Comments on: $1.3 billion in losses, brought to you by Chuck Schumer

By: jason smith

jason smith — Tue, 15 Jul 2008 03:02:48 +0000

New York Times reported that hedge fund managers have a new champion in their effort to keep legally dodging the taxes the rest of us pay: none other than New York Senator Charles Schumer. Now you know who is Schumer’s friend and why he caused the bank run on Indymac. He truly support hedge fund and private equity because they truly support him.

http://www.nytimes.com/2007/07/30/washington/30schumer.html?_r=1&oref=slogin

“Large Investor decided to pay a few bucks to a Senator in New York to force the issue.”(Prospect Mortgage Backed By Sterling Fund–Private Equity Acquired The Mortgage Branches from Indymac before FDIC takeover)
http://www.housingwire.com/2008/07/03/regulators-to-schumer-weve-got-a-whole-bag-of-shhh-with-your-name-on-it/

“And do remember that there are many investment bankers located in New York, making them pretty influential constituents of Sen. Schumer.”
http://www.pasadenastarnews.com/opinions/ci_9783402

“In a Sunday news conference, he said everything in his letter was already known to the public.”
If it was already known to the public, what is the reason for his public letter? It is contradict to what he said previouly :”I just bring private message to the public. Do not kill the messanger.” What a great liar from time to time!
http://www.cnn.com/2008/POLITICS/07/13/indymac.schumer/?iref=mpstoryview

By: Monk

Monk — Mon, 14 Jul 2008 00:43:06 +0000

Schumer is lying, sub-human scum… pure and simple. He represents everything that is wrong with politicians and politics in this country today. We need another American revolution fast or I fear for our children’s future.

By: Jeremiah

Jeremiah — Sun, 13 Jul 2008 05:46:33 +0000

Depending on who your inclined to believe, we spend $1.3 BILLION in Iraq in less than 4 days. Assuming (and I don’t) that Schumer “caused” the implosion of IndyMac, you can argue that at least his comments have a real dollar limit in terms of impact.

“The Pentagon has previously said that the war [in Iraq] costs approximately $9.5 billion a month, but some economists say the figure is closer to $25 billion a month when long-term health care for veterans and interest are factored in.”

http://money.cnn.com/2008/06/11/news/economy/iraq_war_hearing/index.htm?cnn=yes

By: Jeremiah

Jeremiah — Sun, 13 Jul 2008 05:26:10 +0000

What? Quit pretending like you know something about economics. The lack of Federal Reserve and Executive Branch oversight is what allowed IndyMac (and many others) to engage in unsound “financial engineering”. Look at IndyMac’s stock price collapse BEFORE Schumer’s comments! If Schumer’s comments broke the back of IndyMac, it was only the final feather on that load of crap. More banks are going to fail, and it won’t be a single Senator’s fault – you can squarely blame the Fed for refusing to use the regulatory power granted to it by Congress.

By: Jeff Molby

Jeff Molby — Sat, 12 Jul 2008 19:19:51 +0000

But of course, if they have a bank account balance of over $100,000, that makes them “the rich”

No, it makes them "the stupid". The FDIC insures $100,000 per account. If you have that kind of money sitting around and you didn't take the 10 minutes necessary to learn that you should spread it around a bit...

Maybe, just maybe, things like this could be avoided if the Democrats would stop meddling with the free market.

All he did was point out that the emperor appeared to be naked. That's hardly "meddling with the free market". If Warren Buffett had written the same exact letter, it would have had the same exact result. The root problem is that we rely on a foolish policy of fractional reserve banking. This policy has been the cause of every bank run everywhere. always. When I create a savings account, the bank promises me I can pull my money out at any time. Yet they never have enough money on hand to guarantee that. When the market starts to question the solvency of a bank, it necessarily turns into a fast-paced, high-stakes game of musical chairs. The FDIC is merely a kludge that attempts to minimize the impact of this flawed policy. The real solution is to require 100% reserves for demand deposit accounts. No, this won't result in money sitting unnecessarily in vaults. It will simply make time deposit accounts more common. Simple changes like that would solve so many of our problems, but they require a special kind of bravery: the willingness to question long-held policies. Instead, as you correctly point out, the knee-jerk reaction is always to build more regulation on top of our current monstrosities.

By: Not a Yank

Not a Yank — Sat, 12 Jul 2008 19:05:17 +0000

it is not American’s that keep voting Schumer into office it is the democrats that are buried in Queens that keep voting for him.

Curb the democrat voting fraud and these people would be on the unemployment role where they belong.