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

To: Tenchusatsu who wrote (749742)	10/27/2013 1:55:56 AM
From: SilentZ	Read Replies (1) \| Respond to of 1574004

>Instead, everyone was caught up in the whole real estate craze, thinking that they had to go out and buy homes, especially homes that they couldn't afford partly because the bubble had already grown so big. Banks were only too happy to give them loans, saying, "Oh, you don't need proof of income. Just state it. As long as your credit is fine, we'll believe that you make as much as Kobe Bryant." A ton were being lied to. You haven't addressed that. -Z

To: Tenchusatsu who wrote (749742)	10/27/2013 12:51:09 PM
From: koan	Read Replies (1) \| Respond to of 1574004

In that entire post you did not mention CDO's or CDS's, or derivatives; and it was Bush's and the congress 's responsibility to enforce regulations. The pubs had both houses of congress the first 6 years. Remember no one believed in regulations. They believed the market was self regulating. It isn't. The story has it Paulson went to bended knees to Nancy Pelosi asking for 82 billion dollars to give to AIG saying if he didn't get it the entire world financial system would collapse. He had a 3 page document that also gave him complete authority over the expenditure and total protection from prosecution. They gave him the 82 billion. The congress and fed also gave him trillions more money for the banks. Bush said he didn't understand why they needed to do it and went up to bed. AIG had an office in London with 100 people in it that all made over one million a year in commissions writing credit default swaps CDS's. They wrote many insurance policies on the same pieces of property. When the real estate market went tits up they could not pay. The 82 billion dollars was to bail out the worlds banks e.g. the Bundesbank. AIG was just a sort to pass through authority. The world's large banks and Wall street were gambling with CDS's and derivatives, and committing fraud with the CDO's - collateralized debt obligations which everyone knew was junk but Standard and Poors and Moody's was stamping AAA. It was the big money, banks around the world and Wall Street gambling like crazy people (still are!) with our money and no controls. The banks have an obligation to check credit and income and be prudent. The neo cons and Ayn Randians had a theory capitalism was self regulating. I also blame Clinton and Rubin, Summers and Greenspan for getting rid of Glass Steagall. << It was that banks around the world realized they could not mark to market because no one knew what was in those bundles of shit loans stamped triple AAA by Standard and Poors and Moodys? Of course that was the primary reason, but the bottom line is that people were free to say no.