The Mrs. is reporting in from the scene of the Knoxville tea party. The Amphitheater is full. She ran into Glenn Reynolds and he said hi. Helen was interviewing someone for PJTV.
There was a band ("Blackwater") playing when the Mrs. called. Will update as reports come in if anything interesting happens.
UPDATE: At 4PM the Mrs. reports that people are still pouring in and the crowd is getting quite large. There are people from all walks of life, from bikers to senior citizens and everyone in between. She was headed over to the Obama supporter gathering place. She said it looks like maybe twenty or so people have showed up there so far.
UPDATE: The Mrs. reports that there was just now a speech rallying the crowd to oppose universal health coverage. She ran in to Gloria Johnson, who said she was there with the other Obama supporters to "get the facts out." She has a fact sheet handout about taxes. Mark Harmon was there with the group, and was being interviewed by (we think) WATE. Rich Hailey was there attempting to engage the group, apparently trying to convince them to change their mind.
UPDATE: It was just announced that Stacey Campfield was en route (and "probably breaking the speed limit" to get there!) but may not be able to make it for his highly anticipated address. The protest will be regrouping shortly for a march on the Federal Building.
UPDATE: Stacey X made it after all, and the Mrs. got a short video clip. Stay tuned for that and some other video tomorrow. In the mean time, here's a slide show of her photos.
Cellphone pic, just in:

more after the jump...
Arriving at the scene, Amphitheater is full...

Another photo just in:

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Right behind you...
Will #9 show?
Obsessive much?
I agree. Let's first close
I agree.
Let's first close UTK. Get rid of that "Government" school.
It's merely a liberal indoctrination center. Put it in Cookeville.
Any closer, like Maryville, and all those Government employees may come to Knoxville to spend their money and contaminate us!
Then let's close ORNL. Decades of producing stuff that's never used? That's what I call waste.
What else can we get rid of that will relieve Knoxville of the burden of all those employed government workers? Then we will have all that space for free enterprise!
Hey R.Neal, do those people really believe what they're protesting about? Or is it something else minus the sheets?
Not the cools kids...
Hey R.Neal, do those people really believe what they're protesting about? Or is it something else minus the sheets?
Let's review, first tea baggers. The homosexual innuendo. Then the sly reference to the KKK.
First class. Always first class in progressiveville.
Hey, we didn't come up with
Hey, we didn't come up with the teabagger reference. I saw some guy on FOX last week yelling "teabag Obama" over & over & over.
Link...
(link...)
Teabagging is gay-only?
Teabagging is gay-only? You've never been to a Sigma Chi party. Some girls will do anything to be a SX little sister.
What's amazing to me is that
What's amazing to me is that 95% of the people at this event (and probably more like 99%) are the beneficiaries of the largest middle-class tax cut in U.S. history, and one of the largest in U.S. history, just signed by President Obama.
I also wonder how many are receiving other forms of public assistance, such as unemployment, TennCare, CoverTN, Social Security, etc.
Even
Even the meeting place is public and funded by taxpayer money.
Why didn't they meet on good old private property? :-)
"The arc of the moral universe is long, but it bends toward justice."
...or "indirect benefits"
...or "indirect benefits" like the use public infrastructure like streets, running water, and sewers; were raised in or live in homes lit by Rural Electrification; reap the benefits of TVA's hydropower and flood control; have had safe travel thanks to NHTSA or FAA; watched the weather forecasts that use NOAA weather radar and predictive models; have ever dialed 911 in an emergency; receive their mail every day without fail; was a member of the 3rd or 4th generation who attended public school in their family and is sending their children to same; will send their children to a state university; who use the Internet on a daily basis (which Al Gore might not have invented, but sure helped Vinton Cerf with the money to make it happen).
And, hell, while I'm at it? How many of them realize that demonstrations like the ones that they're aping were tools of organized labor during the time of the Haymarket Massacre? And that people around the world to this day hold May 1 as a day of solidarity with those slain on that day in 1886? What exactly are the risks that these folks are taking? (Some people were holding signs saying that they were now on the NHS Watch List and the like, so rightist conspiracy hobbyists were well-represented.)
These Tea Bag affairs are not protests. They are rather a demonstration of privilege, of ignorance, and of self-centeredness. They're not advancing an agenda to fix anything or to solve any problems or to help. They're just begging to be indulged. They just want government to stop, they want taxes to stop. They want to run America using the Katrina response as a template.
Protest? What protest? What I saw was a poorly executed, vaguely well-attended tantrum.
____________________________
Dirty deeds done dirt cheap! Special holidays, Sundays and rates!
Let's review, first tea
Kind of a little sensitive aren't we for a group that's always railing against political correctness?
American flag bandanna You
You mean they're desecrating the flag there too? AAAIIIEEEE!!!
Thanks to bizgrrl for
Thanks to bizgrrl for attending and reporting.
I'd like to request that she make sure to catch Stacey's speech. He said it was scheduled "sometime after 5 p.m."
I'd like to request that she
I'd like to request that she make sure to catch Stacey's speech.
