person you won t have trouble getting a loan. mortgage rates near historic lows. any industry where the government tried to make getting a loan more affordable, college, sallie mae or the farm home loan bureau, we have had to false go up. the government needs to get out. david: neil, government intervention often has the opposite consequence of what the government intends. right? it comes at no surprise that washington has not learned this lesson, there was a bill, a bipartisan bill to put forth this week, which is suggesting that we replace fannie and freddie with new organizations, which are basically going to do the same thing. have a little bit more of a capital cushion, but continue kicking the can down the road. let the government subsidize the market. so the taxpayers are ultimately on the hook. david: the last thing we need is another fannie or freddie. up next, you know it. i know it. why is the government still denying that prices on everything, everything where, are no
and credit cards. and want financial firms and banks to bolster their capital cushion. also, new rules around too big to fail. they are saying that they would create a nine person advisory oversight council to sound the alarm before the company could get to the point where they could affect the rest of the financial system. think of aig and lehman brothers. there will be clearing house that s would clarify the value of these trades and make the rating agencies more responsible if they then take into account some of the information and analysis out there about some of these companies and whether or not they were healthy or noxt they were saying if they didn t take that into account in setting up the overall ratings to see if this is stock worth investing in, at that point they could be up for lawsuits which would be changing things a lot. no time line on when the senate
not indefinitely, because there s no doubt that if the united states continues down the road that hank has been correctly identifying, we re going to find that our ability to borrow is going to get restrained because throughout our history we have always maintained a capital cushion, cushion between our borrowing capacity on the one hand and the level of debt on the other. that is beginning to shrink. and if we get to the point where we are having difficulty selling our security, treasury issues, then interest rates begin to move and our ability to move internationally to essentially be the major currency, the major economy, the major economic power in the world, is significantly diminished. history tells us that great powers when they have gotten
not indefinitely, because there s no doubt that if the united states continues down the road that hank has been correctly identifying, we re going to find that our ability to borrow is going to get restrained because throughout our history we have always maintained a capital cushion, cushion between our borrowing capacity on the one hand and the level of debt on the other. that is beginning to shrink. and if we get to the point where we are having difficulty selling our security, treasury issues, then interest rates begin to move and our ability to move internationally to essentially be the major currency, the major economy, the major economic power in the world, is significantly diminished. history tells us that great powers when they have gotten
me right between the eyes being in washington is it s very, very difficult to get congress to act on anything that s big and difficult and controversial if there s not an immediate crisis, and so what it s going to take to get leaders on both sides to come together and deal with this i think is a huge question. and dr. greenspan, larry somers has said in the post, he asked a very provocative question, which is how long can the world s biggest borrower remain the world s biggest power? not indefinitely because there s no doubt that if the united states continues down the road that hank has been correctly identifying, we re going to find that our ability to borrow is going to get restrained because throughout our history we have always maintained a capital cushion, a