Untold Wealth: The Rise of the Super Rich

I don't feel sorry for the people who fall for scams, any more than I feel sorry for the idiots living beyond their means with credit cards. It's the same logic, which holds true as to why there are "super wealthy" as well. People keep giving them money, it's not their fault people love living so ignorant that they just give these people more and more money. Here's a clue, if you don't like people getting rich then stop buying everything from the same place. For instance Bill Gates ... rich ... why? Because people are too scared to try other OSs ... so then they have control, all they had to do was tighten the hold on their code a little more each release and no one stopped them (well most didn't). Should he be blamed just because everyone went to him for contracts in businesses? Or should he be blamed for everyone demanding his products because they didn't want to try anything new?
 
They didn't walk away with very much money or everyone wouldn.tbe going broke that has anything to do with the Mortgage industry. Even if you were correct that isn't a Ponzi scheme. It's more of a bait and switch at least get your scams correct if nothing else.

The derivatives were overpriced. Why were they over priced?

They were overpriced because the BONDS RATING AGENCIES failed to correctly predict the true risk associated with those bonds.

And why did they fail to do their jobs correctly?

Because they knew if they correctly accessed the true risk, their employers (the bonds issuing banks) would hire another Bonds ratings agency to lie about the risk, of course.

What we had (and still have incidently) is a CONFLICT of INTEREST when it comes to risk assessment.

Basically the government and the FED set the stage for this disaster, the banks and the homebuyers facilitated the disaster, the Bond ratings agencies assisted by making it possible for those incorrectly risk assessed bonds derivitives to be created.
 
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They didn't walk away with very much money or everyone wouldn.tbe going broke that has anything to do with the Mortgage industry. Even if you were correct that isn't a Ponzi scheme. It's more of a bait and switch at least get your scams correct if nothing else.

The derivatives were overpriced. Why were they over priced? because the housing market had reached a critical mass in which too many houses cost too much more than anyone not making near a six figure income could afford to pay for them. So your democrat congress chose to delay this by forcing the mortgage companys to loan money to people who couldn't afford them and preventing the Mortgage companies from being able to cover their butts in the usual way by charging a high premium for such mortgages a lot -well 7% - of these properties began to defualt about the time the owner found out that he couldn't pay his mortgage and keep the utilities on and buy the gas to get to and from work every day simultaneously to say nothing of necessary maintenance of said home why forclosure usually costs the mortgage holder upwards of seventy k along with legal expeses.

OMG, that is funny!!!

"They didn't walk away with very much money."

At one point the top 26 hedge fund managers were averaging $877 million dollars a year in income.

And only a small percentage of mortgages are in foreclosure, so it was not the housing industry, it was the derivatives. Did you even read the article I posted?

They build a $519 TRILLION DOLLAR BUBBLE.

It was a scam. Warren Buffet recognized it 6 years ago.

http://www.marketwatch.com/news/sto...x?guid={B9E54A5D-4796-4D0D-AC9E-D9124B59D436}
 
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ARROYO GRANDE, Calif. (MarketWatch) -- "Charlie and I believe Berkshire should be a fortress of financial strength" wrote Warren Buffett. That was five years before the subprime-credit meltdown.
"We try to be alert to any sort of mega-catastrophe risk, and that posture may make us unduly appreciative about the burgeoning quantities of long-term derivatives contracts and the massive amount of uncollateralized receivables that are growing alongside. In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal."
That warning was in Buffett's 2002 letter to Berkshire shareholders. He saw a future that many others chose to ignore. The Iraq war build-up was at a fever-pitch. The imagery of WMDs and a mushroom cloud fresh in his mind.

http://www.marketwatch.com/news/sto...x?guid={B9E54A5D-4796-4D0D-AC9E-D9124B59D436}
 
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The Securities and Exchange Commission filed an amended civil complaint late Friday alleging that Texas financier R. Allen Stanford and his company's Chief Financial Officer James M. Davis operated a massive Ponzi scheme.

In carrying out this scheme, the SEC claims, Messrs. Stanford and Davis misappropriated billions of investors' money and falsified the Stanford International Bank's records to hide their fraud.

"Stanford International Bank's financial statements, including its investment income, are fictional," the SEC said.

http://online.wsj.com/article/SB123577641445497313.html?mod=googlenews_wsj
 
So did FDR. Its rather hard to tell people not to run ponzi sceams when people are irresponsible with their money and the government is doing the same exact thing.
 
They didn't walk away with very much money or everyone wouldn.tbe going broke that has anything to do with the Mortgage industry. Even if you were correct that isn't a Ponzi scheme. It's more of a bait and switch at least get your scams correct if nothing else.

