Geez John, where the hell have you been? We've been mentioning for years on FFL and discussing a lot of books, articles, documentaries and biopics that explain the problem. One couldn't write a better scifi scenario if they tried.
I got interested in economics back in the late 70s. I read everything from Galbraith, Ravi Batra to Milton Friedman. I especially enjoyed the "economic novels" of the late Paul Erdman who made the economic crisis of the time understandable. They even made a movie of one book, "Silver Bears" with Michael Cain. http://en.wikipedia.org/wiki/Paul_Erdman At least the Reagan administration sent some of the the S&L crooks to prison. Obama is too endeared to Wall Street for that I'm afraid. We're really screwed. Best thing is a massive collapse that must wipe out the very rich and age old banking institutions. IOW a complete reboot. On 11/29/2011 12:37 PM, John wrote: > Judy, > > Good research on your part. It appears that the financial crisis was due to > a combination of factors which contributed to an "accident" waiting to > happen. And, unfortunately it did. > > Now, the big "accident" waiting to happen is the enormous national debt that > is costing Americans millions of dollars per minute. I don't believe any of > the politicians in Washington DC know how to solve this problem. > > > > --- In FairfieldLife@yahoogroups.com, "authfriend"<jstein@...> wrote: >> --- In FairfieldLife@yahoogroups.com, "John"<jr_esq@> wrote: >>> --- In FairfieldLife@yahoogroups.com, Bhairitu<noozguru@> wrote: >> <snip> >>>> The bankers showed how dumb they actually are with their >>>> derivatives and hedge funds. It was like a bunch of kids >>>> playing with matches and oops burned the house down. And >>>> they should pay the full price for it. The public should >>>> not bail them out. Catch them at every excuse to sell the >>>> public we should help them out and sound a resounding NO! >>> The bankers believed that their actions relating to the housing >>> mortgage debacle were legal and that they would be supported by >>> the federal government. Apparently there was a federal law that >>> was passed to lower the requirements for some borrowers so that >>> they can buy new homes. >> Please, inform yourself. Start with this: >> >> http://en.wikipedia.org/wiki/Government_policies_and_the_subprime_mortgage_crisis >> >> http://tinyurl.com/7t9e5uz >> >> The Wikipedia article has lots of references, including to >> other Wikipedia articles on the 2008 financial crisis. It's >> much more complicated than you dream. Bhairitu is >> essentially correct that it was the securitization of risk >> in mortgage lending with derivatives and such that was the >> primary contributor to the crisis. Just for one thing, the >> vast majority of the subprime loans were not made by FDIC- >> insured banks. For another, most of the loans that went bad >> were not made to low-income borrowers. And for still >> another, commercial loans were just as problematic as home >> loans. >> > >
