tag:blogger.com,1999:blog-3758330678390419129.post8290740761603176498..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: What Has Caused the Current Economic Crisis?Robert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-3758330678390419129.post-86405979514983325592010-01-11T21:13:11.111-05:002010-01-11T21:13:11.111-05:00If the theory offered had legs, only the USA would...If the theory offered had legs, only the USA would have the contagion.<br /><br />The world wide melt down happened because our investment bankers sold the world crap, which then defaulted. <br /><br />There has been no default on GSE paper--such paper was no the crap sold by Lehman, et al<br /><br />Our problems did not come from an excess supply of money--they arose because incomes have been Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-39775848659459476672010-01-04T20:29:52.236-05:002010-01-04T20:29:52.236-05:00From Jesse over at his Cafe Americain:
"Yes,...From <a href="http://jessescrossroadscafe.blogspot.com/2010/01/why-was-there-no-canadian-housing-bust.html" rel="nofollow">Jesse</a> over at his Cafe Americain:<br /><br />"Yes, Fannie and Freddie played a significant role in the US. But the Fed set the tone for banking regulation and they not only did not take away the punch bowl, they spiked it with high grain alcohol. The Fed was the 'RatherBFlyinghttps://www.blogger.com/profile/02471578548048724411noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-18049373618628753942010-01-04T16:57:19.505-05:002010-01-04T16:57:19.505-05:00I don't know, I guess I really don't see i...I don't know, I guess I really don't see it that way Mr. Wenzel.<br /><br />I've been reading Zerohedge regularly for about 2.5-3 months now and they have had some really brilliant posts. They dig deep into the granularity of the data and find some really interesting facts. Though they really never explicitely cite ABCT or feature the standard "Austrian" line on most issues Ryannoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-61510346874599289722010-01-04T16:52:51.133-05:002010-01-04T16:52:51.133-05:00Hi again..
Go back to how fannie and freddie were...Hi again..<br /><br />Go back to how fannie and freddie were created...<br /><br />You'll see the gse's didn't just spring out of nowhere..<br />LilaLila Rajivahttp://www.mindbodypolitic.comnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-1428082922357844552010-01-04T16:16:26.470-05:002010-01-04T16:16:26.470-05:00This post immediately brought to mind that old ada...This post immediately brought to mind that old adage: "guns don't kill, people do."<br /><br />As this blog correctly points out, Fannie and Freddie didn't "cause" this mess, rather they were one of (if not THE) primary vehicle(s) which was used by the Wall Street oligarchs to CREATE the U.S. housing bubble - and their concurrent toxic-bond scam.Jeff Nielsonhttp://www.bullionbullscanada.com/noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-23039507033519738602010-01-04T15:33:59.618-05:002010-01-04T15:33:59.618-05:00It wouldn't necessarily have been a housing bu...It wouldn't necessarily have been a housing bubble if there wasn't an F&F - but hot money always finds somewhere to fly to. So the central bank is still one degree more guilty.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-17731088217968612982010-01-04T00:45:36.547-05:002010-01-04T00:45:36.547-05:00PART 2:
I estimate that 1 million of the GSEs...PART 2:<br /><br /><br />I estimate that 1 million of the GSEs' Alt-A loans had no down payment.<br /><br />If the default rates I predict actually occur, U.S. taxpayers will have to stand behind hundreds of billions of dollars of Fannie Mae and Freddie Mac losses<br /><br />in the years 2005 to 2007, they bought over $1 trillion of these junk loans that are still on their books. Their VinceP1974https://www.blogger.com/profile/14213974096172795917noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-38764294791090665422010-01-04T00:45:15.024-05:002010-01-04T00:45:15.024-05:00Here are some numbers I got from a C-SPAN hearing
...Here are some numbers I got from a C-SPAN hearing<br /><br />House Committee<br />Oversight and Government Reform<br /><br />Fannie Mae and Freddie Mac, Industry Analysts and Academics<br /><br />Edward Pinto<br />Former Chief Credit Officier , Fannie Mae 1989<br /><br />"Witnesses testified about business practices and operations at Fannie Mae<br />and Freddie Mac that eventually led to VinceP1974https://www.blogger.com/profile/14213974096172795917noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-60346217358619293302010-01-03T20:47:18.805-05:002010-01-03T20:47:18.805-05:00Folks, I'm not so sure. I want to End The Fed ...Folks, I'm not so sure. I want to End The Fed as much as anybody (I understand Bob's argument, and I agree totally), but maybe they weren't the root cause of <i>this</i> particular crisis. <br /><br />Let me ask it this way: Is there any way the housing bubble could have been created if, as VinceP1974 points out, F&F weren't GSEs and hadn't destroyed the credit standards? RatherBFlyinghttps://www.blogger.com/profile/02471578548048724411noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-79072134156374424852010-01-03T18:15:39.795-05:002010-01-03T18:15:39.795-05:00savecapitalism,
You are right.savecapitalism,<br /><br />You are right.Taylor Conanthttps://www.blogger.com/profile/18270678440957992085noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-70686063873305626832010-01-03T17:29:12.057-05:002010-01-03T17:29:12.057-05:00I note that Mr. Bernanke is out today saying it wa...I note that Mr. Bernanke is out today saying it wasn't the Federal Reserves fault. The fact of the matter is that it is ALWAYS the fault of the central bank, and for one reason - it is the only authority that can create market-wide malinvestment in each and every sector. Obivously there can be friends-in-crime like F&F, but without a central bank - how would it be possible? Or am I wrong?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-24600732131359067982010-01-03T17:28:18.331-05:002010-01-03T17:28:18.331-05:00Lila,
!!!!!!!
Yes, thank you!
And thank you Bob...Lila,<br /><br />!!!!!!!<br /><br />Yes, thank you!<br /><br />And thank you Bob for highlighting this. I am coming to see the ZeroHedge people as incredibly bright, talented and witty people, but people who are nonetheless dangerously ignorant and with a vindictive agenda to control the financial world and make it "work like it's supposed to" according to their textbook model of Taylor Conanthttps://www.blogger.com/profile/18270678440957992085noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-50297601177908827752010-01-03T15:33:50.057-05:002010-01-03T15:33:50.057-05:00Right on. But don't expect zero hedge or any o...Right on. But don't expect zero hedge or any of those folks to get into that...<br /><br />Their whole raison detre is to steer populist rage toward fixing the symptoms...<br /><br />eg. the recent post about einhorn on banning cds's.<br /><br />And today Bernanke came out in favor of stronger regulations as though regulations were the main problem.<br /><br />Confused language.<br />I Lila Rajivahttp://www.mindbodypolitic.comnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-67031812145551521862010-01-03T15:12:16.709-05:002010-01-03T15:12:16.709-05:00You're really missing what the GSEs did. th...You're really missing what the GSEs did. they effectively became the universal credit standard. The GSEs put their computers into all the oringinator offices.. if GSE would buy the loan, the loan was issued.<br /><br />I doubt very much that a corporation would have been able to have that much power over everyone else's credit decisions as well as the resources to keep pumping in theVinceP1974https://www.blogger.com/profile/14213974096172795917noreply@blogger.com