rigs, Greenspan overlooked simple human nature.
On Oct 25, 4:36 pm, rigsy03 <[EMAIL PROTECTED]> wrote: > Laws of probability were overlooked. Nice try, Greenspan, with your > lame excuse. > > On Oct 25, 3:20 am, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > > > > > Thats the nuts of it. The loans where then bundle into packages known > > as collateral debt obligation etc and given a AAA by Standard and > > Poors, which were then insured by bond insurers. Standard and Poors > > were more than happy to give these ludicrous ratings because it > > represented a whopping 40% of their business. > > > The idea of selling the loans on was to minimze losses by dispersing > > the risk. It certainly dispersed the risk, but it didn't minimize it. > > > The whole thing was built on the spurious basis that debt could > > increase exponetially as long as property prices did as well. > > > On Oct 25, 2:00 pm, Maax Well <[EMAIL PROTECTED]> wrote: > > > > The way I understand it is that what they allowed the banks to do was > > > sell off the loans to any speculator that was interested. The loans > > > were being sold all over as excellent risk loans. In the good old > > > days, the banks loaned the money and were stuck with it until it was > > > paid back. They had an incentive to make absolutely sure the loans > > > were quality. Once the "barriers were down" they could write a piece > > > of crap contract and pass it off to some poor investor before the ink > > > was dry. How many people have you heard say before they made their > > > first payment the payee had already changed. We all know how easy > > > they were making the loans to get, right? > > > > That is very simple way to put it, I am sure there are many in this > > > group that could offer better details. > > > > On Oct 24, 12:09 pm, Zebnick <[EMAIL PROTECTED]> wrote: > > > > > Thank you for all the little stories, but tell me specifically how the > > > > Gramm Leach Act caused the mortgage meltdown. And not just with > > > > statements like "it broke down barriers." How would these broken > > > > barriers CAUSE the meltdown? > > > > > On Oct 24, 8:08 am, studio <[EMAIL PROTECTED]> wrote: > > > > > > On Oct 24, 1:40 am, Zebnick <[EMAIL PROTECTED]> wrote: > > > > > > > You don't know what you'retalking about. If you think youdo, > > > > > > identify what was deregulated and how, specifically, it caused the > > > > > > mortgage meltdown. > > > > > > Give me a break. > > > > > Look, if youhavea deregulated quasi-government agency handling a > > > > > trillion dollars...it begs for trouble. > > > > > > Any competent analyst coudhavetold you from the beginning such > > > > > a thing won't work in the long term without being highly regulated. > > > > > > But it's worse than that...they knew it wouldn't work. > > > > > So who gets manipulated like a puppet by both major parties? > > > > > Everyone. > > > > > --- > > > > > > The 1999 Gramm-Leach-Bliley Act broke down barriers between banks, > > > > > securities firms, mortgage lenders and insurance companies. > > > > > That deregulation repealed Great Depression-era bank regulations with > > > > > the approval of former president Bill Clinton. > > > > > > Robert Rubin and Larry Summers, former U.S. Treasury secretaries > > > > > under Clinton, supported the bank deregulation bill in 1999. > > > > > > McCain voted for the first version of the Gramm bill in 1999 but did > > > > > not vote on the final measure. Biden voted against the initial bill > > > > > but > > > > > for the final product. > > > > > >http://www.bizjournals.com/phoenix/stories/2008/09/15/daily81.html > > > > > ---- > > > > > > You know things are very very bad on Wall Street when a guy like > > > > > Henry Paulson -- Treasury secretary, solid Republican, and former > > > > > Goldman Sachs CEO -- joins the crowd calling for more regulation > > > > > over the financial markets. > > > > > > "Regulation needs to catch up with innovation," Paulson said, and > > > > > he was backed up by the rest of President Bush's working group > > > > > on financial markets, including Federal Reserve Chairman Ben > > > > > Bernanke and Securities and Exchange Commissioner Chris Cox. > > > > > Not a commie among them. > > > > > >http://www.marketwatch.com/news/story/paulsons-lament-deregulation-ha...{4AEF15AC-3966-4656-8108-C96712A88D68}- > > > > > Hide quoted text - > > > > > - Show quoted text -- Hide quoted text - > > > > - Show quoted text -- Hide quoted text - > > > - Show quoted text -- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
