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To: not_prudent who wrote (3009)	4/27/2010 9:01:02 PM
From: robert b furman	Read Replies (3) \| Respond to of 222213

Hi GZ and not_prudent, There's a lot of blame to push around here. The rankings companies were conflicted. The shadow banking system was pushing crap for fees and got caught up in a bubble . GS just figured out how to short it by sticking it to their clients. Thos e thst didn't DO NOT EXIST. The politicians who passed the laws that standards should be loosened are first to blame. Banks not wantiing these poor loans were fined for redlining neighborhoods - mostly urban areas to mostly minorities. The subprime loans are vastly made to minoroties. Last but not least - so it could be more widespread (as all bubbles must be)loan originators were not held responsible for the fraudulent info supplied in a fashion that generated loans to those that were clearly unable to repay. To give you a real world example,I as a car dealer must not submit false info about customers credit requests things like income and money down. If the customer becomes a repo,the bank has the right to audit my books and check to see if the income reported on the credit ap is true,or if the money down was actually receipted in.If those item/s are not true or able to be proved - then I own the repo and must buy back the loan. The loss becomes mine not the bank. This audit review is called checking terms and conditions. This linkage or accountability was not present in loans.Loans that were much larger on an underlying asset that is much less liquid. Add to that the politicians with constituency agendas,continually relaxing time tested loan parameters that minimize losses, you have only a growing rotten can of worms that sooner or later everybody knew would end badly. From politics to a shadow banking system that overwhelmed the old fashioned banking system (those that warehouse their own loans based on their own decisions) and you've got the politicians practicing the one world law they know:A strong offense is the best defense: in other words Call a senate meeting and start blaming everybody but yourselves. JMHO Bob