Posted on 10/23/2008 11:57:51 AM PDT by Shermy
Bottom Line: Congress got us here. Period.
That the Bush Administration didn’t know what to do about 64.5 Trillion in CDO liability that would come home to roost if someone didn’t bail out every institution that had CDO exposure? I think I can forgive that in light of the fact that total economic activity globally in 2007 was only 53.7 Trillion.
Consider that Sarbanes Oxley requires companies to notify the market with an 8-K to any material change in projected earnings or material condition of the company. The irony is that if Bear Sterns had actually complied, then it would have tanked the market more suddenly that what actually has occurred.
We don’t know everything, just what we can measure from the outside. It wouldn’t surprise me if the Feds told these failing banks not to comply with Sarbox in the interest of national security.
Starting with Glass-Steagal being repealed, coming up throught he Ethanol bill, and continuing through to the Fannie/Freddie ‘ignorance’ in Congress, it’s on their heads.
That Bush signed the Ethanol act was particularly loony, but hey.
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