Sure It’s Legal … But Is It Right?

Seeking Alpha ^ | September 02, 2009 | Graham Summers

[arthurus]

Everyone’s analysis of this financial crisis is far too complicated. The simple facts are that it was created by complete and utter greed on the part of various regulators and financiers.

In simple terms, the banks (investment and otherwise) lobbied Congress, the SEC, and other regulators to let them engage in business practices that were neither sensible nor responsible (excess leverage, financial wizardry that turned junk subprime assets into “AAA” rated entities, and more). They did this under the pretence that these practices would be good for the market and US economy as a whole.

The reality is that these practices allowed the banks to make ENORMOUS profits: between 1970 and 2003, financial stocks’ earnings as a percentage of the S&P 500’s total earnings rose from less than 10% to 31%. Put another way, by 2003, financials accounted for nearly 1/3 of ALL profits made by publicly traded companies.

[arthurus]

For comment

[NurdlyPeon]

The simple facts are that it was created by complete and utter greed on the part of various regulators and financiers.

Yup, it's pretty much that simple. The governments only job, with regard to the banks and the markets, is to make sure the roulette wheel isn't rigged and the dice aren't loaded. They did just the opposite. Now they are trying to do the same thing with health care; everything but tort reform.

[agere_contra]

The banks were denied the ability (by Deval Patrick et al) to expand unless they made subprime loans under the terms of the CRE.

They had to make bad loans. Then, in the usual pathological synergy that characterizes Big Government and Big Money, the Government backstopped these and other loans with taxpayer money.

[agere_contra]

Well put.

[dalebert]

the government is violating the contitution.

[Jeff Head]

The fact is that the liberal, democratic congress (for decades) has forced upon the bankers and creditors business practices that were neither sensible nor responsible. Using intimidation, community organizers, and out and out legislation and laws to extend credit to those who were unworthy of it... in the housing and other markets. As a response the banking and credit industry developed their own practices to try and account for this including the excess leverage, financial wizardry that turned junk subprime assets into “AAA” rated entities, and more.

They did this in response to the manipulation of the markets by the leftist representatives under the pretence that these practices would address the manipulations and end up shifting the burden and perpetuating the illusion that this was good for the market and US economy as a whole.

IMHO, the most significant blame falls on people like Frank, Dodd, and even Obama who, through his involvement with ACORN over the years was directly involved in this...and he knows it and approves of it because it worked precisely as they designed and ushered the very people responsible for the mess into more power...and into a position where they can "fix" it. But their fix is not meant to repair it. It is meant to detroy it and replace it with a marxist command economy which they control.

And they are proceeding with this with a will.

Obama, Pelosi, Reid and their cohorts will lie, blow smoke, deceive, cajole, and give as many Presidential speeches, presentations, addresses to congress, etc. as it takes to draw this out so he can continue progressing towwards his goals. When you understand this about him and his administration and the cohorts in the House and Senate...everything comes into focus.

Luckily, their over-reach on health care has awakened a large part of the American citizenry.

Because health care effects everyone, and because the American people intrinsically know that government bureaucracy makes things less efficient, the American people are downloading the Dem Health Care Plan HERE and elsewhere and reading it for themselves.

They are also reading the cited quotes of the main architect of the plan and Chief Advisor to Obama on Health Care HERE and elsewhere, and seeing the context of the plan from the designer of it.

So, when other Americans and conservatives like Sarah Palin declares that the Plan is a monstrosity and that it is downright evil, they know for themselves that it is true.

Thus, the American people (the proverbial giant) is waking up and the question is now can they wake up quickly enough, can they make such an out and out hue and cry and force enopugh democratic ad RINO representatives to be more afraid of then, the constituents for their political life than they are of Pelosi, Reid, and Obama and stop the Health Care plan.

Then, can they maintain that energy long enough to completely route the democrats, despite ACORN and voter fraud, in 2010?

I believe we can. And I hope and pray that the events in DC of 912 punctuate this and make it clear.

EZEKIEL EMANUEL AND OBAMA HEALTH CARE
(Must Read - Shocking, cited quotes by Emanuel)

OBAMA HEALTH CARE BY THE NUMBERS

AMERICA AT THE CROSSROADS OF HISTORY

A PETITION ON FACEBOOK FOR CONSTITUTIONAL RESTORATION

ANTI-OBMA POSTERS - FREE HIGH RES DOWNLOADS

[Candor7]

IT WAS ABOUT GREEEEEEDDDDD!

Bullshite!

It was about a few Senators from Florida, Arizona and Nevada, getting togethre with Bawney Fwanks, Freddie/Fannie, AIG,SEC to free up money for the "poh" , a house in every pot program , as an umbrella to fleece money all along the way.Florida, Arizona , and Nevada had the highest number of Mortgagae defaults. Look at the ectivities of Reid, McCain and others iin greasing the rails for their now wealthy constituants who were in the Real Estate business. If anything the problem was caused by people not obeserving the seperation of powers between the executive and legislative branches of government which traditionaly keep greed ( nothing new about greed) in check. And some should be arrested , tried and punished for their roles in it.Franks being one of them.

[yorkie01]

The greed was there as it always has been but there were many seeds grown and cultivated leading up to this beginning years ago. Certainly Jimmy Carters CRA started the ball rolling. Clinton and Rubin’s redistribution of the wealth by expanding home ownership to unqualified applicants continuing into Bush’s administration fostering the same. Then Barney Frank and Christopher Dodd and the lopsided leftwing congress greatly expanded the program. Now zero’s trying to ‘reinvest’ in the toxic inner city and other bad loans which will inevitably fail.

[dalebert]

ya they are bringing the country down whil getting stinking rich.....

[airborne]

The simple facts are that it was created by complete and utter greed on the part of various regulators and financiers.

Let's not forget to give credit to government officials and their special interest cronies.

[arthurus]

It has been my belief all along that the mortgage lenders, faced with what was essentially a government mandated path to bankruptcy, knowing that they couldn’t avoid that game, they played it for all they could get out of it. Like, hey! the government is driving us to bankruptcy as a condition of staying in business a little longer, let’s make all the money with it we can. When you have a visible termination enforced by the government you lose all responsibility. You can’t help the shareholders and you will be unemployed. Make hay while the sun still shines.