Krugman rips von Mises up one side & down the other

.the damage was already done by Wall Street bankster and PRIVATE lenders outside of government regulations.

too stupid by 1000%!! Wall Street operated within an environment created by Fed Fanny Fred, etc etc .Did the dummy think Wall Street printed its own money to constantly inflate the housing market?
 
AND what really sucks for you...Fannie and Freddie's serious delinquency rates were MUCH lower than your beloved Wall Street bankster gimmick loans.

dear you've already learned 12 times that that Fan Fred had the power to get the best mortgages so of course they had fewer defaults!! Are you trying to show how stupid you are?
 
I was reading the report, which I downloaded from my library and the GSE loans defaulted at around 6-7% whereas the private, for-profit loans defaulted at 28% :eusa_whistle:
 
.the damage was already done by Wall Street bankster and PRIVATE lenders outside of government regulations.

too stupid by 1000%!! Wall Street operated within an environment created by Fed Fanny Fred, etc etc .Did the dummy think Wall Street printed its own money to constantly inflate the housing market?

Is it possible you are THAT dense? Wall Street created their own environment. They were catering to speculators had who NO INTEREST in a "mortgage". They were NOT buying a homestead. They CRAVED gimmicks that would allow them to buy multiple homes with ZERO down. They were merely buying an investment to flip for profit.

Truly stop and THINK. No one can be THAT dense.
 
Wall Street created their own environment.

too stupud!! The Fed printed the money, Fan Fred guaranteed it, and so did the Greenspan Put. Greenspan and fed, fran were not Wall Street. What grade are you in?

Hey MORON, NONE of those private gimmick loans were 'guaranteed' by the government. You are so 'stupid, you don't even know how to spell 'stupid'

Private-Label Mortgage Backed Securities


Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk. Below is a diagram that represents the types of mortgages that would not classify as GSE conforming loans.


graph_5.png


Many the mortgages that made up private-label mortgage backed securities were ‘Jumbo Loans’ with a loan amount of more than $415,000. During the housing bubble build-up, housing prices were inflating and as the average home price increased more and more loans became non-conforming Jumbo Loans.

Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitch to prescribe the amount of risk associated with private label securities. These private label securities earned great ratings from the credit agencies. In fact, the vast majority of private label debt was rated AAA, the highest rating achievable, second only to debt that was government insured (Gorton 25). The appeal to investors was a higher return as to the comparable government insured securities.

So what was the problem? The ratings weren’t accurate for a number of important reasons. Many of the models that were used to ascertain the riskiness of these mortgage back securities used a method known as “independent observations”. The models assumed that each observed change in an underlying asset would not affect any other asset. This turned out to be a terrible assumption because as people began defaulting placed downward pressure on overall home prices. These ratings looked very appealing with the higher rate of return and many people invested with confidence in the credit rating agencies marks, frequently in individual retirement accounts and pension funds (Adrian & Shin 11). When the bubble eventually collapsed and debt issuers were unable to make good on their securities, investors absorbed the brute impact of the firm failures.
 
Hey MORON, NONE of those private gimmick loans were 'guaranteed' by the government. .

all homes in America were seemingly guaranteed by the Fed's history of always inflating home prices and the Greenspan Put. Do you feel stupid for trying to pretend that the most massively interfered with market in America History was not massively interfered with?
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki
 
Hey MORON, NONE of those private gimmick loans were 'guaranteed' by the government. .

all homes in America were seemingly guaranteed by the Fed's history of always inflating home prices and the Greenspan Put. Do you feel stupid for trying to pretend that the most massively interfered with market in America History was not massively interfered with?

Conservatism in a nutshell...

I had a flat tire. It is the government's fault. FUCK personal responsibility. Just blame government for all my actions.
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!
 
Hey MORON, NONE of those private gimmick loans were 'guaranteed' by the government. .

all homes in America were seemingly guaranteed by the Fed's history of always inflating home prices and the Greenspan Put. Do you feel stupid for trying to pretend that the most massively interfered with market in America History was not massively interfered with?

Conservatism in a nutshell...

I had a flat tire. It is the government's fault. FUCK personal responsibility. Just blame government for all my actions.

all homes in America were seemingly guaranteed by the Fed's history of always inflating home prices and the Greenspan Put. Do you feel stupid for trying to pretend that the most massively interfered with market in America History was not massively interfered with?
 
Hey MORON, NONE of those private gimmick loans were 'guaranteed' by the government. .

all homes in America were seemingly guaranteed by the Fed's history of always inflating home prices and the Greenspan Put. Do you feel stupid for trying to pretend that the most massively interfered with market in America History was not massively interfered with?

