Comments on: Who Benefits from Financial Innovation? Not You, Silly Taxpayer

By: MarkH

MarkH — Wed, 22 Jul 2009 02:47:21 +0000

As I understand it Rep. Maxine Waters has a bill in the House to eliminate ALL Credit Default Swaps. Don’t hold me to that though. I haven’t read up on it.

By: MarkH

MarkH — Wed, 22 Jul 2009 02:41:53 +0000

Were they behind the deregulation of the housing/mortgage-lending industry which made all those sub-primes turn into crap at midnight? Without that I don’t see how they can be blamed. Who among them would wish their assets should become worthless?

Of course, they might always have ‘known’ that being too-big-to-fail meant never having to say “oops”.

By: MarkH

MarkH — Wed, 22 Jul 2009 02:36:36 +0000

Conning people into believing that shifting more and more paper around would somehow make them richer than if they actually invested in something productive was their real ‘product’. It made them trillions when they took a cut of all those transactions. Now we have no choice but to take our ‘cut’.

By: masaccio

masaccio — Wed, 22 Jul 2009 02:15:12 +0000

I’ll take a look. This is complex.

By: Gitcheegumee

Gitcheegumee — Tue, 21 Jul 2009 22:46:12 +0000

But didn’t this already occur in Japan?

Eclectic Investor: Lessons from Japan’s Housing Bubble - I
Japan is an excellent example of a housing bubble that went horribly wrong, … At the end of the Japanese housing bubble, some $20 trillion (1999 dollars) …
eclectic-investor.blogspot.com/…/take-it-from-japan-bubbles-hurt.html -

Japanese property bubble: Can it happen here? - July 11, 2005
Jul 11, 2005 … Japan’s problems went beyond just a housing bubble. The real trouble came from commercial land speculation. While residential-land prices in …
archive.mailtribune.com/archive/2005/0711/biz/…/02biz.htm - Cached -

Japan’s Housing Bubble, Busted - Mises Economics Blog
The New York Times ran a feature on the aftermath of Japan’s housing bubble. Reading the article, I was struck by the similarities: the …
blog.mises.org/archives/004481.asp - Cached

Jul 2, 2009 … There are more than 6 million vacant houses in Japan. Most will never be sold, … The China Bubble and the Convergence of Oligarchie. …
jessescrossroadscafe.blogspot.com/…/japanese-stagnation.html - Cached - Similar

By: Gitcheegumee

Gitcheegumee — Tue, 21 Jul 2009 22:35:47 +0000

I have to confess, masaccio is one of my faves. I always learn something new on these threads.

As such,perhaps Master Masaccio could proffer an opinion on this article about Basel II.It would be greatly appreciated.

I Never hear anyone discuss it’s impact.

Blame Basel II ~ Angry Bear
Look up Basel II on Wikipedia. Then click till you get to Standardized Approach (Credit Risk) and you will find a candidate for the source of the trouble. …
angrybear.blogspot.com/2008/12/blame-basel-ii.html - Cached - Similar

By: masaccio

masaccio — Tue, 21 Jul 2009 22:30:04 +0000

Interesting. If she displays more interest, show her this link: www.edgar.sec.gov

By: Gitcheegumee

Gitcheegumee — Tue, 21 Jul 2009 22:21:38 +0000

The subprime mortgage mess: 5 myths put to rest - Pittsburgh …
Feb 10, 2008 … Today, Issac is a managing director at LECG, a global expert services firm … Most subprime borrowers — nearly 90 percent — aren’t … Myth 5: No one can make money on mortgage securities in the midst of the meltdown. …
www.pittsburghlive.com/x/pitts.....s_5… - Cached - Similar

By: Gitcheegumee

Gitcheegumee — Tue, 21 Jul 2009 22:16:24 +0000

@30

Thanks-I had to take a series of phone calls and couldn’t finish my thought(and link.)

Incidentally, the site “finding dulcinea” has a superb list of links re: the cause of the subprime meltdown.

I read another piece entitled 5 Myths about the subprime issue.

If my memory serves me correctly, 90% of the bad loans were NOT from first time buyers,but re-fis.

This BS about trying to victimize the homeowners really makes my blood boil.

MORE Republican classs warfare,

AND since we the people have paid and will continue to pay $$$$$$$$$$$ for the cost of the Free Market Casino Capitalism of the Wall Street thieves and thugs,(Wealth Care)don’t you believe we are damned well entitled to a return on our “investment’,namely HEALTH CARE?

By: PPDCUS

PPDCUS — Tue, 21 Jul 2009 22:15:18 +0000

Now that we know that financial innovation is trickle down economics on steroids, the prime directive of which is decoupling profits from risk and losses so that the latter two are dumped on the bottom 95% of the country….

When does the revolution begin?