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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: denizen48 who wrote (130625)	2/2/2013 12:31:13 AM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

Prediction of student success on the whole is a game for actuarial science. Anyone who's been in the investment world knows that banks have access to those resources. However, banks no longer care about the solvency of the people they lend to, because they've become loan flippers. Derivatives and bundling of loans to create them has created a nice little hamburger factory for obscuring risk and passing it on down the line until ultimately our gov't, meaning you and me, get stuck with the bill. Wouldn't it be nice if banks were not back stopped by the gov't and depository institutions were not allowed to sell their loans, but had to hold them to term? Then you'd see all their nice analysts working to make sure they only loaned to good risks or that they were compensated appropriately through high interest rates on those riskier bets. But when we allowed depository institutions to merge with investment banking gamblers and then let those consolidated behemoths go public and then declared them all Too Big Too Fail, we completely killed the idea that the shareholders get the rewards when the risks paid off and they pay the price when they do not. Instead, the TBTFs get the rewards when the risks pay off and you and I pay the bill when their risks blow up. Tejek will tell you that this is a superior model and that somehow in the fantasyland he lives in, it all ends up benefiting the middle class. However, I can assure that it does not. It is precisely the middle class and poor who suffer most from the free ride our gov't is giving these banks and their fraudulent enterprises.