Wall Street Declares War on Warren

[Mac1958]

Of course, you're free to explain why interest rate swaps caused the crisis. LOL!

They were CREDIT DEFAULT swaps, not "interest rate swaps". Don't you know that???

Credit default swaps played a HUGE role because they allowed the people buying the shit securities to transfer risk to the insurance company, like AIG, which was its own disaster within a disaster. So the whole process could continue, buying and selling shit securities, magically getting AAA (TREASURY-level) ratings from the ratings agencies, all while Alan Greenspan REFUSED to regulate any of it, even when CLTC Chairwoman Brooksley Born was BEGGING him to. It was a SCAM. It was a FARCE.

And I'm sure you know that AIG had zero (0) reserve requirements on these swaps, so they could write them all day long for huge fees. NO REQUIREMENTS. NO REGULATION. Just keep writing swaps based on THIN AIR.

This is basic, fundamental stuff that anyone who claims to know what actually happened should know.

This is my profession. I've studied this thing for years. If you want to pretend you know what you're taking about, go ahead. I'm done arguing this with people who only know what talk radio has told them. I no longer have the patience for this mix of arrogance & ignorance.

Oh, and not that you'll access this information, but here: The Meltdown, explained
.

CREDIT DEFAULT swaps, not "interest rate swaps". Don't you know that???

Over $400 trillion in interest rate swaps didn't do anything dangerous?
Tell George, before he fills his diaper again.

Credit default swaps played a HUGE role because they allowed the people buying the shit securities to transfer risk to the insurance company, like AIG

Excellent! How much of this risk did AIG take on with CDS? Round numbers?

And I'm sure you know that AIG had zero (0) reserve requirements on these swaps, so they could write them all day long for huge fees. NO REQUIREMENTS. NO REGULATION. Just keep writing swaps based on THIN AIR.

Yup. AIG fucked up big time!!!
The risk department shouldn't have let the traders do that. Obviously!

If you want to pretend you know what you're taking about, go ahead. I'm done arguing this with people who only know what talk radio has told them

Screw you. I expect as much useful info from talk radio as I do from commies like George.
And I've been in this profession since the 80s.

Oh, I hope you're kidding about being in the business. If that's the case, you're THE FIRST person I've run into who tries this crap.

AIG let the traders get away with it because (a) THE FEES and (b) NO RESERVE REQUIREMENTS. This kind of shit was happening EVERYWHERE, because Greenspan made Wall Street the Wild West by refusing to regulate. Like Goldman and John Paulson creating shit securities specifically to be SOLD and SHORTED, making Paulson TWO BILLION and GS who knows HOW much. Like ratings agencies giving these shit securities AAA, Treasury-fucking-level, ratings to keep the FEES coming in.

And how much in CDSs? I dunno, I've heard $80 billion. Whatever the number, it was enough to sink AIG, send them crawling hat in hand to Hank Paulsen, suck up a bailout, and (most importantly) mightily contribute to the domino of panic that was gripping markets and freezing up credit. And this was just one piece of the fucking nightmare.

Play this game with someone else. I'm done.
.

 

[georgephillip]

"That’s because despite the pivotal role that derivatives played in deepening the epic financial collapse that began in 2008, derivatives have not been brought under control by either Congress or Federal regulators of Wall Street."

All other issues aside, it's nice to see a politician getting this.

Until this happens, we're pissing on a hornet's nest. Derivatives (and the various industry tactics that surrounded them) were the key component of the Meltdown.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk, you'll eliminate dangerous conflicts of interest, and you'll bring both stability and sanity back to Wall Street. And everyday banking.
.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time.

Crappy mortgages, not derivatives.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time.

Crappy mortgages, not derivatives.

Fraudulent mortgages the vast majority of which came from the lender side of the table; does capitalism even exist without systemic fraud?

FBI saw threat of loan crisis

"WASHINGTON —

"Long before the mortgage crisis began rocking Main Street and Wall Street, a top FBI official made a chilling, if little-noticed, prediction: The booming mortgage business, fueled by low interest rates and soaring home values, was starting to attract shady operators and billions in losses were possible.

"'It has the potential to be an epidemic,' Chris Swecker, the FBI official in charge of criminal investigations, told reporters in September 2004.

"But, he added reassuringly, the FBI was on the case. 'We think we can prevent a problem that could have as much impact as the S&L; crisis,' he said."

