Posted on 07/29/2008 8:25:57 AM PDT by CRBDeuce
Perhaps (I can't speak for others) many of us would agree with you on 1, 2,and 3...sobering thoughts, and perhaps we've all thought the same at times....
But where's the political connection to a solution (covered bonds, with restrictions...by Hank) devoid of politics? The politics was in Fannie, Freddie, et al....lets wean ourselves of politics in our finances!
ie, we share your frustration (if the above wasn't clear).
If your thoughts boil down to “neither a lender, nor a borrower be”, I’ll have to sleep on it!
No sir — my thoughts boil down to “Banks need to re-establish themselves as TRUSTED institutions.”
It used to be that we made jokes about how little bankers worked - that they had a business model of “3-6-3” - they paid 3% on deposits, lent out money at 6% and were on the golf course at 3pm.
Now they’re obsessed with trying to use derivatives and statistical models to dispose of risk - with exceedingly poor results. It used to be that bankers were choosey about their borrowers, and this is how they achieved a low dubious loan rate. They need to go back to those days of real borrower qualification as the way to reduce risk, stop using derivatives and other idiotic, hard-to-model instruments and maintain good, historic banking practices.
When they do that, THEN the covered bond idea would work.
Thanks for that. I am 100% with you on your salient point. I am doing something about it called Raging Debate.com . Site ready soon. You’ll see it out there. Some of us dot come guys didn’t wind up as technoplutocrats :) Some of the brightest minds in several categories of our population joining up. I have a feeling you will approve.
Why would I push an SIV? Who would I "push" it to? Would "pushing" it be profitable? How exactly?
Do you even know what an SIV is?
What is a "risk free model to the economy"? Where did you imagine I said I loved whatever a "risk free model to the economy" happens to be?
I am here Todd. Too busy for debate just now. Launching a site next week called Raging Debate.com . It will be perfect for people like us.
Yeah, sure you are. LOL!
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