More Maher Stupidity: Wall Street Betting on Things to Fail Is 'Something New'
If it's Saturday, I must be pointing out more simply stunning stupidity coming from the mouth of Bill Maher.
Never letting me down, the host of HBO's Real Time Friday said the financial crisis was caused by "something new in politics where Wall Street was sort of betting on things to fail as opposed to for things to succeed" (video follows with transcript and commentary):
BILL MAHER: I mean, if it was just about housing it wouldn't be that giant a crisis. It’s that the banks took side bets on failure. Isn’t it? I mean, that's something new in America. Is it not? I mean, it’s okay, we all want capitalism. I mean, I am not a communist. I'm not. But this is something new in politics where Wall Street was sort of betting on things to fail as opposed to for things to succeed.
It amazes me that people actually think this man is bright let alone that he has his own nationally televised show.
Wall Street has been betting on things to fail since the first stock market was created in America. It's called short selling, and it's when you borrow stock from someone that owns it in order to sell it and take advantage if it goes down. You can then hopefully buy it at a lower price with your gain being the difference.
The top brokerage firms and investment banks have been doing this for years. In fact, most of them have whole divisions that are at times net short stocks in order to be profitable during bear markets.
I myself represented such a division when I worked for Merrill Lynch in the '80s. Our options arbitrage and block trading units were often "net short" a stock, meaning that we'd benefit from its decline.
Such "bets" have gotten more complicated in recent decades when listed options first started trading in the '70s. The "put" option is specifically a bet that a stock is going to go down within a certain number of days or months. Such options eventually were created for commodities, currencies, treasuries, and a whole host of investment categories.
These tools have also been used by securities firms and banks to hedge their exposure to things such as interest rate fluctuations. A financial institution with a large portfolio of fixed rate mortgages for example will use such derivatives to reduce their losses if interest rates suddenly begin to rise.
Maher may not be pleased to know that in recent years, many firms and hedge funds have been almost constantly short the U.S. dollar due to how low interest rates are here. This allows them to borrow money at almost no cost and buy other investments such as gold for instance, which has been a very common strategy for roughly a decade.
Something else to consider is the two derivatives at the heart of the financial crisis aren't new. The first collateralized debt obligation was created in 1987, and the first credit default swap in 1991.
As such, Maher was once again demonstrating how his opinions quite often have absolutely no basis in fact.
- Noel Sheppard's blog
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Comments
No... He didn't... Did he? HAHAHAHA
Submitted by Annie Ashe Fields on Sat, 11/05/2011 - 1:52pm.
There's NOTHING about this guy I like - NOTHING. And I KNOW he's said some SERIOUSLY bone-headed things before, but THIS? THIS is a WHOLE NEW LEVEL.
He's supposed to be one of the veddy-veddy nuanced readers of the New York Times, right?
DID HE MISS "RECKLESS ENDANGERMENT"????????????????????????
Two NYT reporters did a WHOLE BOOK on Wall Street and very important part of that book was how the traders UPSTAIRS at Goldman Sachs would bet AGAINST the advice the traders DOWNSTAIRS at Goldman Sachs were giving!
OMG!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
m-o-r-o-n, baby... MO-RON.
reminds me of rosie o never
Submitted by TruthMonger on Sun, 11/06/2011 - 8:07pm.
reminds me of rosie o never have knowing that fire melted steel:)
Congratulations Jimmy Carter!
Iz proud to be President of the Noel Sheppard Fan Club.
Submitted by The Vet on Sat, 11/05/2011 - 1:56pm.
Let's say it again in these times of OWS idiots. I love love love Wall Street. I love Wall Street to death.
My 401k and IRA's are all on Wall Street. I love Wall Street! Now I don't do puts or calls because it is not allowed. But I invest in CEF's that do all kinds of fun leveraging and option stuff that bumps up the dividends I don't have to pay tax on until I retire. I have no intention of going down to Wall Street and occupying or nuttin'. But I would love to go down there and give them a big sloppy kiss and a hug. Man, I LOVE WALL STREET!
