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View Diary: Breaking: McCain Proposes MFI: A Good Save? (101 comments)

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  •  Three days ago he wanted to simplify (3+ / 0-)
    Recommended by:
    pointman, Julie Gulden, robertacker13

    the alphabet soup of regulators, now he is proposing more alphabet soup.

    Clearly, too close to Keating 5 for him to get away with,  he delayed those investigations and investors, many older people's life savings, went down the tubes.

    Firing SEC chairman, he forgets most of this stuff was removed from any regulation by his friend Phil Gram.  SEC has been underfunded and understaffed deliberately for years.  Sounds tough, but its a fucking lie, just trying to get someone to fall on the sword to cover his ass and that of his lobbyists.

    Resolution Trust was unwieldy and picked clean by underselling the valuable assets way below market and got left with the crap that tool years to get rid of, all at taxpayer expense.  It cost a fortune.

    If someone gets put in the trust, they are toast, people will pull assets, there will be no orderly dissolution.  Furthermore, you can't sell a bad loan except to the GSE's who are under government orders to buy them up as Fannie and Freddie were under orders this summer.

    Proactive is not making the bad loans in the first place.   Not securitizing loans so that the paper sells for more than the real value of the loans and not building in realistic default rates.   Proactive is not artificially lowering interest rates to pump air into housing bubbles.   Nothing about this plan is proactive, its still reactive.

    Man's an ass.  Problem is, people are unaware and Obama better get out front.

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