How we went bad as a country.

[turninforhome10]

After careful analysis and doing my legal thesis on the Supreme Court case Watters V Wachovia, I have come to the following conclusion.
The republicans came up with the plan to fleece us with the legislation to open banks to credit derivatives and the Democrats led us to slaughter with HUD, Fanny and Freddy. They are all guilty especially Obama. http://www.americanthinker.com/2008/09/obama_and_south_chicago_slum_d.html
Bush started the whole think with Ameriquest and his handling of the now deceased leader (making him and Ambassador before he came up on criminal charges) and the democrats followed suite with CBA.
Imagine a way of gambling where you could bet 100 to win and then take out an insurance policy that would pay you double if the horse looses. That is what Washington helped to do with the lax in regulation of the derivative industry. Credit default swaps have ruined this country. How can we deny that the great bailout came because the horse lost and then we paid off their gamble.They leveraged our future and then made us pay for the loss.
While this is old news to most it just infuriates me that we are totally ignoring the fact that without a Wall Street watchdog that has teeth, we will never get ahead. We just sit and wait for the next scam to come down the pipe.

[JBmadera]

I like this CDS analogy: I can buy fire insurance on YOUR house then when I burn it down I get paid.

Stressful times that's for sure.

[turninforhome10]

Ever heard of Hyman Minsky, read below and see how this great economist ties in to this thread
http://mises.org/daily/2787

[skate]

Turner;

When you say "started the whole thing", what whole thing are you talking about?

Do you mean when FishBellieBill sold a record Number of bonds , so as to try and balance the budgit and send the cost down the road to the next joker.?

Or when FishBellie forced the banks to mortgage $500 Billion for houses , to people who , it turns out could not afford the houses, ALL under the CRA which was brought into law under "the-nut-Carter"?

Welppers...they Did Stop red boarding, now we have NO(housing) Boarding. things be slow.:)

[Steve 'StatMan']

The banks were obviously wanting to offer derivatives, just as earlier they wanted to get into other non-standard banking transactions. This came after non-banks became allowed to offer many banking products (loans, credit cards, etc.) and cleaned the banks clocks (the non-banks like Sears/Discover Card really took it to the banks back in the mid-late 80's & early 90's. I worked for a bank regarding credit cards back then).