARCH 15, 2010 -- MARCH 21, 2010

ROBERT REICH ON "WHY THE RECOVERY IS A SHAM"

I've been a long-time fan of Robert Reich. IMO, this is his most meaningful blog post. In a globalized economy, it is impossible to deal with most of our larger issues without creating trade and industrial policies (we have none!) that allow US companies to compete against mercantilism.

The plans are now well laid through the CDS market and lack of regulation to completely collapse the global economy. What everyone should realize is that for every loss, someone is gaining. Corruption is viral.

I now believe that a depression is coming. While I can think of things that we might do to avoid it, nobody in a position of power is doing ANY of them. In the US, the system is so rigged that our votes can't have any true effect on the outcome, only the people who deliver the coup d' grace.

Read the article HUFFINGTON POST/Robert Reich -- The sham recovery

<>

If your brother-in-law owed you money, but when you asked for it, told you he was broke, you'd believe him - IF you didn't know for certain he had a trunk of gold coins buried in the back yard. So it is with America - we are told the nation is broke, but we also know a tiny minority of citizens hold far more than enough money to put us back in the black. So - the scores of millions suffer, the factories are shuttered, the schools, roads and bridges crumble - and Gulfstream is selling more platinum-plated private jets than ever.

Naturally, the folks clogging the slopes at Aspen and cashing those Wall Street and Wellpoint bonus checks don't see anything wrong with this picture - and are counting on us to keep a respectful distance from their stash. As long as we do - we can't really blame THEM, can we? Better we let our nation go down the tubes than re-configure the tax code, no? You're free to call this class warfare - as soon as you lift this gold-plated tank off my leg...

Read the article HUFFINGTON POST/Robert Reich -- The sham recovery

<>

The current phrase being peddled by those in control of the economic system and big media is "jobless recovery." This term is the latest sop to try to quell or divert an outrage that is not only gaining momentum, bit is also starting to devise some relevant strategies for self-protection and the dismantling of the totalitarian financial industry.

To me, a "jobless recovery" sounds like a "foodless meal." The term is inherently contradictory. It's a senseless term meant to play upon the optimism and desperation of large parts of the public. What it really comes down to is something like the plutocrats in their mansions and corporate offices and the government officials in their sinecures saying, "Now, now, take it easy. Be patient. We've got what we want out of the government handling of the economic catastrophe. Your turn will come.... Just be patient. Besides, the government's expanded the food-stamp program, and once again extended unemployment benefits. You're being watched out for."

Another facet of this totalitarian financial ideology is recent articles in the New Yorker and Atlantic magazine on how Geithner's ideas and actions have "worked." This is a major media coup for the Obama administration. The point of the articles however--which the writers apparently don't even realize they are making--is that Geithner's ideas and actions supported by Obama saved the banksters/Wall Streeters by reconstituting their looney, disastrous practices and boosting their already fabulous, unmerited incomes.

Read the article HUFFINGTON POST/Robert Reich -- The sham recovery

$5 —THE SHOCKING MEDIAN WEALTH OF SINGLE WOMEN OF COLOR, AGES 36-49

While white women in the prime working years of ages 36-49 have a median wealth of $42,600 (still only 61% of their white male counterparts), the median wealth for women of color is only $5. Prior to age 50, women of color have virtually no wealth.

READ THE INSIGHT REPORT

This is perhaps the most depressing statistic I have EVER heard.

I think the factors listed are all true. Two factors I would add in is the lack of inheritance passed from one generation to another and the fact that many of these women also support family members like sick parents.

I worked a part time job the summer before college to save money. A week or so before I go to college, I had to help my mom pay to get a new roof on our family home, which wiped out my savings. Many of us make sacrifices to help our families and that often is not considered when you look at these women.

I can not complain. I went into debt to get an education but make great money now to be able to pay it off. I also inherited a house from my mother which I can rent out. Lastly I made a decision NOT to have children. In order for me to get ahead I knew that I needed as much earning potential as possible. Also the LAST thing that I wanted in life was another obligation.

I wanted to break the chain of poverty and education was the best way to do this.

Read the article HUFFINGTON POST/Study: Women of color age 36-49 have median wealth of $5

<>

The data is drawn from a general survey and this advocacy group has added its own conclusions and commentary- some of which are just bizarre.

What stands out is what you suggest- that the black divorce rate is a great cause of poverty. Those that are married are doing much better economically.

Also surprising is the high percentage of Blacks that have educational debt- 27% and 26% for men and women verses 17% and 1% for white men and women. The blacks also owe a lot more too. It sounds to me like blacks are being sold a bill of goods and enticed into schools that do not offer degree programs with a clear economic benefit.

As you'd suspect the report ignored both these areas in its recommendations. Instead it advocates extending social security benefits for part time workers, promotes green jobs and wants Card Check passed.

Read the article DAILY BEAST/Median wealth for single black women: $5

MARCH 8, 2010 -- MARCH 14, 2010

CHINA FRETS OVER FRICTION WITH U.S.A.

China is blowing a lot of hot air. With corporations like Walmart, and our own government trade policies, having a direct relation to our manufacturing jobs moving to China, what more is there to say. The truth is that our countries are much to connected now. If America falls, so does China. Much hot air over nothing.