 

[Toddsterpatriot]

Of course, you're free to explain why interest rate swaps caused the crisis. LOL!

They were CREDIT DEFAULT swaps, not "interest rate swaps". Don't you know that???

Credit default swaps played a HUGE role because they allowed the people buying the shit securities to transfer risk to the insurance company, like AIG, which was its own disaster within a disaster. So the whole process could continue, buying and selling shit securities, magically getting AAA (TREASURY-level) ratings from the ratings agencies, all while Alan Greenspan REFUSED to regulate any of it, even when CLTC Chairwoman Brooksley Born was BEGGING him to. It was a SCAM. It was a FARCE.

And I'm sure you know that AIG had zero (0) reserve requirements on these swaps, so they could write them all day long for huge fees. NO REQUIREMENTS. NO REGULATION. Just keep writing swaps based on THIN AIR.

This is basic, fundamental stuff that anyone who claims to know what actually happened should know.

This is my profession. I've studied this thing for years. If you want to pretend you know what you're taking about, go ahead. I'm done arguing this with people who only know what talk radio has told them. I no longer have the patience for this mix of arrogance & ignorance.

Oh, and not that you'll access this information, but here: The Meltdown, explained
.

CREDIT DEFAULT swaps, not "interest rate swaps". Don't you know that???

Over $400 trillion in interest rate swaps didn't do anything dangerous?
Tell George, before he fills his diaper again.

Credit default swaps played a HUGE role because they allowed the people buying the shit securities to transfer risk to the insurance company, like AIG

Excellent! How much of this risk did AIG take on with CDS? Round numbers?

And I'm sure you know that AIG had zero (0) reserve requirements on these swaps, so they could write them all day long for huge fees. NO REQUIREMENTS. NO REGULATION. Just keep writing swaps based on THIN AIR.

Yup. AIG fucked up big time!!!
The risk department shouldn't have let the traders do that. Obviously!

If you want to pretend you know what you're taking about, go ahead. I'm done arguing this with people who only know what talk radio has told them

Screw you. I expect as much useful info from talk radio as I do from commies like George.
And I've been in this profession since the 80s.

Oh, I hope you're kidding about being in the business. If that's the case, you're THE FIRST person I've run into who tries this crap.

AIG let the traders get away with it because (a) THE FEES and (b) NO RESERVE REQUIREMENTS. This kind of shit was happening EVERYWHERE, because Greenspan made Wall Street the Wild West by refusing to regulate. Like Goldman and John Paulson creating shit securities specifically to be SOLD and SHORTED, making Paulson TWO BILLION and GS who knows HOW much. Like ratings agencies giving these shit securities AAA, Treasury-fucking-level, ratings to keep the FEES coming in.

And how much in CDSs? I dunno, I've heard $80 billion. Whatever the number, it was enough to sink AIG, send them crawling hat in hand to Hank Paulsen, suck up a bailout, and (most importantly) mightily contribute to the domino of panic that was gripping markets and freezing up credit. And this was just one piece of the fucking nightmare.

Play this game with someone else. I'm done.
.

Like ratings agencies giving these shit securities AAA, Treasury-fucking-level,

Yeah, crappy mortgages that weren't restricted by Glass-Steagall.​

And how much in CDSs? I dunno, I've heard $80 billion.

$80 billion? And how big was the mortgage market?

Play this game with someone else. I'm done.

Of course you are.

 

[Natural Citizen]

Play this game with someone else. I'm done.

The benefit of this kind of deeper discussion is for that of the casual passers-by who simply don't understand how it really works. Or who have never heard it before.

Toddster's just a punching bag who affords us the opportunity to speak to the casual passer-by without having to do so seperately in every instance. A useful idiot. His pride gets the best of him and he just keeps right on giving us the mic. Ha. It's great.

 

[buttercup]

Nobody fucking cares about the "distinction" between money (that no one uses) and currency.

What a willfully ignorant thing to say. Yes, plenty of people DO care about that distinction, namely people who value truth. Give it up, your stubborn pride is causing you to say blatantly false things.

 

[georgephillip]

"That’s because despite the pivotal role that derivatives played in deepening the epic financial collapse that began in 2008, derivatives have not been brought under control by either Congress or Federal regulators of Wall Street."

All other issues aside, it's nice to see a politician getting this.

