John McCain feels that entrepreneurs are the "heart of American innovation." He feels that they create jobs for others (which is true) and better opportunities for others just in case they are fired are laid off. Therefore, entrepreneurs will always bring about a surplus of jobs. The economy at the present moment is in jeopardy and many businesses are laying off their workers. The small businesses can begin to grow while they are able to choose from hundreds of laid off workers, therefore the rate of the jobless will decrease. John McCain will keep the tax rate at 35% and he wants to maintain 15% rates on dividends. "Small businesses are the heart of the job growth."
John McCain also wants to ban Internet and cell phone taxes. Everyone in the United States uses their cell phone and their Internet at least 4 times or more in a day. By taxing people each time they make a phone call, or use the Internet, some people find it hard to afford to purchase one, since the economy is not doing well. McCain feels that, if someone uses their cell phone for emergencies only, and they need to call 911, they immediately get taxed. Students, who use the Internet for school, get taxed constantly. His main goal is to eliminate what threatens economic growth and prosperity. The one thing this country needs is economic growth and prosperity and i feel that the candidate should do whatever they could to keep our country as prosperous as possible. John McCain feels that it is important to keep the amount of jobs up in the country. Without jobs, there is a decrease in spending and everything begins to fall, like a domino affect. John McCain feels that cutting the tax rates could help the country prosper is indeed a good way to start. When corporate America begins to fail, what else can hold our country together without making everyone jobless and homeless? The small businesses are the key.
Monday, November 3, 2008
Wednesday, September 17, 2008
Fannie Mae&&Freddy Mac
The Federal National Mortgage Association (FNMA) also known as Fannie Mae was founded in 1938 as a government agency that was created during Franklin Delano Roosevelt's New Deal. Fannie Mae is a government sponsered enterprise which is publicly owned that is used to make loans and loan guarentees. This helps provide liquidty to all of the primary mortgage markets.
Fannie Mae became a large monopoly in 1968, which is when the government stepped in (absence of Lassiez-Faire) and decided to convert half of Fannie Mae into a private corporation. The Federal Home Loan Mortgage Corporation (FHLMC) also known as Freddie Mac was the other private corporation. Freddie Mac was created in 1970; the corporation buys mortgages on the secondary market, pools them and sells them as mortgage backed securities to investors.
Up until recently, Fannie Mae and Freddy Mac seemed "too big to fail", but because of the "behind the curtain" events, no one was watching out for the business. Therefore this eventually led to a domino effect, and the company slowly began to fail because of "extensive financial fraud." Both companies did not raise enough money to reassure Wall Street that they would be able to withstand a downturn. If both companies were being watched carefully, then people who did not own jobs would not have been given mortgages they would not beable to afford. This did not only happen with Fannie Mae and Freddy Mac, but it also recently happened to AIG and Bear Stern. What this country needs is more support, and more people to watch the "behind the curtains" activites. Last year, Fannie Mae had 2.8 trillion dollars worth of mortgages and 23% of U.S mortgage debt.
The U.S government ended up taking control over Fannie Mae and Freddy Mac and decided to place the liabilities on the taxpayers of the United States. Both companies are now placed in the control of the Federal Housing Finance Agency. By seizing back both Fannie Mae and Freddy Mac the government will be preventing several actions.
1. If AIG, Bearn Stern, Leighman Brother's all fall, and there happens to be a company still standing, the last company standing could form into a monoply, which will create issues for example like during the times of the railroad monoplies under control on Vanderbilt.
2. If the government did not help, besides the most obvious, the economy beginning to fail, the people would loose their homes, all of their mortgages...ect.
Fannie Mae became a large monopoly in 1968, which is when the government stepped in (absence of Lassiez-Faire) and decided to convert half of Fannie Mae into a private corporation. The Federal Home Loan Mortgage Corporation (FHLMC) also known as Freddie Mac was the other private corporation. Freddie Mac was created in 1970; the corporation buys mortgages on the secondary market, pools them and sells them as mortgage backed securities to investors.
Up until recently, Fannie Mae and Freddy Mac seemed "too big to fail", but because of the "behind the curtain" events, no one was watching out for the business. Therefore this eventually led to a domino effect, and the company slowly began to fail because of "extensive financial fraud." Both companies did not raise enough money to reassure Wall Street that they would be able to withstand a downturn. If both companies were being watched carefully, then people who did not own jobs would not have been given mortgages they would not beable to afford. This did not only happen with Fannie Mae and Freddy Mac, but it also recently happened to AIG and Bear Stern. What this country needs is more support, and more people to watch the "behind the curtains" activites. Last year, Fannie Mae had 2.8 trillion dollars worth of mortgages and 23% of U.S mortgage debt.
The U.S government ended up taking control over Fannie Mae and Freddy Mac and decided to place the liabilities on the taxpayers of the United States. Both companies are now placed in the control of the Federal Housing Finance Agency. By seizing back both Fannie Mae and Freddy Mac the government will be preventing several actions.
1. If AIG, Bearn Stern, Leighman Brother's all fall, and there happens to be a company still standing, the last company standing could form into a monoply, which will create issues for example like during the times of the railroad monoplies under control on Vanderbilt.
2. If the government did not help, besides the most obvious, the economy beginning to fail, the people would loose their homes, all of their mortgages...ect.
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