Iguana posted:Baseman posted:There were some excesses! But there were also real risk to the system, some due to government policy!
You would not like to know what would have happened if the Govt did not intervene!
You statement reeks ignorance of the financial markets and interdependencies!
The "excesses" were not just in the banks. The advocates of subsidized housing who made the GSE's out to be criminals and fostered a culture that led to maids in California who were making $25K a year buying $900K homes (also an "excess") also had something to do with it. These folks, think then Congressman Barney Frank and his cohorts, were screaming about "fair housing", and unfair lending practices. This fool and his friends put a gun to the bankers heads, had them lower the lending standards, and essentially guaranteed the bailouts of GSE's and insurers by the banks.
Banks are not stupid! They won't make loans to high risk individuals and jeopardize their system! The govt. , including Barney Frank and his buddies, gave the wink and nod. I recall several years before the crisis the then White House warned of "systemic risk" in the system. Frank and his buddies screamed about the white house destroying housing for the poor!
This is the history to the bailouts in 2008. And yes, Congress was a huge part of causing the crisis, not just the banks. Frank got off scot free, just like the bankers. Sits around pontificating now, talking shit, and collecting he pension. No penalty for him, just like no penalty for the bankers!
That’s why I said govt policy. They loosen the regulations which created [artificial] demand and the banks did their thing, all insured by the Govt! This then spawned the mushroom derivative market aided again by loosening regulation!
Sooner or later the piper had to be paid!
So blaming the bankers in general is a red herring! when liberals start talking about prosecuting bankers, it was to quell the outrage and shield their own hides! They had their hands deep in the mess!
The whole shyte started under Clinton!