Where did the credit crisis of today get it's start?
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Ka?l wrote:
It forgets a big parameter, the securitization of the debts which multiplied and propagated the consequences worldwide.
Little Adnan, which part of 1999 didn't you understand?
Jon Smith & Wesson: The original point and click interface
One thing AQ boy, neither Fortis or Dexia lent money to home buyers in the US. If the debts had not been exported through what are now junk bonds, never this crisis would have been so severe worldwide.
If you kill a whale, you get Greenpeace and Jacques Cousteau on your back, but wipe out sardines and you get a canning subsidy! Fold with us! ¤ flickr
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MrPlankton wrote:
There are some here at cp that would call you a racist for linking to such an article
trolling?
Jon Smith & Wesson: The original point and click interface
No, sorry if came off that way. The point that this mess was caused as a side effect of making mortgages more accessable to minorities "affirmative action mortgages" was made by me earlier this week, but I was accused of being a racist for making the point. I would have loved to link to the article that Adam °Wimsatt found that indicates it is not a myth or racism on my part.
MrPlankton
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fat_boy wrote:
Oh, and f*** that prick Clinton too.
Don't forget Carter, who signed the bill that started the whole stinking mess[^].
Visit BoneSoft.com for code generation tools (XML & XSD -> C#, VB, etc...) and some free developer tools as well.
Oh, and don't forget that prick Bush too. Bush seeks to increase minority homeownership[^]
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No, sorry if came off that way. The point that this mess was caused as a side effect of making mortgages more accessable to minorities "affirmative action mortgages" was made by me earlier this week, but I was accused of being a racist for making the point. I would have loved to link to the article that Adam °Wimsatt found that indicates it is not a myth or racism on my part.
MrPlankton
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Oh, and don't forget that prick Bush too. Bush seeks to increase minority homeownership[^]
Fine, forget the fact that he tried to reign in Fannie and Freddy and fry him too. I don't care. Just the fact that he's pushing the bail out is enough. But what the hell... Bush can't win for loosing with you die hard 'partisan or bust' lefties. I'd think you'd love him for this kind of socialist touchy feely crap.
Visit BoneSoft.com for code generation tools (XML & XSD -> C#, VB, etc...) and some free developer tools as well.
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Fine, forget the fact that he tried to reign in Fannie and Freddy and fry him too. I don't care. Just the fact that he's pushing the bail out is enough. But what the hell... Bush can't win for loosing with you die hard 'partisan or bust' lefties. I'd think you'd love him for this kind of socialist touchy feely crap.
Visit BoneSoft.com for code generation tools (XML & XSD -> C#, VB, etc...) and some free developer tools as well.
An understanding of the root of a problem is the key to its successful solution. If you were employed in software development, you'd probably recognize that.
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Fine, forget the fact that he tried to reign in Fannie and Freddy and fry him too. I don't care. Just the fact that he's pushing the bail out is enough. But what the hell... Bush can't win for loosing with you die hard 'partisan or bust' lefties. I'd think you'd love him for this kind of socialist touchy feely crap.
Visit BoneSoft.com for code generation tools (XML & XSD -> C#, VB, etc...) and some free developer tools as well.
BoneSoft wrote:
Bush can't win for loosing with you die hard 'partisan or bust' lefties
I like a bust as well as anyone in here, especially perky ones, but that's not the reason Bush lost all credibility with me a long time ago.
Jon Smith & Wesson: The original point and click interface
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No, sorry if came off that way. The point that this mess was caused as a side effect of making mortgages more accessable to minorities "affirmative action mortgages" was made by me earlier this week, but I was accused of being a racist for making the point. I would have loved to link to the article that Adam °Wimsatt found that indicates it is not a myth or racism on my part.
MrPlankton
MrPlankton wrote:
I would have loved to link to the article that Adam °Wimsatt found that indicates it is not a myth or racism on my part
It was linked to about four days ago. You are obviously not paying attention, young man.
Jon Smith & Wesson: The original point and click interface
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An understanding of the root of a problem is the key to its successful solution. If you were employed in software development, you'd probably recognize that.
