Deregulation is What Caused AIG

Mortgages son, mortgages. If the mortgages had not been poor risks,if the dems had not removed the regulation that allowed the banks to look seriously at risks we would not be here. The key here is Fannie and Freddie.

 

The only reason for these banks are failing is the management or should I say a lack there of?

 

The banks had to. They had to setup situations that covered their risk that was being forced on them. So again they are not at fault.

 

The republicans are at fault.







The Dems are at fault.










The banks are at fault.












And we have to pay for it. I say let em fail.

 

Didn't Obama recently say that the economy wasn't as bad as they had all been implying, that fundamentally it was strong? LeBuick, you're falling behind the ever-shifting party line.

 

It was the bigger banks which lowered their standards and took on the greater risks. It was financial, insurance and investment companies, like AIG, to which they passed along their risks. Some of these risks were known to be risky before investment.... but some were bundled as more favorable in promised growth and lower risks than what they actually were. ......When the loan rates went up on instruments like ARMs, and the bubble in the price of a home burst.... the need for liquidity and buyers or assumers of debt grew.... but these large institutions were now all exposed to the risks which they had bought into with the confidences and trust based upon the experiences of past relationships and partnerships. The trust and confidence they'd once enjoyed with each other in the pursuit of gain..... they now discovered had betrayed them into an unthought of distribution of loss. Those companies massive enough to think themselve unvunerable to risks had taken the largest share expecting profits which did not materialize. They all got what they disserved..... if they had been allowed to go bankrupt and required restructuring to survive and eventually pull out. Unfortunately, the smallest investor in these companies would take the hardest hit.... in proportion to their discretionary spending available.... but, eventually, most all investsments would begin some recovery. But, many major investments also took place on the international markets where people and other governments had trusted our system, regulated by the SEC, to be one of the .....if not the best and most trusted REGULATED system in the world.

I believe many in the international markets were hoping we would bailout these firms ......... and we did, and some of them have been the benificiary: But, now that the bailouts, the recovery plans or stimulus pkg, and the budget excesses are coming to the attention of those international investors..... and they are seeing us printing more money than our economy can produce or support..... they realize that its just a matter of time when restoration of their supposed wealth before the financial fall, may once again appear or exceed that which it was before the fall...... but the actual value of those figures will be so much less because of the devaluation of our dollar. IOW, our fiat money system is not just biting us in front and in the behind.... but is hitting the financial systems and markets of other countries.

The regulations which made it more difficult for companies and banks to become giant conglomerates is what made it more difficult to take on risks or successfully hide from both the SEC, the boardrooms, and the investors anything beyond a manageble risk. Muddock wasn't the only one with a ponzi scheme.... it seems these conglomerates also had one going.... and our government in its bailouts and printing of additional debt, is also a participant.

 

No, nothing but a smoke screen to cover up the real cause of our financial problems.

The reason that the real estate market crashed and the reason the banks failed was that our government interfered with the mortgage industry and forced lending institutions to make loans to unqualified applicants because they were minorities.

It was very politically correct, lets give money to the poor underprivileged minorities. Who cares if they don't qualify based on your financial models, those should only apply to rich folks.

And so the government said they would guarantee these loans with federal agencies like Freddie and Fannie. And then they told these banks that if they did not make the loans they would face reprisals.

Somewhere along the line the bankers figured out that they could raise the interest rates on these non qualifying loans and then they got greedy. I am not saying the banks are faultless.

But the root cause was government intervention and over regulation.

And the only real cure is deregulation and let the looses fail.

 

In light of LeBuick's selective memory and endless Republican-bashing, I have gathered a short list for your perusal:

Things that are Republicans' fault:

• Global Warming
• Islamic Terrorists
• Jay Leno's Chin
• That "Leave Britney Alone!" moron
• Wrong numbers
• Weight gain in your 40's
• The banks' failure
• The real estate failure
• Tire failure
• Your "F" in 10th-grade geometry
• Staph infections
• Jock itch
• Unemployment
• Under-employment
• Overemployment
• Your mean boss
• Michael Jordan's retirement
• The BB's new color
• The BB's recent slowdown
• BB moderators that are too liberal
• BB moderators that are too conservative
• AIG
• LSD
• LOL
• TMI
• Male pattern baldness
• Anything involving Paris Hilton
• Everything that went wrong with Clinton
• Everything that went wrong with Bush (1 and 2)
• Everything that went wrong with Obama
• Everything that will go wrong with Obama
• Janet Reno's moustache
• The common cold

There...does that about cover it?

 

If I listed everything you dislike the Republicans for, it would crash the server.:saint:

 

:thumbs:

You forgot to mention...

Absolutely anything bad that will ever happen in the future.

 

Even if it was by someone else up hill in the snow barefooted both ways.

 

Thank you Lebuick.. it is nice to see you side with Bush and McCain against the Obama girl, Barney Frank.

McCain called for regulation.. but the Democrats blocked it.

 

And LeBuick.... I think many would join me in saying we lovs ja.... but we's al spoiled and petty and we's sometimes gets a dander upping over this and that 'bout him, her, or dem... dat we don't like much-n e'rythang, evun when we dos like sumthangs, n dat concern-n de self just es bad or worst til it were othders!

Be dat as it may... be at peace Bro'....... we alls cant be zactly alike! Der'd be no funning!


(Ya'll plez xcuse da WC.... she's ben wide eye... too long.... dat mizzing sleep make her crazy!)