tag:blogger.com,1999:blog-11906042.post2875498263157055203..comments2024-03-22T11:55:50.335+13:00Comments on Not PC: Who caused the global financial crisis? An inconvenient truth.Peter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-11906042.post-18536735210364762522013-11-19T22:01:07.332+13:002013-11-19T22:01:07.332+13:00Thank you for that input, Martin.Thank you for that input, Martin.Vinay Kolhatkarnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-69309993030817005062013-10-31T10:53:56.877+13:002013-10-31T10:53:56.877+13:00I forgot one - probably in before #2, since it'...I forgot one - probably in before #2, since it's groundwork that has "always" been there:<br />Required by government regulation, the FDIC socialized risks across banks by charging a fixed percentage of deposits. Banks taking small risks now could not profit at all, while banks taking large risks or already near closure could easily woo depositors with huge interest rates that came with no risk attached.Anonymoushttps://www.blogger.com/profile/01186353788847052726noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-91701171068319730062013-10-30T17:15:34.178+13:002013-10-30T17:15:34.178+13:001. In response to bank lobbying, Gramm-Leach-Blile...1. In response to bank lobbying, Gramm-Leach-Bliley was enacted by politicians to reverse Glass-Steagall, enabling banks to gamble with depositor funds;<br />2. Due to government use of both carrot (Freddie/Fannie guarantees) and stick (anti-discrimination lawsuits), American banks knowingly sold unrepayable home loans to a gullible public;<br />3. A crony ratings system (see Egan Jones denied the right to compete) resulted in poor investments being sold to retirement funds the world over, rated at AAA;<br />4. After several years of ridiculously mismatched profits with risk due to feedback from expansion of credit, banks started to believe that these risks were actually good, and gamble on them too;<br />5. To allow greater leverage (return on gambling), risks were marked as 0 if they were insured by an AAA rated entity (e.g. AIG);<br />6. The required exponential growth hit some form of wall, and a small fraction of loans that could never be paid back defaulted;<br />7. The house of cards built with derivatives and leverage, built using depositor funds, started to crumble;<br />8. To allow the shell game to continue, mark-to-market was suspended and banks were allowed to fall to negative real reserve ratios - i.e. if they weren't banks they'd be bankrupt, but because they can make money, they did;<br />9. Unenforced regulations for the elite (see IndyMac) allowed for those with friends to get away with this for as long as required;<br />10. With all banks at negative real reserve ratios, the situation was still highly volatile. The choices were:<br /> A) Bankruptcy for the banks, massive wealth loss for (some of) the elites and a severe but brief depression as the market reallocated capital<br /> B) A massive wealth infusion to the elites via the banks from the middle class and an ongoing malaise until 1-7 are all re-run<br />12. B was decided upon, and a sales pitch was presented up to and including the threat of tanks in the streets<br />13. To sell that the problems were caused by inaction rather than action they let one domino (Lehman) fall, caught things quickly and said "never again";<br />14. It proves once and for all, that in a system of concentrated power, people will abuse that power;<br />15. So now we must give those who abused their power before more power through creating more laws and bureaucracies, because this time they will be used for good not evil;<br />Anonymoushttps://www.blogger.com/profile/01186353788847052726noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-46345989899736017332013-09-24T14:09:29.674+12:002013-09-24T14:09:29.674+12:00Oh hello watchman, didn't notice you there - I...Oh hello watchman, didn't notice you there - I see you are lowering yourself to the occasion again.Mr Lineberrynoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-2294249225098714142013-09-23T18:44:12.850+12:002013-09-23T18:44:12.850+12:00Vinay
just ignore him
his comments usually invol...Vinay<br /><br />just ignore him<br /><br />his comments usually involve some sort of personal attack<br /><br />I dont think straight talk will work with him<br /><br />the drunken watchmannoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-18795006839935398282013-09-23T12:35:53.408+12:002013-09-23T12:35:53.408+12:00Hi Vinay, sorry for the delay in replying but I wa...Hi Vinay, sorry for the delay in replying but I was in Sydney on business for a week or so and can never seem to get near a computer in that fine city.<br /><br />I never said you were racist, but merely singling out one group of easy targets and giving a massive 'wink' to the crowd who have experienced 5 years of financial turmoil in their lives: "your problems in life are caused by __________ and we all know what they are like"; much easier to explain the deep doo doo if you can put a stereotype face to the name.<br /><br />I also find the obsession with blaming the least little thing on the purchase of real estate just silly as most people purchase a house to live in and raise a family.<br /><br />In answer to your question "where to, next?" I think the answer is simple - hard work.<br /><br />Stop blaming people and politicians and who did what to whom about the thing at the place - and encourage your readers to start working. A novel concept.<br /><br />If everyone had their own business and reinvested their profits making it larger; then larger, then larger still - the problem would be solved fairly quickly; ie: seeing how quickly you can double your turnover and profits will make you a lot wealthier than anything else.<br /><br />But to play to an audience of middle class white people who are earning half what they used to, who have lost their house, who have had several years of financial pressures - by dog whistling about Government mandated lending to "minorities" in order give them a straw to grasp of the "oh well you can't say it out loud these days but at least I now know who is responsible for my problems in life" variety, is beneath you Vinay.<br /><br />Mr Lineberrynoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-4703658230634049842013-09-20T19:55:50.338+12:002013-09-20T19:55:50.338+12:00Hello Anonymous,