Conservatism in a nutshell...

I had a flat tire. It is the government's fault. FUCK personal responsibility. Just blame government for all my actions.

Dear, govt regulates health care in its liberal soviet way. Guess what the result is?
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!

There are some FACTS you just can't seem to comprehend and digest. These Wall Street private lenders and speculators who were buying multiple homes to create a 'get rich quick' scheme did NOT WANT government backed mortgages. They did NOT want loans that had traditional lending standard RULES. They WANTED gimmick loans. WHY you may ask...because they were NOT buying a homestead. They already had a HOME. It was an INVESTMENT. Nothing more and nothing less.
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!

There are some FACTS you just can't seem to comprehend and digest. These Wall Street private lenders and speculators who were buying multiple homes to create a 'get rich quick' scheme did NOT WANT government backed mortgages. They did NOT want loans that had traditional lending standard RULES. They WANTED gimmick loans. WHY you may ask...because they were NOT buying a homestead. They already had a HOME. It was an INVESTMENT. Nothing more and nothing less.

Indeed. Nothing less. The problem wasn't with the concept of investment, or speculation; both of which are important functions in a free economy. The problem was the lack of prudence. Which, again, is endemic in a regulated market place, where "buyer beware" devolves to pushing the limits allowed by law.
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!

There are some FACTS you just can't seem to comprehend and digest. These Wall Street private lenders and speculators who were buying multiple homes to create a 'get rich quick' scheme did NOT WANT government backed mortgages. They did NOT want loans that had traditional lending standard RULES. They WANTED gimmick loans. WHY you may ask...because they were NOT buying a homestead. They already had a HOME. It was an INVESTMENT. Nothing more and nothing less.

Indeed. Nothing less. The problem wasn't with the concept of investment, or speculation; both of which are important functions in a free economy. The problem was the lack of prudence. Which, again, is endemic in a regulated market place, where "buyer beware" devolves to pushing the limits allowed by law.

You have a very serious mental disorder. You believe in 'magic' and 'fairy dust'...

The investors and speculators got EXACTLY what they wanted. There was no government interference, restraint, control or regulations to ignore.

And the American people PAYED the price of their reckless and self serving actions. This is a PRIME example of how markets DON'T regulate themselves. It PROVES the failure of laissez-faire
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!

There are some FACTS you just can't seem to comprehend and digest. These Wall Street private lenders and speculators who were buying multiple homes to create a 'get rich quick' scheme did NOT WANT government backed mortgages. They did NOT want loans that had traditional lending standard RULES. They WANTED gimmick loans. WHY you may ask...because they were NOT buying a homestead. They already had a HOME. It was an INVESTMENT. Nothing more and nothing less.

Indeed. Nothing less. The problem wasn't with the concept of investment, or speculation; both of which are important functions in a free economy. The problem was the lack of prudence. Which, again, is endemic in a regulated market place, where "buyer beware" devolves to pushing the limits allowed by law.

You have a very serious mental disorder. You believe in 'magic' and 'fairy dust'...

The investors and speculators got EXACTLY what they wanted. There was no government interference, restraint, control or regulations to ignore.

And the American people PAYED the price of their reckless and self serving actions. This is a PRIME example of how markets DON'T regulate themselves. It PROVES the failure of laissez-faire

You're not listening. I'm agreeing with you that backing off on regulations in the way they did, piecemeal, in response to targeted lobbying from financial interests, was the wrong approach. But that's what a regulated environment facilitates. It makes it possible for unscrupulous sorts to prey on people under the false premise that everything is 'cool' because it's legal. If, instead, buyers and sellers were free to trade under whatever terms each found acceptable, and were offered no guarantees that their trades were safe, they'd exercise their own caution, or they wouldn't be in business long.

You can't have a free market with a government that presumes to tell us what trades are too risky, or how much things are "really" worth. Once you start down that path, you really have to just give up on freedom altogether and submit all our economic decisions to authority. That would represent complete defeat, in my view - because I value freedom more than security - but it would at least be functional. The middle ground we're trying to traverse isn't.
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!

There are some FACTS you just can't seem to comprehend and digest. These Wall Street private lenders and speculators who were buying multiple homes to create a 'get rich quick' scheme did NOT WANT government backed mortgages. They did NOT want loans that had traditional lending standard RULES. They WANTED gimmick loans. WHY you may ask...because they were NOT buying a homestead. They already had a HOME. It was an INVESTMENT. Nothing more and nothing less.

Indeed. Nothing less. The problem wasn't with the concept of investment, or speculation; both of which are important functions in a free economy. The problem was the lack of prudence. Which, again, is endemic in a regulated market place, where "buyer beware" devolves to pushing the limits allowed by law.

