DIYbanter - View Single Post - Why California is a dysfunctional shithole

Hawke[_3_]

On 8/19/2012 1:51 PM, wrote:
On Aug 19, 4:44 pm, Hawke wrote:

The one sentence answer is it was the fault of the anti regulation
republicans taking over the government, and of the financial companies
acting completely irresponsibly, and making a whole slew of stupid
mistakes concerning the way they managed risk.

Hawke

Not believable without a cite.

Dan

It's only not believable to you because of your ignorance of the
subject. You need to do some research on what a CDO is, and how a CDO
that is full of nothing but Triple B rated bonds becomes a CDO that has
a Triple A rating. If you understood how the rating agencies decided how
to rate those things you might know. If you knew how the Wall Street
banks tricked the agencies into rating investment vehicles filled with
worthless mortgages into first class rated investment vehicles then you
would know how it worked. But you don't know how any of those things
were done in the financial industry. I could tell you but you don't
believe anything so I won't waste my time on informing you. FYI it's
things like this that make me believe you are not well informed when it
comes to this subject.

I just this afternoon watched Kristen Grind on Book TV talking about
Washington Mutual and how it went under, and why. Her book is called The
Lost Bank. She explained how Washington Mutual went from a S&L to the
largest bank to default in the country. Her answer was that it was WAMU
that did it by itself when it went into the subprime market. All the
banks did this because the subprime loans made them a lot more money
than regular loans did. That's why all the banks wanted more of them.
They made a lot of money off them. You should try learning about the
crisis, it's very interesting. It also would help you understand that
what I'm telling you is exactly what the experts are saying. Why not?
That's where I get my information.

Hawke