Obama's First Year Stock Market Gains more than Twice Trump's

[Revoltingest]

Note about regulation.....

Some regulation is worthwhile.
Remember the S&L crisis, anyone?
Leading up to that, home appraisers were unregulated. They could
give the bank any number the homeowner needed to get the loan.
They'd actually base the appraisal upon the the loan application.
Consequently, many loans were made for more than the house was
worth. Nowadays, appraisers are generally honest, objective, &
ethical....cuz of severe penalties if they aren't.
Why is this regulation good?
Because it creates transparency, which makes for a stable & honest market.

 

[sandy whitelinger]

The banks were not deregulated, particularly regarding residential lending.
And such lending doesn't resemble a Ponzi scheme.
Ref...
Ponzi scheme - Wikipedia

There's a fancier name for it, fractional reserve banking.

 

[Revoltingest]

There's a fancier name for it, fractional reserve banking.

Yeah....still not a Ponzi scheme.

 

[metis]

Have you watched the Big Short by any chance? I know it’s a movie, so needs to be taken with a grain of salt, but it does explain the financial downfall side of things rather well.

According to other sources, the general theme of the movie is quite accurate.

The major cause was over-speculation in the shadow-banking system that included credit-default swaps, which of course also included the housing investment market, the collapse of which started the house-of-cards collapse as it was the weakest link within the system. The Republican charge that it was "over-regulation" was and is just a complete unadulterated smokescreen as it doesn't even make any economic sense on the surface of it. Too many regulations in the wrong place can slow an economy down, but they certainly don't cause the kind of "freefall" that we experienced.

 

[sandy whitelinger]

Yeah....still not a Ponzi scheme.

Just money from nothing.

 

[Revoltingest]

Just money from nothing.

That's the fed's responsibility.
Banks lend out most of the deposits they receive.
It's how they can afford to pay interest on deposits.

I've negotiated lower loan interest rates by depositing
money with the lender. I bank where I borrow.

 

[Twilight Hue]

Wasn't the first thing Obama did is lend tons of money to the rich so they could buy up all the poor peoples foreclosed homes dirt cheap and sell them back to them? Yeah that would help the bankers and stock market.

Funny on how people don't want to mention Obama and real estate. Boy that got quickly swept under the rug once it all died down.

 

[Twilight Hue]

Here is a chart from Dow Jones from 1896-2016, interpret it as you will:

And the people in charge during those times? Of course being in the 1800's, Democrats and Republicans were different animals remember?

People switch sides, policies change.....

 

[YmirGF]

According to other sources, the general theme of the movie is quite accurate.

The major cause was over-speculation in the shadow-banking system that included credit-default swaps, which of course also included the housing investment market, the collapse of which started the house-of-cards collapse as it was the weakest link within the system. The Republican charge that it was "over-regulation" was and is just a complete unadulterated smokescreen as it doesn't even make any economic sense on the surface of it. Too many regulations in the wrong place can slow an economy down, but they certainly don't cause the kind of "freefall" that we experienced.

Add to that the fact that very few people in the banking industry actually understood the intricate financial instruments they tossed around like popcorn. Everyone got their commissions... life was good... until the music stopped.

 

[sandy whitelinger]

That's the fed's responsibility.
Banks lend out most of the deposits they receive.
It's how they can afford to pay interest on deposits.

I've negotiated lower loan interest rates by depositing
money with the lender. I bank where I borrow.

The Fed only states how much of each deposit must be retained. The rest is bank manipulation if the money supply.

 

[Revoltingest]

The Fed only states how much of each deposit must be retained. The rest is bank manipulation if the money supply.

The fed controls that.
They're the one's who create it.
Banks just use it.
How the U.S. Federal Reserve Creates and Destroys Money

I thought all snowmen knew this?

 

[metis]

Add to that the fact that very few people in the banking industry actually understood the intricate financial instruments they tossed around like popcorn. Everyone got their commissions... life was good... until the music stopped.

You got that right, and even Greenspan admitted in congressional testimony that he couldn't keep up with the all the various modes within the shadow-banking system. Roughly 60% of our business transactions that involved large-scale loans went through it in 2007.

 

[Revoltingest]

Trump might've done more to mitigate housing bubble tendencies than any other Prez.
His tax reform drastically cuts the home mortgage interest & property tax deductions.
It doesn't go as far as I'd like, but it's a good change.

 

[Twilight Hue]

After thinking about this for a while instead of figuring out which President helped the stock market more, maybe people should be asking right straight from the horse's mouth also known as Wall Street which political party they like the best for their growth.

They could give you an answer and it's case closed.

 

[metis]

After thinking about this for a while instead of figuring out which President helped the stock market more, maybe people should be asking right straight from the horse's mouth also known as Wall Street which political party they like the best for their growth.

And who is the owner of the WSJ?








Answer: Murdock.

 

[columbus]

As for the wasteful bailouts, I blame politicians for cozying up
to Wall St...."crony capitalism" I think some call it. I prefer
"corruption" which should put people out of office or in jail.

I definitely agree here. Massive fraud, AKA corruption, in those bank bailouts. Nearly zero accountability amongst the people who caused the disaster. Heck, the big bankers hardly even lost their "performance bonus", much less got the fines and jail time they deserve.
And I do blame Obama for much of that. But in fairness, he got handed a multiple disaster on nearly every front, domestic and foreign. And it was all a lot worse than the public or Obama knew. So I don't blame him very much.
Tom

 

[columbus]

After thinking about this for a while instead of figuring out which President helped the stock market more, maybe people should be asking right straight from the horse's mouth also known as Wall Street which political party they like the best for their growth.

They could give you an answer and it's case closed.

You must also ask "What does a shift in the stock market mean?"
It's one thing if economic indicators are all up and consumer confidence is rising. It's something else if unemployment rates are high and keeping labor costs low, so corporate earnings are great (and way better than bonds, because the interest rates are zero).
Tom

 

[Revoltingest]

And I do blame Obama for much of that. But in fairness, he got handed a multiple disaster on nearly every front, domestic and foreign. And it was all a lot worse than the public or Obama knew. So I don't blame him very much.
Tom

I don't blame Obama for what he inherited.
I blame him for what he did about it.

 

[columbus]

I don't blame Obama for what he inherited.

You may not, but lots of people do. And they are concentrated in that basket of deplorables you are so proud of being in.

I blame him for what he did about it.

It's only reasonable to do so. But I do keep in mind that he was a kid from Chicago, with nearly no experience in Washington DC. Everyone knew that when we elected him. He didn't have what it takes to get things done, the way Clinton would have. I wish I had been more supportive of her in 2008.
Tom

 

[Twilight Hue]

I don't blame Obama for what he inherited.
I blame him for what he did about it.

Can't argue with that. It's pretty much what it is.