Until this happens, we're pissing on a hornet's nest. Derivatives (and the various industry tactics that surrounded them) were the key component of the Meltdown.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk, you'll eliminate dangerous conflicts of interest, and you'll bring both stability and sanity back to Wall Street. And everyday banking.
.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time.

Crappy mortgages, not derivatives.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

Why do you feel the need to lie about this aspect of reality?

Mortgage-backed security - Wikipedia

 

[Natural Citizen]

What a willfully ignorant thing to say. Yes, plenty of people DO care about that distinction, namely people who value truth. Give it up, your stubborn pride is causing you to say blatantly false things.

Actually it's his total lack of understanding of economic theory and monetary policy, compounded by a lack of understanding of definitions of what kind of policies we actually have, that causes him to say blatantly false things.

Agreed, though, that his pride is outweighed only by his ignorance to such matters.

As I'd mentioned, though, he's useful in that regard.

 

[Toddsterpatriot]

Nobody fucking cares about the "distinction" between money (that no one uses) and currency.

What a willfully ignorant thing to say. Yes, plenty of people DO care about that distinction, namely people who value truth. Give it up, your stubborn pride is causing you to say blatantly false things.

People care so much that not a single nation today uses "money".

 

[Toddsterpatriot]

"That’s because despite the pivotal role that derivatives played in deepening the epic financial collapse that began in 2008, derivatives have not been brought under control by either Congress or Federal regulators of Wall Street."

All other issues aside, it's nice to see a politician getting this.

Until this happens, we're pissing on a hornet's nest. Derivatives (and the various industry tactics that surrounded them) were the key component of the Meltdown.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk, you'll eliminate dangerous conflicts of interest, and you'll bring both stability and sanity back to Wall Street. And everyday banking.
.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time.

Crappy mortgages, not derivatives.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

Why do you feel the need to lie about this aspect of reality?

Mortgage-backed security - Wikipedia

A pool of mortgages divided into 3 pieces is still a pile of mortgages.

 

[georgephillip]

"That’s because despite the pivotal role that derivatives played in deepening the epic financial collapse that began in 2008, derivatives have not been brought under control by either Congress or Federal regulators of Wall Street."

All other issues aside, it's nice to see a politician getting this.

Until this happens, we're pissing on a hornet's nest. Derivatives (and the various industry tactics that surrounded them) were the key component of the Meltdown.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk, you'll eliminate dangerous conflicts of interest, and you'll bring both stability and sanity back to Wall Street. And everyday banking.
.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

You're wasting your time. They don't know this stuff.

The official talk radio line is the CRA, a law signed in 1977, and somehow responsible for the whole thing 30 years later.

That's all they know. Derivatives, CDOs, CMOs, fraud, synthetics, swaps, ratings agencies, mortgage companies, Greenspan, that's all fake news.
.

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Derivatives, not so much.
Of course, you're free to explain why interest rate swaps caused the crisis. LOL!

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Bubbles happen because liars lie.

Harper's Slow Crash | Michael Hudson

"Have you ever heard of someone sitting on Wall Street who read Harper’s in May 2008 and acted appropriately?

"I don’t think they needed me. If they’re on Wall Street, they didn’t need me to tell them that the economy is going to collapse. They all knew it was going to collapse.

"That was in the language of 'liar’s loans' and 'NINJAs.'

"It was pretty obvious what was going on. It’s just the media didn’t talk about it because the media was giving handouts from Alan Greenspan saying that it’s not possible for there to be a real estate collapse, it’s only local.

"The media are cheerleaders for the stock market. Whenever it goes up they celebrate, even if it goes up because there’s a short squeeze on speculators. The media have not done a good job in educating the American public."

"Fig. 1: Robert Shiller's plot of U.S. home prices, population, building costs, and bond yields, from Irrational Exuberance, 2nd ed.[1] Shiller shows that inflation-adjusted U.S. home prices increased 0.4% per year from 1890 to 2004 and 0.7% per year from 1940 to 2004, whereas U.S. census data from 1940 to 2004 shows that the self-assessed value increased 2% per year."

United States housing bubble - Wikipedia

 

[Mac1958]

Play this game with someone else. I'm done.

The benefit of this kind of deeper discussion is for that of the casual passers-by who simply don't understand how it really works. Or who have never heard it before.

