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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (561548)4/18/2010 8:56:51 PM
From: combjelly1 Recommendation  Read Replies (1) of 1578011
 
"You will never, ever understand this subject as well as I do. "

You haven't demonstrated it. So I suspect it isn't true.

"This is a ridiculous statement."

Nothing ridiculous about reality.

"And they were rock solid at the time because even in times of serious real crises, not enough got underwater to pose a threat."

That may have been true in the years before Glass-Stegall. But it hasn't been true in a while. It was behind the recent melt-down, as every serious economist has pointed out. Many times. Apparently in words you didn't understand.

"What you do not understand is that the basic failure was first in the lending practices and second in the rating agencies"

See, that is what I mean. You obviously don't see how the hedging instruments caused the lending practices and the rating agencies to cut corners to feed the beast. There was, and is, strong profit motives to cut corners so that the ones writing this stuff could make huge bonuses. And that is still the case.

"which created an arbitrage opportunity (at its basis, THAT was the problem)."

Well, there is some little glimmer of reality in your fantasy world. Wonder if you will see it through and let reality all the way in.
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