Generally speaking:
To say speculators are not to blame would be 100% false. The subprime fallout has cost around $500billion. ($1trillion in foreclosures resulted in 40-50% loss in value on short sales.)
The writing has been on the wall for a few years regarding subprime foreclosures. Subprime loans skyrocketed after 2001. The FED is supposed to oversee such activity and apply restrictions to avoid the fallout we're seeing now.
The FED will have lent nearly $2trillion by the end of this week. $500billion was lost on foreclosures in the process of writedowns and short sales. $1.5trillion was lost in the CDO market by bank and hedge fund speculators that were over leveraged. There are stories of small hedge funds writing CDO's for UBS mortgage amounting to 10's of billions at a premium of $4million per year. The hedge fund cleaned up until the CDO's were exercised and then the hedge funds collapsed.
Financial Terrorisers are on both sides of the debacle.
The FED is protecting banks at the expense of the public. If the global economy begins growing next year there will be a brief hangover, but if the global economy does not begin growing next year the hangover will last 5-10 years.
In the election we have a bad choice and bad choice. It's like 4 years ago because Kerry found Obama and postured him for this election. McCain; although more left leaning, was the most similar candidate to Bush. It's ironic. I'm conservative by definition which does not mean Republican. I like libertarian or constitutionalist concepts and I hate polarizing discussions, because divided we fail.
To say speculators are not to blame would be 100% false. The subprime fallout has cost around $500billion. ($1trillion in foreclosures resulted in 40-50% loss in value on short sales.)
The writing has been on the wall for a few years regarding subprime foreclosures. Subprime loans skyrocketed after 2001. The FED is supposed to oversee such activity and apply restrictions to avoid the fallout we're seeing now.
The FED will have lent nearly $2trillion by the end of this week. $500billion was lost on foreclosures in the process of writedowns and short sales. $1.5trillion was lost in the CDO market by bank and hedge fund speculators that were over leveraged. There are stories of small hedge funds writing CDO's for UBS mortgage amounting to 10's of billions at a premium of $4million per year. The hedge fund cleaned up until the CDO's were exercised and then the hedge funds collapsed.
Financial Terrorisers are on both sides of the debacle.
The FED is protecting banks at the expense of the public. If the global economy begins growing next year there will be a brief hangover, but if the global economy does not begin growing next year the hangover will last 5-10 years.
In the election we have a bad choice and bad choice. It's like 4 years ago because Kerry found Obama and postured him for this election. McCain; although more left leaning, was the most similar candidate to Bush. It's ironic. I'm conservative by definition which does not mean Republican. I like libertarian or constitutionalist concepts and I hate polarizing discussions, because divided we fail.
It really is that easy.