Toddster's just a punching bag who affords us the opportunity to speak to the casual passer-by without having to do so seperately in every instance. A useful idiot. His pride gets the best of him and he just keeps right on giving us the mic. Ha. It's great.

The problem these guys have is that the few of them who have stepped outside their alternate "news" universe to educate themselves on the Meltdown know that a lack of regulation is at the heart of it, and that pure greed drove it.

They're not allowed to admit that, so they just deny, deny, deny. And the best they can do for an explanation of it is drag out the CRA, which was put into law THIRTY YEARS prior to the Meltdown, and run with that. Or, they'll pretend the Meltdown wasn't that big a deal.

This is what they're taught in the alternate universe. There's no way to communicate with someone who is this badly mal-informed and incurious.
.

 

[georgephillip]

All other issues aside, it's nice to see a politician getting this.

Until this happens, we're pissing on a hornet's nest. Derivatives (and the various industry tactics that surrounded them) were the key component of the Meltdown.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk, you'll eliminate dangerous conflicts of interest, and you'll bring both stability and sanity back to Wall Street. And everyday banking.
.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time.

Crappy mortgages, not derivatives.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

Why do you feel the need to lie about this aspect of reality?

Mortgage-backed security - Wikipedia

A pool of mortgages divided into 3 pieces is still a pile of mortgages.

pool of mortgages divided into 3 pieces is still a pile of mortgages.

Piles derived from the original pool of mortgages which sounds like saying a MBS is a derivative, right?

 

[Toddsterpatriot]

All other issues aside, it's nice to see a politician getting this.

Until this happens, we're pissing on a hornet's nest. Derivatives (and the various industry tactics that surrounded them) were the key component of the Meltdown.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk, you'll eliminate dangerous conflicts of interest, and you'll bring both stability and sanity back to Wall Street. And everyday banking.
.

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

You're wasting your time. They don't know this stuff.

The official talk radio line is the CRA, a law signed in 1977, and somehow responsible for the whole thing 30 years later.

That's all they know. Derivatives, CDOs, CMOs, fraud, synthetics, swaps, ratings agencies, mortgage companies, Greenspan, that's all fake news.
.

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Derivatives, not so much.
Of course, you're free to explain why interest rate swaps caused the crisis. LOL!

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Bubbles happen because liars lie.

Harper's Slow Crash | Michael Hudson

"Have you ever heard of someone sitting on Wall Street who read Harper’s in May 2008 and acted appropriately?

"I don’t think they needed me. If they’re on Wall Street, they didn’t need me to tell them that the economy is going to collapse. They all knew it was going to collapse.

"That was in the language of 'liar’s loans' and 'NINJAs.'

"It was pretty obvious what was going on. It’s just the media didn’t talk about it because the media was giving handouts from Alan Greenspan saying that it’s not possible for there to be a real estate collapse, it’s only local.

"The media are cheerleaders for the stock market. Whenever it goes up they celebrate, even if it goes up because there’s a short squeeze on speculators. The media have not done a good job in educating the American public."

"Fig. 1: Robert Shiller's plot of U.S. home prices, population, building costs, and bond yields, from Irrational Exuberance, 2nd ed.[1] Shiller shows that inflation-adjusted U.S. home prices increased 0.4% per year from 1890 to 2004 and 0.7% per year from 1940 to 2004, whereas U.S. census data from 1940 to 2004 shows that the self-assessed value increased 2% per year."

United States housing bubble - Wikipedia

Bubbles happen because liars lie.

No liars under communism, eh comrade?

 

[Toddsterpatriot]

Play this game with someone else. I'm done.

The benefit of this kind of deeper discussion is for that of the casual passers-by who simply don't understand how it really works. Or who have never heard it before.

Toddster's just a punching bag who affords us the opportunity to speak to the casual passer-by without having to do so seperately in every instance. A useful idiot. His pride gets the best of him and he just keeps right on giving us the mic. Ha. It's great.

The problem these guys have is that the few of them who have stepped outside their alternate "news" universe to educate themselves on the Meltdown know that a lack of regulation is at the heart of it, and that pure greed drove it.

They're not allowed to admit that, so they just deny, deny, deny. And the best they can do for an explanation of it is drag out the CRA, which was put into law THIRTY YEARS prior to the Meltdown, and run with that. Or, they'll pretend the Meltdown wasn't that big a deal.

