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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: James Hutton who wrote (177637)	1/17/2009 2:46:11 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 306849

>>how about portfolio insurance, which predates the greedy Clinton era, was similar in concept to credit default swaps, and was one of the main factors in bringing about the 1987 stock market crash.<< what was the number? we have $55 trillion in credit default swaps. also, the government has put itself on the hook for over $8 trillion to prop up the banking system - and they are still broke (and down 70% from the time the bailout was approved). iirc, nothing remotely close to 10% of this occurred in 1987. >>Also, if memory serves correctly, the Panic of 1907 was brought on in part by bucket shops, which operated similar to credit default swaps in that one could bet on whether a stock was going to rise or fall without taking an equity stake in the underlying company.<< again, we need a value to compare to $55 trillion. i would be surprised if you added up both your examples if we ended up with 5% of $55 trillion, inflation adjusted. that's $55,000,000,000,000. >>Now, if you are saying that Clinton shouldn't have signed the CFTC modernization bill, then I agree. And he shouldn't have signed the bill that repealed Glass-Steagall. But these missteps really just continued the deregulation trend that began in 1980 (or even before if you listen to some).<< i'm not blaming everything on clinton, just his portion - which i contend is substantial. i think cases can be made for reagan, too. bush, sr was probably the most rational - and we promptly booted him out of office the first chance we got.