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The question is worth raising again: “Why, in the aftermath of a financial mess that...

The question is worth raising again: “Why, in the aftermath of a financial mess that generated hundreds of billions in losses, have no high-profile participants in the disaster been prosecuted?” Gretchen Morgensen's take suggests that the FBI, SEC and Treasury Department may have quashed attempts to be more aggressive. (earlier)
Comments (67)
  • Donald Ingram
    , contributor
    Comments (3481) | Send Message
     
    May have????????
    Gee you think so?
    Why that would mean they're not honest!
    14 Apr 2011, 06:21 PM Reply Like
  • D_Virginia
    , contributor
    Comments (2277) | Send Message
     
    The explanation is simple:

     

    Governments do not run things. Banks do.
    14 Apr 2011, 08:15 PM Reply Like
  • Hendershott
    , contributor
    Comments (1634) | Send Message
     
    Prosecuted? They got sent to Davos so they could tell everyone what a wonderful job they are doing and plead that they no longer be harassed about the meltdown. Sarkozy wasn't buying it. Neither should anyone else.
    14 Apr 2011, 06:22 PM Reply Like
  • Joe Morgan
    , contributor
    Comments (1610) | Send Message
     
    So...what they did wrong ? Last time I checked making a killing on the financial markets is called Capitalism....

     

    Those who don't want Capitalism can go to Bolivia....Evo Morales would greet you with both hands....
    14 Apr 2011, 06:52 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Joe,

     

    You seem to have difficulty differentiating between Capitalism (which I am all for, BTW), which has the potential for risk/reward, vs Crony Capitalism which means,
    Heads I win, Tails you lose.

     

    Unfortunately we presently have the Latter.
    14 Apr 2011, 07:26 PM Reply Like
  • rothyman
    , contributor
    Comments (127) | Send Message
     
    Joe you're kidding right?

     

    The client always comes first. Lying to your clients by shorting the housing market when you're telling them to LONG is not only unethical, but illegal.
    .
    14 Apr 2011, 08:27 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Rothyman,

     

    I'm no fan of Crony Capitalist, Banksters.
    But, That's called Market Making.

     

    Any sophisticated investor knows, that there is a counterparty on the other side of the trade.

     

    Especially synthetic securities that were involved here.

     

    They were not the "fiduciary" to either party and were not making recommendations.

     

    They were not peddling the crap to people's "Grandmothers"

     

    If they don't like the risk with the under/over allocation they get stuck with as market makers, they have a right to hedge accordingly.

     

    Are you saying the clerk at the 7/11 should have to smoke cigarettes because he sells them?

     

    The last time you sold a stock, and it went down afterwards, did the buyer get to know your name, and why you were selling it?

     

    You must be a crook then.
    14 Apr 2011, 08:47 PM Reply Like
  • rooftop
    , contributor
    Comments (140) | Send Message
     
    You clearly don't have any idea what capitalism is. Capitalism implies both reward AND risk. These banks have privatized excess and obscene profits and dumped excess and obscene losses on the taxpayer. That's not capitalism, that's criminal.
    14 Apr 2011, 08:50 PM Reply Like
  • Hendershott
    , contributor
    Comments (1634) | Send Message
     
    There are lots of things you can do to make money, and be a capitalist; sell drugs, murder for hire, protection rackets, Ponzi schemes, putting the global financial system at risk by leveraging bad loans. All wonderfully capitalist operations. Society finds it necessary to limit some capitalist schemes. There is such a thing as society, whether it interferes with your individual rights and capitalist ambitions or not.
    14 Apr 2011, 09:43 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Joe Crash is at it again. Al Capone was a Capitalist too no doubt. We'll be keepin' an eye on you Joe. :->
    14 Apr 2011, 10:53 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "Last time I checked making a killing on the financial markets is called Capitalism..." - Joe (mental) Crash

     

    Well shit Joe...with that logic lets put Madoff in charge of Obama's economic advisory team.

