Posted on 06/27/2012 9:04:38 PM PDT by neverdem
We’ll probably not agree then - as far as I’ve been able to tell GS sent the message to banks that it was just fine to gamble with the money of others.
It’s no different than the Great Depression, a different generation of bankers, but the same impulses - GAMBLE LIKE HELL, to make that slightly higher return.
As much as I believe in a free market, these people are UNCONTROLLABLE and will keep proving it OVER and OVER.
Oh, did I mention the Savings and Load debacle from the 80s...once again, the feds took their eye off these people and they threw money were they KNEW they would never get a return (Whitewater, Arkansas, for example).
I know. They went out and started offering mortgages. Although I'm pretty sure they offered mortgages under GS too.
Oh, did I mention the Savings and Load debacle from the 80s...once again, the feds took their eye off these people and they threw money were they KNEW they would never get a return
I'm pretty sure they try to make a return on every loan or investment they make.
If he makes them out of wood you can break it up and burn it in your fireplace.
“I’m pretty sure they try to make a return on every loan or investment they make.”
LOTs of them went to jail. And they didn’t go to jail because they were trying to invest wisely.
I’m pretty sure they went to jail for self dealing or stealing funds. Doesn’t mean they preferred to make losing rather than winning investments.
“I’m pretty sure they went to jail for self dealing or stealing funds. Doesn’t mean they preferred to make losing rather than winning investments.”
And rightly so. But that doesn’t take away from my point that once the government stopped watching and regulating these guys that they would IMMEDIATELY go into scamming mode.
(and by the way, feel free to look at the rest of my posts, some 12000, you’ll see that I’m far from a big-government liberal).
“I’m pretty sure they went to jail for self dealing or stealing funds. Doesn’t mean they preferred to make losing rather than winning investments.”
And rightly so. But that doesn’t take away from my point that once the government stopped watching and regulating these guys that they would IMMEDIATELY go into scamming mode.
(and by the way, feel free to look at the rest of my posts, some 12000, you’ll see that I’m far from a big-government liberal).
Which guys did the government stop watching? When? Are we still talking about the S&L mess? Or the more recent mess?
that they would IMMEDIATELY go into scamming mode.
What scams? Could you be more specific?
I didn't get a big-gov lib vibe from you.
Lincoln Savings and Loan, for starters
Look them up.
I thought that conviction was reversed.....
How is this possible if the government was no longer "watching and regulating"?
“How is this possible if the government was no longer “watching and regulating”?”
The idea is, OBVIOUSLY, to watch before the government has to backstop hundreds of billions in losses, as happened in the S&L case.
It’s not too hard to figure out there was a problem in the past tense, as thousands of depositors are demanding their money back.
So the government has to vet every security before it can be sold? That could require a few hundred thousand additional government employees.
“So the government has to vet every security before it can be sold? That could require a few hundred thousand additional government employees. “
Nothing more than they did for DECADES when we had a stable banking system. It doesn’t take much. I saw what Countrywide was doing - loans at 10X income. I shorted them, big-time, now my wife drives a really nice car - and they paid for it.
It really wasn’t that hard and they did it for DECADES, until about 10 years ago - then they trusted the bankers.
I'm sorry, are you under the impression that there was no bank fraud and then suddenly, the government stopped “watching and regulating” and then there was fraud?
There have always been scumbags trying to defraud people. In the case of Lincoln Savings and Loan, it looks like a bunch of the scumbags were convicted.
I saw what Countrywide was doing - loans at 10X income.
How was that caused by the government no longer “watching and regulating”? What was the Countrywide fraud?
Sure, there was SOME fraud forever, but NEVER enough to put the survival of the country at risk.
I’m sorry you’re unable to understand that some (if not most) people up the corporate ladder got there based on the returns they could bring in to their company. And if making loans MAKES money, and rejecting loans LOSES money, they will tend to go the path of more money - unless they fear someone looking over their shoulder.
You must work for an art studio or something, because the upper level people that I work with look at the bottom-line, and risk is part of that equation, and they take plenty of risk.
You need to be specific, what fraud put the survival of the country at risk?
if making loans MAKES money, and rejecting loans LOSES money, they will tend to go the path of more money
Yeah, I understand that banks like to make loans that make money. They prefer not to make loans that lose money.
upper level people that I work with look at the bottom-line, and risk is part of that equation, and they take plenty of risk.
There are no guarantees, so why do you feel I'm the one who is confused?
“You need to be specific, what fraud put the survival of the country at risk?”
The 5 to 10 TRILLION dollars of worthless paper that the fed bought, so as to keep the too-big-to-fail banks in business. That was my kids’ future THEY STOLE. That’s why I’m angry about. I’m sorry if the numbers are too big for you to get your hands around.
“Yeah, I understand that banks like to make loans that make money. They prefer not to make loans that lose money.”
Maybe they ‘prefer’ to not lose money, but that wasn’t how it worked out. I’m sorry if you are not aware of the loans made in Arizona, California, Nevada, and Florida - for if you were aware, you’d see that making loans that could be paid back was not a requirement.
“There are no guarantees, so why do you feel I’m the one who is confused?”
No, you’re wrong. If bankers are FREE to make loans to anyone they want, with they federal government backing up their deposits, they SURE AS HELL will make loans to EVERYONE, regardless of ability to pay back - it was just demonstrated, from roughly 2003 to 2007.
The Fed didn't buy worthless paper. Their balance sheet is guaranteed bonds, Treasuries and Agencies. They have a few billion left in the Maiden Lanes, last time I looked.
I’m sorry if you are not aware of the loans made in Arizona, California, Nevada, and Florida - for if you were aware, you’d see that making loans that could be paid back was not a requirement.
It's true, there is no guarantee a loan will be repaid or that the collateral will cover the loan after foreclosure. That being said, people who claim banks intentionally made loans they knew would default are silly.
If bankers are FREE to make loans to anyone they want, with they federal government backing up their deposits, they SURE AS HELL will make loans to EVERYONE
Baloney. The FDIC only covers the deposits when they take over the bank. You think management said, "Make bad loans so we can get taken over by the FDIC and lose our cushy jobs"? That's just silly.
“The Fed didn’t buy worthless paper.”
That, my dear, has TOTALLY DISCREDITED you. You may not (claim to) know this, but the Fed is doing just the same for WORTHLESS paper in Europe now. But feel free to ignore it all.
Why are you SO HAPPY to see this country go broke?
One could guess that you don’t really belong on this site and you’re just stirring up trouble. In fact, you’ll find PRACTICALLY NO ONE on this site that will defend the people that have brought this country to its knees as much as yourself.
So why do you insist? How many TRILLIONS of dollars of worthless loans are you willing to defend (hint, the banks are back at it), and why the hell do you not care about this country’s future?
Maybe, like many in Europe, you have no kids and just want to party until your time is up?
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