Who else resents USAians for causing this finanical crisis?

[Kidlicious]

[Dauphin]

Originally posted by Aeson


It's rather irrelevant what the actual ratios are. It's clear that the ratios are way too high, and that both US and Euro financial institutions did it to themselves.

I don't disagree, but the headline metrics can lead to incorrect evaluations of the problem if they lack consistency.

[Dauphin]

Originally posted by DanS


If this were so, why was the magnitude of the bank bailout in the US about 1/3rd of most European countries? I can think of some possible reasons, but the simplest is that the European banks needed about 3x the help versus US banks.

The relative magnitude of the bailouts is striking to me. Isn't it the US real estate market that has imploded?

Europe probably did borrow more, but not that massively.

And I think your simple analysis is oversimplifying. European banks require a bigger bailout, in some measure, because the measure and rules on capitalisation levels are different, and the relationship is not a linear one.

One suggested get-out for this problem is to measure capitalisation ratios differently, or relax capitalisation regulations when failure to meet them is a mere technicality for an otherwise solvent bank. The comparison statement here is that US banks have an unfair advantage in this regard. I find it a bit silly, but there you have it.

I'd also say here that my understanding is drawn from news articles, and that makes me weary of saying any of the above is factually robust as I've never worked it through myself. I think the whole thing is a quagmire.

[Lefty Scaevola]

Originally posted by DanS
If this were so, why was the magnitude of the bank bailout in the US about 1/3rd of most European countries? I can think of some possible reasons,

How about that the idiot European banks were counting 100s of billions of $ of mortage and credit swap insurance from AIG and the like as capital, and even with that stupidity, were averaging 1/2 the capitalization of USA banks.
If the USA had not proped up AIG last summer, then a large fraction of european banks would have rolled right then.

[One_more_turn]

Originally posted by HalfLotus


The market was regulated in the leading up to this. The most important factors in an economy, interest rates and currency value, are both regulated by the Federal Reserve.

There were almost zero regulations with respect to lending standard and derivatives.

[HalfLotus]

Originally posted by One_more_turn


There were almost zero regulations with respect to lending standard and derivatives.

On the contrary, with respect to lending standard, Fannie & Freddie and the CRA had quite a lot to do with subsidizing loans to people with less than stellar credit.

So there were regulations with the ostensible goal of 'increasing home ownership', but they also serve to distort the market, and inflate perceived wealth. Market distortions will always come home to roost in the form of a market correction, which we are now witnessing.

I am of the view that this type of market manipulation by government is not an accident (otherwise known as a 'conspiracy'), because the men in control of this country are more greedy than they are stupid. After several decades of hearing the "Woops, we messed up." excuse from government officials, it no longer flies with me.

[Imran Siddiqui]

It makes more sense that the government has planned all this out rather than they are incompetent? Are you familiar with the human race at all?

[HalfLotus]

It is fashionable to deem all human beings fools, but there are some very smart and capable people in this world - and they didn't all become Boy Scout leaders.

It is these few who have led the multitude of sheep to their proverbial slaughter.

[Imran Siddiqui]

Do you also believe the US government is responsible for 9/11?

And have you heard of Occam's Razor? The incompetence of our leaders makes far more sense than a bunch of really smart people have manipulated the markets and caused an immense economic crash to make money.

[HalfLotus]

Who carried out the 9/11 attacks, I could not say, but having worked in the fields of Architecture and Engineering for the past 16 years, I can say without a doubt that the government's explanation for the collapse of buildings 1, 2 & 7 is very close to impossible (specifically, the 9/11 commission's 'pancake theory'). Steel structures do not collapse symmetrically and at the speed of gravity of due to fire.

I know it seems plausible that an airplane and its fire could cause a building to collapse the way the WTC did, but it contradicts over a hundred years of structural failure wisdom and fundamental laws of physics.

And yes I am very familiar with, and very fond of, Occam's razor. I think the explanation that corrupt men seeking greater power have bested 'the ignorant masses' satisfies Occam's theory.

[Imran Siddiqui]

I know it seems plausible that an airplane and its fire could cause a building to collapse the way the WTC did, but it contradicts over a hundred years of structural failure wisdom and fundamental laws of physics.

And yes I am very familiar with, and very fond of, Occam's razor. I think the explanation that corrupt men seeking greater power have bested 'the ignorant masses' satisfies Occam's theory.

(Yes, that is the level of response you deserve)

[HalfLotus]

Disagreement via smiley is the standard 'level of' response per 'Poly social standards. No offense taken.

[KrazyHorse]

RON PAUL 08: BECAUSE THE JOOZ DID IT

[Agathon]

Originally posted by KrazyHorse
RON PAUL 08: BECAUSE THE JOOZ DID IT

Oh come on. They did not.

Everyone knows that the Jews got the US government to do the deed. Just ask LOTM or Siro, or any other Jew. They're all in on it.

[HalfLotus]

What's the Mossad motto again?