If China does anything to America, we could survive, and manufacture our own goods once more. If China tries to make their interests an issue, the end result would be their own demise. The U.S.A. could take care of itself if trade were discontinued. The same thing could not be said for China. All a bunch of hot air…. Read the article REUTERS/Chinese foreign ministers says U.S. ties disrupted

<>

I’d personally like to see more trade friction with China. As Ross Perot once said of NAFTA “A giant sucking sound”. That’s exactly what we have with China. The trade imbalance with China is severely slanted in their favor. Their continued manipulation of their currency is in part responsible.

Add in their refusal to side with the U.S. on the Iran issue. Iran’s President claims that the U.S. manufactured the 911 crashes and that the Holocaust never happened. These kinds of inflammatory and irresponsible statements along with developing nuclear weapons should cause the world great concern. Why isn’t China’s standing behind the U.S. on this problem?

Read the article REUTERS/Chinese foreign ministers says U.S. ties disrupted

HELL FREEZES OVER ICELAND BANK DEAL

I am a Brit. and was totally patriotic during the "cod wars" feeling that Iceland overreached itself. In this situation however I am totally on the side of Iceland.

Whilst it could be argued that the Icelandic Bank was stupid to offer the interest rates it did they did not force the UK Banks or the Public bodies who did so to invest there. These people are continually telling the man in the street that investments can go down as well as up, advise they should have borne in mind themselves.

The truth is that they were motivated by greed and now must pay he price. There is another piece of advice they often give us mere mortals which they should have remembered, "High return, high risk".

In my opinion Iceland should never pay this money out, and if Labour were stupid enough to guarantee this money then they should bear the brunt. Note I said Labour NOT the Government, it was a populist move by a political party and that party should meet the cost.

That would serve two purposes 1) it would give at least the ordinary people their money back and 2) bankrupt the Labour Party for generations rendering them incapable of running for office and removing them from our political landscape. .

Read the article U.K.TIMES/Alistair Darling: Iceland won't repay £2.3 bn debt for many years

<>

Iceland is the Bernie Madoff of countries. Icelanders were happy to reap the rewards of their ill gotten gains and now that they face the burden of their excess, decide to vote against it and then have a fireworks display to celebrate. Salt in the wounds to all those who trusted them.

We can't put the whole country in prison but the IMF, EU et al, should not budge an inch either. No support should be given.

They attempted to benefit from their privileged status with the EU. Not in the EU, leveraging an imbalance in exchange, but otherwise having as equal an access to the EU markets as an EU member.

They should remain a pariah until they make good on what they owe the world.

Read the article U.K.TIMES/Alistair Darling: Iceland won't repay £2.3 bn debt for many years

<>

It's not right to say that we are refusing to pay this damage to the people of Britain and the Netherlands. The voting yesterday had nothing to do with refusing the Icesave debts, we were simply refusing the terms of payment.. 5,5% interest is a lot more that we should pay.. and why should the British and the Netherlands make money out of us?

Why cant we just pay the maximum that we are supposed to pay and without the interest? That sounds pretty fair to me, since the Icesave internet bank was not owned by the government but just a handful of men that ripped off these, so far, friendly nations, Britain and the Netherlands.

It is so ignorant to state that we are nothing but thieves and so on and that we should just stay here on this rock.. be careful because the real thieves are living in Britain... and they will not think twice about money-raping your nations again.. These men should be in jail right now and their assets should be used to pay up for what they did.. the innocent tax-payers in Iceland will pay the rest that is missing..To me that is the only fair thing in this matter.

Read the article CNN NEWS/Iceland votes reject paying $5bn foreign debt.

<>

We never refused to pay. We have in fact maintained all along that we would pay. The only thing we refused to do is pay the EXTRA money the British and Dutch governments reimbursed their own citizens, and then tried to bill us for.

The Icesave accounts were NOT savings accounts, but rather high-risk INVESTMENT accounts. As such the reimbursements these investors had a right to was much much lower than normal savings accounts would offer. - The British and Dutch, however, saw fit to reimburse them - their own citizens, as well as parts of their own government - much more than they had a right to, and are now trying to pass the entire bill over to the Icelandic people, who are already struggling to recover from an economic collapse.

To do that, they have basically blocked our efforts to rebuild our economy and are holding that - along with our EU membership efforts - as hostages while they try to bully us into accepting a deal to repay them money we neither owe nor have, with interest rates that will cripple the Icelandic economy further for decades. - I say it again; we will pay what we owe, but we won't accept the additional debt they are trying to force on us.
Read the article CNN NEWS/Iceland votes reject paying $5bn foreign debt.

MORE HARD KNOCKS FOR U.S. POSTAL SERVICE

The USPS should go back to being the "Post Office Department," and be reincorporated as a full-fledged Federal Agency. It's insane to demand that mail delivery must turn a profit, while meeting all of the traditional mandates (6 day a week delivery, flat rates for first-class mail whether it's sent to Maryland, Montana, or Magalia, Oregon, etc.)

