Here is the real reason for the bailouts

[turninforhome10]

This is a must read for everyone. I freakin knew it. We are bailing the bastards that used credit default swaps as means of investing. They bet that we would fail and got paid off by us. This is a travesty of justice that our own federal government manipulated us into believing that the housing bubble bursting was our problem. Our problem was that the deviant little security derivatives flew under the radar any regulation and big finance hedged our whole economy to turn a buck. The Default swaps were sold into everything, pension funds, 401 k's , state and county investments. The anemic SEC failed all of us miserably.

http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817

[DJofSD]

I'm sorry: how is this new news?

[turninforhome10]

Are you asking because
A) You are so jaded and poisoned against Wall ST that any small news in the big picture is redundant
B) You are so involved in the blame game in Washington and making sure you get the best shot in on the left that any other time spent is wasted
C)You have already seen the big picture and waiting with anticipation for indictments
or
D) You did not read the article and missed that on page 5 reads the following:

"On August 17th, Grassley sent a letter to the SEC about the Flynn allegations, demanding to know if it was indeed true that the SEC had destroyed records. He also asked if the agency's failure to produce evidence of investigations into SAC Capital were related to the missing MUIs."

On of the truly great conservative leaders of my home state Iowa is taking this on for us, the people. This is not a tea party member, this is one of the last great republican conservatives. Take a look at his record http://grassley.senate.gov/issues/voting_record.cfm
Grassley has been around for since I was a kid and his service record IMHO has been outstanding. These are the leaders that we need.
This is new news based on the dateline and that here is a leader that is working to get to the bottom of things rather than just write it off on the taxpayers and let the guilty walk.

[Spiderman]

Saw the film, "Inside Job". Great documenting of the robbery perpetrated by bankers, investment houses, credit rating agencies - the white collar mob. Matt Damon narrates the film.

[DJofSD]

Are you asking because
A) You are so jaded and poisoned against Wall ST that any small news in the big picture is redundant
B) You are so involved in the blame game in Washington and making sure you get the best shot in on the left that any other time spent is wasted
C)You have already seen the big picture and waiting with anticipation for indictments
or
D) You did not read the article and missed that on page 5 reads the following:

"On August 17th, Grassley sent a letter to the SEC about the Flynn allegations, demanding to know if it was indeed true that the SEC had destroyed records. He also asked if the agency's failure to produce evidence of investigations into SAC Capital were related to the missing MUIs."

On of the truly great conservative leaders of my home state Iowa is taking this on for us, the people. This is not a tea party member, this is one of the last great republican conservatives. Take a look at his record http://grassley.senate.gov/issues/voting_record.cfm
Grassley has been around for since I was a kid and his service record IMHO has been outstanding. These are the leaders that we need.
This is new news based on the dateline and that here is a leader that is working to get to the bottom of things rather than just write it off on the taxpayers and let the guilty walk.
C.

[GameTheory]

This is a must read for everyone. I freakin knew it. We are bailing the bastards that used credit default swaps as means of investing. They bet that we would fail and got paid off by us. This is a travesty of justice that our own federal government manipulated us into believing that the housing bubble bursting was our problem. Our problem was that the deviant little security derivatives flew under the radar any regulation and big finance hedged our whole economy to turn a buck. The Default swaps were sold into everything, pension funds, 401 k's , state and county investments. The anemic SEC failed all of us miserably.

http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817The article makes no mention of credit default swaps. And the people that "bet they would fail" made a gazillion dollars, so they didn't need bailing out. Maybe you meant the people that gladly sold them to those betting against?

[Robert Goren]

This is very old news.

[DJofSD]

The anemic SEC failed all of us miserably.

This is a very true statement. And the best example I am familiar with is the lack of enforcement of REG SHO. (http://www.sec.gov/spotlight/keyregshoissues.htm) They failed to enforce just about any part of the regulation which allowed naked shorts to dominate the market despite the loud and frequent protestations of CEO's.

And now we're being told records might be lost. Why am I not surprised.

[turninforhome10]

I don't mean to have such an aha attitude with such "old news", but the article had a bit of the old "gonzo journalism" that I love from being a huge Hunter Thompson fan . I imagine what he would be saying about this.

I am watching the movie Inside Job right now and only on part 3 and already shaking my head.

[turninforhome10]

The article makes no mention of credit default swaps. And the people that "bet they would fail" made a gazillion dollars, so they didn't need bailing out. Maybe you meant the people that gladly sold them to those betting against?
You are correct. I just believe that the formulas for the swaps themselves and how they were bundled into high grade investments were completely misunderstood by anyone that would matter in a regulatory capacity. The swaps themselves were the key to make the whole sham work. Who regulated the swaps?

