For the first time in my journey here in the Cellar, I agree with some of TWs post. But it is more like getting back to basics. Regulating derivatives etc won't stop the abuse. Doing away with most instruments that don't have a sound product/service behind them will stop them. No more futures speculating, return to the gold standard. Ordinarily, these steps would cause job losses in the short run, but we're already in a 10+% unemployment now, having nowhere to invest but solid products, the only ones who would lose would be the same ones we are all bitching about.
Now if we could only find someone to regulate government.

http://www.post-gazette.com/pg/09351/1021540-192.stm

Ain't that the damm truth. Does anyone else feel like the Congressional spending is akin to a drunken sailor on payday night? Here, let me apply for another credit card.

The role of Barney Frank and his contributions to the housing and financial meltdown.

http://www.boston.com/bostonglobe/ed...ancial_fiasco/

http://www.usnews.com/money/blogs/ca...housing-crisis

http://online.wsj.com/article/SB122290574391296381.html

http://www.americanthinker.com/2008/...ney_frank.html

http://www.usnews.com/blogs/barone/2...eddie-mac.html

http://frankwarner.typepad.com/free_...hris-dodd.html

http://www.independent.co.uk/opinion...is-949653.html

Wait for it...

oh hai t-dub!

shush you wacko extremist!

Derivatives are essential to performing bank functions. The problem - derivatives are sold in back alleys. So many that nobody realized how Long Term Capital Management could have nearly harmed the entire nation's economy. Nobody knew those obligations existed until LTCM went running to the government for welfare. And then government says, "Oh My God. How much money do you need?" Nobody had ever seen the need for anywhere near that large.

You would think we learned. Of course not. LTCM is not a footnote. Others were threatening the American economy with even larger scams. And still we did nothing.

It's not government regulation. Problem is back room secret deals. Why are publically traded stocks a safe investment? Stocks trade on open markets. Subject to regulation by the industry. Subject to reports that everyone can see. It’s not government regulation, per say. Its all about *transparency*. So that everyone knows what and how much is out there. That is oversight by far more than just government. That is the oversight that must apply to all derivatives. Transparency means public markets – no more $1trillion of secret AIG deals written to be opaque and completely unreported.

Markets froze only because transparency did not exist. Once everyone realized others were also doing Enron accounting, then nobody dared loan money to anyone. Even after Enron, we still did nothing to address the lies and deceit that is normal business on Wall Street.

The entire American financial system almost completely froze up. Nobody could do any business anymore because money was no longer available. All traceable to fear due to spread sheets that lie - because that was and still is legal. The solution always starts by open and regulated markets. And international standards such a Basel 2 and other even better standards - that Wall Streeters so hate.

Well, the Feds now hold something like $1trillion of mortgages. We have now bought that much questionable paper (promoted as assets) because the American economy was that close to the brink of disaster. We had no choice but to save America from the scumbags. My very Republican friend says that was only rich people doing it to themselves. Nonsense. We have yet to pay the debts they incurred. And only the American public will pay.

Nobody has a clue how to all that paper will be unraveled, divested, sold, or written off. See that number? That's $1trillion of derivatives that nobody really knew existed until bankruptcy forced honesty. How much of that $1trillion is total myth. The derivatives are so many and so large that it will easily take another ten years to resolve. That's ten years that the public will pay for Wall Street.

Anyone reading this and only asking how does this affect me: if you have any credit cards with balances, you are playing with fire. This economy is still that unstable. Unemployment created by Wall Street money games has yet to be seen in dollars. Secret derivatives - because these deals were never conducted in open markets - are massive, looming, and must still be paid for by the American public. For mortgages, that might begin in February.

Don't remember when it comes out. About once a month, a long list of convicted traders appears in the Wall Street Journal. Finance people are that corrupt. Must constantly be threatened with prosecution. That is why Wall Street so hates regulation and open markets. Most fun and massive profits are in back alley deals where transparency and this nation's interests never exist.

Regulation that work: when transparency is required in derivative contracts. When deals can only exist in public markets with public oversight. Where everyone knows how much money is tied up with whom - just like the stock market (no more liquidity crisis because nobody knew how massive the problem was). Where derivative contracts cannot be hidden using Enron style accounting. We have yet to address issues made so obvious a decade ago with LTCM - because that is what Wall Street wanted. Welcome to the resulting meltdown because Wall Street forgot they work for America. America does not work for Wall Street. Wall Street does not make America rich even though Wall Streeters will routinely deny it. IOW why Wall Street must always be heavily regulated. Why derivatives must only be traded in public and transparent markets.