Ed Gadziemski wrote:
An understanding of the root of a problem is the key to its successful solution.
Yes! You should look into that. Let me know how it goes.
Visit BoneSoft.com for code generation tools (XML & XSD -> C#, VB, etc...) and some free developer tools as well.
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One thing AQ boy, neither Fortis or Dexia lent money to home buyers in the US. If the debts had not been exported through what are now junk bonds, never this crisis would have been so severe worldwide.
If you kill a whale, you get Greenpeace and Jacques Cousteau on your back, but wipe out sardines and you get a canning subsidy! Fold with us! ¤ flickr
Ka?l wrote:
One thing AQ boy, neither Fortis or Dexia lent money to home buyers in the US. If the debts had not been exported through what are now junk bonds, never this crisis would have been so severe worldwide.
Did that make sense in Urdu? Or French? How does what you said relate to an article written in 1999? Just because your mentor strings phrases together that make no sense and have no bearing on the subject at hand, doesn't mean that you should.
Jon Smith & Wesson: The original point and click interface
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MrPlankton wrote:
I would have loved to link to the article that Adam °Wimsatt found that indicates it is not a myth or racism on my part
It was linked to about four days ago. You are obviously not paying attention, young man.
Jon Smith & Wesson: The original point and click interface
Just reading your reply from post earlier this week...
MrPlankton
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One thing AQ boy, neither Fortis or Dexia lent money to home buyers in the US. If the debts had not been exported through what are now junk bonds, never this crisis would have been so severe worldwide.
If you kill a whale, you get Greenpeace and Jacques Cousteau on your back, but wipe out sardines and you get a canning subsidy! Fold with us! ¤ flickr
The question is why these mortgages were securitized into junk assets - the answer is that it was expected that there would be government intervention in the markets (read: bail-out) in case of mass defaults. That is why government interference in the markets (i.e. the socialist ideology) is the worst thing that could ever happen and why government should play as little a role as possible in capital markets.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
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Ka?l wrote:
One thing AQ boy, neither Fortis or Dexia lent money to home buyers in the US. If the debts had not been exported through what are now junk bonds, never this crisis would have been so severe worldwide.
Did that make sense in Urdu? Or French? How does what you said relate to an article written in 1999? Just because your mentor strings phrases together that make no sense and have no bearing on the subject at hand, doesn't mean that you should.
Jon Smith & Wesson: The original point and click interface
You're getting lower and lower everyday, Hatred is like a cancer, it is eating you alive... what a pity to witness such a decay. I explain once again, I hope you will be able to understand my bad english. I don't think this article explains the roots of this crisis. Either it doesn't go far in the past enough missing the original fault which was transforming a government agency in a profit-maximizing private company or it it miss the cause of the severity of the current crisis, the financial games made by the banks to make more money with the debts.
If you kill a whale, you get Greenpeace and Jacques Cousteau on your back, but wipe out sardines and you get a canning subsidy! Fold with us! ¤ flickr
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The question is why these mortgages were securitized into junk assets - the answer is that it was expected that there would be government intervention in the markets (read: bail-out) in case of mass defaults. That is why government interference in the markets (i.e. the socialist ideology) is the worst thing that could ever happen and why government should play as little a role as possible in capital markets.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
73Zeppelin wrote:
the answer is that it was expected that there would be government intervention in the markets (read: bail-out) in case of mass defaults
You accuse the government to intervene because private companies expect the government to intervene. 'It' was expected the government would not let 1929 happen again, and would eventually intervene, whatever the extraordinary risks taken by private companies. The bet was that if the risks were shared by enough companies, there would be no risk at all, taxpayers would pay in case of failure. This expectation is dishonest, disgusting, and tantamount to extortion.
If you kill a whale, you get Greenpeace and Jacques Cousteau on your back, but wipe out sardines and you get a canning subsidy! Fold with us! ¤ flickr
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Hey, fire them all, Bush, Cheney, Paulson, Pelosi, Reid, Franks ... the whole stinkin' crew. Just be sure you get Pelosi before Cheney. I don't think I could stand even one minute of Nasty Nancy, POTUS.
