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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Brumar89 who wrote (423905)	10/8/2008 6:42:02 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1577893

Brumar, > I know this conflicts with your bias that government is always all wise and beneficial when the Democrats have unchecked power Fixed. Tenchusatsu

To: Brumar89 who wrote (423905)	10/8/2008 7:25:29 PM
From: Road Walker	Read Replies (1) \| Respond to of 1577893

Countrywide did get into securitizing subprime loans, but you're wrong to claim Fannie Mae wasn't pushed by the government to do so. It was pushed by government and stock holders... frankly they (F&F) were becoming irrelevant. There was huge money being made by the investment banks, and F&F were on the brink of losing huge market share. Which would probably put them out of business. The key point is that F&F followed the market, they didn't lead it. There aren't any insurance regulations on credit default swaps to get around. WTF you idiot, that was my point. They were offering insurance under another name to escape regulation (with virtually zero reserves)... regulation that should have been imposed if the government were not asleep at the wheel. No insurance company has reserves equaling the face value of insurance they have out. Any insurance company can therefore be wiped out by a big enough catastrophe. Thats why insurance companies seek to spread their risk geographically and many other ways. Thats why theres such a thing as reinsurance. Exactly. Why, because of REGULATION. The CDS were exactly the opposite... focused, no reserves, unregulated. What is it about this difference you don't understand? Also, they don't create the credit problem, they spread it to other parties. The underlying problem is still subprime mortgages. God you are dumb. If you can't sell the subprimes there is no market... so the investment bank figured an angle. "We'll package the subprimes and sell them with "CBS", insurance not described as insurance to avoid regulation, any mandated reserves at all, a complete scam. Look at their profits, it worked great until the housing market had a normal correction. Now it is not only breaking the bank, but it is exasperating the the downturn in housing. I'm not sure WHY you are defending all these failed institutions... except you hate government SO much that your vision is clouded. But you better pray government is wise and competent because you can be damn sure Lehman Brothers or Merrill Lynch or AIG are not going to bail us out of a depression. Your wealth and lifestyle are currently in the hands of your US government. Your unregulated private sector fuked things up big time.