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|User Info||Rebuttal To Mish: FRL; entered at 2009-05-10 10:52:41|
Registered: 2007-09-01 Saratoga Springs, New York
The reason the FDIC has been taking losses is because THEY ARE NOT DOING THIER JOB. If we did not permit banks to hold paper against which there is no actual asset (including excess capital) then this sort of thing - including 'systemic risk' - CANNOT HAPPEN.
Not true. If you just look at hard facts, they would have told you everything was fine. Falling house values were a future event that was not a fact at the time.
The mortgage assets were valid at the time unless you probed deeper in more and more conjecture. Besides corruption and incompetence, this was what mainly caused the collapse. the fact that house prices would collapse was foreseeable to common sense, but computer models don't have that and for a human, having a negative attitude (being careful) is career suicide in a corporate environment.
Those who saw this coming and spoke of it were removed.
Last modified: 2009-05-10 10:55:17 by bozonian