Icelands brought down by deregulation

[Chris]

Derivatives brought down the financial system just like in 1929.

It was a Ponzi scheme.

 

[garyd]

Don't know what a Ponzi scheme is do you? The derivatives market which has been around almost from the time of Adam smith at the absolute was a contributing factor to the collapse it did not cause it and may well have delayed it by a couple of years.

 

[Truthmatters]

Iceland - Wikipedia, the free encyclopedia

The had State owned banks and in 2000 they thought they would join the trend of private banks with deregulation as a gudeline for successs.

In less than a decade this stable wealthy country is bankrupt.


Deregulation killed them.

Get it right! CDOs killed them like it killed everyone! CDOs combined mortgages of all types and placed a A++ rating on them. The buyers, in this case Iceland, thought no risk only reward investment. There is no saying that government owned or highly regulated banks in Iceland would have not invested heavily in CDOs. Shit, Sweden and Norway invested big time in CDOs and they are both very socialist!

It was the Privatisation of the Banks in Iceland that put the people in control of the banks that made these decisions. It was the lack of regulations on both the US market and the Icelandic market that produced these phoney A++ packaging products.

GLB 1999 allowed for the consolidation of the industry that allowed them to combine the risk this way while the world stayed basically unaware of change in risk.

 

[garyd]

Again the Derivatives were a contributor they were not the cause. The problem was the mortgage industry, and the mortgage industries problems were largely caused by government rules and regulations which compelled them to give out loans that were toxic at birth.

 

[Truthmatters]

Again the Derivatives were a contributor they were not the cause. The problem was the mortgage industry, and the mortgage industries problems were largely caused by government rules and regulations which compelled them to give out loans that were toxic at birth.

BULLSHIT!@


the sub prime option had been arround for years and it did NOT become a threat to the market until GLB1999 act was passed. This law allowed the different sectors of the banking, loan and securites market to consolidate which allowed them to package off the Debt this way.

Before the consolidation if they tried to unload this type of product the other sectors of the industy would not have purchased it from them and could not have passed it on to another buyer to make a profit. This is why the world bought this product like they did. In the past with our regulations on the market these products had a guarenteed saftey valve. GLB 1999 act dismatled the valve and people still trusted the product. It took a few years before people realised that the CEOs of these mega corp securites frims were as dishonest as a pick pocket. Blam we have the sub prime.

Thanks deregulation.

 

[Chris]

Could a solution be for Iceland to sell the country to America! Let's buy! 51st state of the Union!

I'm all for that.

There are some beautiful women in Iceland.

 

[toomuchtime_]

Again the Derivatives were a contributor they were not the cause. The problem was the mortgage industry, and the mortgage industries problems were largely caused by government rules and regulations which compelled them to give out loans that were toxic at birth.

BULLSHIT!@


the sub prime option had been arround for years and it did NOT become a threat to the market until GLB1999 act was passed. This law allowed the different sectors of the banking, loan and securites market to consolidate which allowed them to package off the Debt this way.

Before the consolidation if they tried to unload this type of product the other sectors of the industy would not have purchased it from them and could not have passed it on to another buyer to make a profit. This is why the world bought this product like they did. In the past with our regulations on the market these products had a guarenteed saftey valve. GLB 1999 act dismatled the valve and people still trusted the product. It took a few years before people realised that the CEOs of these mega corp securites frims were as dishonest as a pick pocket. Blam we have the sub prime.

Thanks deregulation.

Don't you also mean, thanks Clinton and thanks House Democrats because that's were the deregulation came from.

 

[Truthmatters]

Again the Derivatives were a contributor they were not the cause. The problem was the mortgage industry, and the mortgage industries problems were largely caused by government rules and regulations which compelled them to give out loans that were toxic at birth.

BULLSHIT!@


the sub prime option had been arround for years and it did NOT become a threat to the market until GLB1999 act was passed. This law allowed the different sectors of the banking, loan and securites market to consolidate which allowed them to package off the Debt this way.

Before the consolidation if they tried to unload this type of product the other sectors of the industy would not have purchased it from them and could not have passed it on to another buyer to make a profit. This is why the world bought this product like they did. In the past with our regulations on the market these products had a guarenteed saftey valve. GLB 1999 act dismatled the valve and people still trusted the product. It took a few years before people realised that the CEOs of these mega corp securites frims were as dishonest as a pick pocket. Blam we have the sub prime.

Thanks deregulation.

Don't you also mean, thanks Clinton and thanks House Democrats because that's were the deregulation came from.

Nope , Gramm which is the G from GLB 1999 act wrote and passed this one with a republican majority, Clinton did sign it and he deserves derision for doing so. The REAL big blame goes to all the republican party for NOT DOING ANYTHING when it proved that the CEOs were selling crap dressed up like securities that would pull our economy appart. They are the ones who refused to act and reregulate the industry.