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Qtec
04-28-2010, 02:23 AM
link (http://www.youtube.com/watch?v=gLx2Xc1EXLg&feature=player_embedded)

Who caused the credit crisis?

These guys should be put on trial for treason.

Q

LWW
04-28-2010, 04:54 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> link (http://www.youtube.com/watch?v=gLx2Xc1EXLg&feature=player_embedded)

Who caused the credit crisis?

These guys should be put on trial for treason.

Q </div></div>

Yes they should ... but you don't really believe that they should be.

Instead you prefer the Stalinesque show trial being presented to you.

LWW

Sev
04-28-2010, 06:28 AM
Actually the fault lies in the government. They set the stage and Wall ST. Took advantage of the situation. Politicians have not idea what the unintended consequences of their actions will be when they enact legislation in areas they have no real world knowledge of.

Consider this.

If Fannie and Freddie were never formed, would there have been a sub prime crisis?
The fault of the current economic condition lays at the feat of the government. Everything else is a diversion.

Did businesses take risks and some use very poor judgment? Yes. However those risks and poor judgment would not have occurred if the legislation had never been passed that provided such opportunities in the first place.

Chopstick
04-28-2010, 06:41 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> link (http://www.youtube.com/watch?v=gLx2Xc1EXLg&feature=player_embedded)

Who caused the credit crisis?

These guys should be put on trial for treason.

Q </div></div>

They don't deserve to be on trial any more than any other used car salesman. Their ethics are about the same. The whole deal could not have happened if someone had not put a AAA rating on the issue. GS had nothing to do with that. The ratings agency is the one who committed fraud. Why aren't they before congress?

LWW
04-28-2010, 09:32 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">Actually the fault lies in the government. They set the stage and Wall ST. Took advantage of the situation. Politicians have not idea what the unintended consequences of their actions will be when they enact legislation in areas they have no real world knowledge of.

Consider this.

If Fannie and Freddie were never formed, would there have been a sub prime crisis?
The fault of the current economic condition lays at the feat of the government. Everything else is a diversion.

Did businesses take risks and some use very poor judgment? Yes. However those risks and poor judgment would not have occurred if the legislation had never been passed that provided such opportunities in the first place. </div></div>

Agreed.

That being said ... FANNIE/FREDDIE were one of the few instances where statist programs actually worked, and they worked flawlessly for decades because they were draw up on standards which industry stats had shown to be solid. What held back home lending prior to that was that home lending quickly made lender illiquid if such long terms as 30 years were used.

The problems began when the statists thought they knew the finance industry better than the financiers.

Had they stuck with lending only to people who met the old standards of reasonable debt ratios and 2 years of clean credit with a minimum of 20% down ... unless mortgage insurance was added to cover the increased costs of higher risk loans ... the system would have worked well into infinity.

LWW

LWW
04-28-2010, 09:37 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Chopstick</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> link (http://www.youtube.com/watch?v=gLx2Xc1EXLg&feature=player_embedded)

Who caused the credit crisis?

These guys should be put on trial for treason.

Q </div></div>

They don't deserve to be on trial any more than any other used car salesman. Their ethics are about the same. The whole deal could not have happened if someone had not put a AAA rating on the issue. GS had nothing to do with that. The ratings agency is the one who committed fraud. Why aren't they before congress? </div></div>

What fraud did they commit?

FANNIE/FREDDIE guaranteed the paper ... which was an implicit guarantee of Uncle Sam.

To use the used car sales analogy ... if Bill Gates is willing to co-sign for a total deadbeat do you think the deadbeat gets the loan?

Where the analogy differs s that Gates would be gambling for his own reasons with his own money.

The demokooks such as Obama/Clinton/Dodd/Rockefeller/Frank/Waters/et al were gambling for their own reasons with public money.

In Gates' instance it should be considered stupid, with our congresscrooks it should be considered criminal.

LWW