Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (30647)	12/23/2008 11:42:56 AM
From: Peter Dierks	1 Recommendation Read Replies (1) \| Respond to of 71588

You wrote: "DERIVATIVES are what caused this whole MESS!!! I responded: So lack of government oversight of a morally bankrupt system that failed to the tune of over a trillion dollars of new government debt had nothing to do with the problem? If reasonable accounting standards in businesses with and without (previously only) implied government liability would have had not effect on the problem? ... According to your logic, Madoff was just a casualty of derivatives. Lack of regulation had nothing to do with it. To be more succinct: The way I recall it, the first big bubble to burst in the banking system meltdown was the collapse of Fannie and Freddie. As I have repeatedly pointed out to you, the death of the two GSEs was made more devastating and sooner by democrats refusal to allow them to be regulated or supervised. Essentially it became a game of how much pay can the top people take. How many hundreds of millions of dollars does it take before it is real money worth worrying about? Don't forget in just a few years Obama became the number three recipient of GSE donations over a six year reporting period. Are derivatives to blame for the fall of Fannie and Freddie? Not in my book. If not for the 1999 bill the percentage of loans not supported by proper documentation would have been miniscule. Those that would have existed would have been a result of fraud. Due to the CRA what should have been fraudulent was legal.