Well I’m even MORE FIRED UP about Trump’s position as I just came back from watching The Big Short, which was ENTIRE ACCURATE, as I lived through it, to the point of also looking up loans in Florida in that time frame (they were posted on the web, at least from one county, at that time).
I WILL NEVER DEFEND WALL STREET!
...and it is happening again, just watch.
So, Bob, you have nothing to say about HFT after your silly HFT claims have been picked apart and demolished in great detail?
Instead, now, you’re all “fired up” about a fictional movie made by a socialist and economic illiterate (sorry, I repeat myself)?
And you actually think it’s “entirely accurate”?
You don’t seem to be able to distinguish fact from fiction, so I’m not surprised that you love the movie. Problem is that it’s total baloney. For instance, the NY Post, here:
http://nypost.com/2016/01/10/the-big-short-is-a-28-million-campaign-ad-for-bernie-sanders/
provides a good summation of the garbage you’re so excited and “fired up” about.
Read some Peter Wallison if you want to know what really happened.
He wrote an entire book — “Hidden in Plain Sight” — about it, never mind 93 pages of dissent to the white-washed Congressional report (run by Democrats at the time) on the ‘08 problem, summarized here:
Here’s a review of Wallison’s book in the WSJ:
http://www.wsj.com/articles/book-review-hidden-in-plain-sight-by-peter-j-wallison-1424820768
Bottom line is the US government, as in Fannie/Freddie plus CRA plus ever-increasing targets for marginal (read junk) lending from HUD (thank you Billy-Jeff and Andrew Cuomo in particular) and you wind up with trillions in crap mortgages owned or securitized directly by the feds.
Fannie/Freddie wound up with about 70% of all sub-prime and other junk mortgages. Which, as a (totally pitiful) category, were HALF of all US mortgages.
Oops. Wallison uses numbers generated by Edward Pinto, former Fannie chief credit officer to prove his thesis.
The private lender sector only did what the feds encouraged, goaded, demanded and required them to do over many years.
Borrowers only did what the feds wanted them to do — borrow.
Here’s a piece from The Atlantic in 2011 where they interview Wallison about the whole deal:
The movie is a sad joke. The feds are at fault, as in 100%. I don’t expect that Trump understands that, nor does it really matter if he does. Perhaps he’ll have someone around him who can clue him in at some point.
The idea is that we don’t repeat the whole deal, which we probably will seeing as how Fannie (still run by Democrats) just announced, a few days ago, new, really stupid and, of course, much looser mortgage rules.
Sort of a new version of sub-prime but by a different name. That’s in addition to what the FHA has now been doing for the last 8 years. The FHA, like Fannie, has pitifully small reserves against future losses.
Kinda like Barney Frank is still around telling us to continue to “roll the dice a little bit more” with Fannie/Freddie as Barney said back in 2003.
Hey, what could possibly go wrong 5 or 10 or 15 years from now with a new program of junk mortgages available to any bozo who can sign his or her name to a pile of documents?
Reminds me of NINJA loans from 10 years ago — no income, no job, no assets. Remember those?
According to your goofy movie the federal government never did anything wrong. Nope, the feds had nothing to do with the problem. Nope, nothing to see there, it must have been the evil private sector, yeah, that’s it, it’s all the fault of greedy capitalists, just move along.
You may need to re-examine all of your (and the movie’s) highly mistaken premises.
I doubt you will, you’d have to read every word of every link I’ve provided. Not likely to happen, since you already know everything.
Well, other than the stuff, HFT for instance where you’ve already been demonstrated to know absolutely nothing.
Perhaps some others will read the links and gain some insight into something that’s really very poorly understood generally. Which is unfortunate considering that federal government policy has a big influence on home values and thus net worth for a lot of people.