According to Tom Carper. “About a year ago we just finished doubling the nation's debt in eight years, GM and Chrysler were bleeding red, and the bottom fell out of the economy,” ...Mr Carper also stated; “We got used to living beyond our means, and there were new mortgage products that were given to people who would never be able to pay for them.”
What caused the problems th United State of America is witnessing today?
I will show you how Mr Carper has just admitedd he and other members in congress are to blame for well Structured Disaster of our Nations ability to be independent.
Since 1933 each congress has been involved in creating a bigger government. And just as recently as 2000 huge government sppending charity work without paying back what the government borrowed from foreign countries like China., The FED will be forced to raise interest rates very soon. Possibly as soon as May of Next Year you will be seeing APR on Interest rates as high as 60%.
This will be needed to recapture all the money that is flowing out in the economy before Super Hyper Inflation hits.. Oh, Can you say; Paul Volcker? This has his hand writing all over it. All needs to be done to prove this is to look back to 1979 when we had the same situtation and Mr Volcker decided to Raise Interest Rates then too. Causing the Even Odd Day Gas days high unemployment levels. Even in the early 1960s, he was doing the same thing back then as well.
In 2001 the US Congress passed theTax Relief Reconciliation Act of 2001 (Taxpayers receieved that 300.00- $600.00 retro active tax check) 107th US Congress US Senate VotesUS House Votes decided to pass on to the tax payer.
The 106th United States Congress repealed part of the Glass-Steagall Act of 1933, opening up a padora's box in the market. Banking companies, Securities companies insurance companies as well were given a carte Blanch with fewer regulation on Anti Trust Laws that protect America from what happened When? The Great Depression. When? 1930s when the Glass Stegall Act was passed.. The Glass-Steagall Act was protection from any one institution being able to act as any combination of an investment bank a commercial bank, and/or an insurance company. We have to pass the TARP because they are "TOO BIG TO FAIL"- DOES THAT RING A BELL? Not only the Gramm-Leach-Bliley Act alone, allowed commercial banks, investment banks, securities firms and insurance companies to consolidate And this was one stage of dismantling the Anti Trust Laws that welcomed in Social fascist formats of business in the free market and began the lock step of government being required take control of the Banking industry. Back in 1982 during the Reagan Years, Congress passed the Alternative Mortgage Transactions Parity Act (AMTPA), allowed non-federally chartered housing creditors to write adjustable-rate mortgages. Among the new mortgage loan types created and gaining in popularity in the early 1980s were adjustable-rate, option adjustable-rate, balloon- payment and interest-only mortgages. These new loan types are credited with replacing the long standing practice of banks making conventional fixed-rate, amortizing mortgages. Among the criticisms of banking industry deregulation that contributed to the savings and loan crisis was that Congress failed to enact regulations that would have prevented exploitations by these loan types.
In 1995, Fannie Mae began receiving government tax incentives for purchasing mortgage backed securities which included loans to low income borrowers. Thus began the involvement of the Fannie Mae and Freddie Mac with the subprime market. In 1996, HUD set a goal for Fannie Mae and Freddie Mac that at least 42% of the mortgages they purchase be issued to borrowers whose household income was below the median in their area. This target was increased to 50% in 2000 and 52% in 2005.
Who was in office in 1999? for Delaware? None other then Joe Biden, Tom Carper and Michael Castle. Although I will give credit where credit is due. Mr Carper did vote against the Tax Relief Reconciliation Act of 2001. The problems are equally to be blamed by both sides of the Politcal spectrum for what we face. The Republican party as with the Democrat Party have passed measures in Congress that were not required. And were in fact causing more problems to be added to the exisiting problem they were attempting to rectify.
A view from the U.S. Senate
In his keynote remarks on recession and recovery, U.S. Senator Thomas R. Carper (D-Del.) said he wanted to address “how we got into this mess
Carper acknowledged the importance of the University of Delaware in contributing to economic recovery and the creation of sustainable well paying jobs in the future.
“The University of Delaware is going to be a big part in leading our economic engine to help pull us through,” Carper said. “It's a role that the University has played in times in the past, and more than ever, it is a role we need the University to play today.”