- Nov 26, 2011
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Cool!I will make a copy of this thread
I will read it when I'm dead
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Cool!I will make a copy of this thread
I will read it when I'm dead
A better use of this space is to celebrate the Grateful Dead.
A better use of this space is to celebrate the Grateful Dead.
Ladies and gentlemen, I give you a textbook case of willful blindness.
I've read enough books on the subject, and also lived in that life.A better use of this space is to celebrate the Grateful Dead.
Ladies and gentlemen, I give you a textbook case of willful blindness.
Yes, you definitely fit that to a "T". I recommended a book for you to read which is a far more insightful analysis of what caused the crash than is you babbling.
Your predictive abilities have failed you once again.I suspect this will be a non-existent thread.
You do realize that book blames the deregulation of the financial services industry as a critical factor behind the crash, right? The author also blames the Republican Congress as much as Clinton and Dodd and Frank.I think you should just get a grip and read "Reckless Endangerment".
You sound like Krugman and are just as wrong. It's like talking about why the Titanic sunk and never mentioning the iceberg.As I already explained to you once today, the GSE's didn't rate their CDOs. The ratings agencies did. If you don't even know the basics of the financial system, I strongly suggest you run away before rambling any more of your retardation here.You won't tire of it either because you're a fucking moron and incapable of understanding the GSE stamped AAA on subprime paper
What you continually fail to realize is that the GSEs were a smaller and smaller player in the secondary markets. They were not the dog, they were the tail.You sound like Krugman and are just as wrong. It's like talking about why the Titanic sunk and never mentioning the iceberg.As I already explained to you once today, the GSE's didn't rate their CDOs. The ratings agencies did. If you don't even know the basics of the financial system, I strongly suggest you run away before rambling any more of your retardation here.You won't tire of it either because you're a fucking moron and incapable of understanding the GSE stamped AAA on subprime paper
Say there's just 2 entities that can sell mortgages to the public: GSE and Bank. GSE has a competitive advantage because they have a defacto AAA credit rating. So when the GSE start stamping AAA on subprime paper, the bank has to adjust their pricing.
Using your analogy, the GSE burned down the housing market by selling fire insurance to arsonists. They gave the worst credit borrowers the highest credit rating. Mr Banks had to adjust his pricing and then yes the banks said fuck it, I'll get insurance and sell the same crap the government is selling.
The GSE should be barred forever from the sfh market.
The ultimate irony is that the 2 biggest scumbag politicians responsible for the meltdown got to rewrite the banking laws and regulations.
Sent from smartphone using my wits and Taptalk
Even if the GSE portfolios were wound down, all that would have meant was that much more market share would have gone to Wall Street. The feeding frenzy would not have slowed down one bit.
You're just clueless. No other explanation. F/F set the standard for AAA rated paper and everyone priced back from there.What you continually fail to realize is that the GSEs were a smaller and smaller player in the secondary markets. They were not the dog, they were the tail.You sound like Krugman and are just as wrong. It's like talking about why the Titanic sunk and never mentioning the iceberg.As I already explained to you once today, the GSE's didn't rate their CDOs. The ratings agencies did. If you don't even know the basics of the financial system, I strongly suggest you run away before rambling any more of your retardation here.You won't tire of it either because you're a fucking moron and incapable of understanding the GSE stamped AAA on subprime paper
Say there's just 2 entities that can sell mortgages to the public: GSE and Bank. GSE has a competitive advantage because they have a defacto AAA credit rating. So when the GSE start stamping AAA on subprime paper, the bank has to adjust their pricing.
Using your analogy, the GSE burned down the housing market by selling fire insurance to arsonists. They gave the worst credit borrowers the highest credit rating. Mr Banks had to adjust his pricing and then yes the banks said fuck it, I'll get insurance and sell the same crap the government is selling.
The GSE should be barred forever from the sfh market.
The ultimate irony is that the 2 biggest scumbag politicians responsible for the meltdown got to rewrite the banking laws and regulations.
Sent from smartphone using my wits and Taptalk
The GSEs were around a very long time, and their market model never caused this kind of crash. What you are completely ignorant of is what drastically changed after 2003. It wasn't the GSEs. It was Wall Street and its derivatives, and the deregulation of those derivatives by the CFMA.
From 2003 up to the crash, the GSEs market share steadily declined. They were not the driving force of the race to the bottom.
In 2005, the Bush Administration tried to get the size of the GSEs portfolios downsized. This attempt was blocked by Chris Dodd in the Senate and Barney Frank in the House. Ignorant people think this is some kind of smoking gun.
It isn't.
Even if the GSE portfolios were wound down, all that would have meant was that much more market share would have gone to Wall Street. The feeding frenzy would not have slowed down one bit.
In fact, this may have been the true motive behind the Bush Administration's attempts to shrink the GSEs. This may have been an attempt to push the GSEs away from the trough so Wall Street could get more.