This is what they're taught in the alternate universe. There's no way to communicate with someone who is this badly mal-informed and incurious.
.

a lack of regulation is at the heart of it, and that pure greed drove it.

Yeah, we need regulations against greed. Greed was never a problem under Glass-Steagall.
And regulations against the business cycle too.....as long as you're wishing for the impossible.

And the best they can do for an explanation of it is drag out the CRA, which was put into law THIRTY YEARS prior to the Meltdown, and run with that.

And you could look at the Clinton rule, that required Fannie and Freddie to buy 50% subprime mortgages.
Or Bush bumping the requirement to 55%. Nothing says deregulation like 55% subprime.

 

[Toddsterpatriot]

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time.

Crappy mortgages, not derivatives.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

A good example of a derivative is a mortgage-backed security."

LOL! MBS are a pile of mortgages, not a derivative. They aren't even included in your chart.

Why do you feel the need to lie about this aspect of reality?

Mortgage-backed security - Wikipedia

A pool of mortgages divided into 3 pieces is still a pile of mortgages.

pool of mortgages divided into 3 pieces is still a pile of mortgages.

Piles derived from the original pool of mortgages which sounds like saying a MBS is a derivative, right?

Piles derived from the original pool of mortgages which sounds like saying a MBS is a derivative, right?

No, slicing up a bond into smaller pieces still leaves you with a bond.
Now, if you were trying to discuss synthetic MBS, you would have a point.
But you don't need to buy mortgages or pool them to create those, so that's not what you meant.

 

[georgephillip]

Clamp down on derivatives, reinstate Glass Steagall. You'll massively decrease risk,

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

Derivatives had very little to do with bank losses in 2008.
Glass Steagall would not have restricted bad mortgage writing.

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

You're wasting your time. They don't know this stuff.

The official talk radio line is the CRA, a law signed in 1977, and somehow responsible for the whole thing 30 years later.

That's all they know. Derivatives, CDOs, CMOs, fraud, synthetics, swaps, ratings agencies, mortgage companies, Greenspan, that's all fake news.
.

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Derivatives, not so much.
Of course, you're free to explain why interest rate swaps caused the crisis. LOL!

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Bubbles happen because liars lie.

Harper's Slow Crash | Michael Hudson

"Have you ever heard of someone sitting on Wall Street who read Harper’s in May 2008 and acted appropriately?

"I don’t think they needed me. If they’re on Wall Street, they didn’t need me to tell them that the economy is going to collapse. They all knew it was going to collapse.

"That was in the language of 'liar’s loans' and 'NINJAs.'

"It was pretty obvious what was going on. It’s just the media didn’t talk about it because the media was giving handouts from Alan Greenspan saying that it’s not possible for there to be a real estate collapse, it’s only local.

"The media are cheerleaders for the stock market. Whenever it goes up they celebrate, even if it goes up because there’s a short squeeze on speculators. The media have not done a good job in educating the American public."

"Fig. 1: Robert Shiller's plot of U.S. home prices, population, building costs, and bond yields, from Irrational Exuberance, 2nd ed.[1] Shiller shows that inflation-adjusted U.S. home prices increased 0.4% per year from 1890 to 2004 and 0.7% per year from 1940 to 2004, whereas U.S. census data from 1940 to 2004 shows that the self-assessed value increased 2% per year."

United States housing bubble - Wikipedia

Bubbles happen because liars lie.

No liars under communism, eh comrade?

Bubbles happen because liars lie.

No liars under communism, eh comrade?

Nothing lies like capitalism, Madoff

"Neumann, now 40 years old, was formerly a member of the Israeli military who previously lived in a Kibbutz. Where did he get all of this money to buy up 10 commercial buildings? Through the generosity of the very same Wall Street banks that are the underwriters of this IPO..."

"Speaking of personal property, Neumann and his wife, Rebekah (the brand manager for the company) own five homes for which they plunked down $80 million."

The Dickensian Tale of the WeWork IPO

 

[Toddsterpatriot]

What role did unregulated derivatives play in 2008 bank "losses"

"The real cause of the 2008 financial crisis was the proliferation of unregulated derivatives during that time. These are complicated financial products that derive their value from an underlying asset or index. A good example of a derivative is a mortgage-backed security."

How Derivatives Could Trigger Another Financial Crisis

You're wasting your time. They don't know this stuff.

