I blame the scapegoats

Generali

Generali

worldwheeler wrote: »

If you do not understand how a system works it therefore does not exist? Well I do not understand how atomic molecules combine but they DO!
What you do about a corrupt system is down to the individual and society if they are well informed. But if you refuse to acknowledge possibilities and give them names like conspiracies you will forever be poor. The public has been fooled in the past by orthorities on the assumption that people will not question stories given to them. I for one would like to judge world events with as much information as possible.

So what have you done about it apart from posting a link to an interminable video?

Acknowledging a conspiracy won't give me great riches, knocking it over might. If it exists which it doesn't.

PS Rabiddog, what does your signature mean please? Something about bestowing respect and thus getting it back I think.

fc123

It's more complicated than that

I went for Bankers, politicians, credit rating agencies (who underpinned all the schemes and empty 'boxes' labelled 'very. very valuable') and other factors.

I have read a lot about Bauger recently (as it is connected to my sector and effects me directly) and included in 'other factors'...I reckon Russian money...the wealth stripped from the country post communism had to find a home and be legitamised (sic?) somewhere.

I can't write knowledgeably (sic again...it's late) or academically about it but my SIL is Russian and I have heard the anecdotal stuff from her and her family members.

The one thing the crunch has shown up is that a lot of the 'money' never really existed...sort of funny really.....if it wasn't so tragic for ordinary, working people.

sabretoothtigger

Bank Regulators

The best place to hide anything is in plain view

Published: September 30, 1999



Fannie Mae Eases Credit To Aid Mortgage Lending


In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

http://hubpages.com/hub/BAILOUT-PREDICTED-IN-1999-BY-NY-TIMES

http://query.nytimes.com/gst/fullpage.html?res=9c0de7db153ef933a0575ac0a96f958260&sec=&spon=&pagewanted=1

chucky

and there was me thinking that it was the Forum serial posters and guru's that had predicted it over a year ago...

clobber_2

It's more complicated than that

I voted for everyone, and I didn't want you to feel left out Generali.

baileysbattlebus

I blame the banks, bank regulators (for our carp in the UK) it's hard to believe that the FSA didn't have inspectors capable of seeing these dodgy investments, credit rating agencies and lastly politicians and if it had been there, my number one would have been Fraud St, sorry, Wall Street.

Wall St invented the securitisation of mortgages - bundling them together and selling them on.

They didn't give a toss whether the loans they were bundling were any good or not. They (loans) could have gone belly up the next day - no one gave a sh*t, it didn't affect them. Credit rating agencies gave them AAA - who would have thought that a US mortgage backed security could not be any good??? House prices can only ever go up - people always pay their mortgage.

US govt pushed homeowership for everyone - and encouraged lenders to lend to the normally unlendable and not to be discriminatory, to find ways to let them get mortgages - started with Clinton and carried on with Bush

So house prices in the US rocketed to unstainable levels - I've ssen the big estates in Florida with houses costing $500k+ - it is one of the lowest paying states in the US, how were people going to afford them - it was simple really they couldn't, but they could buy them.

Our banks followed suit, lowering lending criteria, bundling mortgages and selling them to raise the money for lending - until one them couldn't - Northern Rock. 75% of Northern Rocks funding came from short term borrowing mainly through issuing asset backed securites. When the US subprime came to light and interbank lending stopped NR were unable to borrow any money to service their debts

Did no one ever think that if property prices fell some one would be in the carp? Maybe they did, but they were too busy making money, for themselves, naturally. Oh and for their shareholders.

It was an easy way to make money in the short term -

It's all down to greed

Spiv_2

Bankers

sabretoothtigger

Bank Regulators

Spiv = short seller?

Credit rating agencies gave them AAA - who would have thought that a US mortgage backed security could not be any good???

The way I understand it is the mixed securities contained sub prime and very bad rated debt, junk bond level but the majority was normal good mortgage so overall this debt package was labeled AA and sold all over the world to even building societies.

Some of that bad debt was not just bad but worthless, it was secured on assets now not worth barely anything leading to actual worth of only 10 cents in the dollar. Effectively making secured debt equivalent in risk to unsecured debt, multiply that by a trillion and its a problem for banks which are leveraged and unable to handle absolute losses by themselves.


http://www.finance-glossary.com/terms/junk-bonds.htm?id=814&ginPtrCode=00000&PopupMode=false
http://moneyterms.co.uk/securitisation/

IT_nerd

People buying stuff on credit

Us.
We bought stuff on credit.
We wanted the best interest rates for our savings.
We wanted something for nothing.
We caused this.

BACKFRMTHEEDGE

Credit ratings agencies

IT_nerd wrote: »

Us.
We bought stuff on credit.
We wanted the best interest rates for our savings.
We wanted something for nothing.
We caused this.

NAH