     

    The only thing that could have made that comment any more detached from reality and idiotic is if you ended it with your regular "Bernank for President".
    15 Apr 2011, 01:34 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Bernanke is running, yes? I figured he must be with all the public appearances he's been making. On the American Delusional ticket.
    15 Apr 2011, 06:35 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    Because the cause of the mess was the government and the government never prosecutes itself. If anyone is indicted they will take down some powerful politicians. That'll never happen.
    14 Apr 2011, 06:22 PM Reply Like
  • spald_fr
    , contributor
    Comments (2807) | Send Message
     
    "Financial crises require governments."
    ~Timothy Geithner
    14 Apr 2011, 07:24 PM Reply Like
  • EMS
    , contributor
    Comments (583) | Send Message
     
    Thumbs up to this comment ??? Please enlighten us and explain yourselves...
    14 Apr 2011, 11:12 PM Reply Like
  • EMS
    , contributor
    Comments (583) | Send Message
     
    Ok, Comrade.
    15 Apr 2011, 06:54 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    EMS, simple assuming you were referring to my comment.

     

    Who made the rules? The government, more specifically Congress. Who was responsible for enforcing the rules? The government, more specifically the Administration.

     

    Lets see if someone does something bad and no one arrests them, is it the criminals fault. No, duh. No enforcement, means there is no law.

     

    Lets see if someone does something bad and there is no law preventing it, is it the doers fault. No duh.

     

    Now in both cases they may have civil liability, but certainly no criminal risk. That was the comment here, "why don't they go to jail?" They don't go to jail because of the government. Simple, even a liberal should be able to understand this logic.
    15 Apr 2011, 01:15 PM Reply Like
  • D_Virginia
    , contributor
    Comments (2277) | Send Message
     
    > if someone does something bad and no one arrests them, is it the
    > criminals fault.

     

    Yes, duh.

     

    If someone beats the crap out of you, and no one arrests them, does that make them not-guilty? Of course not.

     

    It makes the cops bad-at-their-jobs, but it does not change the legality (or morality) of the act.

     

    Even a moron should be able to understand this logic.
    15 Apr 2011, 01:43 PM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    "If someone beats the crap out of you, and no one arrests them, does that make them not-guilty? Of course not."

     

    Yes it means they are not guilty, maybe your forgot, but a person is assumed to be not guilty until convicted by a jury of their peers. If they are never arrested, they can never be convicted. If they are never convicted, the were never guilty. In fact, in spite of your "no need for the law" attitude, they are not even liable for civil charges until a judge has ruled. You should have paid a little more attention at school.

     

    "Even a moron should be able to understand this logic." I agree.

     

    Without laws and enforcement, there are no criminals, because people will just do what they want. You may not like what they do, but they are not criminals. This is exactly what liberals want. But its not America.

     

    In the absence of law and enforcement of that law, there are no rules. If people are behaving as if there are no rules, then its because there is no enforcement.

     

    You need to look at your government for the problems we have today. No one else. If the laws are not enforced, everyone will take advantage. Non-biased enforcement is the only thing that keeps us from becoming a third world two bit dictatorship. You know the ones that so many liberals like to put up as shinning examples of progressive thinking.

     

    Unfortunately, many people want these laws to only apply to others, to the people they hate, and not themselves. This will be our downfall if allowed to continue.
    15 Apr 2011, 05:59 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Neil, I get your point and agree with much.

     

    Are you saying OJ was Not Guilty?
    15 Apr 2011, 06:07 PM Reply Like
  • EMS
    , contributor
    Comments (583) | Send Message
     
    Garbage. I wonder if you have multiple accounts to explain the thumbs up.
    21 Apr 2011, 08:25 PM Reply Like
  • EMS
    , contributor
    Comments (583) | Send Message
     
    No, was referring to splad_fr. I am sorry for the confusion. I agree w your comment 100 %.

