[wdvltalk-social] oh sh*t ##

[michael ensor]

hehe. I knew that you would come round to my way of thinking.....
hence I believe my solution 2 is demonstrated.....

or to put it another way, one of the major problems the 
system has is lack of transparency. If there was compulsory 
disclosure then everyone would know where they stood,
with discovery the hopeless cases could be put into 
administration whilst the merely terrible ones could be
seen to be viable and the system could begin
functioning more freely.......

Two thoughts:

[i] Company shareholders should have more power to control
boards (not the CEO)

[ii] The business of banking is buying money at one price and
selling it at another......anything else is peripheral

and finally I well remember watching a Congressional hearing on
CNBC some three years ago  interrogating bankers.......implying 
that home ownership was practically a constitutional right and 
demanding to know what  banks were going to do to increase their 
lending to those who wanted to get into a home.....

the roots of the present crisis lie firmly in the political arena and
I mistrust the ability of that same constituency to come up with 
a solution.......

[and as an aside, as a former bank credit manager, I had been
for years pointing out to all who would listen, the risks involved in
'excessive' home lending.......over ten years ago!  and that has 
nothing to do with the CDO's etc, simply the inherent risk. to the
institutions involved....... not all securitisation is bad and while the
current instruments have added another layer of complexity and 
uncertain recourse, the fact is that the economic basis for the
home lending was not there and the banks' ( and other mortgage
originators ) risk profiles were distorted and damaged by the surge
in lending OR to put it simply even without the CDO's etc there 
would still have been a crisis..... (:  ]

----- Original Message ----- 
From: "joseph harris" 
Sent: Thursday, March 12, 2009 2:23 AM
Subject: Re: [wdvltalk-social] oh sh*t ##


: 
: Roubini disappoints me; his eyes are still on the ground 
: within the momentary crisis. Among his equals he is a giant, 
: but his equals are not company I keep ;-).
: 
: However, since the bubbles in house prices are almost 
: entirely caused by Printer Greenspan and Gordon the Unready, 
: laxity in mortgage loan amounts and conditions [compare to 
: 50s and 60s] which got ridiculous, crooks offering 
: sub-primes in a reckless and dishonest way and the wrapping 
: up of this into securities that were corruptly mis-rated I 
: do not see the mortgagee as the bad guy in all this.
: 
: The problem for all those inside the wood is that the 
: enormity of what has happened has not yet been understood. 
: If the wood is all elms and the problem is dutch elm 
: disease...
: 
: J
: 
: 
: > oh yes your mate at NYU's solution to the
: > housing crises is to "tear up all mortgage
: > contracts....."
: >
: > that is an economists solution????
: >
: > he may have predicted some things but
: > I am starting to think those were coin flips.. ~(
: > ----- Original Message ----- 
: > From: "joseph harris"



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