The derivatives were overpriced. Why were they over priced? because the housing market had reached a critical mass in which too many houses cost too much more than anyone not making near a six figure income could afford to pay for them. So your democrat congress chose to delay this by forcing the mortgage companys to loan money to people who couldn't afford them and preventing the Mortgage companies from being able to cover their butts in the usual way by charging a high premium for such mortgages a lot -well 7% - of these properties began to defualt about the time the owner found out that he couldn't pay his mortgage and keep the utilities on and buy the gas to get to and from work every day simultaneously to say nothing of necessary maintenance of said home why forclosure usually costs the mortgage holder upwards of seventy k along with legal expeses.

OMG, that is funny!!!

"They didn't walk away with very much money."

At one point the top 26 hedge fund managers were averaging $877 million dollars a year in income.

And only a small percentage of mortgages are in foreclosure, so it was not the housing industry, it was the derivatives. Did you even read the article I posted?

They build a $519 TRILLION DOLLAR BUBBLE.

It was a scam. Warren Buffet recognized it 6 years ago.

Derivatives are the new ticking time bomb - MarketWatch

Of course that market was unsustainable.

According to something I heard Warren say on TV, Buffet understood that he couldn't understand that market.

That was enough tip-off for him that the whole damned thing was nothing but a bubble waiting to burst.
 
editec, these hedge fund managers are smart.

They knew the mathematics of derivatives.

They knew it was a scam.

Hopefully, some of them will go to jail, but probably most won't.
 
So did FDR. Its rather hard to tell people not to run ponzi sceams when people are irresponsible with their money and the government is doing the same exact thing.

Bullshit.

that's the kind of nuanced response we've come to expect from you chrissy.
couldn't find a picture?

A poster like yourself who only posts insults is kind of pathetic, don't you think?
 
that's the kind of nuanced response we've come to expect from you chrissy.
couldn't find a picture?

A poster like yourself who only posts insults is kind of pathetic, don't you think?

what insult was that, gerbil smuggler?

You didn't answer my question.

A poster like yourself who only posts insults is kind of pathetic, don't you think?
 
We're informed that the number of PONZI investment firms that we can expect to hear about in the near future is going to be rather large.

In Capitalism, if it is going to work well, investment firms needs to be transparent to the investor.

This economic meltdown we're having right now wouold NOT have occurred at all (no matter what the FED or fannie and freddie or the government did( IF the BONDS RATINGS AGENCIES had done their jobs of accurately accessing risk HONESTLY.

Had they done their jobs honestly, those bonds, which became the meat of the derivatives industry, could never have been sold at the prices they were sold.

Had they been accurately assessed, the banks would not be insolvent, and the government wouldn't be trying to figure out how to save the bond holders by giving TRILLIONS to the banks.

I know a lot of you truyly want to put the entire blame on the back of the government, but had CAPITALISM done its job properly, this would never have happened.
 
Demonize the rich, nationalize the banks. You are on your way to communism.
 
We're informed that the number of PONZI investment firms that we can expect to hear about in the near future is going to be rather large.

In Capitalism, if it is going to work well, investment firms needs to be transparent to the investor.

This economic meltdown we're having right now wouold NOT have occurred at all (no matter what the FED or fannie and freddie or the government did( IF the BONDS RATINGS AGENCIES had done their jobs of accurately accessing risk HONESTLY.

Had they done their jobs honestly, those bonds, which became the meat of the derivatives industry, could never have been sold at the prices they were sold.

Had they been accurately assessed, the banks would not be insolvent, and the government wouldn't be trying to figure out how to save the bond holders by giving TRILLIONS to the banks.

I know a lot of you truyly want to put the entire blame on the back of the government, but had CAPITALISM done its job properly, this would never have happened.

The lack of regulation allowed the theves on Wall Street to destroy the American economy.

The problem is the press has not really covered this story accurately. People don't really understand what derivatives are, and how they led to the crash. They think is just the mortgages.
 
editec, these hedge fund managers are smart.

They knew the mathematics of derivatives.

They knew it was a scam.

Hopefully, some of them will go to jail, but probably most won't.

Some of them undoubtably knew the system could not sustain the risk it was taking I don't doubt that.

The banks which bundled the mortgages KNEW that the bonds they were creating were not being accurately assessed.

What I find troubling right now, is that nobody seems to be taking Moody's and Standard and Poor (I think that's the other major bond rating company..I may have that wrong) to task for completely failing to do their jobs.

This whole disaster was based on SPECIOUS BOND RATINGS
 

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