Idiocy
Submitted by djwolf12 on Sat, 11/05/2011 - 2:12pm.
So I guess that Bill Maher will bring on Jon Corzine to blame Congress and take absolutely no responsibility for what he did with the missing $700 million from his own company M.F. Global?
If there was somebody in the
Submitted by ricklail on Sat, 11/05/2011 - 2:35pm.
If there was somebody in the WH besides Bambi, Corzine's arse would be headed to jail. Does anybody think that the One will let Holder bring charges? I am surprised they still going after Silky Pony Edwards.
Why wouldn't Corzine blame Congress for what Corzine did?
Submitted by djwolf12 on Sat, 11/05/2011 - 4:59pm.
Total red herring in order to distract the public that all of that $$$$ was funneled to fund Obama's reelection. Makes total sense to me since the media was fawning and drooling over the fact that Obama was about to set a campaign donations record of $1 billion dollars. Besides, It would have to be payback for all of those trips to NJ that Obama took to campaign for Corzine's reelection failure in 2009. Prove me wrong.
"More Maher Stupidity?"
Submitted by ProudAmerican58 on Sat, 11/05/2011 - 3:09pm.
One would think he'd eventually run out but he appears to be a bottomless pit.
"MORE Maher stupidity?!"
Submitted by Kaleidoscopic God on Sat, 11/05/2011 - 3:16pm.
Good God, does this guy EVER run out of stupidity?
Mr. Sheppard.
Submitted by Bhaal on Sat, 11/05/2011 - 4:10pm.
"If it's Saturday, I must be pointing out more simply stunning stupidity coming from the mouth of Bill Maher."
Considering that intelligent thought in close proximity to Maher gets drawn in, never to be seen or heard of again, do you worry that the black hole of intelligence that is Bill Maher will bleed off some of your intellect? His power to destroy logical thought grows each week.
No way.
Submitted by Blonde on Sat, 11/05/2011 - 4:38pm.
Noel's got the intellectual wattage to spare.
Maher is weapons grade stupid, as NS so deliciously (to steal a phrase) pointed out.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Agreed. Maher just has a
Submitted by Bhaal on Sat, 11/05/2011 - 8:13pm.
Agreed. Maher just has a unique kind of stupid.
Well, Noel
Submitted by Cool Arrow on Sat, 11/05/2011 - 5:19pm.
I'm sure Bill's guest, (was that Beau Biden or Brian Williams?) set him straight, didn't he?
Either one of those mental giants would have swooped down on that wounded gerbil of an idea and made a mealy morsel of it.
George Soros - owner of the DNC...
Submitted by Phryj1 on Sat, 11/05/2011 - 5:21pm.
...has made BILLIONS short selling and inducing market and currency failures.
Why isn't Occupy Whatever protesting him? Because they're nothing more than far-left Dem astroturf and hypocrites to the core.
Progressives seem to be completely averse to facts and logic. Apparently, reality has a conservative bias.
Maher is correct, he just didn't
Submitted by coin of the realm on Sat, 11/05/2011 - 9:00pm.
properly state the case. Well, I assume he was referring to the removal of a regulation called the uptick rule in 2007. The rule was put in place to control rapid fire short selling which was creating too much volatility and market meltdowns. This rule, combined with naked shorting and the creation and sale of leveraged financial instruments designed to fail, is a new development and key cause of the financial collapse.
Put into place to stabilize the marketplace after the extreme market instability that occurred at the beginning of the Great Depression, the job of the uptick rule was to keep the market from plummeting downward as one short seller piled on top of another. Without it, the first short seller could execute his trade at $99.50, the next at $99.00, the next at $98.50 and so on down. When short sellers smell fresh blood such as that, they rush in to capitalize on it. Without the uptick rule, short sale following on top of short sale can be executed until the price of the stock goes into a nosedive. In markets that are trading down anyway, the absence of the uptick rule assures a death spiral for any stock where short sellers decide to pool.
In a nutshell, the elimination of the uptick rule combined with naked short selling and the completely un regulated creation and sale of exotic financial instruments designed to fail caused the collapse to be orders of magnitude greater than it would have been otherwise.
