Friday, December 18, 2009, 7:00PM ET - U.S. Markets Closed.
Peel away the headlines on last year's meltdown and taxpayer-funded bailout and an interesting nugget emerges: Many recent debacles in American financial history share a common trait -- mortgage debt.
"2008 wasn't the only bond market debacle we've ever had, and not the only bond debacle where mortgage bonds were at the epicenter," says our guest Charles Gasparino, an on-air editor for CNBC and author of a new book, "The Sellout: How Three Decades of Wall Street Greed and Government Mismanagement Destroyed the Global Financial System."
Mortgage debt. Beyond last year's meltdown, mortgage-backed securities played a role in (1) Orange County, Calif.'s bankruptcy in 1994 (2) the collapse of the hedge fund Long Term Capital Management (LTCM) in 1998 and (3) the S&L crisis of the late 1980s. If the federal government didn't bailout bailout LTCM for about $5 billion (a paltry sum by today's standards), Lehman would have buckled -- possibly Merrill too, Gasparino speculates.
Such financial history begs key questions:
Mortgage debt is only the means.. the underlying reason is smart and risky people with no moral values filling up Wall Street.. with the less smart counterparts in the administration working together to cook one of the greatest crisis... It's a sad era of utmost regulatory failure.
This was looting by the banks, period. How can it be that everything is ok now when the banks were on the brink of destruction. Wake up people, they will steal more money again.
This was looting by the banks, period. How can it be that everything is ok now when the banks were on the brink of destruction. Wake up people, they will steal more money again.
That’s a great story. I can’t wait for the sequel; when all the fat cats are beheaded in front of the New York Stock Exchange. That will be so AWESOME!
Wall Street needs a Nip and Tuck
Guys ... I hate to say this but the only place to put your money is in the game right now. The govenment funded ... bank run ... ponsi scheme is in full working condition right now ... free money + ponsi scheme = plenty of room for the stock market to go up ... just make sure you time it perfect, because once the house of cards fall ... IT WILL BE UGLY and no auto stop/sell will save you!
If the administration lacks the will and brains and balls to reform the financial industry, perhaps the only way is to get the people to do it.. draw all and keep your $$$ for a week to show the administration and wall street who really matters.. you don't have to wait for the next election.. See if the banks can continue to pay huge bonus...
so what??? lest we forget we live in a capitalist society... risk taking is fundamental to capitalism... government intervention is part of that risk taking... think about it people... the government (taxpayers) are part of the process... at times more or less... stop whining and get on the train...
I have no idea how Bernanke could get into the position he is in. He has now clue what is going on, had absolutely no forsight into any of the bubbles and colapses we have had. Is this the best that the US gov. can offer?? I am just a joe on the street, and I could have made better decisions!!
I know I will continued to be screwed. I will take my anger out on politicians with my vote.
william It's nice to see other 10% ers posting for a change. It gets old even to me to be the only one calling these whining little girls out on there constant bitching. I would be embarresed and not surprised most hide behind a yfu handle. bunch of pussys
We already know that the fundamentals of the market are screwed. It just means that the United States is in more trouble than at any time before. The really dangerous aspect is that nobody seems to care any longer. There is no longer any national integrity or will of the people. I think this post pretty much defines the last America that will be remembered. Who ever Randall is.. 'You Rock!' +++++++++ Randall - Monday November 09, 2009 05:46PM EST "China actually makes things, be they cheap or what ever. We (America) only have our Ponzi schemes."
Hey Mister! Listen to me...The jobs on Wall Street are going go next. Grab a mop and broom and sweep up the mess. The market will correct and the middle income workers will get all the blame for not flipping these assets higher. Its all your fault, don't ask me to bail you out! Hit the street, grab a mop! This is what is inline for all you Wall Street Zombies. The squirrels and nuts are truly your only friends...BUY BUY BUY! smiles...Now that's a WARNING! Laughs!
Here is the history of the crash, that was written before the crash and came out to be true: http://www.tradingstocks.net/html/prepare_for_market_crash.html
WOW! So many master crooks in the same room at the same time. Wake up... No Senator should be in office more than 2 terms (12 years) and no Congressmen/women should be in office more than 3 terms (6 years) otherwise they do too much harm to us all. VOTE OUT the INCUMBENTS in 2010.
WHILE CRUSHING MY SPOUSE IN THIS MORNING'S ROMP; MY LOVED ONES SCREAMS REMINDED ME OF MY INVESTMENTS; THEY ARE SCREAMING ALONG BUT THEY SHOULD BE DEAD.
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popey - Tuesday November 10, 2009 09:15AM EST
Addicted to risk, Wall Street needs intervention - cold turkey