Plateforme Level Extreme
Abonnement
Profil corporatif
Produits & Services
Support
Légal
English
Wall Street Journal OP Obama's Radicalism Is Killing the
Message
 
 
À
18/03/2009 15:29:13
John Ryan
Captain-Cooker Appreciation Society
Taumata Whakatangi ..., Nouvelle Zélande
Information générale
Forum:
Politics
Catégorie:
Autre
Divers
Thread ID:
01386150
Message ID:
01389298
Vues:
67
>suddenly bad loan practices were not merely legal but mandated and backed by the full weight of the Federal government.
>
>That's a stretch. Government set targets, they didn't tell bankers to sell shonky mortgages and disguise them using CDS.

Perhaps you're not aware of the whole history.
The "shonky" mortgages were brought about by shakedowns of local banks by activist groups under the guise of "housing discrimination". Armed with manipulated data acquired through lending disclosure provisions of the Financial Institutions Reform Recovery and Enforcement Act, these groups engaged in disruptive behavior towards lending institutions from sit-ins to lawsuits. So aggressive were the tactics that they gained national media attention and drew many banks to settle either through cash payments of relaxation of lending standards. At this point the sub-prime lending was limited primarily to local lending institutions. That all changed in 1998 when HUD Secretary Cuomo changed the mandate of Freddie/Fannie to take on more subprime loans. They then packaged them and sold them as mortgage-backed securities. This decision along with the removal of the barrier between investment and lending institutions allowed sub-prime and other creative loans to explode. Of course even at this point the damage could've been contained as the holders of the loans still had to retain the capital to back them. Enter CDS to mitigate those risks and attach a triple-A credit rating to them. Resulting in even more bad loans.

Sub-Prime history - http://www.ibdeditorials.com/IBDArticles.aspx?id=310173877357981
Glass-Steagall history - http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html
Fannie Mae Eases requirements - http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1

>If the targets weren't achievable without chicanery then the bankers should have said so. Instead they commenced deceptive behavior far beyond any reasonable response to targets that seem more of an excuse than a reason for the exaggerated use of instruments to sell mortgages to people who couldn't possibly service them. Why would any government want that?

Why? Power! The government is made up of politicians. Politicians crave power and achieve it by getting eleced which requires money. Check out the political donations over the years from AIG, Fannie, Freddie, Countrywide, Lehman, etc. The corruption cuts through both parties and is not limited to the US.

>As always, you have to ask "who has the motive." Obviously it was a bad deal for mortgagees who could not service their mortgage and so lost everything. Since they are the very voters who the targets were supposed to assist, that's a bad deal for Government too. Meanwhile bankers made lots of profit and mega-bonuses for doing it. So who has the motive?

The "voters" are being led by their herders towards blaming everyone involved except the politicians and activists who started it all. In addition, many of the politicians involved are still in power and still collecting from the very entities which started the process. Some are even showing brazen hypocrisy by demanding hearings to get to the bottom of the crisis. They've got motive up the wazoo! Power!
Wine is sunlight, held together by water - Galileo Galilei
Un jour sans vin est comme un jour sans soleil - Louis Pasteur
Water separates the people of the world; wine unites them - anonymous
Wine is the most civilized thing in the world - Ernest Hemingway
Wine makes daily living easier, less hurried, with fewer tensions and more tolerance - Benjamin Franklin
Précédent
Suivant
Répondre
Fil
Voir

Click here to load this message in the networking platform