Cut back on some of the more expensive stuff FedEx and UPS can do better for comparable prices, cut some staff, and focus on basic mail delivery. And let taxpayer funds maintain it like any other Federal agency. Quasi-private is a ridiculous model, where you get the worst of both worlds.

Read the article WASHINGTON POST/Postmaster delivers bundle of bad news

<>

I have to respond to the comments about fat, lazy postal employees by some. My dad is a postal worker and probably the hardest worker I know. So I do take offense to this. Lately, in order to keep his hours up with all of the cut backs, has taken a position where he will work a variety of hours and whatever office in the city needs him, doing a variety of jobs. He might be your desk clerk, he might be involved in getting mail out in the middle of the night, or he might be delivering packages.

Read the article WASHINGTON POST/Postmaster delivers bundle of bad news

<>

At one time, I lodged blame with the post office. Now, I'm not so sure. They do an incredible job of moving what they do receive quickly and efficiently, but Congress will not allow them to shrink their size to match their volume. The postal service began sending alarms off several years ago, but Congress ignored them.

Recently, they planned to close or consolidate thousands of post office branches and reduce service, but Congress stands in their way again. Responsibility for this mess again rests with Congress who, against all common sense, maintain the status quo just as they do with every other program.

Read the article WASHINGTON POST/Postmaster delivers bundle of bad news

<>

Just like GM and other union run organizations, we have massive overlap of labor and massive expenses associated to it. This is (much like Amtrak) another federal boondoggle! We need to stop this service and let it be privatized, I can assure you capital markets can make this a profitable enterprise.

If you take the toll road business in most states, they lost money when they were run by the states. When they were privatized, they become profitable. Jeez, imagine that. But for all those who want big government, look at what our government runs and at what cost, nothing they run is profitable.

With that said what makes anyone think they can turn the USPS into a profitable enterprise? Or even a break-even! 

Read the article WALL STREET JOURNAL/U.S. postal service seeks to raise rates, end Saturday delivery

MARCH 1, 2010 -- MARCH 7, 2010

DOING THE CONTINTENTAL -- IT'S A STRETCH FOR PASSENGERS

A whole 7 inches more! That oughta let me flex my knee another 5 degrees.

Read the article HOUSTON CHRONICLE/Continental to start charging for right to stretch out

<>

Let's see - the airline industry went after large people (not just obese, but a little large!) and are charging for two seats (but not giving them two seats) so now that width-discrimination is in play, height-discrimination is next.

I think after that the length of a person's hair will jockey the pricing a bit - my hair is long and I sit on it so I am going to demand some kind of special seating where I have room to fan-out my hair.! You all won't mind paying for my entitlement, will you?

Read the article HOUSTON CHRONICLE/Continental to start charging for right to stretch out

<>

Next they'll charge you to use the restroom.

Read the article HOUSTON CHRONICLE/Continental to start charging for right to stretch out

HIGHS AND LOWS OF NEW CREDIT CARD RULES

What really is needed in this country is some kind of comprehensive financial education of our children, preferably starting in primary school. This is even more important for low to middle income children, who's parents may not have good money management skills to begin with.

Almost none of our children ever get any kind of education in how to budget, how much it cost to use credit, how to CALCULATE credit, or even how to fill out a check. This is a recipe for the disaster that is our economy.

But unfortunately, like sex education, a certain segment of the population believes it is better for children to learn such things at home. Trouble is these same people do a bad or non-existent job of teaching their children these things. Again, much like sex education.


I don't see why every high school graduate should not be required to know how to fill out a tax form, write a check, understand credit, and be able to construct a budget. Every. Single. One.

Heck, drivers education is more important to people these days that "home economics".

Read the article NPR/What you need to know about new credit card rules

<>

Why is it that most of the commenters here seem to think the government is supposed to protect them from their own stupidity? The old saying "a fool and his money are soon parted" is unquestionably true and anyone who signs up for credit they cannot afford and doesn't pay the bill on time is a fool. No amount of government regulation short of institutionalizing the ignorant is going to save them from their own folly.

Read the article USA TODAY/How credit card reforms will affect you

<>

It is long past time that Federal laws against usury were enacted. The state laws against usury were circumvented by the credit card companies moving their corporate headquarters to states without usury laws. This really nothing more than legalized theft, aided and abetted by Congress while they try to fool people into thinking "they are doing something" about it. Time to demand "Anti-Usury Laws"!!! 

Read the article  WALL STREET JOURNAL/It's a new day for credit cards

<>

I take full responsibility for my credit card debt. That being said, the way they do treat their good customers is really bad for business. I work in the service industry and if I treated my customers/clients the way they treat us, I'd be out of work in a heartbeat!

I'm paying off my cards and cutting them up and the ones that charge a fee to have the card will be cancelled. I can't worry about my credit score anymore because all the lowering of limits and such have already done enough damage.

I now use my debit card almost exclusively and if I want something, I either save for it or wait till my refund from the IRS comes, otherwise I don't get it.

Wonder how the banking business will be in a few years if more people do what I'm doing.

Read the article HUFFINGTON POST/New credit card laws: what you need to know about rates and fees

BACK TO HOME PAGE

read more comments from THE INDEX