Kasz216 said:
Mr Khan said:
Kasz216 said:
The committee doesn't see that as what caused it would be my guess.
Which, it really wasn't. What caused the crisis was that housing was down all over the country at once.
Which generally was seen as an impossibility and only happened because of widespread government intervention in the housing market.
The housing market caused the derivitives to crash.
There was nothing wrong with the risk prevention methods set up in the derivities, outside of not considering the fact the government was going to fuck it all up.
It's like if you stored a bunch of propane in your backyard with more then enough protection and saftey measures... and it all exploded because your neighbor decided to break in smoking a cigarette.
How is that your fault?
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If credit-default-swap and other wizardry that probably shouldn't have existed, didn't exist, then the housing bust wouldn't have done the catastrophic damage across the financial sector then exploding across the global sector. There would have been damage to be certain, from raw materials and construction sector, but the financial sector's enron-esque tactics caused it to ripple across the globe
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Why shouldn't it exist... there is a very small chance of huge failure (which unfortunitly happened) and it's been a HUGE driver of growth.
There wouldn't of been such huge damage because there wouldn't been as much to damage.
If you think this is a problem... watch as the virtual markets pick up in steam. Some are already valuable then poorer nations GDPs.
Who knows how valuable World of Warcraft is GDP wise.
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Virtual markets are at least a tangible service, though. There is a medium of reality here, but with CDSes you're just securitizing debt and then... converting it into profit?
Sounds like what GloboDyne was up to in the movie "Fun With Dick and Jane"
"We took our debt and pushed it into companies that we owned, and our balance sheets, they showed profit, when actually, there was debt."
Now i know better than to disparage that which i cannot understand, but something about this whole thing seems backwards
