How Regulations Collapsed the World Financial System

Quote from vhehn:

that made it worse but the consumer tipping over started the domino effect.
two times in our history we have tried a guns and butter economy. johnson tried it with viet nam and bush tried it with iraq. in both cases the market eventually cracked.
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So i guess it worked out well for WWI and II? What are you talkign about? If it was just the US and the war Iceland would not be involved would they??

Listen...lack of any regulation at the large firms finally caught up...LEH for example has 610 billion in bad debt...BUT!!!
...THEY WERE GIVING HEDGE FUNDS BETWEEN 20-40:1 LEVERAGE WHICH MEANS AT SOME POINT AND TIME leh MAY HAVE BEEN HOLDING 6 TRILLION + IN MORTGAGES!!!!!

you can claim war all you want but the most basic principals of risk management and concentration levels were ignored by the regulators.....here...ck it out your self..read the Insp. Gen. report

http://www.thesipa.com/blog/?p=77
 
Quote from TM_Direct:

So i guess it worked out well for WWI and II? What are you talkign about? If it was just the US and the war Iceland would not be involved would they??

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the price shocks were worldwide werent they?
 
of course...because world wide there was little reg. of banks like ubs,citi,hsbc ect.....and even less regulation for large hedge funds (mostly off shore) that were given extreme leverage on these mortgage vehicles.....seriously now...you don't get it????:confused:
 
Quote from tmarket:

Numbers of firms barred, expelled or individuals suspended has gone down of the years.

http://www.finra.org/Newsroom/Statistics/index.htm
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The problem isn;t the QUANTITY...Its the QUALITY...John Mack of Mrogan Stan was being called to an OTR ( on the Record) and refused and the SEC guy who tried to do it ( Aguire?) was fired...the head of LEH. MER, Bear GS...they laugh in the face of regulation...meanwhile small firms are crucified.
 
You guys have not read the articles.

They describe how the crisis has spread to banks that had nothing to do with the subprime-mortgage-credit mess.

That a few firms lobbied and twisted the rules for short term profits that is unquestionable, they should've been let to rot in hell and not bailed out.

Now, ask yourself, why did the whole financial system crashed and not just the few culprits? why is the whole financial system 'interconnected'? The answer is: regulations, Basel II. This is what the article is talking about.

OK suppose that indeed, more regulations are needed. Who is going to write them? Paulson? The Fed? Kashkari? They are all shills for the big bankers.

I say no regulations at all so if anyone make bad decisions they should be allowed to fail without any taxpayer financed bailout. No government paternalism means no one is going to steal my money with excessive taxes or inflation.
 
This video explains the origin of the mess we are in. Look at a long term chart for the DOW and see the change in 1995. A bogus economy was created out of thin paper, not real incomes.
Political correctness at the expense of sound economic
principles has always failed throughout all recorded history.

Everything in this video is a fact.
http://www.youtube.com/watch?v=H5tZc8oH--o
 
Quote from vhehn:

you mean the war?
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Indeed, why isn't the three trillion total Iraq war debt (so far, and that's a conservative estimate) mentioned by politicians or the need to sharply curtail totally out of control subsidy of the military industrial complex! I mean, come on: 2K$ per year per every man women and child versus 1/10th that much for most countries. What are we thinking!?! :mad: And we don't even know why we are in Iraq other than Bush wanted to start a war for a reason we never really learned, and now we keep wasting money and lives to save face, and avoid admitting to the world we attacked another country, destroyed its infra-structure, and killed, maimed or tortured thousands for no good reason at all.
 
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