Why 7? I will give you 1. All pe...Hello Anonymous,<br /><br />Why 7? I will give you 1. All persistent economic problems in developed economies result from Government interference in the economy.<br />Vinay Kolhatkarhttps://www.facebook.com/pages/The-Frankenstein-Candidate/327972740567846?ref=hlnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-4203463298095075112013-09-20T19:50:13.735+12:002013-09-20T19:50:13.735+12:00Hello Mr Lineberry,
There is no way I would advoc...Hello Mr Lineberry,<br /><br />There is no way I would advocate a system in which people of colour (which includes me and my family, by the way) would be discriminated against. Each and every time we get a result that does not conform to demographic percentages, we cannot play the racism card. It does happen now & then. But Govt action to force quotas is not the answer. Sometimes it discriminates against minorities. Refer http://www.nytimes.com/2012/12/20/opinion/asians-too-smart-for-their-own-good.html?_r=0 <br />As the argument in the GFC article makes it clear, both GW Bush and Clinton had little idea of just how damaging their actions were. Ignorance is not bliss. But I think we agree on one point. We want to end elitism. On my part, I would like to see elitism replaced with meritocracy. The nexus of Wall Street and the Federal Reserve supports elitism. High inflation will not hurt the entrenched rich who have hundreds of millions in assets.Vinay Kolhatkarhttps://www.facebook.com/pages/The-Frankenstein-Candidate/327972740567846?ref=hlnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-87386866726954940182013-09-20T16:24:45.599+12:002013-09-20T16:24:45.599+12:00Mr Lineberry - To my eye Vinay looks like he has a...Mr Lineberry - To my eye Vinay looks like he has a bit of "latino" in himself, so calling him racist makes about as much sense as calling you homophobic!MarkThttps://www.blogger.com/profile/06199883270652041621noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-74150306722765659792013-09-13T13:05:47.005+12:002013-09-13T13:05:47.005+12:00At the beginning of this piece, seven concise poin...At the beginning of this piece, seven concise points are listed representing the popular but wrong explanation. Then we get 20-some meandering paragraphs of the right explanation. The wrong explanation is winning in large part because it is being conveyed in brief bullet points rather than long-winded digressions.<br /><br />Condense! Outline! Essentialize! Counter the seven points with seven points of your own. THEN go into detail and let the reader decide if he wishes to spend the time exploring your justification for your seven points.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-2864419185954586472013-09-13T12:23:03.219+12:002013-09-13T12:23:03.219+12:00"So black and latino people should not be len..."So black and latino people should not be lent money because they welsh on the deal - is that basically what you are saying?"<br /><br />No.Peter Cresswellhttps://www.blogger.com/profile/10699845031503699181noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-14738360825537821052013-09-13T11:45:51.748+12:002013-09-13T11:45:51.748+12:00So black and latino people should not be lent mone...So black and latino people should not be lent money because they welsh on the deal - is that basically what you are saying?<br /><br />If money had only been advanced to 'decent white folks' all would have been well - is that about right?<br /><br />Hmmmmmmm<br /><br />If the borrower is black the buggers will spend all their money on fried chicken, crack cocaine, hip-hop CDs - *<i>wink wink</i>* - don't we all just <i>KNOW</i> what these people are like?<br /><br />50 years ago the KKK and Strom Thurmond and others warned us, we never listened and goddammit! now we are in deep doo-doo!<br /><br />Is that about right Mr Kolhatkar?<br /><br />I imagine you would get cheering and a standing ovation at the various 'freedom' (*<i>snigger</i>*) conventions of the American Conservative Union and other bastions of 'freedom [for people like us]' organisations; afterall they were warning everyone about those pesky black people back in '64 weren't they?<br /><br />I wonder if you could take your hand off your cock for a moment, Mr Kolhatkar, and give us some numbers of defaults on mortgages and personal loans broken down by ethnic groups?<br />Would there <i>really</i> be a large disparacy? would such figures <i>really</i> prove your assertions?<br /><br />I cannot believe anyone is taking this rubbish seriously.<br /><br />Next you will be telling us Bill Clinton and George W. had a cup of coffee and actually <i>planned</i> it all.<br /><br />Funny how when black and latino people buy houses it is 'malinvestment' but 'prudent' when you do it; god forbid anyone black buys a house to become a stakeholder in their community, or to provide security for their family.<br /><br />No doubt next week we will hear about the Maoris in NZ and their mortgages.<br /><br />Mr Lineberrynoreply@blogger.com