Banks and the death of our country: The gov set in motion the end of this country when they repealed the Glass-Seagall Act in 1999 which kept commercial banks and investment banks...

pana Loc: are we there yet?

The gov set in motion the end of this country when they repealed the Glass-Seagall Act in 1999 which kept commercial banks and investment banks separated.
The deregulation of the derivatives market followed. Soon fraud ran rampant and debt was leveraged to unreal levels.
Mortgage securitization was used to spread Wall Streets fraudulent "securities" around the world. Securitization allowed lenders to to issue mortgages for fees and sell the mortgages to third parties removing the risk of default from the lenders who then became less concerned about whether they could be paid back.
They then classified these mortgages into 3 groups AAA, B and high risk. The AA were picked up quickly by institutional investors and pension funds. The hedge funds picked up the high risk because of the larger returns due to risk. the B rated were harder to sell so they were again reclassified into the 3 groups again and the process was repeated again till they had fraudulently reclassified all the mortgages into sellable ratings.
But it gets worse. They paid the rating agencis to come up with they ratings they wanted.
With everyone focused on short term gains and the hedge funds with no intention to hold the high risks for long the fees to the ratings agencies continued so that they were able to sell off to other places that (Cyprus for one) who believed the ratings were valid. Thus creating the toxic waste.
Then another brilliant idea came into play that they could insure these mortgages (Jack Lew, Obamas secretary of Treasury, got rich betting against Americans being able to pay their mortgages) thus AIG got into the game and named it a credit default swap. It wasn't actually insurance since AIG didn't have to put aside any funds to cover any losses.
The mortgages became litered with subprime rate derivatives leveraging more money that was not covered. AIG was collecting fees for bets they could not cover basically to short sellers for a fee.
Short sellers borrowed from AIG the companies that they had inside info were going to have decreases in stock prices then sells them, waits for them to fall buys them back to give back to AIG and pocketed the difference.
Goldman Sachs being a big player in the game with their buys of the swaps tumbled rapidly when the housing market bottom dropped out. Thus TARP tax payer bail outs.
There was enormous proof of fraud and criminal acts , nothing was done and the casino system continues at a much grander scale.
Goldman Sachs response to the loses suffered by the American people was......Lord Griffin: "the public must learn to tolerate the ine******y as a way to achieve greater prosperity for all"
Thus the saying "let them eat cake being attached to the TBTF f'ing that the American people took.
Nothing has changed and the same people have advanced in their positions in the Obama admin to take more control and mess up more of our economy to benefit the 1%.

lpnmajor Loc: Arkansas

pana wrote:

The gov set in motion the end of this country when they repealed the Glass-Seagall Act in 1999 which kept commercial banks and investment banks separated.
The deregulation of the derivatives market followed. Soon fraud ran rampant and debt was leveraged to unreal levels.
Mortgage securitization was used to spread Wall Streets fraudulent "securities" around the world. Securitization allowed lenders to to issue mortgages for fees and sell the mortgages to third parties removing the risk of default from the lenders who then became less concerned about whether they could be paid back.
They then classified these mortgages into 3 groups AAA, B and high risk. The AA were picked up quickly by institutional investors and pension funds. The hedge funds picked up the high risk because of the larger returns due to risk. the B rated were harder to sell so they were again reclassified into the 3 groups again and the process was repeated again till they had fraudulently reclassified all the mortgages into sellable ratings.
But it gets worse. They paid the rating agencis to come up with they ratings they wanted.
With everyone focused on short term gains and the hedge funds with no intention to hold the high risks for long the fees to the ratings agencies continued so that they were able to sell off to other places that (Cyprus for one) who believed the ratings were valid. Thus creating the toxic waste.
Then another brilliant idea came into play that they could insure these mortgages (Jack Lew, Obamas secretary of Treasury, got rich betting against Americans being able to pay their mortgages) thus AIG got into the game and named it a credit default swap. It wasn't actually insurance since AIG didn't have to put aside any funds to cover any losses.
The mortgages became litered with subprime rate derivatives leveraging more money that was not covered. AIG was collecting fees for bets they could not cover basically to short sellers for a fee.
Short sellers borrowed from AIG the companies that they had inside info were going to have decreases in stock prices then sells them, waits for them to fall buys them back to give back to AIG and pocketed the difference.
Goldman Sachs being a big player in the game with their buys of the swaps tumbled rapidly when the housing market bottom dropped out. Thus TARP tax payer bail outs.
There was enormous proof of fraud and criminal acts , nothing was done and the casino system continues at a much grander scale.
Goldman Sachs response to the loses suffered by the American people was......Lord Griffin: "the public must learn to tolerate the ine******y as a way to achieve greater prosperity for all"
Thus the saying "let them eat cake being attached to the TBTF f'ing that the American people took.
Nothing has changed and the same people have advanced in their positions in the Obama admin to take more control and mess up more of our economy to benefit the 1%.