Just talked to her. She was ready to bail (boring, same stuff over and over), but I convinced her to try to catch the Stacy X show and tape it.
IMO 95% of the tea baggers
IMO 95% of the tea baggers have not gotten over the fact that a African American Democrat was elected to be POTUS. This so called protest is nothing more than a bunch of sore loser Republicans. Where were they when over four thousands of our best were killed in Iraq and billions of tax payer dollars unaccounted for?
Where were they when over
Where were they when over four thousands of our best were killed in Iraq and billions of tax payer dollars unaccounted for?
IOKIYAR
On a serious note, these
On a serious note, these peoples' wishes may ome true.
I can see ORNL being dismantled and reconstructed, in other states, over the next four years.
And if that happens this area will begin to make Mississippi look like Greenwich, CT.
huh?
>>>There are people from all walks of life, from bikers to senior citizens and everyone in between.
have to take exception to that observation. From the pics it looks like mostly middle aged white folks. I know we're in e tn, but still...
here's the best description I've seen so far:
have to take exception to
have to take exception to that observation
Yeah, I should have said there are "white people" from all walks of life. The Mrs. said there were families with kids there, too. That's kinda sad. We already have generations of bad education to overcome.
And as noted earlier, 99% of the "middle aged white folks" you mention benefit from the largest middle-class tax cut in history just signed by Obama.
But they probably aren't even aware of it, because Fox News said it was a tax increase.
Are there many GOP officials
Are there many GOP officials around there?
One of the curious aspects of this tea party thing is whether or not the GOP is onboard. My sense is that they were hedging because they were afraid some events might turn out to be a total flop.
Brian A.
I'd rather be cycling.
Sounds like the Duncan
Sounds like the Duncan barbeque was held early and outside.
Sounds like the Duncan
Sounds like the Duncan barbeque was held early and outside.
Except, Democrats are (mostly) welcome at the Duncan BBQ.
My sense is that they were
Well, no matter what Ms. Absher may say on the news about "listening to the people," it was a flop. The people spoke in November. If Tennesseans elect more conservative candidates to national offices, our voice will grow more shrill but weaker.
Tennessee no longer matters; it's no longer a bellweather state. We're in a race with Mississippi and Louisiana towards the bottom.
As far as the demographics of the attendees, after watching the news, I bet if you had done a poll, more than half would have said Pres. Obama is a Muslim.
You have your work cut out for 2012...
Attendance for the two groups seems awkwardly skewed. WBIR estimated between 1000 to 3000 supporters and 25 non-supporters. The KNS has the number at 1,700 for supporters and no mention of non-supporters.
How was it Metulj? Any air left with all the mouth breathers?
Mark Harmon should get some credit for his insan-a-tea protest. A much better approach than what is presented here at progressiveville.
Enjoy the next four years. America is not sold on your dream. See you around the bend in 2012.
Nine, Since you support
Nine,
Since you support these protestors, could you please explain exactly what they're protesting? I'm not being snarky; I just can't quite figure it out.
If it's higher taxes - most of them just got a tax cut. Deficit spending - where have they been the last 8 years? Bailouts - started last fall under Bush; no protests then.
Judging by the many signs complaining about Obama, it looks largely like a "I hate Obama" protest, which just seems silly to me unless you can articulate a reason you hate him.
And no, calling him a socialist fascist doesn't count.
Seriously, what do these folks WANT to happen? Do they know?
They know...it is about a pledge they made...
Seriously, what do these folks WANT to happen? Do they know?
Yes Rachel they know. They remember the oath they pledged.
I am sure you made the same pledge:
In its original form it read:
"I pledge allegiance to my Flag and the Republic for which it stands, one nation, indivisible, with liberty and justice for all."
They know the pledge they made and it is important to them. To protect the Republic. That is why they were there.
We do not want and will not allow the United States Republic to be replaced with a social democracy. Not without the biggest fight in the history of this nation.
It isn't all about taxes or spending. It is about the future of the Republic. It is about not tying an anchor around the necks of young people that will have to pay for this insane debt orgy from the social democrats.
You may see it differently. But across the nation, it is very clear. This is only the beginning.
I asked for specifics
I asked for specifics (sincerely) and all I got was generalities, motherhood and apple pie.
Your only specifics were that the protests are not "all" about taxes or spending. Ok, then what ARE they about? And don't give me the "social democracy" crap unless you can be very specific about what it means.
I've been to a few protests in my time - against the Vietman War, against the Iraq War, against the Knox County Election Commission decision not to allow UT students to vote in Knox County. In every instance, I knew exactly and specifically what I was protesting.
So I ask again - what are these protests about?
But across the nation, it is very clear.
THIS I agree with. It was very clear in the vote last November. It's very clear in Obama's approval ratings now.
It is about the Republic...and the future
Your only specifics were that the protests are not "all" about taxes or spending. Ok, then what ARE they about? And don't give me the "social democracy" crap unless you can be very specific about what it means.
You asked and I replied. Sorry the answer doesn't soothe you.
They don't want America to become England or France. I cannot make it more simple. They don't see a black President, they see a Marxist/socialist/social democrat President. It isn't about white sheets over their heads it is about what they feel is betrayal.
