Posted on 10/23/2008 8:09:39 AM PDT by Conservative Coulter Fan
No greedee no regulatee. The fox is loose in the hen house.
Total BS. Wall St ran wild. So did hedge funds. They need better regulation. Chris Cox was a brain dead stooge who didn’t ban naked shorts and get rid of uptick rule.
The Wall St firms are mostly run by Democrats and Bush should have been stricter with these anarchists
The Dems are 100% responsible for the Fannie Mae mess and some belong in prison
LOL, great caption!
It is obvious that it was not the failed ?Bush policies,” but rather policies initiated in the Clinton administration that decoupled lending from credit worthiness to allow the poor to own houses too. It was policies that ignored sound business sense.
No!!! This crisis was a deliberate act of sabotage by the democrats and the left in America.
This lie appears to work on the stupid electorate. I'm wondering how well the Obama ads that claim "McCain will tax the old folks social security and take away their Medicare" that I hearrd this morning?
Lies seem to work...especially when the MSM promote them.
Big lies work better than small lies.
yes. dems are responable for this mess. what i would like to know is why voters dont care?
I also call total BS.
The Repeal of Glass-Steagall, introduced and pushed by the Republicans and passed by a bipartisan majority and signed by Clinton allowed banks to take on more risk. That one post Glass-Steagall bank has acquired another post Glass-Steagall bank for pennies on the dollar in no way implies that repeal of Glass-Steagall mitigated the crisis.
The lowering of reserve rates to historic lows and the exemption of many deposits from reserve requirements allowed banks to become more leveraged. I’m not sure when this happened or what administration is at fault. But clearly this is a form of “deregulation” that helped bring on the crisis.
Nope.
This lie appears to work on the stupid electorate. I'm wondering how well the Obama ads that claim "McCain will tax the old folks social security and take away their Medicare" that I heard this morning?
Sure lies work and they'll never pin the blame for Fannie Mae on the Democrats. This economic disaster has many of its causes in Fannie Mae
Lies seem to work...especially when the MSM promote them.
My take is Democrats are 70% responsible for this crisis.
The mortgage and thrift industry was never “de-regulated” in the sense that there was no oversight - the oversight was just of a different variety than “good and prudent” review of the compliance with regulation. Instead, there was a directive sent down, with the benediction of certain Members of Congress and the Senate, DEMANDING the underwriting be loosened so person who NEVER could have qualified for a loan, could then be accepted.
There was PLENTY or regulation and oversight - just not the right kind.
The lowering of reserve rates to historic lows and the exemption of many deposits from reserve requirements allowed banks to become more leveraged. I’m not sure when this happened or what administration is at fault. But clearly this is a form of “deregulation” that helped bring on the crisis
Blame the derivative called "credit default swaps" which allowed capital to be freed up that was once mandated to be kept in reserve against losses on loans etc. This capital was then deployed to make the lousy bets the taxpayer is now supposed to make good on.
Credit default swaps should have been clamped down on ages ago
"Free markets" are bs when the taxpayer is forced to bail out participants making high stakes bets. Lehman made bets on borrowed money using 30 to 1 leverage
“introduced and pushed by the Republicans and passed by a bipartisan majority”
I Call BS...
Glass-Steagal was the brain-child of ROBERT RUBIN, Robert Reich, and $200 Million in CITI money thrown around to allow the Citi/Smith-Barney merger...
RUBIN was rewarded with a board seat at CITI for his efforts, and later became Chairman of the Executive Board.
This was a DEMOCRAT creation, and CITI used tons of money to buy whoever they needed to, in getting it done.
Excerpt from http://www.newsweek.com/id/161199
JPMorgan bankers were trying to get their heads around a question as old as banking itself: how do you mitigate your risk when you loan money to someone? By the mid-’90s, JPMorgan’s books were loaded with tens of billions of dollars in loans to corporations and foreign governments, and by federal law it had to keep huge amounts of capital in reserve in case any of them went bad. But what if JPMorgan could create a device that would protect it if those loans defaulted, and free up that capital?
What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a “credit default swap,” and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices. While the concept had been floating around the markets for a couple of years, JPMorgan was the first bank to make a big bet on credit default swaps. It built up a “swaps” desk in the mid-’90s and hired young math and science grads from schools like MIT and Cambridge to create a market for the complex instruments. Within a few years, the credit default swap (CDS) became the hot financial instrument, the safest way to parse out risk while maintaining a steady return. “I’ve known people who worked on the Manhattan Project,” says Mark Brickell, who at the time was a 40-year-old managing director at JPMorgan. “And for those of us on that trip, there was the same kind of feeling of being present at the creation of something incredibly important.”
Like Robert Oppenheimer and his team of nuclear physicists in the 1940s, Brickell and his JPMorgan colleagues didn’t realize they were creating a monster.
I MEANT GLB, Not Steagall....
My bad...
Methinks blaming the home buyer defaults for the collapse of the world’s banking system is a bridge too far. The problem seems to be the capacity of the bankers along the upline to repackage debts as assets leveraging a lot more creative financing to kick further down the road.
Like an old story of three farmers and one horse. It seems they took turns in selling the horse to each other at increasing amounts and they were all getting rich on the profits. Unfortunately the horse died.
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