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Posted by dapperdobbs on March 20, 2008, 5:21 am
You're drifting over to my point of view! I see you!:-)
I'm still waiting for you to say "30 to 1 leverage on those credit
derivatives!" C'mon ... I know you can say it!:-) Try it once where
nobody can hear you! It won't hurt!
I do not disagree with you on what you wrote below - a bubble tends to
catch an awful lot of people up in it's frenzy. There were loans made
to those who could not, it turns out, afford them. No doubt some were
really hurt by it - a young married couple, afraid to miss out on ever
owning a home, and a lender believing house prices would only go
higher bending over backwards to get them in. That makes me sad and
angry - I'm not sure at whom - but basically it's at those who were in
the housing market only seeking windfall profits.
[trim]
> I continue to believe it was a group effort in greed, from
> little guy who did not have enough for a down payment yet
> bought anyway; to flip-pers with their ridiculous get-rich
> quick schemes; to those who sold credit derivatives without
> understanding the underlying risk; to banking practices that
> did not reveal the extent of exposure to subprime mortgages.
> "Only sell what you understand, and if you have to wave your
> hands to explain it to an investor, you shouldn't be selling
> it to him/her." Toss in a government that maybe should have
> done something to regulate lending standards as it lowered
> interest rates.
>
> I am not someone who like the concept of "dispersion of
> blame," but here it seems at least a bit appropriate.
--------------------------------------
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