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View Diary: Dazed and Confused in the U.S. Economy: the Saga of the Sequester (7 comments)

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  •  not true (0+ / 0-)
    put all their bad loans in a pile
    they didn't know what was what.  it was that bad.  however, they thought they were spreading the risk.

    they certainly were not creating CDS of all bad loans.  also remember much of the damage wasn't in subprime.

    -You want to change the system, run for office.

    by Deep Texan on Tue Mar 05, 2013 at 10:28:33 AM PST

    •  Then why did they name these good investments (0+ / 0-)

      "Shitbag", "Nuclear Holocaust", and "Subprime Meltdown"? Does that sound to you like they believed in them? No, they were worse than the used car salesman who knows there's sawdust in the differential. They just wanted to get them off their hands before they exploded.

      •  they didn't (0+ / 0-)

        i have read those emails.  they are from 2007.

        also most of the damage was in prime not subprime.  these emails don't give the details about the makeup of the CDO's.

        there was speculation back in 07 that the crash was coming. which is what i think the joke in the emails are based on.

        -You want to change the system, run for office.

        by Deep Texan on Tue Mar 05, 2013 at 11:17:21 AM PST

        [ Parent ]

        •  Bankers thought this upand served it as a viable (0+ / 0-)

          investment. It wasn't. Their bad. Home borrowers were demonized as a major contributing factor by insisting on loans that were bad for them. When it was pointed out that bankers routinely turn down bad loans that people apply for, the meme shifted to imply government forced the bankers to accept the loans from unqualified people.

          That must have worked because the banks got bailed out and the depressed economy fell most heavily on the least able to deal with it. Not holding bankers responsible is absurd. That is the point of the diary

          •  had no other choice but to bail them out (0+ / 0-)

            the issue was Bush's bailout had no strings attached.

            just like politicians talk out of both sides of their mouths.  banksters are making plays on both sides of an investment.

            Not holding bankers responsible is absurd.
            They are being held accountable where possible.  Remember much of what they did was legal.

            -You want to change the system, run for office.

            by Deep Texan on Tue Mar 05, 2013 at 12:04:53 PM PST

            [ Parent ]

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