     

    21 Apr 2011, 08:27 PM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    Because campaign contributions are more important.
    14 Apr 2011, 06:23 PM Reply Like
  • lafano
    , contributor
    Comments (222) | Send Message
     
    Perhaps because Rep. Barney Frank and Chris Dodd (and other politicians) would all be prosecuted...
    14 Apr 2011, 06:33 PM Reply Like
  • spald_fr
    , contributor
    Comments (2807) | Send Message
     
    "Entrenched bureaucracies are always opposed to fundamental changes."
    ~Christopher Dodd, Senator (D-CT)
    14 Apr 2011, 07:28 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Ms Morgenstern I'm guessing that you are the kind of woman who takes your Financial Advisor to FINRA arbitration when a recommendation does not do well. There is a whole lot more proof necessary to send someone to jail than there is to get back your investment. Give it time, if there is "proof" of fraud then there will be prosecutions. There certainly is proof of loss now they need to figure out "who" committed the fraud if there was in fact any. The hangings can wait for proof. This is not a Clint Eastwood movie.
    14 Apr 2011, 06:42 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Where is Clint when you need him!!!!!!
    14 Apr 2011, 10:56 PM Reply Like
  • stephenlight
    , contributor
    Comments (59) | Send Message
     
    Packaging mortgages and slapping a AAA rating on them via Boiler Shop mortgage originators may not be illegal, but no one should be condoning it. It was the worst sort of financial engineering and it nearly brought down the entire US economy with it!
    15 Apr 2011, 12:11 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Geez, I thought my Clint remark was something we could all agree on!
    16 Apr 2011, 10:56 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    It's a tough crowd, Monngle
    17 Apr 2011, 06:56 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    They don't call it "Crony Capitalism" for nothing.

     

    Most of the Fraud or wrongdoing, even when admitted has been pursued via civil, rather than criminal means.

     

    And even worse, most penalties have been paid with shareholder's, not perpurtraitor's money.

     

    But many of the Crony Capitalst defenders will just say.

     

    "Leave it alone, That's in the Past. Don't rock the boat"

     

    Jeffrey Dahmer did the Things he did, in the past too.

     

    Maybe we should let him go and forget about what he did too?

     

    And That's why it's called Crony Capitalism. They don't even want to be held accountable.

     

    www.telegraph.co.uk/fi...

     

    www.yourlawyer.com/top...

     

    www.bloomberg.com/news...

     

    www.bloomberg.com/news...

     

    www.nytimes.com/2010/1...

     

    Don't Rock the Boat (Wachovia)

     

    www.youtube.com/watch?...
    14 Apr 2011, 06:46 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4501) | Send Message
     
    How can you have prosecutions when Barney Frank was eating Lloyd Blankfein's corn and vice versa?

     

    Not even the Jolly Green Giant has enough cans to contain those golden little niblets.
    14 Apr 2011, 06:59 PM Reply Like
  • enigmaman
    , contributor
    Comments (2688) | Send Message
     
    You ask Why? Its simple politicians will not crap where they eat!
    14 Apr 2011, 07:05 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4842) | Send Message
     
    So you put Terry Killinger of WAMU or Mozillo of CountryWide on the stand and start to tear them a new one and then they say something like "well when I had dinner with Barney Frank and the head of Fannie Mae in 2008 they thought I was doing a great job. And that was after years of beating me up to extend lending to low income people."

     

    That's why we don't have any prosecutions.

     

    Never mind fraud is very tough to prove because it involves proving knowledge and intent and that is a high standard.
    14 Apr 2011, 07:06 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4842) | Send Message
     
    I noticed I got 15 thumbs down but no responses. What I commented is fact and if you don't have any logic then I guess all you are left with is your emotions and thumbs down.

     

    Put something up of substance or consider yourself a "light weight."
    15 Apr 2011, 11:35 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    TVP,

     

    Do you think it's coincidence that half of the people on this thread all have exacty the same 16 thumbs down at the time I'm writing this?