You have a very serious mental disorder. You believe in 'magic' and 'fairy dust'...

The investors and speculators got EXACTLY what they wanted. There was no government interference, restraint, control or regulations to ignore.

And the American people PAYED the price of their reckless and self serving actions. This is a PRIME example of how markets DON'T regulate themselves. It PROVES the failure of laissez-faire

You're not listening. I'm agreeing with you that backing off on regulations in the way they did, piecemeal, in response to targeted lobbying from financial interests, was the wrong approach. But that's what a regulated environment facilitates. It makes it possible for unscrupulous sorts to prey on people under the false premise that everything is 'cool' because it's legal. If, instead, buyers and sellers were free to trade under whatever terms each found acceptable, and were offered no guarantees that their trades were safe, they'd exercise their own caution, or they wouldn't be in business long.

You can't have a free market with a government that presumes to tell us what trades are too risky, or how much things are "really" worth. Once you start down that path, you really have to just give up on freedom altogether and submit all our economic decisions to authority. That would represent complete defeat, in my view - because I value freedom more than security - but it would at least be functional. The middle ground we're trying to traverse isn't.

I was wrong. The market responded EXACTLY and concisely as it should. It worked PERFECTLY. Buyers and sellers were free to trade under whatever terms each found acceptable, and were offered no guarantees that their trades were safe. And they LOST in the end.

BUT, they didn't just cause harm to themselves. They caused harm to all of us.

It is the PERFECT example of why your laissez-faire beliefs are not only fairy tales and faith in 'magic'. They are the MOST dangerous to a nation.
 
Without the government insurance, private-label mortgage backed securities relied on credit rating agencies to inspire confidence in investors that the debt was safe. Debt holders relied on credit rating agencies such as Moody's, Standard & Poor's, and Fitchs.

this is rich!!! the illiterate liberal provides a source contradicting his own argument that the govt was not involved in the housing market!

Do you have a severe brain injury. There is NOTHING that contradicts the FACT NONE of those Wall Street gimmick loans were government backed.

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international financial research on bonds issued by commercial and government entities and, with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.

Standard & Poor's Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.[2] On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%.[3] Previously, Hearst owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake.[4] Fitch Ratings and Fitch Solutions are part of the Fitch Group.

wiki

dear, are you saying in your 100% illiterate and retarded way that ratings agencies were not govt controlled? This is yes or no question!!

There are some FACTS you just can't seem to comprehend and digest. These Wall Street private lenders and speculators who were buying multiple homes to create a 'get rich quick' scheme did NOT WANT government backed mortgages. They did NOT want loans that had traditional lending standard RULES. They WANTED gimmick loans. WHY you may ask...because they were NOT buying a homestead. They already had a HOME. It was an INVESTMENT. Nothing more and nothing less.

Indeed. Nothing less. The problem wasn't with the concept of investment, or speculation; both of which are important functions in a free economy. The problem was the lack of prudence. Which, again, is endemic in a regulated market place, where "buyer beware" devolves to pushing the limits allowed by law.

You have a very serious mental disorder. You believe in 'magic' and 'fairy dust'...

The investors and speculators got EXACTLY what they wanted. There was no government interference, restraint, control or regulations to ignore.

And the American people PAYED the price of their reckless and self serving actions. This is a PRIME example of how markets DON'T regulate themselves. It PROVES the failure of laissez-faire

You're not listening. I'm agreeing with you that backing off on regulations in the way they did, piecemeal, in response to targeted lobbying from financial interests, was the wrong approach. But that's what a regulated environment facilitates. It makes it possible for unscrupulous sorts to prey on people under the false premise that everything is 'cool' because it's legal. If, instead, buyers and sellers were free to trade under whatever terms each found acceptable, and were offered no guarantees that their trades were safe, they'd exercise their own caution, or they wouldn't be in business long.

You can't have a free market with a government that presumes to tell us what trades are too risky, or how much things are "really" worth. Once you start down that path, you really have to just give up on freedom altogether and submit all our economic decisions to authority. That would represent complete defeat, in my view - because I value freedom more than security - but it would at least be functional. The middle ground we're trying to traverse isn't.

I was wrong. The market responded EXACTLY and concisely as it should. It worked PERFECTLY. Buyers and sellers were free to trade under whatever terms each found acceptable, and were offered no guarantees that their trades were safe. And they LOST in the end.

BUT, they didn't just cause harm to themselves. They caused harm to all of us.

It is the PERFECT example of why your laissez-faire beliefs are not only fairy tales and faith in 'magic'. They are the MOST dangerous to a nation.
^ that
 

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