On Sat, 25 Oct 2008 10:56:48 -0700, Capt. JG wrote:

"Dave" wrote in message
...
On Fri, 24 Oct 2008 13:12:29 -0700, "Capt. JG"
said:

McCain was among those who advocated
for the failed policies of deregulation,

So long as people buy into that kind of superficial nonsense, the
problem won't be solved. There needs to be some creative thinking about
how to restructure our financial system so that there is no such thing
as a bank too big to fail.

There are a lot of mortgage backed assets out there now that are
changing hands, when they do change hands, at far less than their risk
and projected
cash flows justify. That means there are some big profit opportunities
for the right buyer.

There is also a great deal of capital sitting on the sidelines that
could be matched up with those assets. The objective should be to get
the undervalued assets out of the hands of the "too big to fail"
institutions and into the hands of a large number of smaller players
funded by the capital on the sidelines.

That means that in one fashion or another those "too big to fail"
institutions have to be allowed to fail, and their assets split up into
a number of smaller but healthy institutions.

Empty-headed slogans about the supposed evils of deregulation (a la
Democrats), or "corruption" or "greed" (a la McCain) aren't going to
get us
there.


I agree with much of this, except that I do believe a lot of this could
have been prevented or mitigated by regulations that were either
abandoned or ignored. And, there was certainly plenty of corruption and
greed. McCain knows all about that, having been involved up to his
eyeballs with Keating.

keating had nothig to do with the current problem caused by dem's
insisting that people that couldn't afford a loan had to be given one
anyways, just to be fair.