I tink the greatest problem that he looked at was the sub prime business... had the goberment not gotten involved and pushed housing and ninja loans, then the mortgage brokers wouldn’t have been fraudulently pumping value> Its great to blame someone, but the banks had to give up bankers prudence to allow the gooberrment to meet its policies...left to their own devices, there probably would not have been a bubble.
Precisely. It wouldn't have been in the banks' -- or anybody else's -- interest.
Only government could create the bubble...and pump it 'till it burst.
It's conceivable that Barney Frank and Chris Dodd were too damn dumb to realize the consequences of their actions. But Franklin Raines sure as hell knew what was going to happen...and got his ass outta there with a $90 million bonus.
It's pretty clear who should be prosecuted. And only some of them are bankers...
I just remembered I had a paper of derivatives and the sub-prime business in my file of downloads from the internet. Here it is.
A Primer on Credit Derivatives
http://www.ermsymposium.org/2009/pdf/2009-darcy-primer-credit.pdf
I found it a good read.