This may be transparent to you, but the bailouts and spending and corporate takeovers are repugnant to the people you saw downtown today. I get it. You may never understand how they feel.
Sorry the answer doesn't
Sorry the answer doesn't soothe you.
I'm not looking to be soothed. I'm looking to be informed. I'm actually listening to you for once, so give me information. SPECIFIC information.
They don't want America to become England or France. I cannot make it more simple. They don't see a black President, they see a Marxist/socialist/social democrat President.
More not-so-glittering generalities. Please explain in exactly what way Obama is a a) Marxist, b) socialist, c) social democrat.
As for France, are you aware of the recent poll where most Americans said they LIKED France? That answer was consistent across political parties and all parts of the country - except the south. Perhaps we are the outliers.
As for "black" President, I didn't bring up race. Why did you?
This may be transparent to
This may be transparent to you, but the bailouts and spending and corporate takeovers are repugnant to the people you saw downtown today.
The transparency is entirely yours. You can not see what would happen if the grossly irresponsible capital management behind falsely securitized debt was allowed to stand. You can't see that everyone's savings would vanish and we'd quickly be in that stone age you thought environmentalists were going to usher in. Even the stupidest President in history saw the need to cushion the fall.
It's only fools who believe the lies from Fox and friends who are mobbing together and casting blame in the wrong direction. The bullshit you've been swallowing for a decade is what left the bad taste in your mouth, but you're not even cognizant enough to remember what you ate.
We do not want and will not
We do not want and will not allow the United States Republic to be replaced with a social democracy. Not without the biggest fight in the history of this nation.
So they are flailing at a mass hallucination?
BINGO
you got it!
EXCELLENT QUESTION, RACHEL!!
What are these folks protesting? I just don't get it. These people seem bent on destroying what's left of the Republican Party by blinding following Fox News and Rush "to judgement" Limbaugh right off the nearest political cliff.
I''m with Rachel...What do these folks WANT? Where were these same protesters during the eight years we had to endure Bush, Cheney and a Republican dominated Congress as they drove this country into the ground with their policies? Are they saying it took a REDUCTION IN THEIR TAXES to get them off their collective butts to launch a protest?
All I can say is thank God they were unable to elect John "the economy is fundamentally sound" McCain and Winky "thanks but no thanks" Palin. Proves to me that there is a God!!
They want their team to have
They want their team to have the ball back.
Brian A.
I'd rather be cycling.
Roger that.
Roger that.
See you around the bend in
If fuckin' only.
____________________________
Dirty deeds done dirt cheap! Special holidays, Sundays and rates!
I just can't quite figure it
Do you want a debate or the truth?
For a debate see Nine.
For the truth, as Chuck Todd said this is an attempt to reinvigorate the conservatives (Republican base).
It's a warm up. Practice. That's all.
Anyone who knows anything about politics, knows that this stuff isn't going to change things before 2012.
In fact, that's the Republicans worst nightmare. They want this to be the quake that starts the tsunami that carries them back into office. And it might. In Tennessee. But it has to last. Republicans want it to build up and last.
They want the anger and the rage to boil. And that's the dangerous part. That's what Homeland Security is worried about. Another McVeigh.
And frankly, if this kind of stuff is seemingly ignored by elected leaders, there's always the possibility that a few participants could, like McVeigh, become dangerously radicalized. McVeigh, Rudolph...?
Do you want a debate or the
Do you want a debate or the truth?
I want a straight answer from someone who protested or is sympathetic to the protestors.
BTW, I think there's a threat to Republicans here as well. If they're not careful, they're going to have a third party on their hands.
It almost seemed like local
It almost seemed like local churches got out the attendees/protesters. It was a family affair, quite a few families with children, lots of middle-aged and older folks.
I'd really like to know why they were there as well. I'd say nearly every one of them got the recent tax cut. I'd say they all need decent healthcare and continued employment.
If they're not careful, they're going to have a third party on their hands.
Agreed.
Redistribution of wealth
I read the protest was against the redistribution of wealth.
I for one am happy to see people taking it to the streets. Maybe some folks at BOA, AIG, CTI, GS etc will be just a leeeelte uneasy that someone among the crowd will figure out that the wealth is being redistributed upwards into their pockets.
"Where were they when over four thousands of our best were killed in Iraq"
The very sad part about this is that pro-war demonstrations were organized by, get this, Temple Baptist Church. Which seems to pride itself in being "pro life".
____________________________________
"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."
Maybe some folks at BOA,
Maybe some folks at BOA, AIG, CTI, GS etc will be just a leeeelte uneasy that someone among the crowd will figure out that the wealth is being redistributed upwards into their pockets.
Not as long as the protestors are listening to the likes of Rush and Hannity.
sorry
>>I for one am happy to see people taking it to the streets. Maybe some folks at BOA, AIG, CTI, GS etc will be just a leeeelte uneasy that someone among the crowd will figure out that the wealth is being redistributed upwards into their pockets.
sorry, the guys at BOA, AIG et al are popping the corks of their Veuve Clicquot right now. This is an anti-government rally not anti-corporatism (that's so '60s). There needs to be a showdown between us (the government) and the oligarchy (wall street) before there is any real reform and the banks know it. The oligarchs are very happy to see people in the streets with signs questioning the birth certificate of the leader of the government. For a sobering perspective check out this article in the new Atlantic.
there's a threat to
Worse, they're going to have no party on their hands. It's the disassembling of the party.
