chasing a return. 'Regulators Repeat What They Did During the Last Housing Boom' "James Kwak is not happy: " Regulators Repeat Exactly What They Did During the Last Housing Boom, by James Kwak: The Dodd-Frank Act was supposed to require securitizers to retain 5 percent of the credit risk of the mortgage-backed securities that they issued, in order to reduce the risk of a repeat of the last housing bubble. Today, the federal financial regulators said, âWhatever,â and ignored that requirement. In particular, they created an exemption that would have covered at least 98 percent of all mortgages issued last year. " Why? Because âadding additional layers of regulation would have contracted credit for first time home buyers and borrowers without large down payments, and prevented private capital from entering the market.â "Thatâs according to the head of the Mortgage Bankers Association. " This is the exact same argument that was made in favor of deregulation during the two decades prior to the last financial crisis, without the slightest hint of irony. Itâs further proof that everyone has either forgotten that the financial crisis happened or is pretending that it didnât happen because, well, maybe it wonât happen again? " Even leaving aside the specific merits of this decision, the worrying thing is that the intellectual, regulatory, and political climate seems to be basically the same as it was in 2004: no one wants to to anything that might be construed as hurting the economy, and no one wants to offend the housing industry." http://economistsview.typepad.com/e...at-they-did-during-the-last-housing-boom.html
Lol..it's exactly ssme s***as we have in trading...first-they created rules.for everyone... Then they created so many exemptions around it so those rules aren't making any sense .works for WS..doesn't work for me..every time I was calling about some obvious, blatant trade-the answer was-that was an exemption....
Dammit, this thread would have become political, maybe even religious, if you had left it in the basement. Now look, you made me come upstairs. I never come upstairs. ; )
There is a chapter in "The Creature from Jekyll Island: A second look at the Federal Reserve" by Edward Griffin that is named "The name of the game is bailout!" http://www.activistpost.com/2011/06/g-edward-griffin-name-of-game-is.html I could not think of a more appropriate comment about what has been done! Heaven forbid a 19 year old with $2.00 in their pocket can't buy a house :-(