[DJofSD]

This 4 hour program (http://video.pbs.org/program/1155680272/) is highly recommended.

[Native Texan III]

You are correct. I just believe that the formulas for the swaps themselves and how they were bundled into high grade investments were completely misunderstood by anyone that would matter in a regulatory capacity. The swaps themselves were the key to make the whole sham work. Who regulated the swaps?

Derivatives are / were not regulated. An act to regulate swaps was not offered up until 2009 (Sens. Levin/ Collins). Isn't is viewed as "socialist" in Iowa to believe that Government should protect everyone against the downside of rampant capitalism?
"Trust in me" said Ka the Jungle Book snake of Wall St and a 1000 lobbyists to deregulate. Professionals from major banks bought these swaps as they were rated as triple A, when they were actually triple Z to anyone with a brain. If the bank "experts" were fooled why would the low paid, low level regulating staff not be - not that they had anything to to do with regulating these swaps?
The tiny number of "risk experts" in finance who warned against the swaps were told to shut up and join the party.

[turninforhome10]

So here is the question I pose:
Would the average American be willing to live through a few bad years if all the people behind this were brought down with criminal charges. A tit-for tat exchange. Could the idea of seeing these people behind bars be able to rally us together as country and get us through the next few years. This is purely a sociological question and is not intended in any way to provoke anyone, just wondering if there is any consensus.

[Spiderman]

So here is the question I pose:
Would the average American be willing to live through a few bad years if all the people behind this were brought down with criminal charges. A tit-for tat exchange. Could the idea of seeing these people behind bars be able to rally us together as country and get us through the next few years. This is purely a sociological question and is not intended in any way to provoke anyone, just wondering if there is any consensus.

What they did was beyond despicable. Punishment is necessary as a start to reorganization of the country. This, "too big to fail', nonsense must be eliminated from the vocabulary. If they become immune to punishment, it will happen again and again.

[delayjf]

The lack of regulation of credit swaps is only half the issue - the other question that should be addressed is WHY those swaps were bad.

[skate]

Tex.



"If the bank "experts" were fooled why would the low paid, low level regulating staff not be - not that they had anything to to do with regulating these swaps?"


It has something to do with a society and its ethics. Instead of Cream Rising to the top...we cheat to get there. Fraudingly.

[skate]

Just about everyone could see this for the past twenty(more) years.

This was taught by Harvard/Penn business schools.

I find the story about Docs discarded as silly, docs are always discarded...

But if it sells, fine, then we have another story.


it seems that this is the nature of the business.

[turninforhome10]

The lack of regulation of credit swaps is only half the issue - the other question that should be addressed is WHY those swaps were bad.
Was there any incentive for the them to be good. After watching Inside Job, this was really a coup of the global financial system perpetrated by economists, physicists and mathmeticians. The politicians were mercenaries hired by the banks to clear the way for the war that was raged against our property. All this was done so the banks could steal the American dream and sell it back at a profit.

[skate]

Was there any incentive for the them to be good. After watching Inside Job, this was really a coup of the global financial system perpetrated by economists, physicists and mathmeticians. The politicians were mercenaries hired by the banks to clear the way for the war that was raged against our property. All this was done so the banks could steal the American dream and sell it back at a profit.

Ok ....turn-IT-in;

this is sad.

What are you asking, "was there any INCENTIVE"?

How about a wee little ethics, just for an incentive to start with.

Then we(you) go on to include everyone except Firemen and school teachers...and and and i might add "The Media", How..s come they only show up at this POINT in the story?

Where were They(Media) when it counted.?:faint:

[turninforhome10]

Ok ....turn-IT-in;

this is sad.

What are you asking, "was there any INCENTIVE"?

How about a wee little ethics, just for an incentive to start with.

Then we(you) go on to include everyone except Firemen and school teachers...and and and i might add "The Media", How..s come they only show up at this POINT in the story?

Where were They(Media) when it counted.?:faint:


If there were ethics involved why would you hedge the bet for successful loans by takin down the American taxpayer.
Inclusion was from common sense. The brains, the brawn, the systems of delivery and the enforcers. Nothing said about anyone else.
If you want to trust the media and their ability to be there for anybody ur nuts. Everything is just a story to sell an idea. I look beyond what they are saying to find the real truth.

[delayjf]

Was there any incentive for the them to be good
I would think that the investment banks that purchaced those loans would have an incentive to investigate what they were buying.