An example of how this worked went like this. Goldman creates a security, full of toxic equity tranches from CDOs, that is designed to fail. They know it will fail. They then sell it to their customers--banks and insurance companies--as an investment. That is, the customers are going long on that security. Goldman then makes a market in that security so their customers can buy and sell it amongst themselves. Goldman shorts it by purchasing credit default swaps AND then they go to the market and sell short the shares of the banks they sold the junk to. The stuff blows up, the banks equity is wiped out, their stock collapses and Goldman makes a mint on both the stock shorting and the instrument shorting. THEN, Goldman has the government bailout the banks and insurers that they destroyed so that GOLDMAN can get paid on fees and some of the swaps that they are still owed. This is how Goldman reported record profits in the middle of the worst economic collapse since the great depression.
This is new stuff and directly resulting from the deregulation of and lack of regulations on these transactions. This type of thing is known as 'The Magnetar Trade'.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
What do you think CDS are all about?
Submitted by Blonde on Sat, 11/05/2011 - 10:08pm.
Maher was talking about "investing in failure" as being something new.
As Noel CORRECTLY pointed out, people have been short selling for eons. Just because the CDS's were a new form of financial instrument doesn't make "short" a new concept.
Go try to sell it to the liberals, small change.
Maher is galactically stupid, and so are you for trying to defend him.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
uuh, it's CDOs as in
Submitted by coin of the realm on Sat, 11/05/2011 - 11:52pm.
Collateralized Debt Obligations, a relatively new concoction that was a more complicated iteration of MBSs or Mortgage Backed Securities.
Did you read my post at all? People have been shorting for ages, but what I outlined is new.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
Don't presume to correct me, you dumb little retread
Submitted by Blonde on Sun, 11/06/2011 - 12:08am.
CDS ~ Credit Default SWAP
"Maher is correct".....you surely did try to defend his galactic stupidity....by ascribing to him that which wasn't there. His premise was that betting on "failure" was new.
FAIL!
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
AHhh, my bad, sorry
Submitted by coin of the realm on Sun, 11/06/2011 - 12:28am.
about that.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
That stung, eh?
Submitted by Blonde on Sun, 11/06/2011 - 12:35am.
Now go away.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Got your tender fanny spanked again,
Submitted by Boudin on Sun, 11/06/2011 - 12:47am.
Geez, must seem like years since you have been able to sit down?
And I wasn't defending Maher
Submitted by coin of the realm on Sun, 11/06/2011 - 12:00am.
so much as I was pointing out that in one sense his comment is correct. Investing in failure is not the same as shorting the stock of a company that is failing. The game now, and it is new, is about creating investments designed to fail, selling those 'investments' to CUSTOMERS and then betting against both the investment instrument and the customer bc you set them p to fail. That is, Goldman and a few others make huge sums of money destroying customers who then are fixed with our money in the form of bailouts. What value does that add to the economy?
See, this is why OWS was born. We have a small elite group of financial companies who are making obscene amounts of money by looking for, and taking advantage of, stupidity.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
Why don't you buy a clue?
Submitted by Blonde on Sun, 11/06/2011 - 12:10am.
Oh wait, I think I'll sell clues short.
With liberal trolls around, clues are totally worthless.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
About what?
Submitted by coin of the realm on Sun, 11/06/2011 - 12:14am.
Break it down for me as if I was a 16 year old.
Why do so many Americans’ have a propensity for the outright rejection of anything that’s not instantly comprehended. People easily become so vehemently opposed to things when they haven’t even bothered to read anything about them.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
Everything. Anything.
Submitted by Blonde on Sun, 11/06/2011 - 12:17am.
You're not worth my time.
We need a better class of troll, here. ©
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Common now
Submitted by coin of the realm on Sun, 11/06/2011 - 12:26am.
Just admit that you know nothing about this. Or is it that you know everything?
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
What, exactly....
Submitted by Blonde on Sun, 11/06/2011 - 12:30am.
did you not understand about "Bugger Off"?
