CDZ Video on the 2008 Mrtgage Market Collapse and How it was Fixed

Discussion in 'Clean Debate Zone' started by JimBowie1958, Sep 23, 2019.

  1. JimBowie1958
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    JimBowie1958 Old Fogey

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    The Too Big to Fail Banks had to be recapitalized or our financial industry would have collapsed.

    Obama's QE was a perfect fix, but the underlying problem of these damned banks and the removal of Glass-Steagal still remain.
     
  2. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    The Too Big to Fail Banks had to be recapitalized or our financial industry would have collapsed.

    Obama's QE was a perfect fix,


    QE didn't capitalize the banks.
     
  3. Mac1958
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    Mac1958 Diamond Member

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    The thing was that the solution to a problem created a bigger problem. As the banks were crumbling, they started eating each other and getting even MORE huge.

    Paulsen, Geithner and Bernanke knew it at the time, but they had no other choice. They had to play matchmaker. Too Big to Fail created a classic no-win situation.

    NOW is the time to bring back Glass Steagall -- when everything isn't on fire. But we don't have the balls, the banks have too much influence on both our economy and our politics, and we prefer to make massive decisions in an abject panic because we're weak.

    Now, look at what the NY Fed is having to do to unglue repo markets. This is a farce. Our financial system is now so constipated that we're having to run around and put out fires while creating new ones. Logic & reason have been replaced by something else.
    .
     
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    Last edited: Sep 27, 2019
  4. ding
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    ding Confront reality

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    It was criminal how they spread their bad debt around.

    Privatized profits. Socialized losses.
     
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  5. JimBowie1958
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    JimBowie1958 Old Fogey

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    The Fed just dumped another $110 Billion into propping up their artificially low interest rates.

    But they have to or else the cost of the $21 TRILLION national debt will literally explode and take down our government.
     
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  6. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Because the overnight rate influences much longer term government debt? Instantly?
     
  7. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    Socialized? The banks lost hundreds of billions.
     
  8. ding
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    ding Confront reality

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    And were bailed out by we the people.
     
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  9. JimBowie1958
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    JimBowie1958 Old Fogey

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    At least the Federal Reserve got something for their money.

    They are still deriving revenue from the assets they bought.
     
  10. Toddsterpatriot
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    Toddsterpatriot Diamond Member

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    You bet.
    The Fed made profitable loans and the Treasury made profitable capital investments in the banking system.
    Even while banks lost hundreds of billions on crappy mortgages.
     

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