Crony capitalism [How Wall Street undermined free markets and the rule of law]

Toronto Sun ^ | 2011-11-06 | Lorrie Godstein

[adorno]

That’s what happened in the 2008 global economic crash, where the worst damage wasn’t caused by the subprime scandal itself, but by the global credit freeze it led to because banks no longer trusted each other’s assets.

A lot of twisted logic there.

Without a cause, there is no effect.

Without the sub-prime mortgages being allowed, and even forced on banks, the packaged securities mess would never have occurred.

If the author really believes in the unfettered free-market system, then the blame would start and be mostly on the government's side, which created he CRA and the enforcement regulations, which all led to the 2008 housing crash.

[TheBigIf]

It had nothing to do with giving people more freedom but everything to do with forcing them to defy free market principles. TRILLIONS of dollars in bad loans were forced upon these investment markets by ACORN and Congress.

Any sane investor is going to use every possible stradegy to protect themselves from these insane crony capitalism schemes that were put in place (for the good of the poor) by democrats and willing accomplshes in the repblican party.

Your statement that freedom caused this is disgraceful.

[TheBigIf]

This scenerio is much like taking an honest business man and telling him that the people have voted and his new buisness partner is now going to be a mob boss.

Wall Street had to ignore all free market principles and deal with TRILLIONS of dollars in bad loans due to their new business partner (ACORN and the democrats=mofia boss) and now years and years later after the people made them partner up with these criminals some people want to blame them.

[Carbonsteel]

"Your statement that freedom caused this is disgraceful."

Institutions like Wall Street wield too much power and control to be allowed to simply run amok and don't even get started on the speculators.

We're not talking about someones personal freedoms here.

ACORN, Barney Frank may have put pressure on lenders to dole out loans to those who shouldn't of had them, but the banks hardly put up a fight.

There was a huge world wide demand for mortgage backed securities that the banks were all too willing to take advantage of. It only took 7 years after Clinton signed Graham-Leach-Bliley before greed got the best of these folks. They shouldn't have the freedom to rob the American taxpayer anymore then I should have the freedom to rob a liquor store.

You should think about what your saying before you accuse someone of being disgraceful.

[padre35]

Hmm, selling investments, then buying investments with the proposition that the investment they just sold will decline in value, and being right, is not fraud?

What universe do you live in>?

[padre35]

Writer points to both parties fraud, and malfeasance in office.

OWS is a leftist attempt to seize a piece of the pie they have no business receiving, however it is undeniable those who champion the things this writer speaks about are most assuredly right to be protesting.

[algernonpj]

Great article. Thanks for posting. It’s not often someone rightly identifies the two parties responsible, corrupt politicians and corrupt business, both gutting the middle class for their personal benefit.

[MarkL]

The fact credit rating agencies in the pay of Wall St. graded junk subprime mortgage securities as Triple A safe investments, is a disgrace.

Here's my problem with this statement. While it may be a disgrace, any sub-prime mortgage security backed by Fannie Mae or Freddie Mac had the full faith and credit of the USA behind it, even though they're not actually government agencies themselves. Any securities that were privately held may not have been, and those need to be investigated for fraud. But the credit rating agencies can't be faulted for rating sub-prime securities as AAA if the backing organization was rated as AAA.

Mark

[bigheadfred]

Kennedy and the Fed

"It seems very apparent that President Kennedy challenged the "powers that exist behind U.S. and world finance". With true patriotic courage, JFK boldly faced the two most successful vehicles that have ever been used to drive up debt:

1) war (Viet Nam); and,(BHF gets to add Iraq & F-ghanistan) and

2) the creation of money by a privately owned central bank. His efforts to have all U.S. troops out of Vietnam by 1965 combined with Executive Order 11110 would have destroyed the profits and control of the private Federal Reserve Bank".

[algernonpj]

Thanks for the link. Very interesting. Bookmarked for later.

[Neidermeyer]

Government’s fault - not Wall Street’s fault.
************************************************
How can you tell where one ends and the other begins?

[ClearCase_guy]

Exactly. I would argue that we are currently living under a fascist system -- it's a leftwing system, based on collectivism, and it means that the lines between busienss and government are blurred.

Eisenhower talked about the "military-industrial complex" and people thought it only applied the Defense Industries. I say the warning is relevant to Archer Daniels Midland, GE, and Goldman Sachs, just as much as any Defense firm.

The original Progressives started us down this path, Woodrow Wilson kicked it into high gear, FDR, LBJ, Bill Clinton, and Obama have merely been kicking the ball down the field. American big business today has very little to do with capitalism, and a whole lot to do with Big Government.

[DTA]

Why aren’t they camping outside the 12 regional offices of the Federal Reserve. That’s where the management is - Wall Street is manufacturing site.

[Venturer]

Don’t expect them to find the right place to demonstrate, they don’t even know why they are demonstrating.

Outside the White House is where they should be. We are in deep trouble because of the a-wipe in that place.