Times are tough all over

[DanaC]

I respect your view but we come at this from two completely different angles. Me: There are few things government actually does well, so why should I trust them to do more? You: Government if properly funded (whatever that means) can and should provide much for the people.

*Chuckles* I think that fairly accurately sets out our stalls aye :P

In truth I wasn't trying to persuade you m'dear...but you raised the spectre of class war and I'm never going to be able to stay out of that now, am I?

Actually, I am quite proud of myself for sticking to basic ideas about how I feel a modern (post marxist and post laissez-faire) society can enrich the lives of its citizens and not going off on a massive tangential leap into a discussion about the nexus points of class and gender construction in matters of taxation and benefits...'cause that's where my head's at right now...

[Cicero]

I just cashed in my change at the machine. Went to get a free coffee with my bulit up coffee accrual. And now I have to come here and work on Sunday as a counter-person. I just wanted coffee.

Due to real lack of interest in my resume, sparse job offerings in occupations other than the medical field, I am so fuc***. My husband laughs and says I don't have to do it. But I am broke. I just can't seem to kick back and spend my husband's hard earned money. Where in the hell did this pride thing come from? It's annoying at best.

Why can't people quit saying over-qualified at the wrong moment, instead of not even looking, and saying come in on Sunday?

You may think I'm an ass, but refilling ketchup bottles, and wiping them down is really going to chap my ass. Let's not forget the post wipe-down scrutiny of said, ketchup bottles. Even if it ends up being met with approval I think I'm going to go put my head in the toilet. And flush.

[kerosene]

Cicero, I have a perfectly good job for you here in Colorado And I won't make you wipe any ketchup bottles. "Overqualified" is not in my dictionary.

[Cicero]

Well it's a good thing I already started packing then, isn't it?

[kerosene]

Yes it is. Be here by Monday and I will show you the ropes. Oh, btw, since you are also the sales dept for our new furniture company, I hope you are bringing your nice dress clothes, too.

[Cicero]

See, that's how it should be. Case is right on!!

That's the attitude. And the know-how.

I'm so happy with that, I am not even going to make any wood jokes.

[DanaC]

Originally Posted by Cicero

See, that's how it should be. Case is right on!!

That's the attitude. And the know-how.

I'm so happy with that, I am not even going to make any wood jokes.

Oh Go on.

[classicman]

Who was in charge of regulation?

[TheMercenary]

In the summer of 2005, a bill emerged from the Senate Banking Committee that considerably tightened regulations on Fannie and Freddie, including controls over their capital and their ability to hold portfolios of mortgages or mortgage-backed securities. All the Republicans voted for the bill in committee; all the Democrats voted against it. To get the bill to a vote in the Senate, a few Democratic votes were necessary to limit debate. This was a time for the leadership Sen. Obama says he can offer, but neither he nor any other Democrat stepped forward.

http://online.wsj.com/article/SB122403045717834693.html

[tw]

Originally Posted by TheMercenary

In the summer of 2005, a bill emerged from the Senate Banking Committee that considerably tightened regulations on Fannie and Freddie, including controls over their capital and their ability to hold portfolios of mortgages or mortgage-backed securities.

The bill I remember reading about then put restrictions on mortgage back securities for low-income homes. It did not fix the problem with mortgage backed securities - no underwriting - NINJA loans. It did nothing to address the problem which were mortgage backed securities where non one (because so many finance people with big bonuses are only salesmen) knew what was even inside those SIV, tranches, and other financial instruments.

The reasoning was simple. Fannie and Freddie are government agencies. Therefore mortgages from them are as stable as Treasury bonds. Well, that reasoning was popular because so many financial experts never bothered to learn what was inside those instruments - did not bother to learn that Fannie and Freddie were not branches of government.

Meanwhile, that 2005 bill did nothing to address the problem, in part, because it would hurt the wealth created by Wall Street salesmen who did not even know what NINJA meant.

In 2004, Freddie and Fannie werel required to provide the easy money to the low income homes as it was also financing those McMansions. Problem was not that Freddy and Fannie had to finance everyone. Problem (that Wall Street ignored even in the credit rating agencies - Dow Jones, Standards and Poors, Moodys, etc) was how these mortgages were underwritten. An underwriter that did his job lost his job. In the new and heavily deregulated Wall Street, any underwriter who notice NINJA did not bring in sufficient income.

During this massive deregulation, Glass Stegall was even shredded. The parts of Glass Stegall that remain are ignored - SEC no long investigates or prosecutes those regulations. In fact, most bankers don't even know what parts of Glass Stegall remain - the regulations are that much ignored.

Any blame for the meltdown of the mortgage industry is directly traceable to mortgages issues to most anyone because no one vetted mortgages any more. Why bother? Government no longer demanded fiscal responsiblity for more than 10 years. No one bothered to even notice that the mortgage applicant had a job or sufficient credit rating. No longer were there any legal consequences for offering money to everyone. Every mortgage could be bundled up and sold to other companies such as AIG and Bear Stearns who were simply hiding any losses in spread sheet games.

TheMercenary forgot to learn all that. He worked hard to find a newspaper article to support his politcal agenda - his 'American is secondary' attitude. Somehow he would even blame Obama for fiscal irrresponsibilty created by the destruction of regulation on the finance industry.

I can think of no other industry that both deserves and desperately needs heavy government regulation. The industry is chock full of salesmen who look like pretty boys, spin that they are finance experts, and ... Well, only a fool pays a financial adviser to put money in a mutual fund where another financial adviser takes another 1% or 2%. That is simply salesmen without industrial knowledge hyping myths. Well their myths - including NINJA style mortgage backed securities - has just come crashing down.

NINJA - what happens when your financial expert is nothing more than a salesman for equities he knows nothing about. TheMercenary forgot to blame the real reason for economics now taking revenge because the so called Wall Street experts were nothing more than heavily enriched salesmen. They never even knew about NINJA. NINJA knowledge would only threaten profits and bonuses.

Bonuses? They are not clamoring for their bonuses claiming that their salaries are too low. Greed is good. TheMercenary posting more praise of those who are the problem.

[TheMercenary]

Originally Posted by tw

The bill I remember...

Well that pretty much settles that and negates everything after the opening statement.
:p

[classicman]

Stop it with the facts already Merc - Geez! I already voted and you know it just pisses people off.

Indeed, the only significant legislation with any effect on financial risk-taking was the Federal Deposit Insurance Corporation Improvement Act of 1991, adopted during the first Bush administration in the wake of the collapse of the savings and loans (S&Ls). FDICIA, however, substantially tightened commercial bank and S&L regulations, including prompt corrective action when a bank's capital declines below adequate levels and severe personal fines if management violates laws or regulations.

~snip! look back to 1998, when the Clinton administration ruled that Fannie Mae and Freddie Mac could satisfy their affordable housing obligations by purchasing subprime mortgages. This ultimately made it possible for Fannie and Freddie to add a trillion dollars in junk loans to their balance sheets. This led to their collapse, and to the development of a market in these mortgages that is the source of the financial crisis we are wrestling with today.

[Shawnee123]