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

To: combjelly who wrote (738963)	9/12/2013 12:20:32 PM
From: i-node	Read Replies (1) \| Respond to of 1578556

>> It was a near death experience. Hardly. Even the problems we're experiencing today would have been long behind us had we had competent economic policy starting late January, 2009. But they did everything wrong, and as a consequence unemployment is basically unchanged since then. >> WS most certainly caused it. You really can't blame WS for doing what WS does. You have to have reasonable measures in place to prevent the perverse incentives from leading us to idiotic behavior. Government caused it with the CRA. >> Yeah, I know about your CRA claims. But they don't comport with the actual facts. If your thesis were true, then CRA affected loans would have been the dominate defaults. Obviously, you don't understand the problem. The entire idea behind the kinds of leverage represented by derivative transactions is that small moves in markets can generate large gains and losses. When CRA pushed banks to make loans to unqualified borrowers, it set the stage for a housing bubble, that later collapsed, as they always do. Perhaps as important is the fact that the horrible lending practices the CRA created essentially spread to the entire industry. Derivatives aren't "the problem". They only became a problem because of poor lending practices. I understand you have no training or experience in this area, but it would be better to just avoid topics you're incompetent to discuss.