And the right wing may feel united in their church or at rallies such as these, in campaigns they will have to have some allies, and right now they have...none.
Don't bother
teabaggers:economics::schiavo protesters:medicine
That was the answer from our resident loser
...am sure you made the same pledge:
In its original form it read:
"I pledge allegiance
Oh effing brother. Give us a break. See Jon Stewart: It's not about tyranny. It's about losing. We were a lot closer to tyranny when the SCOTUS (that's "of the United States" for you grammar school kids) stopped a state vote recount and allowed the guy with the least number of votes to take the office of the President of the United States.
The left wasn't stupid enough to react so stupidly as the tea baggers are doing now, though we would have at least had more reason to whine about tyranny.
These people protesting in public places during business hours need to stop relying on government to coddle them while the rest of us are earning our keep. They need to pull themselves up by their bootstraps and get a damn job. And I hope they had these public (did I say public?) areas approved as "free speech" zones, limited by whatever our government deems safe and appropriate. As for me, I support The President, especially since we're at war.
Tax Cut?
I see no change in the marginal tax rates. What tax cut are you referring to? If it's the small change in withholding rates, that's not a tax cut, it's a reduction in your future refund.
To put it simply, despite what the flier says, your additional take home pay right now will be matched by an equal reduction in your refund next year. The total amount of tax you pay for the year remains the same.
That's not a tax cut.
Offsetting the rhetoric, let's look at the Obama administration's projected deficits over the next decade.
(link...)
If you look only at the Administration numbers, that's President Obama's own estimate of deficits for the next 10 years, you see two very amazing things. First, there is not a single year where his deficit is less than any Bush deficit over the last 8 years. Worse, after a brief period of falling deficits programmed to win a second term, the deficits then rise for the next six years, even by the President's own numbers.
Rachel, that's what we are protesting.
This administration plans to borrow more money than any other in history, including the Bush administration. In fact, going by the non partisan Congressional Budget Office, President Obama will run up more debt than all other Presidents combined.
Rachel, that's what we were protesting.
The financial projection for this administration is one that is guaranteed to reduce foreign investment in our country. Ask yourself this simple question: Would you invest in a company that had a balance sheet that looked like Obama's? Without foreign investment to fund our deficits, we will have to print money to cover the gap. The word for that is inflation, and we're about to see inflation on a scale equivalent to Germany in the 1920-30 period, or Brazil in the 1990's. Our currency will lose it's value, and that's not a pretty picture. I saw the cardboard shanty towns outside of Rio.
Rachel, that's what we are protesting.
This administration plans sweeping invasions of our liberty, by seeking control over all businesses, not just those that take government bailout money. I don't want the government to be able to tell me how much I'm allowed to make; that means that if I am intellectually honest, I can't support them telling any other businessman how much he can make. Additionally, the US government is now taking direct control of private businesses, as exemplified by the recent firing of GM's CEO. When the government controls the means of production, that's the text book definition of socialism. He is also interested in taking control of financial institutions deemed, "too big to fail" whether they have taken tax payer money or not.
Rachel, that's what we were protesting.
Obama plans to "skyrocket" (his word) energy rates paid by the consumer through his cap and trade policy in order to fund research into alternative energy. While the end is certainly desirable, the means, particularly in an economy as weak as this one, will be devastating. To make matters worse, he has gutted the market forces that make cap and trade effective by having the government set the price for the credits, rather than the market. This completely removes the incentive for companies to trade credits since they have no economic advantage to do so. Obama plans to spend the billions generated from the cap and trade on research, while rebating a portion to consumers for their increased energy costs. Here's the problem. If, for example, he increases energy costs by $100 per person per month, and spends half of it for research, he can only refund $50 per month to consumers, meaning we end up paying $50 more for electricity per month. Except it won't be $50, because there's always admin costs, you know, so it will be more like $30. And that rebate will be taxed as income.
Rachel, that's what we are protesting.
President Obama went on TV yesterday and blamed the entire financial mess on Wall Street, the insurance companies, and a conservative failure to regulate the housing industry. Never once did he mention that in 2006, Congress was warned that Fanny and Freddie were in deep trouble because of sub prime mortgages. Never once did he mention that the insurance companies gave the debt securities such a high rating because they were backed by the full faith and credit of the US government. Never once did he mention that the sub prime market originated as a direct response to the Community reinvestment act, and the expansion of that act by President Clinton. Never once did he mention the financial irregularities at Freddie that cost Tony Raines his job, and a place in the Obama Cabinet. In short, President Obama got up before the American people and lied.
Rachel, that's what we were protesting.
