Lim:
OK, OK, OK: The egg came first, not the hen.
no regulations (no compliance with current regs)
no public audits (just pretext)
synthetic products/entities (SPEs, hedge funds, off-shore accounts, CDOs)
black box hedge funds hatched by bankers/brokers (ubiquitously)
deception & fraud risk pool dumping
mark-to-model pricing (Bear Stearn's specialty)
low interst rates
All combined for a perfect storm of fraud on steroids.
Nevertheless, a global recession is now upon us all. Employee layoffs across all industries will follow--some worse than others. Look for rates to devcline and Oil prices to fall sharply too. Fewer jobs and lower pay for pro cyclists too.
Very similar to the equity capital bubble busting.
A fraud is a fraud is a fraud, Wall Street a Casino for insider action.
limerickman said:Hein - get the sequencing right - low interest rate, cheap money and all the rest follows from that.
Not the other way round.
Your "explanation" as to the 2001 equity crash - was totally inaccurate.
As was your summation of the sub-prime debacle.
Hein - I don't know whether you did or not.
I do know that based on your tenuous grasp of the what is actually going on,
I would have my doubts upon your claim (above).
Goldman Sachs, Bear Stearns, : all part of the same cabal that Bernie is intent on bailing out.
Your Fed chief is on janitor duties for Greenspam's financial incontinance pants!