Posted on 09/20/2008 10:08:27 AM PDT by Danae
Bloomberg video posted on Google video
(Excerpt) Read more at video.google.com ...
and this is “breaking news” how?
This failure is almost 100% the result of DEMOCRAT policy and corruption.
http://www.cato.org/pubs/regulation/regv31n1/v31n1-7.pdf
Phantom Shares
Actually, the current crisis is unrelated to this. The current crisis is the result asset backed securities - specifically mortgage backed derivatives - that were being sold for amounts far in excess of their actual value.
Their actual value has dropped due to:
a) The housing market bubble bursting and
b) The sudden increase in foreclosures due to high-risk mortgages failing to pan out
The stuff you posted is actually unrelated to the current crisis and should not be propagated as a driving force behind the current troubles.
wow... I had no idea this crap went on. thank you... it is the very root of the current market crash.
Bump
I think it is funny how people “think” they have figured out why this happened. Posters who don’t know what they are talking about should not post at all.
Silliness.
The folks who caused this mess are doing everything they can to blame it on someone else.
Neither should the people that think and insist they do know what's going on.
Your typical classical "bubble" has everything in the class/category of the target commodity for sale. Housing has a slow sales velocity (compared to almost anything other than commercial property and large land tracts).
There are also a large number of people involved in the housing market, so there are plenty of eyes on what's happening.
I'd suggest that there was simply widespread fraud taking place, with a small number of organized gangs of thieves conspiring with allegedly independent appraisal firms to rip off lending institutions.
One of our "reforms" after the Savings and Loan disaster was to make sure the appraisal organizations were "independent" of the lending institutions or, at least the appraiser was subject to outside supervision ~ lest "insiders" inflate loan values in order to self-deal.
Obviously none of those reforms worked.
No - I think you need to do more reading on the subject. There was “fraud” but it was in the sale on asset backed securities that eventually became liabilities as a result of being under-capitalized.
This has nothing to do with naked trades.
..none of those reforms worked, because whenever the crony’s put another crony in charge of the scam he/she get a slice.
Very informative. Thank you.
Bookmark
Ok...I see some here are calling you out for overstating this problem. I’m not going to play that game. Here’s an interview that I listened to back in July, guy by the name of Bud Burrell, West Point graduate, long career in finance around the world. In fact, while I did not watch your whole Bloomberg video yet, I think that Burrell may have been one of their investigators. If his biography and resume is what it’s touted to be, the guy is on the up and up and knows what he’s speaking of. The interview here is called “The Greatest Crime in History”.
Listen and decide, but don’t let people mock you, there’s a bit too much of that around FR for my liking.
http://www.financialsense.com/Experts/2008/Burrell.html
Did you know of any of this? Did any of us know it 5 days ago?
It’s Breaking news. It has just taken years to get to us.
Who are you to tell me what I can post or not post Newbie?
And mortgage lenders were forced to lend to high risk borrowers or they would be out of compliance of anti-red lining laws.
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