Incidentally, I wasn't trying to change anybody's mind; I was there, not "supporting the protesters" but as a part of the protest because I believe everything I just wrote. I was trying to find out what the Obama supporters believed, and why they believe it, but as I've found, there are a lot of people who get very uncomfortable when their faith is challenged, and generally, the fewer facts they have to back up their belief, the more uncomfortable they get. I had a couple of really good conversations with Obama supporters today, gentlemen with open minds who were willing to exchange ideas and perspectives. We enjoyed the give and take of ideas without feeling the need to get personal about it. Of course, there were other, briefer conversations as well, including one man who opened a conversation by insinuating that because I was a conservative, I was illiterate.
I didn't waste much time with him.
Incidentally, from my point of view, this protest was much less a left vs right thing than an authoritarian vs libertarian thing. One of the reasons Dems took control of the Congress two years ago was because of conservative dissatisfaction with Republican spending, among other things. When Democrats took the House, they did it on the backs of blue dog Democrats like Heath Shular, who ran on a platform of fiscal responsibility.
I don't care much which party controls the White House or the Congress. I do care about what they do when they get control. Both parties are guilty of acting to reduce my freedom and my liberty, and I don't trust wither of them. Obama is acting rapidly to curtail my freedom, and for that reason, I oppose his agenda, and I don't care what he tries to bribe me with. Some may sell themselves for $12 a week, but I set a far higher price on my freedom.
And one last point. Some of you were out there trying to say that if I supported public services like fire and police, then I was supporting socialism. You have confused social spending with socialism. Socialism is defined as state ownership/control of the means of production in order enforce an egalitarian society. Somehow guys putting our fires for a living doesn't seem to meet that definition, but nice try.
Rachel, I hope this answers your questions.
I need some time to digest
I need some time to digest and reply to this (and I really didn't need to see my name repeated n times), but I appreciate the thoughtful and specific nature of the response.
This was the kind of thing I was trying (and failing) to get out of #9.
Thanks.
Bizgrrl, Thanks for the
Bizgrrl,
Thanks for the reports. Sorry you had to endure such crap.
Hey Rich,The new
Hey Rich,
The new adminstration is actually having to pay for what Sen Phil Gramm and his wife, Wendy, an Enron board member, wrought on this country. (see Commodities Futures Modernization Act of 2000).
snuck in, I might add, to an 11,000 page appropriations bill in December 2000 while the entire country was fixated on the Florida recount.
Yes! Thanks, bizgrrl, for
Yes! Thanks, bizgrrl, for the reporting. I especially enjoyed the pics, which kind of speak for themselves, and am looking forward to the video tomorrow.
You are more than welcome
You are more than welcome Rachel. And sorry about the repetition. It was a failed attempt on my part to be literary and stuff...
there are a lot of people
there are a lot of people who get very uncomfortable when their faith is challenged
Bingo.
Obama is challenging the faith in the Bush/Cheney idea of "free markets" (which should have been done by Congress a long time ago) to solve every problem.
It apparently makes a lot of people uncomfortable.
Especially those who weren't been paying attention (or worse cheerleading) while the Bush/Cheny "free markets" created a lot of problems and made us all uncomfortable.
Not to mention faith in ancient scripture v. evolving science, faith in guns and violence v. peace and understanding (as taught in the very same scriptures), etc. and so on.
Lots of words from Rich to
Lots of words from Rich to Rachel.
Shorter version for Rachel--
Follow these simple steps and you can soon be hosting your own tea party.
Step 1. Read these books by Kevin Phillips: Bad Money and American Theocracy. Pay careful attention to how this former Nixon-staffer lays out in advance how the train wreck "no one saw coming" will be choreographed.
Also, read John Dean's (another Nixon staffer coincidentally) excellent Conservatives Without Conscience and Broken Government.
Step 2. Ignore everything you've read in those books (and any of the many good sources each cites) and blame it all on Obama. It's just easier than accepting some hard truths.
Step 3. Get yourself worked up in a good lather because the Obama administration is having to beg, borrow, and print money to pay for adventures created by the Deficit Presidency, but not feel compelled to have spoken up about these adventures (except in support of them) for the past eight years.
Step 4. Practice standing in front of a mirror to say things like this without dissolving into laughter like Harvey Korman during a Tim Conway sketch:
Step 5. Become a firm believer in just about any boogeyman you can, no matter how ridiculous it may seem. (Government requirements to stop banks from discriminating on loans based on the race of the applicant caused the meltdown! ZOMG!) Remember, the key is to absolve yourself from your role and to find a way to blame the Other. Feel compelled to pass along your half-baked theories at will.
Step 6. Become one with the zen that is cognitive dissonance. Criticize Pres. Obama for blaming Wall Street, the insurance companies, and the era of deregulation:
...and in the same breath, be sure to criticize him for not blaming Wall Street, the insurance companies, and the era of deregulation:
Step 7. Rinse, lather, repeat.
In step 6, I believe you had
In step 6, I believe you had trouble understanding the point. I wasn't criticizing President Obama for not blaming Wall Street, the insurance companies, and the era of deregulation. I was pointing out that the security rating companies were rating the debt backed securities as AAA because the securities were backed by the US Government. Unless you believe that the full faith and credit of the US isn't worth a AAA rating, then those securities were accurately rated. This contradicts what Obama said Tuesday when he claimed that the securities should have gotten a lower rating.
