Finance Reform: Congress. We Got a Deal!

#51
#51
no it doesnt but people and firms need to rely on themselves when making large financial decisions, not credit agencies and mortgage brokers.
 
#52
#52
VolsNSkinsFan said:
no it doesnt but people and firms need to rely on themselves when making large financial decisions, not credit agencies and mortgage brokers.
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this is the laughable part about the obama goldman lawsuit. you have goldman selling AAA mortgage deals to qualified institutional investors and obama's theory is that goldman is supposed to tell them that they think the deal sucks? aren't those insitutions supposed to do their own due diligence?
 
#53
#53
A truthful review of bundled crappy mortages before that are classed as AAA+ investments would have been a big help. As it was the fox guarded the henhouse and the taxpayers had to pay the bill for all the lost poultry. With regulation "too big to fail" would never have happened and the taxpayers would not have had to foot that bill as well. Is that specific enough for you, or do you want more?
 
#54
#54
droski said:
this is the laughable part about the obama goldman lawsuit. you have goldman selling AAA mortgage deals to qualified institutional investors and obama's theory is that goldman is supposed to tell them that they think the deal sucks? aren't those insitutions supposed to do their own due diligence?
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But, but..... politicians don't act out of self-interest. They would have disclosed that information.....right?
 
#55
#55
gallavol said:
A truthful review of bundled crappy mortages before that are classed as AAA+ investments would have been a big help. As it was the fox guarded the henhouse and the taxpayers had to pay the bill for all the lost poultry. With regulation "too big to fail" would never have happened and the taxpayers would not have had to foot that bill as well. Is that specific enough for you, or do you want more?
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1. Rating agencies aren't psychic fortune tellers. It is easy to chastise them in hindsight.

2. You act as if the gov't had no choice but to "pay the bill for the lost poultry" and that "too big to fail" is some recent phenomenon.
 
#56
#56
gallavol said:
A truthful review of bundled crappy mortages before that are classed as AAA+ investments would have been a big help. As it was the fox guarded the henhouse and the taxpayers had to pay the bill for all the lost poultry. With regulation "too big to fail" would never have happened and the taxpayers would not have had to foot that bill as well. Is that specific enough for you, or do you want more?
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i see. so you expect the govt to know something isn't AAA that some of the best private investors in the world working for the big banks didn't know wasn't AAA. you have too much faith in our regulators.

what regulation specifically would have prevented too big to fail? or are you ignoring the long term capital bailout during the clinton administration?

yes i want more.
 
#57
#57
It isn't hindsight for me, I was saying this same thing in 2006. So were a few other pople but the feast was on and we could not be heard above the din of celebration. I sold short strarting about mid 2007.
 
#58
#58
gallavol said:
It isn't hindsight for me, I was saying this same thing in 2006. So were a few other pople but the feast was on and we could not be heard above the din of celebration. I sold short strarting about mid 2007.
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relavance? the housing bubble was in full steam by 2001. i bet you got long in march of 2009 too right?
 
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#60
#60
orangeblooded2 said:
"The House passed the bill on a vote of 408-8 Thursday evening. The Senate, with a vote of 99-0 earlier Thursday, also cleared the legislation.

Seems to be an actual bipartisan piece of legislation. Say what you will. Just the rarity of the vote makes me beleive every body got what they could live with.
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Other than 8 house members, reason enough to vote out every incumbent.


(Corker) has raised more money from the banking and securities industries than any of the committee's other Republicans, according to the Center for Responsive Politics. He has also raised more than all but three of the 13 Democrats.

Republican Breaks Ranks on Finance Bill - WSJ.com
 
#61
#61
gallavol said:
Nope, still in land and gold. I still don't like this market yet.
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gold historically has been a very poor investment. i can buy thinking that the market would have dropped in 07 because of the effect of the housing downturn on the economy (i had the same feeling). i don't believe many thought it woudl result int he collapse of the financial markets though. i didn't. i do agree thta being long stocks or bonds now is pretty problematic.
 
#62
#62
gallavol said:
It isn't hindsight for me, I was saying this same thing in 2006. So were a few other pople but the feast was on and we could not be heard above the din of celebration. I sold short strarting about mid 2007.
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So you took issue with glass Steagall and its inability to deal with credit default swaps, which generated the inflated ratings? Wonder how that act was going to preclude those contracts from acting as insurance?
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#64
#64
Let's hope that Socrates was right that a benevelent oligarchy is the best form of government and let's hope these people will be benevelent to us.

We have pretty well surrendered our indepence and sovereignty with this bill.

May God help us.
 
#66
#66
you can't even find am best ratings on bloomberg. they are about as relavant as vandy in the sec. not sure where you are getting your informaton.
 
#68
#68
orangeblooded2 said:
Any thought on these points? They sound reasonable.





How finance reform affects us directly
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i don't agree with many of the points. looks like obama himself wrote it.

first off how is the govt going to sell off all these assets without contagon? too big to fail is still here.

i'd love to see how they are going to distinguish between propriatary trading to market making and hedging. most elite financial professionals would have problems telling hte difference, i doubt the govt will do better.

i love this part "The intent is to make sure that those who apply for a mortagage or credit card deserve them, and that they can pay them off without going broke." becaues the banks surely are in the business of wanting to lend to people who will go bankrupt.
 
#69
#69
droski said:
you can't even find am best ratings on bloomberg. they are about as relavant as vandy in the sec. not sure where you are getting your informaton.
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AM Best is an insurance company financial strength ratings company. Little more. They put out enormous stockpiles of annual data and insurance companies live and die by it.
 
#72
#72
This isn't a new pattern. Dems pass regulations that force business to react in one way then when the fallout begins to cause them political problems... they point their crooked fingers at business and say the problem is too little regulation.
 
#73
#73
One interesting thing on the early commentaries is that it will put the most pressure on smaller banks... Anyone want to guess which ones were least responsible for the recent financial "crisis"?
 
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