...The financial crisis was no natural disaster...

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    Feb 04, 2011 4:48 PM GMT
    "...The longer the reckoning goes on, the more we learn about the complex derivative deals stitched together by geniuses inside enormous financial institutions, turning simple home loans into trillions of dollars worth of synthetic financial products backed by almost nothing, the clearer this reality becomes. The financial crisis was no natural disaster, as some apologists still claim. It was not the result of risk-management models getting swamped by complexity, or a dreamy belief that home prices could go up forever (though both of those factors certainly played a role). It was, in simplest terms, a hostile takeover of the vital organs of finance by people willing to destroy things of intrinsic value -- people's homes, real businesses, retirement savings -- so they could extract a cut.

    The fact that we even call Wall Street a banking center now seems laughable. The real bankers are out in communities, enabling businesses to set up lines of credit so they can order raw materials and make payroll while they wait for their sales revenues to come in. Wall Street views that sort of thing as quaint and beside the point, a distraction from where the real action lies: buying up piles of whatever happens to be moving at any point in time -- subprime loans, complicated bets on the price of heating oil -- and dumping them on some other sucker at a higher price before reality intrudes, laying the economy to waste and then generally sticking taxpayers and working people with the tab. ... "

    The Huffington Post

    I am sure O won't do anything. He has so drunk the Wall Street Kool Aid.
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    Feb 04, 2011 6:11 PM GMT
    Caslon17000 said"...The longer the reckoning goes on, the more we learn about the complex derivative deals stitched together by geniuses inside enormous financial institutions, turning simple home loans into trillions of dollars worth of synthetic financial products backed by almost nothing, the clearer this reality becomes. The financial crisis was no natural disaster, as some apologists still claim. It was not the result of risk-management models getting swamped by complexity, or a dreamy belief that home prices could go up forever (though both of those factors certainly played a role). It was, in simplest terms, a hostile takeover of the vital organs of finance by people willing to destroy things of intrinsic value -- people's homes, real businesses, retirement savings -- so they could extract a cut.

    The fact that we even call Wall Street a banking center now seems laughable. The real bankers are out in communities, enabling businesses to set up lines of credit so they can order raw materials and make payroll while they wait for their sales revenues to come in. Wall Street views that sort of thing as quaint and beside the point, a distraction from where the real action lies: buying up piles of whatever happens to be moving at any point in time -- subprime loans, complicated bets on the price of heating oil -- and dumping them on some other sucker at a higher price before reality intrudes, laying the economy to waste and then generally sticking taxpayers and working people with the tab. ... "

    The Huffington Post

    I am sure O won't do anything. He has so drunk the Wall Street Kool Aid.


    If only our taxpayers weren't put on the hook for the wrongdoings of certain people in our society.