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OP
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So says the majority of Dems and Reps. Well I guess so it wrecked the economy in '07.
The end of democracy, and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.
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What a bunch of BS. Do you ever read anything?
What wrecked the economy was a frenzy of low interest loans for housing to people who could not afford to pay them, plus packaging worthless bonds into Credit Default Swaps. What wrecked the economy was the SEC refusing to set rules for bond evaluations, as they had long done for stocks, and the rating agencies refusing to give CDSs low ratings for fear that the issuers would go to their competitors.
Sure, people on Wall Street created CDSs and CDOs. But they also created a lot of mutual funds that, year in and year out, including 2007, have increased 7% or 9% per year on the average each year. Do you have a 401(k)?
Do you want a secure retirement? Then thank Wall Street.
Do you want to have a job? Who do you think sells your company's stock and/or lends it money? If you have a job, thank Wall Street.
Don't blame me. I voted for Trump.
Democrats would burn this country to the ground, if they could rule over the ashes.
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Joined: Dec 2004
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OP
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What wrecked the economy was a frenzy of low interest loans for housing to people who could not afford to pay them, plus packaging worthless bonds into Credit Default Swaps. What wrecked the economy was the SEC refusing to set rules for bond evaluations, as they had long done for stocks, and the rating agencies refusing to give CDSs low ratings for fear that the issuers would go to their competitors.
Sure, people on Wall Street created CDSs and CDOs.
Well we agree on this much.
The end of democracy, and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.
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I don't know if Wall Street hurts the economy but there can be no argument that what is good for Wall Street is good for the economy. That simply isn't true these days. Wall Street is booming like never before because of quantitative easing and the historically unprecedented decades old artificially low interest rates that are required because of the quantitative easing.
Wall Street is a bubble because with the low rates and huge amounts of cash created out of thin air, it is the only place one can get a return on money. The economy as a whole would be much better off with normal interest rates and less/no easing, but Wall Street would suffer.
So does Wall Street harm the economy? It depends on how much Wall Street is responsible for the policies of the Federal Reserve.
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Very true JoeBob. WS has only inflated the economy. Low interest forces savers to hand over their savings so the money men can get their cut. The financial markets should never be allowed to run the economy up and down but rather only respond to the economic demand from production. Of course our economic production has been diverted to foreign lands at the behest of WS.
The end of democracy, and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.
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Do you want a secure retirement? Then thank Wall Street.
Do you want to have a job? Who do you think sells your company's stock and/or lends it money? If you have a job, thank Wall Street.
No, Wall Street, at it's core is a zero-sum game. Main Street produces companies, companies produce profit. ALL Wall Street (and the banks) are is a medium of exchange. They can create "improvements" such as CDS's, but we all know that is not creating value, other than, theoretically, reducing the friction in the exchange market. Wall Street is not to blame for the crisis any more than a kid is for eating all the chocolate you leave in his bed room at night..... The government guaranteed the mortgage loans, about any loan, and Wall Street couldn't resist the temptation. That's a government failure, not a Wall Street failure. When we confuse the hype of Wall Street with the productivity of Main Street, we have bought into the narrative that Wall Street produces something. They don't. They just facilitate the exchange of assets.
Sic Semper Tyrannis
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IMO, that reduction in friction adds value.
The problems named, result from arrogant, self serving govt interference.
The worst hype is that politicians add value.
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What a bunch of BS. Do you ever read anything?
What wrecked the economy was a frenzy of low interest loans for housing to people who could not afford to pay them, plus packaging worthless bonds into Credit Default Swaps. What wrecked the economy was the SEC refusing to set rules for bond evaluations, as they had long done for stocks, and the rating agencies refusing to give CDSs low ratings for fear that the issuers would go to their competitors.
Sure, people on Wall Street created CDSs and CDOs. But they also created a lot of mutual funds that, year in and year out, including 2007, have increased 7% or 9% per year on the average each year. Do you have a 401(k)?
Do you want a secure retirement? Then thank Wall Street.
Do you want to have a job? Who do you think sells your company's stock and/or lends it money? If you have a job, thank Wall Street. I think it's YOU who needs to read up. While all you said did happen, that was less than 10% of all the "bad" stuff that lead to the collapse. It was NOT legislative things that lead to the collapse, but bad investments, wild speculation, and outright fraud that lead to the collapse.
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Do you want a secure retirement? Then thank Wall Street.
Do you want to have a job? Who do you think sells your company's stock and/or lends it money? If you have a job, thank Wall Street.
No, Wall Street, at it's core is a zero-sum game. Main Street produces companies, companies produce profit. ALL Wall Street (and the banks) are is a medium of exchange. They can create "improvements" such as CDS's, but we all know that is not creating value, other than, theoretically, reducing the friction in the exchange market. Wall Street is not to blame for the crisis any more than a kid is for eating all the chocolate you leave in his bed room at night..... The government guaranteed the mortgage loans, about any loan, and Wall Street couldn't resist the temptation. That's a government failure, not a Wall Street failure. When we confuse the hype of Wall Street with the productivity of Main Street, we have bought into the narrative that Wall Street produces something. They don't. They just facilitate the exchange of assets. That is the most uneducated, inept understanding of Wall Street investment banking I've ever seen on this forum thus far. You clearly haven't read the government report to see what actually happened. Rather you just made up your mind what happened in a scenario that fits with your ideals. You're so far off the mark, you're not only not in the ball park, you're not even in the same zip code as the ball park.
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While there is no denying that Wall Street adds a LOT of value to the US economy, the current version of investment banking we have is adding value while at the same time poisoning the economy.
We can talk a whole lot of details, but you're always going to boil down to one irrefutable fact. Any company that is too big to fail, is a serious liability to the system; it's just that simple.
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That is the most uneducated, inept understanding of Wall Street investment banking I've ever seen on this forum thus far. You clearly haven't read the government report to see what actually happened. Rather you just made up your mind what happened in a scenario that fits with your ideals. You're so far off the mark, you're not only not in the ball park, you're not even in the same zip code as the ball park.
Thank you for your thorough, thoughtful analysis. You have certainly changed my mind.....
Sic Semper Tyrannis
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And the point of this thread is..?
Carpe' Scrotum
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And the point of this thread is..? Just because you add value, doesn't man you're good. And that's certainly the case with the biggest investment banks on Wall Street.
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I believe you omitted: 1. License to steal 2. Get out of jail free card
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I believe you omitted: 1. License to steal 2. Get out of jail free card Yeah, it's a package deal.
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That is the most uneducated, inept understanding of Wall Street investment banking I've ever seen on this forum thus far. You clearly haven't read the government report to see what actually happened. Rather you just made up your mind what happened in a scenario that fits with your ideals. You're so far off the mark, you're not only not in the ball park, you're not even in the same zip code as the ball park.
Thank you for your thorough, thoughtful analysis. You have certainly changed my mind..... Teehee.
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Joined: Oct 2004
Posts: 24,656
Campfire Ranger
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Joined: Oct 2004
Posts: 24,656 |
That is the most uneducated, inept understanding of Wall Street investment banking I've ever seen on this forum thus far. You clearly haven't read the government report to see what actually happened. Rather you just made up your mind what happened in a scenario that fits with your ideals. You're so far off the mark, you're not only not in the ball park, you're not even in the same zip code as the ball park.
Thank you for your thorough, thoughtful analysis. You have certainly changed my mind..... Teehee. Yeah, that was a good comeback!!!
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