This article provides a powerful cite that Obama economic advisor Robert Rubin and Greenspan were the guys that allowed the derivative market to take off during the Clinton 1990's.
Bush was asleep at the wheel, but the Wall Street derivatives car was built in the 1990's under the auspices of Rubin and his Wall Street buddies at the time.
Derivatives are what created this house of cards that finally fell down last week.
if...
i don’t buy it.
Guess again.
$1 trillion in subprime loans just melted down our financial system.
I seem to remember several years ago that the left was crying because minorities were being turned down for mortgages at a higher rate than whites. They blamed it on raciscm and they basically forced the banks to make a lot of these sub-prime loans. Well the problem has come home to roost. That’s not all of the problem though. There were a lot of people that took out an ARM. They seem to forget that interest rates under Carter hit double digit percentage wise. I remembered them days so when I bought a house there was no way I’d take an ARM. I may pay a little more but it is locked in and I don’t have to worry about the interest getting out of hand. Thirdly, banks were greedy and loosened their standards on mortgages. To force the taxpayers to bail these people out is wrong. A lot of the problems in today’s society is we no longer hold people accountable for their bad judgement. These bailouts are only going to hurt us in the end and make the problem worse instead of fixing it.
Yeah it is. The whole fricken disaster from the time of the creation of these unconstitutional quasi-government agencies to the present is the fault of the socialist democrats and their RINO enablers. It’s Roosevelt, Carter, Clinton, et al leading the charge. And Dodd, Frank & Co were the latest ones asleep at the wheel. Actually, they weren’t asleep. The bastards were in on the take and were looking the other way while the corruption ran rampant. Bush tried to reform them. McCain tried to reform them. The Democrats pooh poohed the need. Read up. Don’t try feeding us a bunch of crap!
I disagree that derivatives was the cause of the problem, but rather a participating activity within the time frame of the event. I still believe the Carter era CRA legislation was the planted seed that germinated and grew out of control under the care of the Clinton misadministration.
Here’s more from a previous post by FReeper Palmer on Derivatives (even though I disagree), but noticed there wasn’t any explanation as to what the “H” derivates are in this article you have posted. So for those whom are confused on the matter, here’s the link:
http://www.freerepublic.com/focus/f-news/2084907/posts
Years from now, I think Robert Rubin will be identified as one of the main facilitators of the mess we are in now. Bill Clinton made many mistakes, but making this guy Treasury Secretary was one of the worst.
Yes indeed, the CRA was the club that the lefties used to extort money out of the banks to lend to minority borrowers. It was so important that Banks lending departments were forced to post their CRA Notice in a prominent place within their lending areas and in their lobbies...From that Bank Extortion Act everything else flowed—the corruption, the derivatives, the fraudulent sale of weak loans to Fannie Mae and Freddie Mac, the excessive closing costs, the heavy penalties if banks violated the CRA- even losing up to 10% of their assets for violations...The democrats and leftists shoved this Law down the banks throats and the Banks played the game...
When Sub-prime lending came into play, that was the beginning of the end...Now you had banks forced to make risky loans to customers with poor credit histories, or no credit history, and sometimes without jobs and withour any proof that they could repay the loan—it was illegal for the bank to ask to see copies of social security income or disability income....Social policy took preference over sound bank lending practices and so we now have this debacle to deal with...We no longer have a safe banking system, not with laws like the CRA on the books...The CRA should be abolished now to save the banking system...otherwise, the criminality and unwise lending will just proceed but at a slower pace...Fed Chairman Bernanke should lift the CRA immediately and get the Banks out of the extortion racket...You can either have a sound banking system, or you can have a system open to criminals and thievery and extortion...Take your pick....
There are NO tangibles in the derivatives market.