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
And really...
Submitted by Blonde on Sun, 11/06/2011 - 12:34am.
WTH is "Common Now"?
You are a very, very bad troll.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
I don't understand
Submitted by coin of the realm on Sun, 11/06/2011 - 12:38am.
your anger. It seems way out of proportion considering all you know about me is by reading a few posts.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
I'm not angry, I enjoy smacking trolls around
Submitted by Blonde on Sun, 11/06/2011 - 12:42am.
Particularly little stupid arrogant ones that keep popping back up.....just like YOU!
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
I am a bit arrogant
Submitted by coin of the realm on Sun, 11/06/2011 - 12:53am.
and for that I apologize. I am not little in any sense of the word, nor am I stupid.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
Don't apologize for being
Submitted by killa37 on Sun, 11/06/2011 - 1:11am.
Don't apologize for being yourself, meat..............not only are you arrogant, but you're presumptuous in most of your posts here on NB, without ever being able to back them up.
But keep tryin', lightweight..............
Ann Coulter got it right.
Our realm is so much better than out of this realm......................KILLA.
Wazzamatter troll?
Submitted by The Vet on Sun, 11/06/2011 - 8:19am.
Can't get the tiniest lick of respect here. Is it your sock puppeting or plagiarizing or rampant stupidity?
LOL Blonde*
Submitted by cajun2 on Sun, 11/06/2011 - 12:18am.
And just think, the only thing you will lose is "small change'......rofl
I know, caj
Submitted by Blonde on Sun, 11/06/2011 - 12:23am.
I haven't yet run the plagiarism check on this one, but I'm tired after all of that intense football excellence.
I'll leave it up to someone else, but I'm sure we'll find it, easily, when we eventually get around to it.
Small change indeed. About fifteen Quetzies, I'd think (Guatemala).
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Here you go J.
Submitted by Denny Crane on Sun, 11/06/2011 - 3:51am.
Greetings from tomorrowland.
Oh Gee look what I found!
Put into place to stabilize the marketplace after the extreme market instability that occurred at the beginning of the Great Depression, the job of the uptick rule was to keep the market from plummeting downward as one short seller piled on top of another. Without it, the first short seller could execute his trade at $99.50, the next at $99.00, the next at $98.50 and so on down. When short sellers smell fresh blood such as that, they rush in to capitalize on it. Without the uptick rule, short sale following on top of short sale can be executed until the price of the stock goes into a nosedive. In markets that are trading down anyway, the absence of the uptick rule assures a death spiral for any stock where short sellers decide to pool.
Then there is also this from ronpaulforums
poor troll doesn't know that cut and paste are easily spotted!
Sheesh we need a better class of troll.
We Are The 53%
Looks like Denny beat me to it.
Submitted by The Vet on Sun, 11/06/2011 - 8:32am.
Blonde, this is the 2nd time I found the troll plagiarizing on this sock puppet account. Can't say for his other account, hayate1.
Here is his first time on this sock puppet account.
Wasn't hayate the
Submitted by killa37 on Sun, 11/06/2011 - 11:02am.
Wasn't hayate the self-proclaimed private businessman/entrepenuer who claimed to have started a few companies and worked for a few big outfits, and had multiple degrees in something or other - who was always pushing for more government control and spending and 'job creation'??? I remember that dope.
I went to look Mr. killa37. Ran across this.
Submitted by The Vet on Sun, 11/06/2011 - 12:40pm.
The hayate1 troll's first account was prone to PLAGIARISM as well.
Look at this from daily kos -
For the 3rd year in a row Americans have seen their taxes lower with President Obama then they did under Bush.
Just before this past Sunday’s Super Bowl, President Obama gave an interview with Fox News pundit Bill O’Reilly and in the interview the President told O’Reilly "I didn’t raise taxes once. I lowered taxes over the last two years."
The Associated Press (AP) wanted to fact check the Presidents statement and asked the Congressional Budget Office for the numbers over the last two years, and the CBO showed that President Obama was correct.
