Liberalism: Do You Agree We've Had Enough of It? Message Board

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Politics : Liberalism: Do You Agree We've Had Enough of It?

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To: lorne who wrote (55419)	11/16/2008 2:31:29 AM
From: RMF	Read Replies (2) of 224645

lorne, I agree that that wasn't very prudent to pressure banks to make some of those inadvisable loans, but instead of balancing their risk on "those" loans by tightening credit standards on others and building reserves the banks just went "hog wild" with the whole thing by dishing out subprime loans to EVERYBODY. The banks made a KILLING on the whole thing by just using highly leveraged derivatives like "credit default swaps" so they could essentially lend money to anyone regardless of risk and not have to worry about it. The banks themselves took home BILLIONS in pay and bonuses and their stocks went way up. Did Countrywide feel pressured by ACORN to make billions? Show me the youtube video that shows ACORN or anybody else "pressuring" mortgage lenders to make shoddy loans in Stockton CA and Las Vegas Nevada. The CORE of the problem lies in these derivative instruments that allowed banks in the U.S. to just forget about being responsible to any degree because they had created the "illusion of safety" through these derivative vehicles. Even if the CORE had been rotten, we were "supposed" to have "core SMELLERS". Folks like Standard & Poors and Moodys. They were supposedly there to tell everybody what loans smelled good and what loans smelled bad so that buyers of the debt would know what level of insurance they really needed. Unfortunately, those guys had a better smell for profits than they did for protecting the folks they were supposed to be serving or the entire world financial system. There WAS naivete by some of the Democrats, but I actually think they had good intentions in mind. The MAIN problem was this constant push by the Republicans for less and less regulation. ALL OF THEM were DUMB and we're paying for it.

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