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The question is why these mortgages were securitized into junk assets - the answer is that it was expected that there would be government intervention in the markets (read: bail-out) in case of mass defaults. That is why government interference in the markets (i.e. the socialist ideology) is the worst thing that could ever happen and why government should play as little a role as possible in capital markets.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
The system worked pretty well from 1933 until 1999 except for the S&L crisis in the late 1980s. What happened in the 80s? Reagan deregulated government oversight of S&Ls. What happened in 1999? Phil Gramm pushed through an evisceration of the Glass-Steagall Act that had prevented mass bank failures between 1933 and 1999. In 2000, Gramm got a bill passed that deregulated financial instruments and allowed the creation of CDSs and the other toxic garbage at the root of the current mess.
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You're getting lower and lower everyday, Hatred is like a cancer, it is eating you alive... what a pity to witness such a decay. I explain once again, I hope you will be able to understand my bad english. I don't think this article explains the roots of this crisis. Either it doesn't go far in the past enough missing the original fault which was transforming a government agency in a profit-maximizing private company or it it miss the cause of the severity of the current crisis, the financial games made by the banks to make more money with the debts.
If you kill a whale, you get Greenpeace and Jacques Cousteau on your back, but wipe out sardines and you get a canning subsidy! Fold with us! ¤ flickr
Ka?l wrote:
Hatred is like a cancer
You seem to mistake amusement for hatred. That's a fascinating neurosis, though it may get you in trouble later in life.
Ka?l wrote:
it is eating you alive
But not enough that I get a petty pleasure from 1-voting someone I disagree with.
Ka?l wrote:
I hope you will be able to understand my bad english
I try.
Ka?l wrote:
Either it doesn't go far in the past enough missing the original fault which was transforming a government agency in a profit-maximizing private company or it it miss the cause of the severity of the current crisis, the financial games made by the banks to make more money with the debts.
Do you understand that the article was written in 1999 about 1999 and you are criticizing it for not describing things that did not take place until after the turn of the century?
Jon Smith & Wesson: The original point and click interface
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Actually, the defeat of the bailout bill has saved the world from Global warming. By depressing the economy to the point that the demand for fossil fuels is severely diminished, it has single handedly accomplished more than Kyoto ever did. Al Gore is so furious he can hardly stand it... no more need for carbon credits... how will he live...:rolleyes:
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fat_boy wrote:
Global Warming alarmism was the pin that burst the subprime mortgage bubble
:zzz: :zzz: :zzz: :zzz: :zzz: :zzz:
Jon Smith & Wesson: The original point and click interface
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The system worked pretty well from 1933 until 1999 except for the S&L crisis in the late 1980s. What happened in the 80s? Reagan deregulated government oversight of S&Ls. What happened in 1999? Phil Gramm pushed through an evisceration of the Glass-Steagall Act that had prevented mass bank failures between 1933 and 1999. In 2000, Gramm got a bill passed that deregulated financial instruments and allowed the creation of CDSs and the other toxic garbage at the root of the current mess.
There's nothing inherently wrong with credit default swaps. The problem with CDSs is when the the debt-holder can't pay. And under what circumstances can a debt-holder not repay? When they're extended credit credit lines they shouldn't be allowed to have as the result of ... government policy. I work for what is basically and investment bank in their structured products division. I will tell you first hand that derivatives are not dangerous provided the people using them understand them, there is a healthy respect and understanding of risk that is inherent in an unfettered free market. That is to say, there is an understanding that they are risky and that borrowers can default. If there is no promise of governmental bail-out then people are much, much more careful in using these contracts. Incidentally, the Glass-Steagall act was an attempt to control speculation, even though there is very little evidence (others would argue no evidence) that speculation adversely affects markets. Indeed, the commodity markets operate on the principle that speculation is inherent to their proper functioning. No good ever comes from government manipulation of the free market. The single important thing for the capital markets is transparency - take that away and you're in for a mess.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.