Now look at the post of the sock puppet's previous banned account -
For the 3rd year in a row Americans have seen their taxes lower with President Obama then they did under Bush.
President Obama gave an interview with Fox News pundit Bill O’Reilly and in the interview the President told O’Reilly "I didn’t raise taxes once. I lowered taxes over the last two years."
The Associated Press (AP) wanted to fact check the Presidents statement and asked the Congressional Budget Office for the numbers over the last two years, and the CBO showed that President Obama was correct.
Looks like this troll is well on his way to yet another sock puppet account. Welcome to hell troll.
Well, Vet (and others) - do
Submitted by killa37 on Sun, 11/06/2011 - 5:35pm.
Well, Vet (and others) - do you think this dolt will show back up here on this thread to account for his statements?? I'm not betting on it - he's never done it on any other threads that he's been on..........but I'm sure he'll keep lurking around here for as long as he's able, doing the same thing. I call him a 'drive-by farter' - he shows up, makes some noise, stinks up the joint, and then leaves his smelly residue for everyone else to deal with.
But the guy is a lightweight.......oh, an 'arrogant' lightweight...........so it's basically lowbrow entertainment when we are dealing with him.
'Coin of the realm is out of the realm of reality'.........................KILLA.
Not a chance, Killa
Submitted by Blonde on Sun, 11/06/2011 - 6:37pm.
He's over on the George Will thread spreading lies....
Think maybe I'll do a plagiarism check on some of the crap he's posting there.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
More evidence of the retread troll's multiple accounts.
Submitted by The Vet on Sun, 11/06/2011 - 12:56pm.
hayate1: ..are to blame bc Obama is...
hayate1: ...recession bc the stimulus...
hayate1: ...complete lie bc they suddenly...
hayate1: ..Correct me on this bc I need to...
coin of the realm (hayate - original name): ...names bc you don't...
coin of the realm (hayate - original name): ...customer bc you set...
coin of the realm (hayate - original name): ...it here bc to you folks...
coin of the realm (hayate - original name): ...just said bc he felt...
More evidence of the retread troll's duplicitous nature.
Submitted by The Vet on Sun, 11/06/2011 - 1:12pm.
2. Coin of the realm (hayate) was created 51 weeks ago.
hayate1 was created 51 weeks ago (39 weeks on 12Aug + 12 weeks since)
He's an efficiency expert, Vet.
Submitted by SickofLibs on Sun, 11/06/2011 - 1:17pm.
The other serial retread known as Dead Zippers caught on to the benefits of bulk registration long ago.
Well Done, Denny!
Submitted by Blonde on Sun, 11/06/2011 - 10:24am.
Tommorrowland strikes again.
That small change's little "diatribe" was c/p'd from another source without attribution was so obvious, the syntax, etc. just didn't scan for me.
Thanks for the assist, Tone.
Hmmm.....will he have the stones to show up here and take his medicine, or will a new account be created to avoid embarrassment? Inquiring mines want to know.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Out of the realm is a lot
Submitted by killa37 on Sun, 11/06/2011 - 10:59am.
Out of the realm is a lot like his Boy Barry, in that when he is copying something or someone else (like reading a teleprompter), he can sound coherent and lucid................but when he is writing his own posts (like trying to speak off-the-cuff), he rambles on, has very poor sentence construction, and can't back up whatever it was that he has copied, because he doesn't know his subject matter unless he's copying it.
Self-absorbed people often mistake arrogance for intelligence..............................KILLA.
And?
Submitted by coin of the realm on Sun, 11/06/2011 - 6:43pm.
it was a good example of the rule I mentioned. Is it not?
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
Babbling like Obama isn't helping here
Submitted by Blonde on Sun, 11/06/2011 - 6:45pm.
Try English.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
the hayate troll PLAGIARIZES again.
Submitted by The Vet on Sun, 11/06/2011 - 8:28am.
How many times will this troll be allowed to steal the work of others before he gets banned?
