<br><br><div class="gmail_quote">On Sun, Dec 11, 2011 at 11:37 AM, spike <span dir="ltr"><<a href="mailto:spike66@att.net">spike66@att.net</a>></span> wrote: </div><div class="gmail_quote"><br></div><div class="gmail_quote">
<br></div><div class="gmail_quote"> Then when those exotic derivatives<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
eventually went bust, the bank was holding property which was still worth<br>
something. <br></blockquote><div><br></div><div><br></div><div>Or so they thought. What they hadn't counted on was the entire subprime market going bust, and a dramatic fall in housing prices because of it. They were still thinking in terms of the prime mortgage model, when foreclosure meant you could recoup. Instead they were left with billions in toxic assets, insurance companies who were going down the drain because of default swap payoffs, and mortgage-backed securities worth nothing and eroding the value of the institutions who issued them. It's easy to play the blame game -- government, borrowers, regulators, financiers. But in the end we have an almost perfect example on every side of the triumph of greed over common sense. Somewhere along the line the system broke down. The crazy thing is, we know where and we have done zilch to address it. That's what Occupy was about, in my opinion. Use the old 1930's style external feedback mechanisms to steer the beast, since the internal mechanisms no longer seem to be working. </div>
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