The gov set in motion the end of this country when... (show quote)

This is what I've been saying. The dems and repubs squabble over irrelevant issues in public, but in private, they are all in equal agreement with the big money. Debt ceiling and budget arguments are for show, to lull the people, while legislation is actually written by wall street lobbying groups. This public record.

pana Loc: are we there yet?

:thumbup: :thumbup:

pana Loc: are we there yet?

Proof that it pays to be a crook in this admin is that yesterday Blyth Masters, you know the one who paid the biggest fines in JPM to buy his way out of prosecution and the man whos greatest aspirations were to control the energy in California with price manipulation . This admin appointed to the regulatory commission yesterday that keeps these guys straight. What a joke.
http://www.zerohedge.com/news/2014-02-06/farce-complete-blythe-masters-joining-cftc

Loki Loc: Georgia

lpnmajor wrote:

This is what I've been saying. The dems and repubs squabble over irrelevant issues in public, but in private, they are all in equal agreement with the big money. Debt ceiling and budget arguments are for show, to lull the people, while legislation is actually written by wall street lobbying groups. This public record.

There is an entrenched "Establishment" in DC. I, myself, have been guilty of using terms like "Democrat" and "Republican" Establishment. Senator Cruz likened it to the WWE, where everything is scripted and the winners already picked.

Blue Flu Loc: HHI

To pana:
This guy is on the plus side of making sense. I might be mistaken but I think he makes some of your points.

http://www.youtube.com/watch?v=iR6oJv7Bd8U

pana Loc: are we there yet?

banjojack wrote:

There is an entrenched "Establishment" in DC. I, myself, have been guilty of using terms like "Democrat" and "Republican" Establishment. Senator Cruz likened it to the WWE, where everything is scripted and the winners already picked.

:thumbup:

pana Loc: are we there yet?

Blue Flu wrote:

To pana:
This guy is on the plus side of making sense. I might be mistaken but I think he makes some of your points.

http://www.youtube.com/watch?v=iR6oJv7Bd8U

Mr Green is absolutely correct. People are waiting to see if the economy collapses. It already has. A currency failure has already occurred. Since the fed took over our fractional banking system the USD has lost 98% of it PPI (purchasing power) to CPI (consumer price index) A 98% percent lose in value is a failure no matter how you slice it.
Thanks Blue. I love to hear that others see it the same way it looks to me. Some times I have to remind myself that I am not crazy. These things are actually happening.

vernon

pana wrote:

The gov set in motion the end of this country when they repealed the Glass-Seagall Act in 1999 which kept commercial banks and investment banks separated.
The deregulation of the derivatives market followed. Soon fraud ran rampant and debt was leveraged to unreal levels.
Mortgage securitization was used to spread Wall Streets fraudulent "securities" around the world. Securitization allowed lenders to to issue mortgages for fees and sell the mortgages to third parties removing the risk of default from the lenders who then became less concerned about whether they could be paid back.
They then classified these mortgages into 3 groups AAA, B and high risk. The AA were picked up quickly by institutional investors and pension funds. The hedge funds picked up the high risk because of the larger returns due to risk. the B rated were harder to sell so they were again reclassified into the 3 groups again and the process was repeated again till they had fraudulently reclassified all the mortgages into sellable ratings.
But it gets worse. They paid the rating agencis to come up with they ratings they wanted.
With everyone focused on short term gains and the hedge funds with no intention to hold the high risks for long the fees to the ratings agencies continued so that they were able to sell off to other places that (Cyprus for one) who believed the ratings were valid. Thus creating the toxic waste.
Then another brilliant idea came into play that they could insure these mortgages (Jack Lew, Obamas secretary of Treasury, got rich betting against Americans being able to pay their mortgages) thus AIG got into the game and named it a credit default swap. It wasn't actually insurance since AIG didn't have to put aside any funds to cover any losses.
The mortgages became litered with subprime rate derivatives leveraging more money that was not covered. AIG was collecting fees for bets they could not cover basically to short sellers for a fee.
Short sellers borrowed from AIG the companies that they had inside info were going to have decreases in stock prices then sells them, waits for them to fall buys them back to give back to AIG and pocketed the difference.
Goldman Sachs being a big player in the game with their buys of the swaps tumbled rapidly when the housing market bottom dropped out. Thus TARP tax payer bail outs.
There was enormous proof of fraud and criminal acts , nothing was done and the casino system continues at a much grander scale.
Goldman Sachs response to the loses suffered by the American people was......Lord Griffin: "the public must learn to tolerate the ine******y as a way to achieve greater prosperity for all"
Thus the saying "let them eat cake being attached to the TBTF f'ing that the American people took.
Nothing has changed and the same people have advanced in their positions in the Obama admin to take more control and mess up more of our economy to benefit the 1%.

