OK, here’s a question I’ve been afraid to ask. It looks like this crisis has been building for a long time. What are the chances that the TIMING of this crisis was manufactured for most impact against republicans in this election? How would we go about verifying something like that?
If these companies owe so much money on these defaults..who owns the benefit? Somebody wins and somebody looses in a futures market. Unless they were trading them back and forth..then it is fraud.
“It looks like this crisis has been building for a long time.”
That’s correct. Ever since Clinton forced the CRA on the Mortgage Industry in the early to mid ‘90’s.
“What are the chances that the TIMING of this crisis was manufactured for most impact against republicans in this election?”
That is highly unlikely given the complexities to cause a specific timing with all that is involved.
I personally wouldn’t put it past the bastards to have tried it though.
It wasn't - even though many would like to attach politics to it. This was just pure greed and probably some manipulation. By making it easier for people to get into homes it created an environment where the investment banks were betting that real-estate prices would keep going up for a good long time.
They did for awhile - and then the truth set in.
I'm still not sure that people understand. We are at a point right now where there really is no answer other than to let the market play these bad bets through. We will suffer a mild to major depression because of it because we literally don't have the dollars that could possible pay for the money owed. If the government passes their "plan" then all bets are off. They will start meddling in the CDS market, counter-parties from all over the world will be destroyed, and the financial system of the developed world will face collapse.
There are many that will make fun of the previous statement, but you will also find quite a number of folks here on FR that know exactly what I'm talking about - and it is very, very serious. The government knows it. They're starting to release more info each day as to its seriousness.
Yesterday, the governor of New York stated that the CDS problem was an enormous problem and initiated rules in New York to regulate CDS's as "insurance" beginning in January of next year.
Today, SEC Chairman Christopher Cox stated the extent that the CDS market plays in regards to the financial health of our country and wants 'immediate' regulation.
Unfortunately, it's too late for either of those. Put them in place, but the current climate is here to stay for awhile.
Ask yourself why commercial banks are sitting on their cash right now instead of lending it out. It's because they know what's coming.
The commercial banking system in this country usually keeps $2 billion in reserve each day to cover normal day-to-day withdrawals. It's a good thing they have been keeping the money, because last Wednesday saw withdrawals totaling $114.5 billion.
Each family needs to make sure that they are prepared for this. Not to panic, and not to be anxious for anything - just prepare.
I'm voting for Sarah!