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A billionaire explains the middle class
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jim
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A billionaire explains the middle class
wrote:
On Monday, January 5, 2015 2:07:38 PM UTC-5, wrote:
wrote:
F. George McDuffee wrote:
Why is there no government mandated "crash test" of financial products?
Why no evaluation of their safety and efficacy comparable to
FDA drug screening?
There are supposedly tests on how long banks can stand
It wasn't bank deposit money that was funding the flaky
financial products.
It depends upon what type of bank
No it doesn't depend on the type of bank.
Only the type that take deposits are allowed to use deposit
money to fund investments. And since the govt is on the
hook if a deposit taking facility fails there are regulations
that make sure that the money is not used recklessly.
The money that funded the reckless lending
during the housing bubble came from private investors.
And most of the reckless loans originated with non-bank
mortgage lenders like CountryWide and AmeriQuest.
Stress testing banks doesn't address the question.
But what do top specialists in the field say?
What they may say doesn't addresses the question.
Stress testing banks doesn't address the question of
of safety and soundness of financial products that
are funded by private investor's money.
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