It must be some I know it all guy not knowing what he comments…
“The lowering of lending standards was done under Clinton in the name of fairness and less discrimination against minorities who have lower credit scores”.
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Some critics, such as Nobel laureate Joseph Stiglitz, have long seen the changes to Glass-Steagall as a major factor in the 2008 crash.
By bringing “investment and commercial banks together, the investment bank culture came out on top,” Stiglitz wrote in 2009. “There was a demand for the kind of high returns that could be obtained only through high leverage and big risk-taking.”
Yet the biggest bailout recipients weren’t even banks. So how does Glass-Steagall apply? Countrywide was another. It shows up under the Bank of America total since they bought them. Bear Sterns and Lehman were investment banks only. They didn’t have commercial banking operations. So how did allowing investment banks to do commercial banking contribute?
Yup, they needed bailed out since the were the biggest seller of CDS on MBS. If they couldn’t payout the insurance contracts, then it would have been really bad for the investment banks that owned CDS. The craziest thing to me was it was called “insurance” but you could insure each MBS multiple times over. That’s like insuring my car 20 times then crashing it to get a bunch of money.
Some poor souls with life insurance policies, hate life insurance.
AIG failed by the weight of its own sins by participating in the Glass-Steagall act repeal. Most insurance companies were in it, these companies were paying right and left politicians.
The side of home and auto industry and its participation in other things, mortgages, etc. rather than life insurance brought it down to its knees. Every state has its eyes on any particular life insurance company servicing its population. At the very first sign of trouble, they intervene asking the re-insurers for help if no other insurance company has the desire to take over.
Had AIG BKed, the entire world economy would have suffered. You hate the bail out? Thanks McCain calling all politicians to congress to vote on the $750 B at that time. Did you forget that part?
Do we see any signs of loans being given to unqualified people? There it is, if you begin to know they do that, problems in the horizon you will see.
So simple, not a professional explanation, that’s all you need to know.
AIG had written credit default swaps on over $500 billion in assets. But it was the $78 billion in credit default swaps on multi-sector collateralized debt obligations—a security backed by debt payments from residential and commercial mortgages, home equity loans, and more—that proved most troublesome. AIG’s problems were exacerbated by the fact that these were one-way bets. AIG didn’t have any offsetting positions that would make money if its swaps in this sector lost money.
Don’t blame me when you couldn’t even copy and paste the info correctly. The error was obvious and easy to catch. You were essentially saying 10-3 is 9. Besides, I thought you hate data and numbers mumbo jumbo.
You are going to tell me that a life insurance illustration, something nobody can change even if s/he desired, an illustration looked at, investigated, tested, and verified by the state of CA it is wrong because you know how to verify that in your spread sheet?
God darn it! You are a genius!
What are you doing barely working for that company of yours if you keep posting on this forum as if it were your job?
No doubt. Nothing is enough to bring prices down. We have passed the point of critical mass, the point of no return. Bay area housing will remain king for many many years.