Rich, your analysis of the
Rich, your analysis of the economic crisis only makes sense inside the bubble of lies relentlessly pushed by Fox, Limbaugh, Rove, etc.
Fannie Mae doesn't issue subprime loans; they are not allowed to. The Freddie/Fannie exposure to subprime came not through issuing loans, but through investing in securities derived from other lenders. Their bailout is estimated at $25B, a fraction of what has been needed to stabilize the major culprits.
It was private lenders like Countrywide and WaMu that wrote most of the risky loans, and the pressure to do so did not come from CRA or the government. It came from exploding demand for collateralized securities, an unregulated market created by the legislation rocketsquirrel mentioned. Those securities got high ratings because "quants" developed complex formulas that appeared to make the risk vanish, and most investors swallowed their mathematical hocus-pocus.
The risk did not vanish, of course. Most of it wound up in AIG's lap, and they were insuring against defaults not with actual capital, as is the case in regulated insurance markets, but with paper assets. Restoration of the liquidity on which our economy depends and salvage of everyone's savings now depends on gracefully unwinding this financial tangle.
The confused and superficial analysis exemplified by the teabaggers is anything but graceful. This crisis was brewed in the elite boardrooms at the pinnacle of capitalism, the same boardrooms that are now sucking trillions from our Treasury. Babbling about "corporate takeovers" and "socialism" is as sad as it is false.
Rikki, you're half right.
Rikki, you're half right. Fannie and Freddie don't issue any loans. They buy them from lenders. They can only buy loans that meet certain criteria however. In 1999, the Clinton administration put pressure on the two FMs to lower their standards to buy more sub prime loans.
From the NYTimes:
(link...)
The two FMs then package those loans into debt securities and sell them to investors. This was very profitable for Fannie and Freddie until the housing market began to slow down. The securities stopped selling, and the two mortgage giants found themselves in a hole. It didn't help matters that under Franklin Raines, Fannie Mae overstated profits by billions, leading to his dismissal and record fines for Fannie.
Ah, so I should have said
Ah, so I should have said "underwrite" instead of "issue." Thanks for the correction. I guess the half that I'm right about is all the stuff you ignored, where I pointed out that Fannie's piddly $25B role in this multitrillion-dollar crisis places them nowhere near the center of blame.
Stacey X, Teabagger Hero, Deadbeat Landlord
Knoxville's teabaggers were evidently different from those in other cities, which were designed to appear to be strictly grassroots, nonpartisan affairs. Here, elected officials were invited to speak. Our teabaggers sat at the feet of Mike Hammond and Stacey Campfield, who bravely returned from Nashville for the occasion, dodging process servers along the way.
(link...)
"Bahama Obama" buttons, Lumpy Lambert, Campfield.
Jeeze, Louise.
Do these people have anything beyond their own blatherings to back their contention that they're fixin' to take the country back in 2012?
Knoxville's teabaggers were
Ron Ramsey and Marsha Blackburn spoke before the Nashville tea bag brigade.
____________________________
Dirty deeds done dirt cheap! Special holidays, Sundays and rates!
Ron Ramsey and Marsha
Oops.
So much for the bottom-up grassroots non-partisan movement.
We do not want and will not
If anyone was skeptical about what Homeland Security is thinking about, the above is your proof of the danger.
The above words are threatening. Not political. Not campaign rhetoric. Not slogans. Just threatening.
So this fight for the future will justify anything in your eyes and your friends' eyes?
Don't underestimate the power of this garbage.
It was a mass hallucination created, fed, and manipulated by the leaders of Germany that led to the Holocaust. Same thing for Rwanda. Same thing for Oklahoma and 9/11.
Catch the news and the picture of the upside down U.S. flag in Nashville?
This stuff is bad, very, very bad news.
Don't underestimate the
Don't underestimate the power of this garbage.
The same guy who concedes that torture, with its extensive and damning paper trail, will be swept under the rug is telling me a mob of fools is a serious problem? If defeatists like you and Pelosi were not giving cover to criminals, the Republican propaganda machine would never have been able to amass moron mobs like we saw today.
The word for that is
Bullshit.
Let's start with the basics.
Let's start with the basics. If you print money and inject it into the economy when the economy has not increased in value, the net result is always inflation. It cannot be otherwise. TARP 1 injected hundreds of billions of dollars into the economy,
http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&s[1][id]=AMBNS&s[1][range]=5yrs
as will the stimulus package when it really kicks in 2 years from now. The inflationary pressure is undeniably real. The reason the inflation linked securities aren't mirroring this pressure is that the short term markets are still seeing some deflationary trends based on the contracting economy.
Additionally, much of the TARP money never made it into circulation, being used instead to improve the banking industry's balance sheets in a largely successful attempt to prevent additional failures. By remaining on the balance sheet instead of being injected into the economy, the inflationary aspects of TARP 1 were minimized.
It was a very slick piece of work.
