Enjoy an Ads-Free Jets Insider - Become a Jets Insider VIP!
Page 2 of 2 FirstFirst 12
Results 21 to 26 of 26

Thread: Maxine Waters caught lying about Fannie/Freddie

  1. #21
    Board Moderator
    Jets Insider VIP

    Join Date
    Jul 2003
    Location
    NYC
    Posts
    18,656
    Post Thanks / Like
    [QUOTE=nuu faaola;2804312].

    Beyond that, the fact that there were so many new, deep-pocketed buyers for these gimmicky credit swaps gave the lenders increased incentive to make MORE subprime loans than they otherwise would, because they knew they had buyers willing to take the stupid risks off their hands.
    [/QUOTE]

    I always wondered, mostly in passing, how the new wave of wall street guys were increasingly MIT-like geeks with more of an understanding of logarithms than fundamental economic principles. Over the past 10 years, the products traded on Wall Street have become so complex that they don't resemble or represent anything tangible. When they're ultimatey unraveled, they essentially disintegrate.

    I am 32 and graduated college in 98'. When I first got out of college, the wave of the moment was the day trader. You could sit at your desk and practically hit a button repeatedly and make money. After the market peaked, new securities (swaps, cdos, etc.) became all the rage and people made boat loads by trading these mostly fictitious creations. Like a ponzi scheme, it all worked fine until some external factor came into play. Now, perhaps we'll move to an era where something you purchase has to have some fundamental value behind it. Shocking.

  2. #22
    All Pro
    Join Date
    Apr 2003
    Posts
    6,279
    Post Thanks / Like
    [QUOTE=crasherino;2804462]

    I am 32 and graduated college in 98'. When I first got out of college, the wave of the moment was the day trader. You could sit at your desk and practically hit a button repeatedly and make money. After the market peaked, new securities (swaps, cdos, etc.) became all the rage and people made boat loads by trading these mostly fictitious creations. Like a ponzi scheme, it all worked fine until some external factor came into play. Now, perhaps we'll move to an era where something you purchase has to have some fundamental value behind it. Shocking.[/QUOTE]

    Yeah, that would be nice.

    It seems clear enough that there needs to, at least, be some sort of disclosure rules and regulation about these kinds of deals. It's nuts that public companies like Lehman and AIG can be all but wiped out by dealings you couldn't even find on their financial statements. That obviosuly has to change.

    It's really stunning that, almost a decade after Enron, we don't have better rules to govern off-balance sheet transactions.

  3. #23
    Board Moderator
    Jets Insider VIP

    Join Date
    Jul 2003
    Location
    NYC
    Posts
    18,656
    Post Thanks / Like
    [QUOTE=nuu faaola;2804484]Yeah, that would be nice.

    It seems clear enough that there needs to, at least, be some sort of disclosure rules and regulation about these kinds of deals. It's nuts that public companies like Lehman and AIG can be all but wiped out by dealings you couldn't even find on their financial statements. That obviosuly has to change.

    It's really stunning that, almost a decade after Enron, we don't have better rules to govern off-balance sheet transactions.[/QUOTE]

    The ironic part is that according to AIG, the only real problem is that mark to market accounting forced them to presently take the huge loss on their books that caused their credit to be downgraded and created this whole mess.

    If they had it their way, they would still be hiding these potentially imminent catastrophic losses as we speak.

  4. #24
    All League
    Join Date
    Dec 2007
    Location
    NYC
    Posts
    3,144
    Post Thanks / Like
    Agreed...except alot of the firms you mentioned did have exposure, through internal hedge funds at the bank. I cant tell you how many "prop desks", or "arb" desks existed at these banks...they were put together to try to make $$ the same way a hedge fund would, only the profits would go directly to the bank...so would the losses- that's what precipitaded Bear Stearns fall- the June '07 liquidation of their internal hedge funds, AKA "BSAM" (Bear Stearns Asset Mgmt)...man has this been one huge mess.

  5. #25
    All Pro
    Join Date
    Apr 2003
    Posts
    6,279
    Post Thanks / Like
    [QUOTE=Tucker134;2804540]Agreed...except alot of the firms you mentioned did have exposure, through internal hedge funds at the bank. I cant tell you how many "prop desks", or "arb" desks existed at these banks...they were put together to try to make $$ the same way a hedge fund would, only the profits would go directly to the bank...so would the losses- that's what precipitaded Bear Stearns fall- the June '07 liquidation of their internal hedge funds, AKA "BSAM" (Bear Stearns Asset Mgmt)...man has this been one huge mess.[/QUOTE]

    Hedge funds are another category that is in dire need of more strict oversight. LTCM nearly took down our entire economy in 1998 by itself. More than 10 years later these market-moving behemoths are still effectively unregulated.

  6. #26
    All Pro
    Join Date
    Jul 2005
    Posts
    6,535
    Post Thanks / Like
    regardless of whether the dems or the reps were in charge, the whole problem was because of a government action or inaction. they meddled into someting they shouldn't have. now you have the dope obama wanting to increase the size of government. did anyone realize that bush has presided over the largest government expansion in history? how's that working out anyway? oh so now obama's government will be efficient and trustworthy. are you nuts? the guy has been hanging with folks who want to use violence to overthrow the government.

    this is the problem. of the two mccain is far more apt to name names (like dodd, frank, obama, shays, raines, et al). he won't be afraid to make waves. obama can't even talk if he's not reading a teleprompter. he'll only take action if his handlers allow him to.

    [QUOTE=scuppers;2804186]Tucker134 I think your mind has been take over by Foxie. There is more than enought blame to go around on this, if the Republicans were "begging" for more regulation then why did the SEC under a Republican Congress and President let the banks do away with the debt limits in 2004? From now on please do a little more reading.

    See below from Internet Free Press: [url]http://freeinternetpress.com/story.php?sid=18516[/url]

    How could Cox have been so wrong?

    Many events in Washington, on Wall Street and elsewhere around the country have led to what has been called the most serious financial crisis since the 1930s, but decisions made at a brief meeting on April 28, 2004, explain why the problems could spin out of control. The agency’s failure to follow through on those decisions also explains why Washington regulators did not see what was coming.

    On that bright spring afternoon, the five members of the Securities and Exchange Commission met in a basement hearing room to consider an urgent plea by the big investment banks.

    They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments.

    The five investment banks led the charge, including Goldman Sachs, which was headed by Henry M. Paulson, Jr., Two years later, he left to become Treasury secretary.

    A lone dissenter - a software consultant and expert on risk management - weighed in from Indiana with a two-page letter to warn the commission that the move was a grave mistake. He never heard back from Washington.[/QUOTE]

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Follow Us