Who else resents USAians for causing this finanical crisis?

[KrazyHorse]

Originally posted by Naked Gents Rut


Certainly not solely, but they were the biggest players in the subprime/Alt-A securitization game.

Biggest individual players? I wouldn't doubt it. The actual comparison to make is the total share of GSEs compared to total share of private enterprises. Also, you should note that exposure of GSEs to subprime/exotics increased LATER than exposure of private entities to same assets. They were followers, not leaders.

What makes their behavior really infuriating is that they abused their implicit government backing to run up huge amounts of leverage while their cronies in Washington did all they could to protect them.

Of course they abused their implicit government backing. Wouldn't you?

And of course this is a good reason they should die. But one would think that a free-marketer would be skeptical of a GSE's ability to innovate to the extent needed to create a wholly new form of asset bubble.

[Dinner]

Originally posted by KrazyHorse

1. The explosion in subprime and Alt-A mortgages and mortgage-backed securities, led by Fannie Mae, Freddie Mac and others who had the protection of powerful members of the U.S. government.

Fannie Mae et al were dramatically outpaced in the growth of mortgages by the private sector. If anything they were the latecomers to the party who saw everybody else having fun and decided to try to get in on it. They didn't lead ****.

Fannie and Freddie originated 8% of the subprime loans and ended up buying 20% of the subprime loans. The private sector originated 92% of the subprime loans and got stuck with 80%. This is primarily a private sector problem. Show me someone who blames poor black people, I.E. the C.R.A., and I'll show you an idiot. Especially since C.R.A. loans had one of the highest repayment rates in the industry. The only thing the C.R.A. did is it made it illegal not to loan money to black people and said that banks had to loan at least 1 loan in 10,000 loans to black people.

[Agathon]

Originally posted by Naked Gents Rut

Credit default swaps were never regulated to begin with. You can't deregulate something that was never regulated.

When people talk about deregulation, they mean the general move to less oversight of finance. It's a clear case of speaker's reference versus semantic reference.

You can call it "lack of regulation" if you want. It would be more correct to describe it as "the neoliberal attitude towards regulation".

As for the causes of that. Well, there are lots. Most of them originating in the US or being amplified there.


The whole thing is kind of boring. I find the disintegration of what's left of Gladio in Turkey to be more interesting.

[MrFun]

Re: Who else resents USAians for causing this finanical crisis?

Originally posted by Heraclitus
Yeah deregulate everything, that's always the answer isn't it?

You started this crisis and now we government loving Euros are paying for it, but hey we can afford a bit of pain (not as much as you though). And I'm not even mentioning the other 5 billion people in developing countries.


It's not fair.


You guys need to get off your lazy asses and end the oppressive plutocracy which has replaced your democracy or other people will do it for you.

What bad times? DanS and others can pull out charts and graphs and spin it in such a way to demonstrate that the world economy is actually in the midst of prosperity.

[Aeson]

The US didn't force European banks to lever up on financial instruments they didn't fully understand.

[Aeson]

[fed1943]

Calm down,people!
It's just paper!
Farms,mines,factories and so still output.
Best regards,

[Kidlicious]

Originally posted by Aeson

Thanx Europe.

[Heraclitus]

Originally posted by Kidicious


Why would we be gloating when the govt is giving away billions of dollars to our enemies?

And this is different from what usually happens how?



People have lost some of their blind trust in the market system, surely that is good news for a pinko?

[Kidlicious]

Originally posted by Heraclitus
And this is different from what usually happens how?

Exactly. It's just like it's already been, in fact it's worse, so why would we gloat?

People have lost some of their blind trust in the market system, surely that is good news for a pinko?

Sure, but it's nothing that we didn't anticipate. The question is whether capitalism collapses or not, and then if we get a communist system or a fascist system. So, yes, it's confirmational that people loose faith in the free market system, but it's only the beginning.

[Lancer]

Yeah. It was my fault, sorry.

[Heraclitus]

Originally posted by Kidicious

The question is whether capitalism collapses or not, and then if we get a communist system or a fascist system. So, yes, it's confirmational that people loose faith in the free market system, but it's only the beginning.

I've had several such discussions with my flatmate, and we both agree that currently faschism seems to be the more likely contender to profit from the current situation. Sure it will eventual destroy itself but that is a very painful process.

[Lancer]

A process that would help GM however.

[Kidlicious]

Originally posted by Heraclitus



I've had several such discussions with my flatmate, and we both agree that currently faschism seems to be the more likely contender to profit from the current situation. Sure it will eventual destroy itself but that is a very painful process.

Yeah, but it's a long term process though. There's one thing that's for sure, 20-30 years from now things will be different.

[Lancer]