     

    I'll give you a hint. The 16 are all the same person.(with Multiple accounts)

     

    Not that I even give a rat's ass, but SA obviously has some individuals that need to get a life.
    15 Apr 2011, 11:53 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    They do that to me all the time, but, they usually tell me to take my meds.
    16 Apr 2011, 10:37 PM Reply Like
  • Old school
    , contributor
    Comments (121) | Send Message
     
    "Fear Sells".....and that is what this Govt. is doing.
    They are using Debt and Inflation as Weapons against you and your Children then selling it as Medicine and Lifeboats. We are
    asking, "Why is our Economy sick and why did the Ship Sink?"
    But as Citizens of a "Constitutional Republic" we are Ultimately Responsible. They are labeling us as Radicals, but our
    Responsibility now is to Brand Ourselves as "Bedrock"
    ".........against all enemies foreign and domestic."
    Liberty is Responsibility.
    The answer is in the mirror.
    On this I Stand.
    R. Thomas Bacon
    14 Apr 2011, 07:29 PM Reply Like
  • stephenlight
    , contributor
    Comments (59) | Send Message
     
    Actually, they are simply telling people what they want to hear. "You can have what you want and you don't have to pay for it".

     

    Largest Military in the World
    Medicare
    and subsidies all over hell and back, with no taxes...

     

    We deserve, collectively, these fools...
    15 Apr 2011, 12:13 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    If we cut our defense budget in half we would still have the largest military in the world. The NEOCONS and Republicans would call anyone that votes for that unpatriotic.
    16 Apr 2011, 10:40 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2913) | Send Message
     
    Sure, they feared that if more dirt comes out with the due process in motion, the market will tank.

     

    And that could mean another 'loss' of a couple of $Trillions or so. Please remember we have hemorrhaged enough already.

     

    Everything will just sink: including equities, bonds, mutual funds, IPO's, college endowments, Foundations, etc., etc.. Don't forget the financial brokerage and advisories services business is a $500B cottage industry supporting millions of households directly, and another millions indirectly (such as offices, wardrobes, restaurants, travels, transportation, entertainment, publishing, etc.)

     

    My most honest, sincere, frank and open candor advice is to 'enjoy the ride'. Discuss moral concerns with your Pastor.
    14 Apr 2011, 07:35 PM Reply Like
  • stephenlight
    , contributor
    Comments (59) | Send Message
     
    Yes. You have it correctly. It would have been a matter of burning your own house down to rid it of a rat......
    15 Apr 2011, 12:33 AM Reply Like
  • wkl
    , contributor
    Comments (299) | Send Message
     
    Do we believe for one minute that the heads of government want a public trial where the whole truth and nothing but the truth will be told?
    It is much easier, and safer, for them to carry on a political trial. We can't vote the bankers out of office, but we can the politicians.
    14 Apr 2011, 07:38 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    WKI,

     

    You can vote for the Banksters, or not, with your Money.

     

    The TBTF Banks now have over 50% of the cash on deposits.

     

    With the fractional reserve system, every $1k somebody pulls out,
    Gives them $10K less to play with.
    14 Apr 2011, 07:46 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Who ya gonna vote for Repubs? Democrats? They're mutually complicit. This will fade into the American consciousness like "weapons of mass destruction", and the Gulf of Tonken incident......it just takes time. Twenty years from now you younger guys will just shrug your shoulders and life will go on.......maybe.
    14 Apr 2011, 11:06 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4229) | Send Message
     
    This makes the Crédit Mobilier scandal look like a local bank robbery.
    14 Apr 2011, 07:40 PM Reply Like
  • Hillbilly Stock Star
    , contributor
    Comments (745) | Send Message
     
    "You're dirty Ace, and I'm patient." James "Sonny" Crockett. www.youtube.com/watch?...
    14 Apr 2011, 07:55 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Hilbilly,
    Yes, same link I already provided, LOL. (Wachovia/ Wells Fargo)

     

    Michael Mann Visionary, 1985

     

    www.bloomberg.com/news...
    14 Apr 2011, 08:04 PM Reply Like
  • Hillbilly Stock Star
    , contributor
    Comments (745) | Send Message
     
    1980XLS......Don't forget Payback!

