Phil Angelides on the Financial Crisis Fallout

Wednesday, November 09, 2011

Chairman of the Financial Crisis Inquiry Commission and former two-term California State Treasurer Phil Angelides discusses the global financial crisis the responses to it--including the Euro Zone debt crisis and the Occupy Wall Street protests.


Phil Angelides

Comments [50]

Jack Jackson from Central New Jersey

Here is some remedial reading for the mayor....and anyone else still trapped in the thinking that Congress - through over-stimulation of housing ownership by Freddie Mac and Fannie Mae...

Nov. 17 2011 08:42 AM
Jack Jackson from Central New Jersey

@meatwnyc - I suggested elsewhere on IAFC blog that it is time we recognize that the Internet has grown up and establish sales tax on Internet sales. This money should go back to the states to replace the sales taxes that they are now losing. The Fed gov't should establish a single standard and method for taxing eCommerce for which they can have a small (less than one tenth of 1 percent) fee for maintaining a single system. The banks can go pound sand.

Nov. 09 2011 08:26 PM
Jack Jackson from Central New Jersey

Mayor Mike is showing obvious signs of what I call 'FoxNews' Syndrome. By repeating a factually unsupported viewpoint as fact over and over the propagandists at NewsCorp bend the minds of viewers/listeners. Terry Schiavo is alive; Iraq has a WMD program; etc. Other cults have used this tactic and certainly the Left has its wacko theories - Bush Let it Happen on Purpose - but I don't think that anyone has used it to to sway so many normally rational people. It verges on religion.

Nov. 09 2011 08:19 PM
amalgam from NYC by day, NJ by night

NY Gov. Cuomo's role as HUD director in influencing Fannie and Freddie in taking on more subprime loans, at the behest of mortgage brokers, bankers and other financiers (from a 2008 Village Voice expose):

"But Cuomo was closer to the GSEs' most formidable opponents—namely, the Mortgage Bankers Association (MBA), regarded as the most influential private real-estate finance lobby in Washington, and the upstart FM Watch, a new coalition of heavyweights from Chase to AIG. Both of these groups wanted Cuomo to put as much affordable-housing pressure on the GSEs as he could, and they said so in their releases and newsletters. They opposed what they called Fannie and Freddie's profit-driven "mission creep," which they saw as a publicly subsidized invasion of their high-end mortgage market. Their goal was the same as Cuomo's: to push Fannie and Freddie deeper into low-end mortgages, consistent with the mission statement in their charters..."

Nov. 09 2011 12:34 PM
anna22 from new york

"Excellent segment! You couldn't have a guest whose views more closely resemble how I think!"
What so wonderful in this segment, Jack?
I can assure you that the fact that this guest's views reflect yours doesn't make this segment excellent. Au contraire, au contraire .
Oh, people. No hope...

Nov. 09 2011 12:08 PM

@Jack Jackson - not really "@", more of an addition...

I have some ideas how to deal with the "maldistribution" of income. It doesn't even involve making the rich pay "more" - it involves making them pay "as much". Ever finish dinner at a restaurant and the waiter asks: "Will you be paying with ordinary income or capital gains?". I would suggest we tax income as income, regardless of source. Capital gains already have the benefit of time on their side, in that they grow until realized.

I would also suggest doing this - taxing all income - on payroll taxes, and taking off the cap on social security. This could be done while at the same time lowering overall income tax rates by the corresponding amount that payroll taxes would rise so there would be no net change to tax rates. In fact, I think overall tax rates would be able to fall.

Nov. 09 2011 11:32 AM
Chris Sullivan

Phil Angelidis stated, even among the members of the committee the facts are difficult to agree on. Most people, even Mayor Bloomberg, have opinions, but not his forum, that aren't completly accurate. I would like to hear a lengthy (not a short segment) debate between Angelidis and any who challenge his views with Brian Lehrer moderating.
A short outline would include:
Who and/or what caused the problem?
The problem in perspective.
What are the solutions?
How to implement them.

Nov. 09 2011 11:30 AM

I wasn't commenting on you're political party, it's irrelevant to me; I was commenting on the statement. Truthfully, I'm not a big fan of either party, but what I hear in the mainstream media is the constant parroting that the problems we're in now are a result of the current administration and they could all be solved if they just cut taxes more and stopped regulation.

Incidentally I don't need to look up social democrat, I know what it means. My guess from that is we actually agree on a lot. I just didn't agree with the statement.

Nov. 09 2011 11:14 AM
Jack Jackson from Central New Jersey

@JoeCorrao -

Where did *you* learn your economics and economic history?? Sounds like Clarence B. Carson's ideologically tainted bilge to me...How did your econ instructor explain the four years that Hoover and the GOP had to set the economy back on track? They can't. But they can CLAIM that all of FDR's actions made it last for 15 years. Sheesh! What dreamers you all are.

I don't know how our country is going to correct the maldistribution in income but I know it can never happen with a 'rising tide raises all boats' strategy since the 1% are already taking way more than their productivity warrants. Their income (as a pct of GDP) has to fall. How to put that earning power back into the middle where it will do some good is the issue.