Here is the paragraph from the PLAGIARIZING troll -
Put into place to stabilize the marketplace after the extreme market instability that occurred at the beginning of the Great Depression, the job of the uptick rule was to keep the market from plummeting downward as one short seller piled on top of another. Without it, the first short seller could execute his trade at $99.50, the next at $99.00, the next at $98.50 and so on down. When short sellers smell fresh blood such as that, they rush in to capitalize on it. Without the uptick rule, short sale following on top of short sale can be executed until the price of the stock goes into a nosedive. In markets that are trading down anyway, the absence of the uptick rule assures a death spiral for any stock where short sellers decide to pool.
Here is where he stole it from WORD FOR WORD -
Put into place to stabilize the marketplace after the extreme market instability that occurred at the beginning of the Great Depression, the job of the uptick rule was to keep the market from plummeting downward as one short seller piled on top of another. Without it, the first short seller could execute his trade at $99.50, the next at $99.00, the next at $98.50 and so on down. When short sellers smell fresh blood such as that, they rush in to capitalize on it. Without the uptick rule, short sale following on top of short sale can be executed until the price of the stock goes into a nosedive. In markets that are trading down anyway, the absence of the uptick rule assures a death spiral for any stock where short sellers decide to pool.
if you guys
Submitted by coin of the realm on Sun, 11/06/2011 - 6:47pm.
spent half as much time reading the material as you do trying to catch me doing something wrong things might be more interesting. this example is not central to my argument nor is it a key premise, it is like an equation to demonstrate the rule. if youo cut it out of the post, the substance of the post is unchanged.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
FAIL
Submitted by Blonde on Sun, 11/06/2011 - 6:50pm.
Try again.
You're getting on my nerves with your bullshit.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
If you spent half as much
Submitted by killa37 on Sun, 11/06/2011 - 6:55pm.
If you spent half as much time being right as you do being wrong, things still wouldn't be interesting, since your opinions, statements, copying, plagurisms, attitude, arrogance, and general unlikablitly are probably much better suited to your usual lib website haunts...............the people around here are out of your league.
Uptick Rule
Submitted by Cactus Kurt on Sun, 11/06/2011 - 10:29am.
The uptick rule is a moot point. Stocks are now trading to the $0.0001 (yes, ten thousandths of a penny). In other words, under the old rule, you could short a stock if it were to uptick $0.0001. Unless you are trading million share blocks of stock, the uptick rule is meaningless.
really?
Submitted by coin of the realm on Sun, 11/06/2011 - 6:49pm.
I didn't know that. But I still don't think the notion in the rule is meaningless, it just needs to be adapted to the decimal system in use now. maybe an uptick needs to be 10 cents or 5 cents.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
More From Noel
Submitted by kilrod on Sun, 11/06/2011 - 12:03am.
I'd like to hear more from Noel on 'coin of the rears' post. Plus thoughts on how the elimination of the old "bucket shop" laws factored in, Carters "Credit Reinvestment Act", and the following;
the Financial Services Modernization Act of 1999 or the Commodity Futures Modernization Act of 2000 -- both signed into law by Clinton! -- had a hand in this crisis.
After all, FSMA removed the last vestiges of the Depression era Glass-Steagall Act requiring a firewall between the services offered by banks, brokerage firms, and insurance companies. This massive deregulation of the financial services industry in November 1999 is very much what led to the current crisis.
The following year(2000) CFMA deregulated lending derivatives such as credit default swaps which are at the heart of the problems facing the world's troubled financial institutions.
Thanks,
kilrod
If an unborn child cannot trust you, why should I,??
Yes
Submitted by coin of the realm on Sun, 11/06/2011 - 12:25am.
You are correct. Clinton played a big role in setting things up--with his right hand man and former Goldman Chairman Robert Rubin--by pushing through the elimination of the Glass-Steagall act which basically kept strict separation of commercial and investment banking. It was designed to stop the commercial banks from taking on too much leverage with financial speculation and prohibit investment banks from taking deposits and making loans.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
Yes again
Submitted by coin of the realm on Sun, 11/06/2011 - 12:51am.
the core of the issue is that all the regulations put in place after the 1929-30 stock market crash and economic depression have been dismantled. Even the slightest effort to reestablish a few rudimentary controls gets shot down by the politicians who are owned by the banks.
