[FoRK] The Wrecking Crew - A Low, Dishonest Decade
Ken Ganshirt @ Yahoo
ken_ganshirt at yahoo.ca
Wed Jan 20 14:03:01 PST 2010
--- On Wed, 1/20/10, Bill Stoddard <wgstoddard at gmail.com> wrote:
> > 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
> >> Fed.
> > 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 saying.
Yep, I got that. I was just riffing, cynically, on your rant. Sorry I didn't make that clearer. Great rant, by the way.
> 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.
Yep, that's what I was getting at. Within days or hours or minutes after the mortgage transaction they no longer had any risk.
> The ibankers that claim they 'just didn't
> know' about the risk are liars, quite simply.
> ... 'never let a good crisis go to waste'. I am
> wondering if we missed an opportunity to clean house..
Yes. The pain of going that route could have been largely offset by transferring the wealth back to Main St. instead of to Wall St. (Is this [bailout+stimulus] the biggest single-event wealth transfer ever, do you think?)
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