Scam Trend

Discussion in 'Economics' started by cgtrader, Sep 12, 2008.

  1. Is anyone else here seeing a trend???



  2. i totally agree
  3. It's only a "scam" during a bear market. You can get away with all sorts of shenanigans during a bull market. :cool:
  4. I forgot the largest Savings and Loans in the USA went to junk status today.

  5. Nanook


    Add these 747 other failures to your list: Savings and Loan Crisis

    "The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government—that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts—which contributed to the large budget deficits of the early 1990s. The resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse selection incentives compounded the system’s losses."

    And: "In an effort to take advantage of the real estate boom (outstanding US mortgage loans: 1976 $700 billion; 1980 $1.2 trillion)[citation needed]and high interest rates of the late 1970s and early 1980s, many S&Ls lent far more money than was prudent, and to risky ventures which many S&Ls were not qualified to assess. L. William Seidman, former chairman of both the FDIC and the Resolution Trust Corporation, stated, "The banking problems of the '80s and '90s came primarily, but not exclusively, from unsound real estate lending."
  6. It would be an interesting comparison, and no I didn't even know the S&L crisis was going on when it happened...I was too young.

    This seems more like a global event, with much more leverage, more lying, more fraud, and a well-documented bunch of crooks in the driver's seat.

    Plus the world is changing an incredible amount each and every day so I don't see the relevance of this event to previous events in many ways.

    Too many things are way too different. But yes it is important to look for similarities.
  7. Nanook


    You really don't think the tens of thousands of people associated with the S&L crisis "just went away" or changed careers do you? (And I'm talking about the 'bad apples')

    If knowing how to game the system (rules/regulations/politics) is is your blood, consider the S&L crisis the minor leagues or training camp.
  8. Good points, I hadn't really thought about that.

    I wonder what Angelo Mozillo was up to in those days?

    So the S&L was the dress rehearsal and this is the real show??

    Imagine the billions being made fraudulently these days on options...