More Early Warnings
Robert Berner and Brian Grow of BusinessWeek wrote on some other people warning about problems: States warned about impending mortgage crisis
More than five years ago, in April 2003, the attorneys general of two small states traveled to Washington with a stern warning for the nation’s top bank regulator. Sitting in the spacious Office of the Comptroller of the Currency, with its panoramic view of the capital, the AGs from North Carolina and Iowa said lenders were pushing increasingly risky mortgages. Their host, John D. Hawke Jr., expressed skepticism.
Was there anyone not on Wall Street or in Washington who didn’t warn it was going to happen? North Carolina and Iowa are not exactly “socialist” states, so why wasn’t anyone listening? In the article it is explained that the Federal government didn’t just refused to regulate, they prevented the states from doing anything.
2 comments
I’m temping at our County’s Election Office. The Economy has devestated our County’s coffers, along with all the money spent fighting fires.
Everyone who is a permanent employee is being forced to take 2 weeks sabatical near the holidays to save some moolah.
Oh, and for all those politicos wanking up in Sacramento about how they don’t have any money….looks like they are planning yet another election in March or June of next year. (add that to the four we’ve had here locally…)
Florida is in terrible shape. Local government depends on property taxes, and house prices and, therefore assessments, has dropped through the bottom. Making things worse is an amendment that mandated property tax cuts. Local governments have had no choice but to cut jobs and services, and the state isn’t seeing any sales tax revenue because of the recession.
The Republicans just don’t get it – you have to build up a reserve when times are good, to carry you over when times are bad. Just cutting taxes doesn’t help anyone.