This point is HUGE bc it goes to the core of how to fix this economy. The notion that it is over regulated and needs more deregulation is scary bc it is too much deregulation that allowed this stuff to happen. Doubling down on a failed approach seems dumb. More regulation in the financial sector wont harm the economy, it may harm the ability of traders and top bankers to pull in multi million dollar paychecks, but that's not a bad thing. It also will go a long way to putting us taxpayers on the hook for an other bailout which seems inevitable if things are allowed to continue as they are. Only the next one will be even bigger and more damaging as these investment bankers make more exotic trading programs and securities with more and more leverage used in the unregulated and completely unmonitored , 1.2 quadrillion dollar derivatives market.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
The notion that it needs more regulation is even scarier.
Submitted by Denny Crane on Sun, 11/06/2011 - 4:21am.
The problem with your DKos talking points is that you think that just saying deregulate means that we want to just throw regulations out the window. But the liberal morons think that just adding more and more regulations is the answer to all the problems. Like government can fix all the worlds ills.
Deregulation is not exactly the answer but it's better than over regulation which creates so much bureaucracy and red tape that it just confuses everything and doesn't help at all.
What is needed is smart regulation. And a lot less of what we have now. That and Fannie and Freddie need to be completely privatized. If they fail, they fail. If a bank becomes huge and fails, that's life.
And even more importantly is that the govmint needs to stop telling banks to make loans to people that can't pay it back.
We Are The 53%
I agree that smarter regs
Submitted by coin of the realm on Sun, 11/06/2011 - 5:38am.
are needed. But before any regs that are smart and actually deal with the problems in a meaningful way are passed, the money needs to stop flowing into the hands of the politicians. The elimination of Glass-Steagall, the uptick rule are 2 examples of good, smart and effective regulations being eliminated bc the politicians were in essence , paid off to do so. It seems simple that those rules should be re-enacted, but they wont, bc the banks own congress and the WH.
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
So, who did you steal that thought from, small change?
Submitted by UpNorth on Sun, 11/06/2011 - 10:37am.
.
which
Submitted by coin of the realm on Sun, 11/06/2011 - 6:54pm.
one?
Give me control of a nation's money and I care not who makes her laws. Mayer Amschel Rothschild
So you admit stealing others' words and thoughts?
Submitted by Blonde on Sun, 11/06/2011 - 7:17pm.
Charming.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
kilrod
Submitted by Noel Sheppard on Mon, 11/07/2011 - 1:14am.
kilrod,
I wish I had the time. As most of you know, I don't play in the comments sections as much as I used to. I finish an article and then immediately start working on another one. Just seems to be a more productive use of my time and energy. I hope my readers agree.
If you check our search function, you'll find I've written extensively on CRA, FSMA, and CFMA. The idiots on the Left and their media minions think the housing crisis was started by Bush, but its roots go back well before he was inaugurated.
As for the uptick rule, this most certainly was not what Maher was referring to. It's quite a stretch to suggest without any evidence that Maher even knows what the hell that is. Besides, the elimination of that rule didn't create a new way for investors to bet on the downside. It just made it easier.
Be advised that I was opposed to eliminating it. I also think we need far tighter regulations on naked short-selling. The lack of the uptick rule and rampant naked short-selling played a huge role in the 2008-2009 collapse.
Hope this helps. ns
Thank-You Noel
Submitted by kilrod on Mon, 11/07/2011 - 9:12pm.
Thank-You very much Mr. Sheppard, i appreciate your response. Your work and the work of the NB Staff is valued and appreciated. I reckon i will never understand why the issues of the combination of the CRA, FSMA, CFMA, the elimination of the State "bucket shop" laws, plus the elimination of the up-tick rule are not investigated. My gut tells me the biggest scam and con in the history of the world has taken place and we as taxpayers have all been named "Patsy".~
Thanks Again,
kilrod
If an unborn child cannot trust you, why should I,??