The Perfect Storm

This article explains pretty well how we came to such an economic standstill:

"It was a perfect storm," Velshi said. "It was a lack of regulation, it was greed and creativity in the financial industry, and it was an American dream that got off track."

http://www.cnn.com/2009/US/01/29/economic.crisis.explainer/index.html

 

Did I just hear correctly that illegal aliens will be getting tax credits under the new stimulus plan?

 

I don't accept that.....by the same token I don't accept the conservative argument that is was excess government intervention into the free market that sub-optimized the system.

There is no question that ineffective and misguided regulation played a material role in the crisis. In some cases, poor regulation....in some cases non-existent regulation and in some case excess regulation. I'm don't believe you can point a finger at any in isolation, but taken in combination, the cocktail was lethal.

I can tell you from firsthand experience that regulators incented bank management teams to extend credit to individuals, organizations and areas whose ability to repay was materially in doubt......further, given that the organization was incented by the regulatory agencies, it follows then that the managers themselves were incented similarly. I have personally been in the board room as the entirety of the executive management team reviewed the results of these efforts.....and I have seen management teams taken to task and threatened when such efforts were not up to the expectations of federal regulators.

I have seen entire organizations paralyzed and indeed held virtual hostage by community organizations - i.e, ACORN - while material organizational resources at the highest levels were compelled to enhance, improve increase their commitment to both planning and executing plans to substantially increase lending to individuals, organzations and areas whose ability to repay was marginal at best.

When people are paid bonuses to make bad loans it doesn't take a rocket scientist to figure out what's gonna happen......

Let me be very clear. This was NOT the sole cause of the debacle. As I said before, this credit orphan has many fathers and fingers can be pointed everywhere from Main Street to Wall Street to Capitol Hill, but to suggest that lack of government regulation was THE reason is unadulterated bullsh!t.....imho.

 

BT....that was as insightful as any post you have made.

Thanks

 

WASHINGTON (AP) - The $800 billion-plus economic stimulus measure making its way through Congress could steer government checks to illegal immigrants, a top Republican congressional official asserted Thursday.
The legislation, which would send tax credits of $500 per worker and $1,000 per couple, expressly disqualifies nonresident aliens, but it would allow people who don't have Social Security numbers to be eligible for the checks.

http://www.breitbart.com/article.php?id=D960U4HG0&show_article=1

 

Now.. I'm not very smart... but the government defines the non-resident alien as:

"A nonresident alien is an alien who does not meet either the IRS's green card test (i.e. a lawful permanent resident) or substantial presence test. These test are discussed further in IRS Publication 519.

Now that would seem to prevent illegal aliens from receiving the benefit... but then it states that it would allow those without an SSN to receive benefits. Considering that non-resident aliens still have to file income tax

source here

What is to prevent illegal aliens from filing for the benefits?