Fannie Mae-No Politics (FNMA)

[Donotunderstand]

huh?

That was an issue of low and high interest rates and who wins when and my commenting that Ralphie conveniently forgot that many middle middle Americans - TONS - win as consumers and payers on debt and borrowers

re the debt we carry

much has been done by the Team of BO and the Congress

There have been HUGE cuts on the tiny part of the US budget expense that is called discretionary - 3 Trillion as I recall

There has been about 1 Trillion in new tax money - much from the kick in capital gains for wealthy - the kick in Medicare FICA tax (which my family pays !!) - and the kick in the over 400K income tax (which we do not pay --- but would have gladly paid if they put it at AIG of 225K)

and overall I watch HOOVER here in the US (pre the equivalent of what we had in 2007 to early 2009( and EUROPE now and how the approach of first and foremost trying to reach a balanced budget

and I find high and higher unemployment and recessions and depressions

the approach we have had for the last 6-7 years has taken down unemployment headed to 12% (as now understood v when that jerk in the administration spoke too early) ---- to historical lows of 5%

(and lets not raise the shadow unemployment and part time as that is a separate problem and indeed is worse when unemployment is 10% then now ---- it is a weak back bench argument raised only by those Unhappy that Americans are at work with the NORMAL measure about to go under 5%)

that approach is
cut spending - Republican house
raise taxes - DEMS
focus on stimulus and infrastructure and education investments

I like the 5 million shelter credit (up from 700K) that is logical and maybe it should be higher on first generation earners of wealth) before estate tax is paid but I can see a 10% point higher rate on amounts over 100 million

That will not stop capitalists form pursuing wealth. Yes it will help lawyers design new ways to try and avoid that tax so some money is spent there and flows in the economy

But overall an increase on the very top of estate transfers - especially 2nd -3rd 4oth -5ifth generation wealth -- will help bring down the deficit and thus sooner chip away at the DEBT

And re the DEBT to work on it we need to first all agree some is wasted spending but much of the debt is the result of tax cuts on the top 3-2-1 % that have not resulted in extra income to the GOV but deficit after deficit after deficit

RR raised taxes five times
Bush - read my lips raised taxes when he saw the real books (and got my vote for being right)
Clinton raised taxes again - and DEMS lost the house of representatives

but those 10 tax increases brought us 20 million jobs and a balanced budget that GWB tossed away with his deficit and debt red ink tax cuts and then fighting two wars and starting the biggest social entitlement program since Medicare --- all paid for with a Chinese Credit Card

An to bring all this to FNMA --- that CHINESE Credit Card has a ton of MBS FNAM and FREDDIE paper !!!!!! ---- which was (right or wrong - smoke or reality) a major part of the reason that GWB and Paulson grabbed FNMA and put up 200B of guarantee

As my wife and I head in a shorter while to Medicare we appreciate the Rx program but understand that is deficit and debt producing

Time to work as a team (not just suggest bogus privatizations that did not work with prisons and most other efforts of size) on Social and Medicare ---- not increase payouts and yes increase FICA a smidge like done by RR as I recall !!

Compromise - not ideology and fear and hatred of compromise - will solve the debt problem but we must add as a tool growth and avoid the good sounding but horrendous reality of the recession direction BELT TIGHTNING of HOOVER then and EUROPE now

That makes for great wonderful stump speeches but horrible economic policy

The answer lie not with Bernie or with Ryan but in the middle