Unfortunately, the Obama budget will dwarf TARP, and it will all be injected into the economy. Once the deflationary aspects of this recession subside, the inflationary pressure will take over, and we will see just how bad it will get.
So no, it isn't bullshit.
The fact that the economy
The fact that the economy has decreased in value only increases the inflationary pressure of expanding the money supply, making the problem worse over the long haul. And, as I pointed out, the deflationary aspect of a contracting economy is what is the uncertainty in the inflationary indicators. Once the recession ends, that brake on inflation will abate, and then all bets are off. So you see, I did account for the current economic contraction in my analysis.
As for your reference to monetarism, you can steer a car down a road with a steering wheel or you can run it into a bridge abutment. Disagreeing with the guy at the wheel about the direction he's going is not the same as trying to say that the steering wheel doesn't work. No cognitive dissonance here.
Riiiight. Perhaps you could
The inflationary pressure is undeniably real.
Riiiight. Perhaps you could put in a call and set the market straight. I'm sure it would be much appreciated.
...and the FOMC, while you're at it.
The same guy who concedes
I thought that journalists were supposed to get the facts before they made claims of "truth."
You're making a lot of assumptions about me that are simply unfounded.
And I don't get the last part. How are Pelosi and I "giving cover to criminals?"
I simply told you what's likely to happen with the torure issue. If you interpret that as advocacy, you must have missed something important in Journalism 101.
If you want a debate, go somewhere else on this board and quit trying to take something I said and make an issue out of it when it's clearly a non-issue.
What hath their Mighty Wurlitzer wrought?
Rich, 9, and their pals need to dial back the hate a few notches. Seriously, for the good of the country. Obama won. Get over it. You guys had your dream team in there for eight years, remember? As Randy put it best, that was the train wreck. To the extent that President Obama is doing things differently, it's what the electorate ordered. Why do you guys hate democracy? Rich? 9?
Nine and Rich said the same
Nine and Rich said the same thing. The difference was the number of words. I don't want this to be like France. Who wants 60% taxes?
Who wants 60% taxes? Well,
Who wants 60% taxes?
Well, yes, because letting the top marginal tax rate go back to 39% is EXACTLY like setting it at 60%.
Sheesh.
39% income tax plus FICA
39% income tax plus FICA plus state taxes, sales taxes, property taxes, city/county taxes, etc will certainly reach 60%.
Well, yes, because letting
Well, yes, because letting the top marginal tax rate go back to 39% is EXACTLY like setting it at 60%.
I was referring to the tax rate in France.
You people aren't capable of discussion. You think you are so smart. But you can't even understand a simple statement.
You know, I kind of hate to
You know, I kind of hate to even point this out to you, since you seem to be so smug in your ignorance and I hate to burst your bubble, but here's the thing:
Yes, I know you were referring to the tax rate in France.
The top tax rate in the USA is currently around 36%. Letting the Bush tax cuts expire (which is the only additional income tax Obama has proposed) would raise it to around 39%.
Hence, my sarcasm that you would suggest we are to become "like France." 39 does not equal 60.
BTW, unless you make a heck of a lot of $$$, you're not paying anywhere close to that 36% now.
Hence, my sarcasm that you
Hence, my sarcasm that you would suggest we are to become "like France." 39 does not equal 60.
Yes, we will become like France. There isn't enough money anywhere to pay for the spending of Obama.
Your sarcasm is denial. This is the beginning of a european social democracy. That is why you people cannot stand Nine and Rich. They call you on it. Deny it what everyone else can see. It doesn't change reality.
Yes, we will become like
Just like France. Just like we did the last time we had to save the banks from themselves?
You do know that bank panics occurred at a rate of about once a decade until 1933, right? That we had two central banks prior to the Federal Reserve that had themselves failed, right? And that we haven't seen a banking emergency since the New Deal until the LTCM crisis, right?
I mean, call this crazy, but... is it even possible that you're worrying about a boogeyman here, and that you're the one who's screaming into his pillow at night over nothing?
____________________________
Dirty deeds done dirt cheap! Special holidays, Sundays and rates!
Yeah, who wants that?
When you can pay 17% in FICA, 28% in income taxes, and another 20% to 25% of your income in health insurance, and maybe 10% for for higher education? Why pay ONLY 60% in taxes when you can pay much more and get worse health care?
On the subject of Hate
As a lurker I am constantly amazed at how easily and quickly the people here start hurling slurs and insults at any one who has a difference of opinion and then rant about the hate spewed by the conservatives. If an objective third party were analyze the comments offered by the regulars here the results would verify that true hate mongers are alive and well in Knoxville. They aren't all conservatives either. You guys make Rush and Hannity look like saints. It would be really nice if you folks could learn how to disagree without being so mean, nasty, and ugly. I come here to hear the liberal point of view but all I see is a lot of name calling and mud slinging. If you want to be taken seriously, try talking about our beliefs without being so angry and ugly to one another.
It is really unfortunate that we have reached a point in our politics that party take precedence over what is good for the country. It is really dragging our country down.
