2008 Financial Crisis The Causes and Costs of the Worst Crisis Since the Great Depression

[eagle1462010]

 

[LaDexter]

AFFIRMATIVE ACTION MATH = $2 trillion lost to the US, $500 million for Franky Raines....

 

[Lesh]

The "banking debacle" was directly correlated with GOVERNMENT INVOLVEMENT in HOUSING, specifically

GOVERNMENT INSURED MORTGAGES

to

Democrat voters who COULD NOT PAY

go back and read though the thread stupid

 

[LaDexter]

Translation - Left wing PARROT "Lesh" cannot debate real issues, he simply parrots a left wing load of shit and then demands you read and PARROT it too....

 

[Lesh]

Barney Frank was the real villain. When democrats took over the House majority mid way into Bush's second term Barney Frank became the chairperson of the powerful "House Banking Committee" which had fiscal oversight responsibility for Fannie Mae. Frank told America that Fannie was doing fine and was solvent while it was in terrible shape and on the verge of collapse. The timing is suspicious. Either Frank was so negligent that he was unaware of what was going on or he deliberately pushed Fannie Mae over the edge as the biggest October surprise in history. When Fannie went under it brought the world economy down with it. Maybe it wasn't Frank's intention of causing a major world wide event but he started it. True to form the criminal conspiracy in the media blamed Bush and didn't even ask Frank what the hell he was doing.

Please see post 58.

You seem to have a real good grasp of these financial issues and explain really well.

I'd be curious to hear your take on Goldman Sachs and Greece

 

[LaDexter]

Greece is what happens when socialism takes over 70%+ of a given economy...

Goldman Sachs and the US Treasury are one and the same, which is why they do so well dodging disasters like housing in 2007...

Solution - a non Goldman person as Fed Chair to start....

 

[The Original Tree]

Federal Reserve Policies Cause Booms and Busts | Richard M. Ebeling

"Interest rates, like market prices in general, cannot tell the truth about real supply and demand conditions when governments and their central banks prevent them from doing their job. All that government produces from its interventions, regulations, and manipulations is false signals and bad information. And all of us suffer from this abridgement of our right to freedom of speech to talk honestly to each other through the competitive communication of market prices and interest rates, without governments and central banks getting in the way."

Are you Republican?

The Federal Reserve Purposely caused The GREAT DEPRESSION so that they could take over all of the Privately Held Community Banks and their assets, including Farms, Homes, Tractors, Cows, Horses, Crops, Cars, Trucks, Gold, Silver, Washing Machines, and anything that wasn't nailed down. They then replaced Constitutional Precious Metal Backed Currency with Private Bank Notes which are not currency but are a Debt Instrument and a loan taken out using The American People's earning potential, and tax potential.

Thus was born the Credit Debt Economy and the beginning of the Economic Enslavement of The American People.

 

[g5000]

Federal Reserve Policies Cause Booms and Busts | Richard M. Ebeling

"Interest rates, like market prices in general, cannot tell the truth about real supply and demand conditions when governments and their central banks prevent them from doing their job. All that government produces from its interventions, regulations, and manipulations is false signals and bad information. And all of us suffer from this abridgement of our right to freedom of speech to talk honestly to each other through the competitive communication of market prices and interest rates, without governments and central banks getting in the way."

Are you Republican?

The Federal Reserve Purposely caused The GREAT DEPRESSION so that they could take over all of the Privately Held Community Banks and their assets, including Farms, Homes, Tractors, Cows, Horses, Crops, Cars, Trucks, Gold, Silver, Washing Machines, and anything that wasn't nailed down. They then replaced Constitutional Precious Metal Backed Currency with Private Bank Notes which are not currency but are a Debt Instrument and a loan taken out using The American People's earning potential, and tax potential.

Thus was born the Credit Debt Economy and the beginning of the Economic Enslavement of The American People.

No one forced the middle class to take out HELOCs and spend them on SUVs, boats, Disney vacations, hookers and blow.

It is pointless and senseless to blame any one group or entity. This crash was caused by greed. Greed on the part of every player.

Greed on the part of people taking on more debt than they could possibly chew. Greed on the part of the broker who preyed on the guileless in exchange for broker fees. Greed on the part of Wall Street for playing the middle man in the construction of the CDOs and derivatives in exchange for fees. Greed on the part of the ratings agencies who gave AAA ratings to products they did not understand, believing "if we don't do it, someone else will and they will get the fees." Greed on the part of investors (including those of us who have 401ks) who wanted more than the historical returns on investments. Greed on the part of politicians and regulators who wanted credit for greasing the wheels to increased home ownership and easy lending. Those greased wheels led to a train wreck.

 

[SaxxyBlues]

Financial Crisis of 2008

g5000's explanation as a google doc.

 

[sparky]

Derivatives Time Bomb

The Muni-Bond Debt Bomb

 

[Lesh]

Goldman-Sachs did to Greece what they and others did to US

How Goldman Sachs Profited From the Greek Debt Crisis

 

[eagle1462010]

Goldman-Sachs did to Greece what they and others did to US

How Goldman Sachs Profited From the Greek Debt Crisis

The Great American Bubble Machine – Rolling Stone

 

[sparky]

Goldman-Sachs did to Greece what they and others did to US

How Goldman Sachs Profited From the Greek Debt Crisis

The Great American Bubble Machine – Rolling Stone

The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage

The basic idea isn’t hard to follow. You take a dollar and borrow nine against it; then you take that $10 fund and borrow $90; then you take your $100 fund and, so long as the public is still lending, borrow and invest $900. If the last fund in the line starts to lose value, you no longer have the money to pay back your investors, and everyone gets massacred.

The problem was, nobody told investors that the rules had changed. “Everyone on the inside knew,” the manager says. “Bob Rubin sure as hell knew what the underwriting standards were. They’d been intact since the 1930s.”

“Goldman, from what I witnessed, they were the worst perpetrator,” Maier said. “They totally fueled the bubble. And it’s specifically that kind of behavior that has caused the market crash.

In 2005, Goldman agreed to pay $40 million for its laddering violations — a puny penalty relative to the enormous profits it made

If you laddered and spun 50 Internet IPOs that went bust within a year, so what? By the time the Securities and Exchange Commission got around to fining your firm $110 million, the yacht you bought with your IPO bonuses was already six years old