     

    www.youtube.com/watch?...
    14 Apr 2011, 08:07 PM Reply Like
  • Yokyok
    , contributor
    Comments (330) | Send Message
     
    gosh could it possibly be that the supreme court, which is pretty much owned by these same people, made it possible for these same people, who have virtually unlimited resources at their disposal, to spend unlimited amounts to take revenge on any politician who threatens them?
    golly gee whiz. wonder if that could be it buckwheat?
    ya think?
    14 Apr 2011, 08:13 PM Reply Like
  • davidbdc
    , contributor
    Comments (3184) | Send Message
     
    Its unbelievable, its sad, its outrageous, its dangerous, etc, etc, etc.

     

    But there is nothing that we will be able to do about it. We seem trapped with an electorate that just wants their "entitlements" and handouts. There is no sense of being willing to sacrifice, nor to take responsibility for oneself. And the heck with what it means for our children or grandchildren.

     

    We used to be a country with a backbone - now we are just jello.
    14 Apr 2011, 08:18 PM Reply Like
  • davidbdc
    , contributor
    Comments (3184) | Send Message
     
    I'll reply to my own comment. Watched the news tonight and they covered Barry Bonds.... prosecution by the FEDs about his taking steroids!

     

    Now want to talk about walking over dollars to pick up pennies!!

     

    We have the resources to go after Barry Bonds full bore..... but we don't have the resources to go after the men and women that committed fraud while leading the country towards financial collapse. Talk about priorities being way out of line.....
    14 Apr 2011, 10:42 PM Reply Like
  • X-15
    , contributor
    Comments (153) | Send Message
     
    Derivative Hell,

     

    brought to you by the good folks at the FEC, Treasury,Banking Oversite Committee, and many other sleazy government officials...Including the FED.

     

    And, co-sponsored by the CIA,FBI, and NSA, that brought USA another fine example of incompetence at every orifice...9/11
    14 Apr 2011, 08:40 PM Reply Like
  • cameron andrews
    , contributor
    Comment (1) | Send Message
     
    Google - financial crisis timeline impact.
    This distortion really got going when Clinton came into office in 1993. Roberta Actenberg and her crew began getting after the lenders to make substandard loans. It built from there. No substandard loans, no crisis. Just compare us to Canada who had no subprime, financial or banking crisis. This was the work of the far-left section of the Democratic Party, the ones in control. Who's going to go after them? Who's going to cover up for them? This is easy!
    14 Apr 2011, 09:22 PM Reply Like
  • stephenlight
    , contributor
    Comments (59) | Send Message
     
    You are incorrect. It won't matter to you that you are.

     

    Did Fannie and Freddie contribute to this problem? Yes they did. But the default rates on these loans are LESS than the ones from the private lenders. And they got in the game, late. But don't worry, facts are just troublesome speed bumps for you.

     

    Here is something to contemplate....compare Canada's REGULATION of the Mortgage industry to our own.

     

    Where do you think all those securitized dead fish mortgages came from?

     

    The FDIC banks? WRONG. I know, I worked in one. They were all audited up the kazoo by various federal agencies. Did we have guidelines to loan to minority communities? Sure did. Did we ever make a loan to an unqualified buyer? Nope. Want to know why genius? Because the federal auditors would have crawled all over our necks if we had.....go figure.

     

    Those rotting corpse mortgages came from mortgage brokers and the broken big money mortgage subsidiaries of large money center banks. Any bozo with rent money and a sign painter could, and did, set up shop, funnel the mortgages to the Big Boys and have them sold to the unsuspecting as a AAA rated security.

     

    No such animal could be created in Canada.

     

    But then again, they are SOCIALISTS up there, eh?
    15 Apr 2011, 12:23 AM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4501) | Send Message
     
    Let's not forget, it wasn't too long ago that the hosers up north were having their own debt crisis brought on by decades of loose spending by Fabian socialists.

     

    Canada went through years of pain after the mid nineties to get back to fiscal health again and a balanced budget initiative. Indeed, most of the cuts came at the expense of Canada's "free healthcare". *snicker*

     

    The same medicine will be revisited here very soon.

     

    Read up.

     

    canadiancincinnatus.ty...

     

    You can also read about it in Mexico or Latin America as well. The theme is a familiar one. Slow yet incremental socialism, politicians promising years of free shit for votes... and the inevitable end game, the usual debt bomb.