Yeah
Yeah, and I remember when this became a reality for me, back in the days of Nixon. Too bad the GOP went down that path 'cause us crazy leftists are usually amenable to reasonable compromise and know the difference between truly loving our country and just using the flag as a prop. :-)
"The arc of the moral universe is long, but it bends toward justice."
insults & CRA
"It would be really nice if you folks could learn how to disagree without being so mean, nasty, and ugly."
I agree, nobody. But if you look closely, you will see that the insults are being hurled by only a small number of posters.
Rich, I agree with you about inflation being the probable result, that is if we don't suffer an economic meltdown.
I hate to see people lay the blame for this crisis at the feet of the CRA. Do you have cites for the "expansion under Clinton" ? CRA was instated to stop redlining in poor neighborhoods, which have lower housing costs. By my reckoning, any defaults due to CRA would be a drop in the bucket. The big losses come from the high priced new subdivisions and speculative condos.
BTW, at the time, Fanny and Freddy didn't have the full faith backing of the US government. Thus no reason for the AAA. Plus the rating co.s were giving AAA to other bonds as well. If you believe in the free market, as I do, I hope you believe in the free exchange of information. There would have been very few pensioners and foriegn governments investing in these junk bonds had they known their real value. Without the junk bonds the housing market would not have inflated to the point where foreclosure became a major issue.
____________________________________
"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."
CRA was instated to stop
Rich can't cite you a study.
(link...)
(IMC = independent mortgage company)
Hell, even the Cato Institute says that CRA isn't at fault.
(link...)
____________________________
Dirty deeds done dirt cheap! Special holidays, Sundays and rates!
Link... In a move that could
(link...)
(link...)
42% of the portfolio isn't a drop in the bucket.
The CRA was not the only cause, but it was a root cause. As I said, you also have to factor in the proliferation of debt backed securities, not to mention some Enron style accounting during the Raines era. Greed played a role, as it always does. CRA started with a good purpose, but it was abused during the Clinton era.
The sad part is that we had warnings in 2006 that this was coming, but Democrats in Congress blocked any reform, calling attempts to fix the mess attacks on minority housing. We've all seen the video of Shumer and Rangel tearing into the folks who testified that Fannie and Freddie were headed for a meltdown.
What I think is really interesting is that these same debt backed securities are now being bought by the Fed in order to inject more money into the economy. It's like we're making the same mistake twice. The belief is that the securities themselves are still good because they are backed with real assets,and at some point in the future, once this credit logjam clears, those assets will be worth more than the purchase price of the securities.
Like you said, as long as the economy does't completely melt down, that's a fair bet.
Loans to low- and
Loans to low- and middle-income home buyers are not the same thing as subprime loans. Subprime is defined by the level of documentation required of the borrower, and Fannie never stooped to the levels of private mortgage issuers. Furthermore, Fannie loans, even those to low-income buyers, have proven less likely to default than PMC loans. Fannie does fixed-rate mortgages, not ARMs.
There are plenty of foreclosures in higher income brackets, where home owners with good credit and solid incomes were pushed above their means by predatory lenders or teased into refinancing into ARMs. There are plenty of defaults in commercial real estate and among house flippers.
You are skimming just the facts that conform to your premise and ignoring the bulk of the evidence. Your analysis falls far short of accounting for the scale of the crisis, and it is asynchronous with the onset of the crisis. It has little explanatory power and serves only to excuse your prejudices.
The event concluded with a
(link...)
An oath? Like the military?
Tennesseans have no right to complain when it comes to federal taxes (link...)
The proclaimed basis of this rally is that between those still in shock from last November, and those who don't really have lives other than looking for the next thing to fear (the next Y2K is a ways off) or hate, is really nonexistent for the people of Tennessee.
I'm living in NM right now,
I'm living in NM right now, and I'm not surprised at all by its position at the top of that list. There are only about 2 million people in the whole state. The BLM is the largest landowner, followed by the state and a number of Indian Pueblos. Indian Pueblos are recipients, and justifiably so, of a fair amount of federal dollars. In addition, there are at least two major airforce bases-- Kirkland and Alamagordo-- and two of the country's national labs-- Sandia and Los Alamos. Finally, there is an awful lot of national parkland. Add all that together, and the 2/1 makes more sense.
Hey, they were down with it then
Bet he wasn't screaming in his pillow while Bush was spending $200 million/day off budget for his little "6 weeks maybe, I doubt 6 months" invasion of a country not responsible for 9/11. And there were trillions more spent then that was just fine. "Reagan proved deficits don't matter," etc.
Here's a thought. Obama is war president too. So he can pretty much do anything, right? Or IOKIYAR? The fun thing is that we can hang them with only their own words and logic, such as it is.
About the only thing all
About the only thing all this teabag frenzy demonstrated was the remarkable number of gullible Americans who actually believe that the propaganda machine of Ronald Reagan's brain is a news outlet.
Visit us at:
The Home
We have seen this
We have seen this future.
This same core was inspired by Sarah Palin and Joe the Plumber.
The two people that pushed away moderates and Independents in droves on election day.
The GOP needs to seriously ask itself if it wants to continue to be led in this direction by these people, because as November proved, the tea-partying groups will lead to the continuing marginalization of the GOP, and it's message.