Nov. 09 2011 11:13 AM
anna22 from new york

I am a Social Democrat (the only one in this land? - look up the word), not a Republican. I don't listen to Republicans. I do have (independently from Republicans) a problem with Obama whom I despise with all my heart.

Nov. 09 2011 10:59 AM

It's almost as terrifying as the same idiotic repetition of "It's the Democrats, it's Obama, it's too much regulation"...

Nov. 09 2011 10:53 AM

... and Martin CheeselWiz:

Thank you for demonstrating your limited capacity, one again.

Nov. 09 2011 10:53 AM

Phil Angelides, thank you for stating the facts and illuminating the lies and hypocrisy.

Nov. 09 2011 10:51 AM
anna22 from new york

OK, I do have to add (what I subtracted in my first comment)
The level of education (and discussion) is terrifying. It's the same idiotic repetition of "It's the Republicans, it's Wall Street" and that's probably all the privileged "corner office" "liberals" can come up with . Their range of topics, their range of arguments, their understanding of issues would be comical, if ....
Because of this if... the situation is tragic.

Nov. 09 2011 10:49 AM
Jack Jackson from Central New Jersey

Brian -

Excellent segment! You couldn't have a guest whose views more closely resemble how I think!

I think the mayor just provided you with another segment....Why do so many people go on believing things that evidence has shown not to be true?!? How many times do the ideologically "possessed" need to be told the truth in order for it to sink in? Mike Bloomberg is a very bright guy and even he can't resist his prejudice. (I don't mean prejudice in the racial way.)

Nov. 09 2011 10:41 AM

greeks haven't been paying taxes. thats the issue

Nov. 09 2011 10:38 AM
anna22 from new york

Finally, an intelligent caller called and forced me to slightly modify my comment. I was irritated by the idiotic bubbling about Wall Street and government without mentioning .... the real problem, namely, the structural problem. Most people who lost their homes, lost them because ... their salaries were ridiculously low and no amount of work hours (80 per week for example) could help or ... because they lost their jobs (cost cutting, outsourcing, insourcing)
Without addressing the real American problem - the unfetrered capitalism - any "discussion" is just idiotic and distracting bubbling.

Nov. 09 2011 10:34 AM
amalgam from NYC by day, NJ by night

Rightwingers and the Republicans just got the smackdown on their cause du jour of "government policy (Am. Reinvestment Act) brought down the US economy"! As Angelides articulated, the most "pernicious" implementers of poorly placed (and sometimes illegally granted) subprime loans were NOT subject to the ARA. Fannie and Freddie have acted terribly, without a doubt, but people, including Bloomberg are just plain wrong.

Keep bringing Angelides back and have him debate all-comers, sounds like he's champing at the bit after slapping down Bloomberg's inaccuracies, he the head NYC financial cheerleader.

Nov. 09 2011 10:34 AM

gotta make it first...if we think spending starts it off we have it back asswards people spend and all will be's dangerous to tell people to spend without a manufcaturing base

Nov. 09 2011 10:34 AM

Ron Paul has a plan? Seriously?

His idea is basically to get rid of government. If the government didn't step in and pump trillions into the economy in 2008 [starting with Bush], the financial system would've collapsed, and then instead of 9% unemployment it would be several times higher.

Ron Paul wants to cut taxes for the rich further? What, 17% effective rate for the top 1% isn't low enough? The 35-39% argument is smoke and shadows. The super-rich make their money in capital gains and carried interest. Let's take it back to 1986 and do what Reagan did. All income taxed the same, at 28%, regardless of the source.

And now they want to allow a 5% tax to bring money home for companies. We have to give an incentive for companies dodging taxes?

Ron Paul says he's voted against all earmark spending, but it is known he's gotten earmarks added for his constituents on bills he knows will pass, that way he can vote against them and maintain the illusion but still get the benefits of the pork.

Nov. 09 2011 10:33 AM
John from NYC


Greece refuses to raise retirement over 50 yrs old, and their debt should be forgiven???????

My pension is in BONDS -- He wants them discounted, maybe 50%, so Greeks can retire at 50 ????

I am 70, when do I get to retire???????

Nov. 09 2011 10:32 AM
Amy from Manhattan

When you send Bloomberg your book, please put a bookmark in at the page that refutes the his statements that Brian played!

Nov. 09 2011 10:31 AM
Arun from Astoria

The constant debate between "it's the government's fault", and "it's Wall Street's fault" is missing a heart of the issue: Wall Street's special interests are writing government policy, which is then being enacted by legislators who are beholden to the special interests which finance their campaigns! "The governmen" *IS* Wall Street!!! Whatever "the government" did, it was at Wall Street's bidding.

Nov. 09 2011 10:30 AM
Joan from Brooklyn

Will Bloomberg never let us be? What gives him the right to hold forth on national issues - oops I forgot - what is that saying about a free press belonging to the man, and I mean man, who owns one.

Nov. 09 2011 10:29 AM
Marc from Brooklyn

This guy's a liar. He's totally overlooked the 1992 "clarification" of Fannie Mae's and Freddie Mac's lending standards.

Nice "oversight," μαλακα.

