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Thread: The Burying of the Financial Crisis Inquiry Report

  1. #1
    King Obama is a traitor! michaelr's Avatar
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    The Burying of the Financial Crisis Inquiry Report

    The Burying of the Financial Crisis Inquiry Report

    Umm it would appear that we narrowly missed a complete collapse of the system..

    The report points out that, “As of 2007, the five major investment banks—Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley had leverage ratios as high as 40 to 1, meaning for every $40 in assets, there was only $1 in capital to cover losses.”
    There is a simple reason why this is illegal. These banks need to be closed down, there should be no doubt about it, but the ass in chief will keep them alive and it doesn't matter how many jobs will be lost in doing so.

    The corporate mechanism that was supposed to stop this speculative cycle, the financial ratings agencies, “abysmally failed.” The report notes that in 2006, Moody’s, the credit rating agency, gave its highest rating to 30 mortgage-related securities every weekday. “The results were disastrous,” concludes the report. “83% of the mortgage securities rated triple-A that year ultimately were downgraded.”
    Downgraded, hell man they're worthless....they're less than worthless they are a huge liability.

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    And this is what we have.

    "The collapse of Lehman Brothers and the subsequent bank panic precipitated an unprecedented transfer of wealth into the coffers of the banks, under the guise that this was the only way to prevent a general collapse of the economy. The government shoveled money to the financial companies through every means at its disposal—from the Federal Reserve to the Treasury to the FDIC—both in the form of handouts and in loans.

    In the bailout of failed insurer AIG alone, the US government gave $180 billion to the world’s largest banks, of which $124.8 billion is still outstanding. The report notes that $2.9 billion of this money made its way directly into the coffers of Goldman Sachs, one of AIG’s largest partners.

    Yet despite the immensity of the crisis and the social devastation it has wrought, nothing has been done to prevent its repeat. As the commission has concluded, “Our financial system is, in many respects, still unchanged from what existed on the eve of the crisis. Indeed, in the wake of the crisis, the U.S. financial sector is now more concentrated than ever in the hands of a few large, systemically significant institutions.”

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    The banking system is headed for the scrap heap and all of this stuff is just the same as the railroad pensions and featherbedding for firemen that the USG has supported for decades just a boondoggle.

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    King Obama is a traitor! michaelr's Avatar
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    "Less than a 3 percent drop in asset values could wipe out Wall Street" - Crisis Panel Says In Final Report

    Financial Meltdown Was 'Avoidable,' Crisis Panel Finds

    A ratio of 40:1 isn't just careless but IMO criminal. Where is the money going, not all on bonuses I can assure you. 3% peeps, thats all it takes for a complete collapse of the banking system, so why did the government pay all those trillions, and QE whateveritisnow?

    Long and short, we are living on borrowed time. I will not see this for anything less than it is, to assume errors have been made would require one to assume that the economy is something new and they're flying by the seat of their pants, and that is just flat wrong.

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    What really surprises me is how the media has all but ignored the report and the white house, well, we have yet to hear their take on it. You would think people would demand answers but at this point the seriousness of the problem is still being discounted.

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    King Obama is a traitor! michaelr's Avatar
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    Quote Originally Posted by anonnymous View Post
    What really surprises me is how the media has all but ignored the report and the white house, well, we have yet to hear their take on it. You would think people would demand answers but at this point the seriousness of the problem is still being discounted.
    People have this weird believe in the system and because of that they question noting until it is too late. What would be great is a run on these banks, man if 3% topples them then i say go for 5 and show the allegiance of this government, because you know as well as I do that for one a run just will not be permitted. Man they would have TSA or some other "civilian force as powerful if not more powerful than the military" to "protect the infrastructure" and when it is over they would reimburse these fucking criminals. But it would be a hoot to watch.

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    Quote Originally Posted by michaelr View Post
    People have this weird believe in the system and because of that they question noting until it is too late. What would be great is a run on these banks, man if 3% topples them then i say go for 5 and show the allegiance of this government, because you know as well as I do that for one a run just will not be permitted. Man they would have TSA or some other "civilian force as powerful if not more powerful than the military" to "protect the infrastructure" and when it is over they would reimburse these fucking criminals. But it would be a hoot to watch.

    Well, if the dollar index drops below 72 you will probably get to see that. A currency crisis is just around the corner and their will be millions in this country wondering what the hell happened.

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    Senior Member TheHighForester's Avatar
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    But it's capitalism--so isn't it good?

    A society must have laws, and it must have law enforcement, but the "conservatives" are in the driver's seat, so neither will be considered.

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    King Obama is a traitor! michaelr's Avatar
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    Quote Originally Posted by TheHighForester View Post
    But it's capitalism--so isn't it good?

    A society must have laws, and it must have law enforcement, but the "conservatives" are in the driver's seat, so neither will be considered.
    I would not try a red or blue label here, the destruction of all good legislation including but not limited to Glass Steagall was a bipartisan fuck over. The government in general is responsible for the economy, we have sold it to them decades ago for some song and dance promise that they will do what is best for the country.

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    Quote Originally Posted by TheHighForester View Post
    But it's capitalism--so isn't it good?

    A society must have laws, and it must have law enforcement, but the "conservatives" are in the driver's seat, so neither will be considered.
    I disagree, ultimately it is the people who are in the drivers seat. Just because they fail to act does not negate the need to act. Once the people understand what has and is happening we will see them rise up. Hopefully !

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