     

    Why was our government promising and providing free homes to people again?
    15 Apr 2011, 12:36 AM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2913) | Send Message
     
    Folks, to bring about real change, we need vision and resolve.

     

    Two extreme cases in point:

     

    In the first, second, and third centuries, the Christians had a lot of resolve.

     

    Today, at the end of the last chapter, the Gahdafi sons probably would not have a whole lot of vision for democracy.
    14 Apr 2011, 09:33 PM Reply Like
  • Hillbilly Stock Star
    , contributor
    Comments (745) | Send Message
     
    A Dual Justice System,
    www.zerohedge.com/arti...
    14 Apr 2011, 10:46 PM Reply Like
  • Duude
    , contributor
    Comments (3401) | Send Message
     
    The reason there haven't been any prosecutions is obvious. If they did, the ugly truth of the direct tie-ins to politicians from both parties would destroy political careers. Imagine the testimony and subpoenaing Senators to the court room. Its just not going to happen. Politicians have far too much to lose.
    14 Apr 2011, 10:54 PM Reply Like
  • KJP712
    , contributor
    Comments (458) | Send Message
     
    Because T.V. coverage of these trials would interrupt the American Idol schedule.
    15 Apr 2011, 12:00 AM Reply Like
  • stephenlight
    , contributor
    Comments (59) | Send Message
     
    Proving securities fraud is not easy. In addition, the litigation would take years and would lead to an even more unsettling situation in banking and financial industries.

     

    There are a great many folks in these large institutions that should be prosecuted, but the price for doing so is too high. It would mean another delay in recovery, which is precarious enough as it is.

     

    The executives in these companies are beyond the reach of the merely powerful, they are a power unto themselves. If you secure enough wealth, you can delay justice long enough to make it unprofitable for your pursuers in most cases.

     

    Their greed and arrogance has fatally wounded the Republic. But they will be on the beach, consoling themselves, as the fires burn.
    15 Apr 2011, 12:30 AM Reply Like
  • That tax guy
    , contributor
    Comments (8) | Send Message
     
    The only people to blame is ourselves. The decay in the moral fiber of each of us individually through our vain attempt to keep up with the 'Jones' over time ultimately lead to this disaster. We all suffer from group think and mob mentality. No one is immune. Blaming those who you've recently discovered to have unbridled hubris is futile until you've looked yourself over really good in the mirror and asked yourself where your journey is taking you.
    15 Apr 2011, 01:47 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    "The only people to blame is ourselves."

     

    Not "only", but indeed partial.

     

    To overlook the criminal and negligent culture within Congress, the Fed, Treasury, banking and regulatory bodies would be ignorant.
    15 Apr 2011, 08:29 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4842) | Send Message
     
    So we had a big financial mess after the housing bubble as people bought overpriced homes and went too far in debt to get those homes. At the core that is what this mess is all about as all the rest is gymnastics. If people did not overleverage or buy homes at elevated prices we would not be having this debate as they would be happy in their homes and all would be well.

     

    Canada's 20% down on all home purchases looks like a good policy to keeping the market sober and people invested. In our desire to get everyone in a home here in the US we decided to lower credit standards but keep the price of money low and that will ALWAYS result in a debacle.

     

    So in the line up I see the Fed, Congressional Oversight and congressmen, ex-Presidents, Regulators at the Fed and State level, bankers who participated but knew what would happen, mortgage brokers, realtors, builders both national and local and finally consumers who wanted something for nothing. I probably missed some participants but this will be a big courtroom.

     

    My biggest beefs are the rating agencies and the regulators. The rating agencies were in a critical role that everything turned on and they knew it and they sold their ratings. With respect to regulators why have them if they will not regulate? If we are going to blow up the system then let's not waste budget on regulators but just allocate that budget for the losses that will be coming.
    15 Apr 2011, 11:58 AM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Don't think you missed too much. Geez, I think I managed to avoid a spot in the court room. What's up with that?
    16 Apr 2011, 10:53 PM Reply Like
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