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Message: They've Got To Fulfill Da Book
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Posted by: BKM8572 on September 15, 2008 03:43PM
In response to: Silent here by sharky
Sharky:
As a US cittizen, I am of the opinon that Alan Greenspan (former Chairman of the Federal Reserve), ought to be taken out and shot. It was he, following 9/11/01, who took interest rates down to 1% and left them there for an entire year. The result was that so many people went out and got crazy mortgages to buy houses with no money down and frequently, with no documentation of financial means. Now the world economy is paying the price tag for total malfeasance of the US lack of financial and fiscal discipline. Today, I am ashamed of my country and its leaders. Not to mentionBoth political and economic. Not to mention the stupid, undisciplined US people!
Brian
Doesn't bode well for the Grand Old Party.
Other Americans I've heard recently are consistently equal to or more critical!
The next politition at your door, (or on the phone or wherever you might meet one) ask them what a Credit Default Swap is! Ask for the minutes of the Commons banking comittee and (I haven't read them) I'm sure the issue of excess margining by banks world wide (a sizable part of $544TT) allowing financial derivative Funds to ramp up investment in these Credit Default Swaps has never been discussed let alone recognised as a problem!
I'm sure Lehman Bros wish they had never set sight on one, a Swap, I mean, not a politition!
Unfortunately, Canadians and Canadian banks aren't exempt.
I'm not sure you can label anyone "stupid" for failing to understand or recognise the affect these "overvalued" assets would have on the global financial system as they have been "under the radar," trading exclusively OTC, back and forth, moving their values ever higher, with constantly rising margins, as high a 100 to one in many cases!
Appraisers were doing a very similar # on banks in the US and elsewhere when house prices were bounding upward. (it's called fraud when it arrives at the docket!) I recall reading recently where a Florida appraiser recieved 24 years in prison for "cranking up" an appraisal on a condo complex costing the bank who requested the valuation $22MM. "Chicken feed" compared to what is happening today with the collective fraud perpetrated by these OTC Funds trading in Credit Default Swaps and related paper! Greed sucked the banks in as they were booking huge profits on this debt as it was paid by profits from continually rising CDO's, CDS"S and other paper assets!
The under-lying problem became under-valued assets!
Confidence in our financial and political masters has dropped to historical lows!
Lehman has unleashed a "vicious" cycle.
Who will seek out the "perps" when they are all at the top?
A author in the financial press recently asked, "Just how did we get to this point?"
I'm sure one of you will ask, "what has this to do with SAN."
The answer, my friends, is in our SP!
RUF
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