Nov. 09 2011 10:29 AM


"the economy grows when we make stuff to sell, not when consumers spend."

Whom do you expect to buy the stuff we've made?

Supply and demand go hand-in-hand. We have a consumer economy that only works if consumers can consume. For too long they've been consuming as our economy needs them to consume on credit because economic growth and prosperity has been monopolized by the top. The working class has been reduced to a debtor class. Debtor nation indeed.

Nov. 09 2011 10:29 AM
Max Z.

This guy is exactly what is wrong with the Dems.

Nov. 09 2011 10:28 AM
Martin Chuzzlewit from Manhattan

Another arrogant, wrong leftie.

Nov. 09 2011 10:28 AM
Laura from UWS

Thank you for this segment.

I hope Phil Angelides comes back frequently because he has the factual information and the skill to explain this important topic.

Nov. 09 2011 10:27 AM

The banks willingly gave out arm/ninja loans cause they were making boatloads of fake money. Clinton escalated the CRA for political reasons, Bush willingly continued's all the Fed giving out fake money to do it all. BTW Fannie Freddie wants 8 billion more this guy just pimping his book?

Nov. 09 2011 10:27 AM
Xtina from E. Village

Thank you for clarifying the talking point that the subprime mortgages were NOT subject to the Community Reinvestment Act.

Nov. 09 2011 10:27 AM
Robert from NYC

As a billionaire, he's probably trying to deflect the blame from Wall Street.

Nov. 09 2011 10:25 AM

Thanks to Bush for his "Ownership Society".

Nov. 09 2011 10:24 AM

FDR kept us in the depression for 15 longer than it should have lasted...WW2 ended we cut taxes across the board and in a year we were out of the depression.

Nov. 09 2011 10:24 AM
Robert from NYC

We never looked to the future why should we start now!!

Nov. 09 2011 10:24 AM
John from NYC

Now we should adopt a German planned economy -- anyone have friends or family working in Germany -- ???

Real nice when THE MAN decides everything about your life!

Nov. 09 2011 10:21 AM
Robert from NYC

Wow, he should replace Timmy Geithner. Finally someone who knows what he's talking about and articulates it beautifully, clearly and knowingly. He hasn't hesitated to answer one question or make a point of what's wrong with out economy.

Nov. 09 2011 10:20 AM
Mike from Manhattan

Finally, a breath of sanity!!! How was Mr. Angelides allowed to get on the air?

Nov. 09 2011 10:20 AM

What is the current state of student loans? Ive heard that when everyone starts to default on those, it will be worse than the housing collapse.

Nov. 09 2011 10:19 AM
paulb from Brooklyn

Germany boosted its economy by making cheap money available to the rest of Europe to buy German goods. Let's watch the German economy now, with austerity in the rest of Europe.

Nov. 09 2011 10:18 AM
Horatio from Manhattan

The 1% are the very best destroyers of wealth the world has ever seen | George Monbiot

Nov. 09 2011 10:18 AM

Brian, please tell Phil that the mortgage crisis is old news. We know the problem - save us the political speak. What we wanna know is how to solve it!!! Isn't stringing things along, hoping for prices to slowly pick up, the least devestating way out of the problem? If not that, then how?

Nov. 09 2011 10:18 AM
john from office

The MF Global fiasco was exactly what happened in the 90's. Alot of people are now out of work because of the casino mentality of wall street.

Nov. 09 2011 10:17 AM
Xtina from E. Village

oK we Know, everyone knows this already. Wages are down, financial specualation up as proportion of GDP.

What do we do about it?

Nov. 09 2011 10:17 AM
John from NYC

Sure can tell this guy is a Democrat

- Patient has ODed on steroids -- give the patient more stimulants

- The problem is that there are two few public workers being paid too little (twice as much as private workers is not enough)

-- raise their pay and hire more (If I hear "teachers, police and fire fighters one more time I'm going to puke -- I dare anyone to tell me what they get now when you factor in full pay pensions for life after just 20 years)

Nov. 09 2011 10:17 AM
Brenda from Jersey City, NJ

I completely agree with Mr. Phil Angelides in that we focused too much on the "guessing industry" and it is obviously not sustainable. Recall from a previous show that some of these risk takers are social psychopaths that care very little about the rest and much about themselves. All regular people who support spending in education and technology!!!

Nov. 09 2011 10:17 AM

the economy grows when we make stuff to sell, not when consumers spend.

Nov. 09 2011 10:16 AM
JoeCorraoo from Hollywood

more spending? Man...what we need to do is cut taxes and spending and allow corporations to bring back trillions they have over seas...Ron Paul called the collapse and has a plan to get out of it. This guy wants a planned economy which is a dead end.

Nov. 09 2011 10:13 AM

oh come on! who is this guest? same ole trite tripe. the problem is not job growth. the problem is demand. everyone says that the market is holding back over a trillion dollars, and every small business says they will not hire until there is renewed demand for their products. the money has got to get back to the people who buy crap -- not tax cuts for businesses.

Nov. 09 2011 10:13 AM

What crisis? Bonuses and profits are up.

Nov. 09 2011 09:39 AM

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