You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #11: The derivatives were a collateral benefit, but I don't think [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Editorials & Other Articles Donate to DU
Tansy_Gold Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 10:06 AM
Response to Reply #10
11. The derivatives were a collateral benefit, but I don't think
they were the primary motivation. They may been, but there were other, much more overt, benefits to be gained.

I don't think anyone really knew how explosive derivatives could be until Enron began playing that game in the very late 90s. Their implosion in 2000, just as the major housing boom was starting, may have provided the impetus for the bundling of MBSes -- move all these toxic mortgages off the banks' books as direct loans and make a fat profit off them -- but I don't think that was the original intent.

Much more likely, I think, is that the banks (a.k.a. all the boosh backers, pukes, etc.) saw the potential for massive foreclosures as a way of obtaining possession of the property and further enslaving the working poor. They do NOT, in fact, want anything even remotely resembling an ownership society as it was described. They wanted/want themselves to have it all.

Tansy Gold, who don't have much

Printer Friendly | Permalink |  | Top
  -"No one wanted to stop that bubble. It would have conflicted with the president's own policies." UpInArms  Dec-21-08 08:19 AM   #0 
  - some more:  UpInArms   Dec-21-08 08:25 AM   #1 
  - I, for one, was very concerned about the new bubble as early as 2k2  ixion   Dec-21-08 08:36 AM   #2 
  - here's an article from March 2006  UpInArms   Dec-21-08 08:43 AM   #3 
  - I, for two.  Tansy_Gold   Dec-21-08 09:20 AM   #9 
  - a bit more,,,  geckosfeet   Dec-21-08 08:45 AM   #4 
  - and the mal-administration tried to silence everyone who raised the warning  UpInArms   Dec-21-08 08:51 AM   #5 
  - We Told You So  Tansy_Gold   Dec-21-08 08:59 AM   #6 
  - "The president spent years pushing a recalcitrant Congress to toughen regulation"  Prag   Dec-21-08 09:08 AM   #7 
     - MTE, Prag, MTE  Tansy_Gold   Dec-21-08 09:14 AM   #8 
  - To pretend the sharky subprime loans were for the benefit of homeowners is bullshit.  Waiting For Everyman   Dec-21-08 09:25 AM   #10 
  - The derivatives were a collateral benefit, but I don't think  Tansy_Gold   Dec-21-08 10:06 AM   #11 
  - Derivatives became a sort of goal late in the game.  igil   Dec-22-08 03:03 PM   #16 
  - THANK YOU! I was wondering when someone would fucking point out  acmavm   Dec-21-08 10:12 AM   #12 
     - Lew Ranieri should be a household name  UpInArms   Dec-21-08 10:49 AM   #13 
        - "Then, in 1987, Gutfreund, Salomon's chairman, summarily fired him."  Tansy_Gold   Dec-21-08 01:27 PM   #14 
  - Considering ALL his advice CAME from the Industry who wanted to,,  benld74   Dec-21-08 01:43 PM   #15 

Home » Discuss » Editorials & Other Articles Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC