Credit default swaps - what the American public is picking up the bill for

Discussion in 'Off Topic Area' started by Yohan, Oct 14, 2008.

  1. Yohan

    Yohan In the Spirit of Yohan Supporter

    So here is an article about the history of the financial market and the series of deregulation that led us to the sad economic state we are currently in. In summary, John McCain, as part of the "Keating Five" created a series of acts that deregulated the savings and loans and banking industries. These acts allowed the banks and S&L people to trade around credit default swaps (which are guarantees against defaults, or better yet, a bet that a loan will fail). These credit default swaps allowed banks to lessen risk on the loans that they offered. This reduced risk allowed banks to take on risky loans on overpriced real estate, which is essentially what got us where we are today. This article should be required reading for the American public.
  2. Kwajman

    Kwajman Penguin in paradise....

    And the current banking laws wouldn't be in place if the democratic congress hadn't passed them making the no-doc and sub-prime loans possible. Its far from a one person problem. Lets also look into the Bill Ayers issue a little more closely as well as the possible illegal loans that Mrs. McCains beer industry friends gave to Johns campaign. They are ALL crooked....

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