BenNatuf
Limit Authority
too funny. People lying to borrow money are not less culpable than the people who accept the lies to loan it to them. Especially when government policy encourges them to do so and the government has regulatory authority on thier activity and the governemt through a GSE buys up the instruments to allow them to keep doing it. And, the alternative of not doing it, results in never ending lawsuits, never ending legal complaints to the regulatory authority, and a never ending army of regulators interfering in your business.read my post about derivitives... you might find out that I do put some blame there. but the problem with the derivitive market is more one of the fact that you don't have to actually hold the security to own the derivitive. I believe this is insane to allow, as it makes the derivitive market less of an insurance market and more of a casino. Suppose for a second the deadbeat borrowers had actually paid the mortgages instead of defaulting? Of what use would owning a derivitive be then? It would just be money spent to insure the security. Change one simple regulation and make it the law that if you hold the derivitive of the security, you must also hold the security. The meme that they "bet" against the loans is a canard, what they did was insure the securities to mitigate thier risk. Are people who buy homeowners insurance betting thier house will burn down?
You're dodging the point. The people with no jobs and no income and no assets could not pay back the loans. Both parties knew it-so why are you blaming the people with the least power in the situation?
and a simple change in regulation requiring that if you own the derivitive you must also hold the instrument would put an end to it as it would no longer be profittable, too many bad loans and the "insurer" would demand a higher risk premium. Who's responsibility is it to regulate? And yet you want to hold the government harmless, the deadbeats harmless, F&F harmless, and just about anyone else harmless unless they are a bankster. The simple fact is it was not deregulation that allowed the banks to do this, it was malregulation. It's OK though... you've found your Jews. Perhaps if you keep your boot on their neck long enough they'll learn to be good Jews.Your description of burning the house down is apt. We both know that yes, sometimes people buy insurance and then burn their house down. That's what the banksters did. There are people involved who have admitted that they were instructed to seek out bad risks, for exactly that reason.