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To: patron_anejo_por_favor who wrote (149264)	9/23/2008 1:07:55 AM
From: Asymmetric	Respond to of 306849

>> I'd love to rid the U.S. of all but the most basic forms of securitization and have banks and loan originators keep the bulk of loans they make on their own books.<< Agreed. One of the most important things they have to fix is how to get accountability back into the loan/borrowing process. You would think common sense on the part of the lender would go a long way toward fixing it. That precious commodity seems to have been in very short supply for the last 7 years. - A.

To: patron_anejo_por_favor who wrote (149264)	9/23/2008 8:09:43 AM
From: Amelia Carhartt	Respond to of 306849

"Personally, I'd love to rid the U.S. of all but the most basic forms of securitization and have banks and loan originators keep the bulk of loans they make on their own books. But nobody made me G*d yet, so it probably won't happen (although the trend is more in that direction for the first time in history)." I'd sure as hell vote for you!

To: patron_anejo_por_favor who wrote (149264)	9/23/2008 3:48:49 PM
From: neolib	Respond to of 306849

However, there was also fraud involved, both of the criminal variety, and a more subtle type that resided just within the boundaries of law. Sure. Prosecute where needed, and change regulations where needed. For any Ponzi to work, the buyer at the bottom has to be mislead about what he is paying for Don't look at a Ponzi scheme in isolation. Instead, view it as the structure found in lots of things like MLM sales. Pure Ponzi schemes are illegal and hence rare. Ponzi like structures disguised as part of legitimate commerce are common, and this leads to problems. Personally, I'd love to rid the U.S. of all but the most basic forms of securitization and have banks and loan originators keep the bulk of loans they make on their own books. But nobody made me G*d yet, so it probably won't happen (although the trend is more in that direction for the first time in history). I agree, but I'm also willing to admit that an important element of free market systems is innovation. The question which I wish was being addressed is how do we get effective regulation to prevent things like the current debacle, while still encouraging innovation in our economic systems.