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Canuck57[_9_]

On 21/02/2010 11:56 AM, wrote:
On Sun, 21 Feb 2010 12:37:48 -0500, wrote:

it was caused by
the rich white guy....but you blame it on clinton, saying the rich
white guy had NO control over the economy

It is fair to blame the deregulation of the derivatives on Clinton, or
at least the gang of five he hired (Greenspan, Rubin, Summers,
Geithner and Reich) Three of them still guide financial policy for
Obama and Reich is still in the loop.
Have you seen the Frontline show about Brooksley Borne? (The Warning).
It is running now and also on the PBS web site.
I shows where this problem started and why it is not really fixed.
I know you blame it on Congress (particularly Gramm) but these were
the "experts" who advised congress and they worked for William
Jefferson Clinton.

There is a reason they did it. It was to prevent a 1980/81 interest
rate spike that occured. But by removing this, they also removed the
limiters prevening too much debt. Yes, they made debt cheap, but at the
price of an imbalance.

The imbalance still exists today. And there needs to be a way to limit
debt in order to put some sanity back into the system. Right now there
is no such balance. Thus, the problem still very much exists.

The liquidity crisis was the first real hard event of this, but I hate
the name, "liquidity" as it side tracks what really happened. What
really happened is even though the system is leveraged, the lenders
simply stopped lending as the yeilds were too low. Why lend money for
zero value return? All the risk and inadaquate return people just
stopped lending and moved money elsewhere.

Trouble really erupted in not in mortgages, but asset backed term paper
where loans terms were expiring and people wanted their money. Debtors
we unwilling to pay open market rates and started welshing. It is
really BS that home mortages were ever blamed although they did get
caught up in it. Most home owners were counting on a continuing
inflationary cycle to make sense of the debt levels, that never
happened. So many a welshers walked.

In fact, to this day this imbalance exists more than ever. Banks are
not really funded correctly with capital nor deposits. Welshers often
didn't pay for their welshing, but government and corrupt banks shifted
it to the taxpayers. And not one case has been tried for fraud or
debtor welshing.

Yep, the ponzi debt machine is still doing it.