[turninforhome10]

http://latimesblogs.latimes.com/money_co/2011/08/fed-loans-to-banks-financial-crisis-bloomberg-bernanke-collateral.html

[Robert Goren]

I would think that the investment banks that purchaced those loans would have an incentive to investigate what they were buying.Apparently not. The lure of a quick buck over ruled better judgment. It easy to gamble someone else's money when you don't have cover the losses and get bookoo bucks as a bonus when you win. That was position that the traders at the investment banks were in.

[Actor]

Isn't is viewed as "socialist" in Iowa to believe that Government should protect everyone against the downside of rampant capitalism?I don't know about Iowa but that certainly reflects my view. On the other hand I don't think any self respecting socialist would support bailing out a failed capitalist. :bang:

[Actor]

Would the average American be willing to live through a few bad years if all the people behind this were brought down with criminal charges.IMHO, no they would not. They have families to feed and need jobs, so they want as few bad years as possible. On the other hand, I don't think the average American believes that prosecuting these people would result in a few bad years.

[turninforhome10]

Goldman Sachs lawyers up

http://www.latimes.com/business/la-fi-blankfein-goldman-20110823,0,2783618.story

[riskman]

turninforhome10:

This ones for you.Can it get any worse with these thugs in the Obama administration.

http://www.nytimes.com/2011/08/22/business/schneiderman-is-said-to-face-pressure-to-back-bank-deal.html

[turninforhome10]

The more info that comes out will lead this one right back to Washington. Someone needs to look at Obama and his relationship to the Chicago HUD.

[Tom]

The Obama/Buffet connection is starting to smell a bit like 3 day old fish, with the Moody's deal and all.

This is getting just the good old days leading up to Watergate.

"The American people deserve to know if their President is a crook."
----Richard Nixon

[turninforhome10]

When the going gets weird, the weird turn pro.
Hunter S. Thompson

[turninforhome10]

The Obama/Buffet connection is starting to smell a bit like 3 day old fish, with the Moody's deal and all.

This is getting just the good old days leading up to Watergate.

"The American people deserve to know if their President is a crook."
----Richard Nixon
Hey Tom, Why do you think Buffet was interested in TransAtlantic Holdings?Any ideas

[DJofSD]

Ah, um, b/c insurance and re-insurance is what Warren does best?

[turninforhome10]

Ah, um, b/c insurance and re-insurance is what Warren does best?


Making money is what Buffet does best. Buying value. What would be so profitable about a reinsurance gig now?

[turninforhome10]

Posted 8/23/2011
"The more info that comes out will lead this one right back to Washington. Someone needs to look at Obama and his relationship to the Chicago HUD."

Well can I get a little street cred for calling that one

http://www.americanbanker.com/issues/176_173/mortgage-reinsurance-respa-kickbacks-hud-investigation-doj-1041928-1.html

This was why I was bringing a dead idea so late in the game. I had figured that the closer we get to the elections the more information that will be coming forward. We are just at the tip of the iceberg. If we ever get to the real truth it will shake all foundations of an already eroded American confidence. How will S&P rate US debt when our the whole of Fed could be under indictment, or at least those from Goldman Sachs, they did get legal counsel last week. The closer we get to Caucus time the more career carnage will be unleashed and the average voter will further turn away from being reliable polling data.

The next step in the investigation should involve politicians and when politicians have the opportunity to turn or burn, we will either get more indictments (patsies) or a dead end on any really big players. I predict Bernanke will be before a hearing committee before Jan if the States Attorneys generals can continue to pick up steam.

[turninforhome10]

Ah, um, b/c insurance and re-insurance is what Warren does best?
Guess there was some money to be made. Printed that is.
http://www.americanbanker.com/issues/176_173/mortgage-reinsurance-respa-kickbacks-hud-investigation-doj-1041928-1.html

[turninforhome10]

Conceptually, such arrangements are analogous to letting a gambler with $10 in casino chips place a $100 bet at a blackjack table on the assumption that he'll win. A 2003 Standard & Poor's analysis modeled the most popular type of deal and found that in the event of high claims, the reinsurance vehicle's funds wouldn't be enough to cover the losses it was supposed to take on.

"The captive is unable to pay its full contractual exposure," S&P wrote.

The deals had yet another unusual sweetener, investigators alleged.

Each of a bank's reinsurance vehicles was legally separate not only from the bank's main reinsurance subsidiary but also from all the other funds. If a reinsurance deal didn't have enough money to pay its obligations, the bank could abandon it and leave the mortgage insurer with the unpaid bill.

To carry on the casino analogy above, it would be as if the gambler with $10 in chips were allowed to make that same $100 bet at ten different blackjack tables, collecting on the winning bets and renouncing the losers.