[FoRK] The Wrecking Crew - A Low, Dishonest Decade
wgstoddard at gmail.com
Wed Jan 20 13:43:45 PST 2010
On 1/20/10 3:46 PM, Ken Ganshirt @ Yahoo wrote:
> --- On Wed, 1/20/10, Bill Stoddard<wgstoddard at gmail.com> wrote:
>> Correct, but completely useless, conclusion.
>> Government regulation is a simple fact of life. We can
>> work to reduce it but it will always exist and pretending
>> otherwise is just pie in the sky idealism. One of the
>> recent problems is that wall street was willfully ignorant
>> (maybe willfully negligent) in managing the obvious risk
>> presented by cheap/free credit underwritten by the
> I'm sorry .... what risk?
My reply to Jeff was a rambling rant; I used his post to get on my
soapbox. My apologies Jeff... I actually don't disagree with what your
The 'risk' was the loans made to people who, upon a moments reflection,
clearly could not afford to pay them off. The iBankers gladly bought up
these loans, sliced 'um into pieces, conjured away the risk (or so they
claimed) then repackaged the glob and sold it to god knows who and
pocketed some nice coin off the transaction. Wash, rince, repeat. As
long as the music played, had to keep on dancing. The ibankers that
claim they 'just didn't know' about the risk are liars, quite simply.
They are hiding behind academic fud. While it may be impossible to
'prove' in a court of law, that these jokers were criminals certainly
passes my sniff test. See Celente for some great rants.
In the past, iiuc, banks would not have been permitted to participate in
'investment' activities. Were this reg not repealed by Clinton, iirc,
the fallout might have been limited (emphasis on 'might') to ibanks.
Some famous person whose name I can't recall said something like 'never
let a good crisis go to waste'. I am wondering if we missed an
opportunity to clean house.. what would have happened if the goverment
just let the house of cards fall; no bailouts, no stimulus, nothing.
(and then maybe stepped in to directly repair some of the damage to
individuals 'stable values funds' with an upper limit of, say, 200K per
account)? It would have been (and still would be) horrific for sure,
but it would have purged enough systemic rot in our free market
capitalist system to last us another 200 years. I am less hopeful now
that this experiment with democracy will actually survive another 100
years on current course and direction.
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