I shoulda read that at bedtime.

Start with something easy.

http://ecx.images-amazon.com/images/...A240_SH20_.jpg

Then pass it on to Merc and give him a break from all the tin foil hat bloggers he likes to post as factual.

Seven wingnut columnists and bloggers want to blame the guy who voted against the legislation that repealed most banking/financial services regulations in 1999 and who was in the minority in Congress, with little or no influence with the Republican majority or the Bush administration, from 1994-2007.

I can top that.

I can find 50 wingnut columnists and bloggers who insist that Obama is not an American citizen.

All the links have some form or the other of original quotes and facts related to ole Purple Barney's contributions and attempts to block reform or push for less stringent lending practices to help the "not fully qualified" get loans they never should have gotten. The majority are from mainstream respected not partisan publications. The non-demoncrats know this scumbag was in it up to his white ass in the downfall of the financial housing failure. You can't change history with your demoncratic talking points.

Failed again, moron.

There was plenty of blame to go around, including Clinton and many Democrats who capitulated. But Frank was one of the few who attempted to prevent the de-regulation of the banking/financial services industries in 1999 and was repeatedly blocked by the Republican majority on several attempts at oversight hearings between 2000 and 2006, when he was in the minority on the financial services committee.

Or maybe you and they are just closet homophobes. :eek:

Facts are a stubborn thing...even for the most ignorant wingnuts with an agenda.

In fact, it was Frank, in one of his first acts as the new chairman of the House Financial Services Committee in 2007, who pushed through, with wide bi-partisan support (291-127), the Mortgage Reform and Anti-Predatory Lending Act that among other things:

"sets minimum standards for residential mortgages so that no creditor could make a residential mortgage loan unless he first makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated the consumer has a reasonable ability to repay the loan under its terms and to pay all applicable taxes, insurance, and assessments"

It stalled (was blocked) in the Senate, reportedly at the urging of Bush, who had promised a veto.

Keep posting your partisan opinion writers and bloggers as if they are facutal and calling out those who disagree with you as partisan....no double standard there, hypocrite.

I'll keep chewing you up and spitting you out as I always do...until I get tired of the the taste of ignoramus....bitter, old ignoramus leaves a particularly nasty aftertaste.

I will even provide an opportunity for you to offer something constructive for a change.

Instead of look back and falsely attribute blame to one person or one party, what don't you like about The Wall Street Reform and Consumer Protection Act that the House passed last week that addresses:

* sub-prime lending - The bill outlaws many of the egregious and predatory industry practices that fueled the subprime lending boom and establishes a simple standard for all home loans: institutions must ensure that borrowers can repay the loans they are sold

* ponzi schemes - the bill strengthens the SEC’s powers so that it can better protect investors from Madoff type frauds

* derivatives - the bill regulates the over-the-counter derivatives marketplace, requiring all standardized swap transactions to be cleared and traded on an exchange

* bail-outs - the bill requires big banks and other financial institutions (with $50 billion in assets) to foot the bill for any bailouts in the future. These institutions would pay assessments based on a company’s potential risk to the whole financial system if they were to fail.

* consumer protections - the bill creates a new Consumer Financial Protection Agency to protect consumers and small businesses by ensuring that bank loans, mortgages, credit cards are fair, affordable, understandable, and transparent.

Why is it "snake oil" and what would you propose as an alternative.

Never said there wasn't.

Frank repeatedly blocked attempts to reform the regulations.

Why would you say such a thing? :eek:

Sure are, why are you ignoring the actual interviews and statements posted by Frank?

In fact, 2007 is when he finally came to his senses and wanted get on the record as doing something after 10 years of stonewalling and encouraging the lending to under and un-qualified persons for home loans. 2007 is and was to late, the damage was done, no matter how much you want to protect this dumb fuck from responsibility, you can't rewrite history.

You failed.:p

We were discussing the history, not how the demoncrats want to try to right the wrongs of the whores in Congress.

Repeatedly blocked attempts to reform the regulations....stonewalled?

One member of the minority party in the House for the 12+ years (most of which was with a Republican president) when the damage was done couldn't block or stonewall anything even if he wanted to.

His "crime" was voting against a Fannie/Freddie sham of a reform bill in 2005 that had no teeth (at the direction of the White House) after his attempts to provide greater regulation and transparency were rebuffed by the Republican majority.

"spitting out more bitter, nasty merc-infested ignoramus"