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Thursday, March 27, 2008
Amanda Carpenter :: Townhall.com Columnist
Hillary and Obama's Econ Fixes
by Amanda Carpenter
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


Democratic presidential contenders Barack Obama and Hillary Clinton proposed using massive means of government intervention and spending billions of taxpayer dollars to revive the economy in dueling economic speeches on Thursday.

Before voters in Greensboro, North Carolina, Obama focused on tightening regulations on the housing industry and giving $30 billion worth of assistance to help homeowners make mortgage payments.

Obama called for a six-pronged “21st-century regulatory framework” to address the housing crisis, which includes the creation of a “financial market oversight commission” and stronger controls on lending.

“Financial institutions need to do a better job at managing risk,” Obama said.

“Our free market was never meant to be a free license to take whatever you can get, however you can get it….each American does better when all Americans do better, that the well being of American business, its capital markets, and the American people are aligned.”

Obama blamed corporate America for the nation’s economic woes. “We’ve lost that sense of shared prosperity,” Obama said. “This loss has not happened by accident. It’s because of decisions made in boardrooms, on trading floors and in Washington.”

Shortly after Obama wrapped his speech Clinton proposed spending $12.5 billion over five years on “universal” job training at a stop in Raleigh, North Carolina. Earlier this week, Clinton delivered a speech in which she supported giving $30 billion in tax dollars to homeowners struggling to make mortgage payments, like Obama. Continued...

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About The Author
Amanda Carpenter is the author of “The Vast Right-Wing Conspiracy's Dossier on Hillary Clinton,” published in October 2006.
 
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Loans and Handouts Are Different
Zapdoodat asks as to handouts, "Like the $230 billion handout Wall Street got last week."?

Not true.

Certainly, the Government made some money available, for a price, to help JP Morgan negotiate the debts piled up by Bear Sterns. However, unlike the money that Clinton/Obama want to dish out, this money is expected back, with interest.

One is called a loan, the other a handout. Try not to confuse the two. The difference is important.

Subprime Here Refers To Risky Borrowers
Stevl offers as to Subprime loans, "I think what Obama is referring to is the way that Wall Street sold subprime debt on the secondary market and gave it "AAA" (high) ratings."

Psst: For your information, the word "subprime" used in today's crisis refers to the borrowers being less than prime candidates. You are confusing the issue. Or, do you really think Obama recommends sending money to "secondary market" investors to make up for their losses?

Lenders took risks on subprime borrowers, who, lived up to their reputations and defaulted. Those poor borrowers, who had nothing before, walked away with as much or more, afterward. However, the Lenders, thinking that if all else fails, they still have equity in the homes and thought it was any easy money risk, lost a fotune when the housing market tumbled.

Now, some of those Lenders' are crying that they did not know that the borrowers were subprime, but I think they are being disengenuous -- trying to save their reputations and careers. They, like Bear Sterns, gambled thier investors monies and lost. No big deal. Let's move on.
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