The gov set in motion the end of this country when... (show quote)

and it was bill clinto that did this,and see the misery it has caused.

vernon

pana wrote:

The gov set in motion the end of this country when they repealed the Glass-Seagall Act in 1999 which kept commercial banks and investment banks separated.
The deregulation of the derivatives market followed. Soon fraud ran rampant and debt was leveraged to unreal levels.
Mortgage securitization was used to spread Wall Streets fraudulent "securities" around the world. Securitization allowed lenders to to issue mortgages for fees and sell the mortgages to third parties removing the risk of default from the lenders who then became less concerned about whether they could be paid back.
They then classified these mortgages into 3 groups AAA, B and high risk. The AA were picked up quickly by institutional investors and pension funds. The hedge funds picked up the high risk because of the larger returns due to risk. the B rated were harder to sell so they were again reclassified into the 3 groups again and the process was repeated again till they had fraudulently reclassified all the mortgages into sellable ratings.
But it gets worse. They paid the rating agencis to come up with they ratings they wanted.
With everyone focused on short term gains and the hedge funds with no intention to hold the high risks for long the fees to the ratings agencies continued so that they were able to sell off to other places that (Cyprus for one) who believed the ratings were valid. Thus creating the toxic waste.
Then another brilliant idea came into play that they could insure these mortgages (Jack Lew, Obamas secretary of Treasury, got rich betting against Americans being able to pay their mortgages) thus AIG got into the game and named it a credit default swap. It wasn't actually insurance since AIG didn't have to put aside any funds to cover any losses.
The mortgages became litered with subprime rate derivatives leveraging more money that was not covered. AIG was collecting fees for bets they could not cover basically to short sellers for a fee.
Short sellers borrowed from AIG the companies that they had inside info were going to have decreases in stock prices then sells them, waits for them to fall buys them back to give back to AIG and pocketed the difference.
Goldman Sachs being a big player in the game with their buys of the swaps tumbled rapidly when the housing market bottom dropped out. Thus TARP tax payer bail outs.
There was enormous proof of fraud and criminal acts , nothing was done and the casino system continues at a much grander scale.
Goldman Sachs response to the loses suffered by the American people was......Lord Griffin: "the public must learn to tolerate the ine******y as a way to achieve greater prosperity for all"
Thus the saying "let them eat cake being attached to the TBTF f'ing that the American people took.
Nothing has changed and the same people have advanced in their positions in the Obama admin to take more control and mess up more of our economy to benefit the 1%.

The gov set in motion the end of this country when... (show quote)

and bill clinton signed it into law.and look at the mizery he caused.

pana Loc: are we there yet?

vernon wrote:

and it was bill clinto that did this,and see the misery it has caused.

Deregulation of the banks was done under the Carter admin and was not addressed by either side after that.

"
Context of 'April 1, 1980: President Carter Signs the Depository Institutions Deregulation and Monetary Control Bill into Law'

This is a scalable context timeline. It contains events related to the event April 1, 1980: President Carter Signs the Depository Institutions Deregulation and Monetary Control Bill into Law. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be."

http://www.historycommons.org/context.jsp?item=financial_crisis_8

vernon

pana wrote:

Deregulation of the banks was done under the Carte... (show quote)

i remember clinton deregulating the banks on something .

vernon

pana wrote:

:thumbup:

just checked clinton and the reps did remove regulations on the financial industry and i think that is what k**led the cat

lpnmajor Loc: Arkansas

vernon wrote:

just checked clinton and the reps did remove regulations on the financial industry and i think that is what k**led the cat

Yeah, it was a case of sticking the hen in the fox house. Now the feathers are flying and we're choking on them.

pana Loc: are we there yet?

I think they have all eaten a hunk of that pie that the financial industry likes to serve up. Take it or else.