The official talk radio line is the CRA, a law signed in 1977, and somehow responsible for the whole thing 30 years later.

That's all they know. Derivatives, CDOs, CMOs, fraud, synthetics, swaps, ratings agencies, mortgage companies, Greenspan, that's all fake news.
.

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Derivatives, not so much.
Of course, you're free to explain why interest rate swaps caused the crisis. LOL!

Bubbles happen, CRA made this one worse.
Bubbles happen, forcing Fannie and Freddie to buy crap made this one worse.
Bubble happen, giving a few poor people government funded down-payments made this one worse.
Bubbles happen, cutting rates pre-Y2K made this one worse.

Bubbles happen because liars lie.

Harper's Slow Crash | Michael Hudson

"Have you ever heard of someone sitting on Wall Street who read Harper’s in May 2008 and acted appropriately?

"I don’t think they needed me. If they’re on Wall Street, they didn’t need me to tell them that the economy is going to collapse. They all knew it was going to collapse.

"That was in the language of 'liar’s loans' and 'NINJAs.'

"It was pretty obvious what was going on. It’s just the media didn’t talk about it because the media was giving handouts from Alan Greenspan saying that it’s not possible for there to be a real estate collapse, it’s only local.

"The media are cheerleaders for the stock market. Whenever it goes up they celebrate, even if it goes up because there’s a short squeeze on speculators. The media have not done a good job in educating the American public."

"Fig. 1: Robert Shiller's plot of U.S. home prices, population, building costs, and bond yields, from Irrational Exuberance, 2nd ed.[1] Shiller shows that inflation-adjusted U.S. home prices increased 0.4% per year from 1890 to 2004 and 0.7% per year from 1940 to 2004, whereas U.S. census data from 1940 to 2004 shows that the self-assessed value increased 2% per year."

United States housing bubble - Wikipedia

Bubbles happen because liars lie.

No liars under communism, eh comrade?

Bubbles happen because liars lie.

No liars under communism, eh comrade?

Nothing lies like capitalism, Madoff

"Neumann, now 40 years old, was formerly a member of the Israeli military who previously lived in a Kibbutz. Where did he get all of this money to buy up 10 commercial buildings? Through the generosity of the very same Wall Street banks that are the underwriters of this IPO..."

"Speaking of personal property, Neumann and his wife, Rebekah (the brand manager for the company) own five homes for which they plunked down $80 million."

The Dickensian Tale of the WeWork IPO

Nothing lies like capitalism, Madoff

Obviously, Stalin.

Are you Pam or Russ?

 

[gipper]

Yeah, it's not like Warren's gonna stop monetizing debt.

Agree with the gipper, all show in order to weaponize democracy at every stage of the game and on every channel 24/7.

Wall Street WANTS Warren to win. They know she will do their bidding just as Ears and Hillary did.

No offense, but that is the stupidest thing I've heard in a long, long time.

You live in a weird alternative universe, where up is down, wet is dry, east is west, and the Buccaneers are better than the Patriots. You have absolutely zero clue about what is happening in the real world.

Offense taken. I really dislike stupidity.

You are not informed. Allow me to get you informed.

Warren was a Reagan republican into her 40s.

“I was a Republican because I thought that those were the people who best supported markets. I think that is not true anymore,” Warren toldthe Daily Beast in 2011. “I was a Republican at a time when I felt like there was a problem that the markets were under a lot more strain. It worried me whether or not the government played too activist a role.”
Elizabeth Warren confronted by her Republican past


America’s Billionaires Congealing Around Warren and Buttigieg
America’s Billionaires Congealing Around Warren and Buttigieg | Washington's Blog

You are not informed. You are a biased conspiracy theorist who is so warped by hatred, you believe weird, bizarre conspiracy theorists so disconnected from reality, no one outside of this place could ever take you seriously.

If you've ever wondered why the elites look down on people like you, this is the reason.

Sorry.

Hey Toto, check it out! Was I right or was I right?

Thanks.

Bernie Sanders draws contrast with Elizabeth Warren: She says 'she is a capitalist through her bones. I'm not.'
In 2018, Warren was quoted as saying "I am a capitalist to my bones" during an event hosted by the New England Council, a non-partisan regional business organization.
Bernie Sanders draws contrast with 'capitalist' Elizabeth Warren