Conservative Ideas Can’t Escape Blame for the Financial Crisis

Discussion in 'Economics' started by Covertibility, Feb 18, 2011.

  1. olias


    I basically agree with the article. I was a believer in the conservative hands-off approach to regulating and limiting the role of government, but the fact is, we got burned by the lack of regulation. So, although I don't like it in principle, I see it as a necessary evil. More regulation is needed to help ensure we don't have another meltdown like this.
  2. God does not control the tides, the MOON that GOD created does.

    With that said:

    I have been in the financial industry for almost 18 years now and I have not heard, in my private equity circle, the "Poor" being blamed for the Housing crises.

    The housing crises was a two part game with the "Middle Class" and the "Greedy" lenders. The whole reason such a "Bubble Started" was first, the Clinton Administration. Second Bush for being a fucking idiot and continuing the policy. Third the "Banking" system but no the entire banking system, just the SOCIALIST BANKS, the Banks that are prop'd up by the FEDS. Then the trickle down effect were "Mortgage" banks who were designed strictly for Home lending. Lets not for get mr "Cock Sucker" no pun attend Barney fucking idiot Frank who sat on the oversight committee and said the Fannie and Fred were fine!

    I can go on and on about the liberal scum.

    But the headline is correct that blame also lies with the Republicans for allowing the bullshit to continue. The old school Republicans, Party Faithful are to blame for sure.

    Hopefully, this new freshmen and "Tea Party" group are serious.

    Looks like NJ and Wisconsin are not playing around.
    Looks like the House isn't playing the old guard game either.

    But to call for more regulation is ass nine. You can regulate your ass off, it will do nothing. ETHICS and understanding how to play the money game using Ethics is the only thing that will work.

    The new banking rules are fucking joke. I see nobody really going down for the Crises. So much for Regulation.
  3. dont bother me with the facts. my mind is already made up syndrome.

    "Look at the default rates
    Equally conclusive are the default rates of mortgages originated for these various lending channels. If the conservative view was correct, one would expect to see mortgages originated for Fannie and Freddie securitization, as well as those originated for purposes of CRA, to default at higher rates, since these were the loans directly subject to affordable housing policies. In fact, we see quite the opposite, as these loans have performed exponentially better than those originated for private securitization, which the FCIC Republicans ignore.

    Mortgages originated for private securitization defaulted at much higher rates than those originated for Fannie and Freddie securitization, even when controlling for all other factors (such as the fact that Fannie and Freddie securitized virtually no subprime loans). Overall, private securitization mortgages defaulted at more than six times the rate of those originated for Fannie and Freddie securitization."
  4. deregulate s&L and look what happened
    Enron paid (lobbied) to get energy market deregulated look what happened

    not really a mystery, well maybe to greenspan who thinks inflating asset prices is "wealth creation"
  5. Obama is encouraging people to protest via social network. Instead of asking the unions to be reasonable, he is asking them to protest against the Republican Governor.

    So tax hike for small businesses and the rest of us. If you are loser, get a government job, you can all the benefits and job security. You can retired on the job and do very little once you clear your trial period.
  6. One thing we can never eliminate is financial panics, crashes, corrections, and downturns. They are simply part of the natural undisputed cycle that is....

    The lessons we have learned through out this ordeal will likely not be lost for some time. Lending standards will likely not get so lax as they did again. Saying that though you cannot go too overboard with regulation because the pendulum will just swing in the other direction bringing equally harmful results as the first meltdown imo.

    You cannot have a complete free for all, but you cannot have politicians who know little about business, investments, and commerce trying to cobble togther regulations to cover themselves, but which they do not really understand and neither do their counterparts who voted on their bills, and can't tell you what is in them. :)
  7. You're letting you ideology get in the way of facts and reality. The Canadian banking industry is notoriously under stricter regulation than USA banks, and indeed most banks from around the world. Canadian banks did not need a bailout, and have been rated the soundest in the world for years. This is not a coincidence.
  8. right on unlike other industries like steel and such. banking is completely determined by laws . Leverage, derivatives,and so that can cause disaster to the masses for the benefit of the few. should be rained in.

    But the buzz words "free trade" (as if such a thing is possible) make people feel good inside.
  9. olias


    I'm totally ignorant on this. Do you think the US could/should mirror the Canadian model?
    #10     Feb 18, 2011