Telamon wrote:
In article , Dave
wrote:
Telamon wrote:
In article , Dave
wrote:
Telamon wrote:
In article , Dave
wrote:
Telamon wrote:
This is their way of realizing their dream of
socialism and Bush played right into their hands with the bailout. This
is ground zero of the problem. This is where it began.
Let me tell you what you just witnessed. The middle class in this
country was just saddled with the debt of putting the poor into housing
they can not afford. The people running the country just became more
powerful and their rich friends just got richer. The price was that
middle class people just lost some economic freedom and a BIG CHUNK of
money.
I don't think there's anything resembling socialism at work here.
Yeah, where did I go wrong thinking that? 700,000,000,000 dollars is a
drop in the bucket. Nothing to see here people, move along now.
That is unarmed robbery, not socialism. Socialism is workers' rights
and universal health care that works more efficiently, etc.
So you think taxpayers dollars being given to private debt holders to
prop up loans so that people are in houses they can't afford is not
socialism? Now we know where you stand as a proud Democrap. Go
vote for O-bla-ma.
I think that's a side issue, not the main point. The main point is that
the derivatives house-of-cards collapsed. The banks had their necks way
out (risk = reward) and they got them chopped off.
For the last time. The problem was created by Fanny-may and Freddy-mac.
They originated the majority of the bad debt. Then they packaged them
together. Then the private banks bought up the toxic debt not knowing
the extent of the risk in the mortgages they bought.
There were problems with some mortgages, which the oinkers used as a
smokescreen to run amok. If it were just some defaulted mortgages we
wouldn't be in such bad shape. There were 10 times the foreclosures in
the Great Depression.
Then that debt was
repackage and resold. The private institutions did not know the extent
of their exposure when they were repackaged and resold.
There are debt rating institutions who got some 'splainin' to do.
Can you see what happened here? The Fed kept rates low for years and
the Democraps in charge of the quasi-governmental lending institutions
played fast and loose with the lending rules. This led to an overheated
housing market fueled by false demand inflating prices.
You really need to give respect to get it.
The Democrats have not been in charge of anything except the house of
Representatives, and that only since 2007. Mr. Bush can be heard on
electronic recording saying he wanted to put minorities into houses they
really couldn't afford; in 2002. Fabulous new program. I'm sure you
can find Democrats touting this as well. But, that is the catalyst, not
the core issue.
"Forewarning: I work in the financial industry, and am partial to fiscal
conservatism. However, I hate being lied to, and I don't exactly have a
soft spot in my heart for liars - especially those who work in or around
my field of business. Proving my honesty to the general public is
difficult enough as it is, without partisan clowns and snake-oil
salesmen tilting the odds against me. So thanks very much, James
Taranto. You just goaded me - a fiscal conservative - into posting my
first DailyKos diary.
....Gramm-Leach-Bliley effectively removed this restriction, allowing a
single institution to both create a debt-based investment, and then
facilitate its sale. Previously, with two institutions involved in that
process (Three if you count the investment rating company - Moody's for
example), there would have to be a high degree of clarity involved. One
institution (Investment bank) wouldn't just buy, repackage, and re-sell
another institution's (Retail bank) products without first understanding
exactly what it was. It would also be far less likely to hold those
assets and count them as capital..."
http://www.dailykos.com/story/2008/9...08/1013/601053
The market is not going to come back for a long, long time.
The housing train has run out of steam and whoever owned the bad
mortgages was left holding the empty bag. Now you an I own it and we
are going to keep paying and paying and paying even though we did
nothing wrong.
I have a feeling we'll be housing a lot of Iraqi refugees in them.