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View Diary: Iceland Solves Banking Crisis by Indicting Bankers, Forcing Mortgage Relief (191 comments)

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  •  heh (5+ / 0-)

    we could have made whole all the underwater real estate in this country for about 2X TARP. Instead we paid out much more so that these assholes could continue to play their derivative games.

    And this:

    And let's be honest here, it wasn't "deregulation" that caused the crisis. It was regulation. It was government guarantee of sub-prime loans. That was the regulation that enabled the banks to act so cavalier in their lending practices. When your pay is based on volume of loans without regard to the performance of those loans, you make shitty loans. Incentives drive behavior, and regulations created incentives for banks to get very rich by being irresponsible in their lending. And it wasn't even so much irresponsibility in most cases. Lending to these people was a new idea without a recent test case.
    Might be the dumbest thing I have ever read.

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