Comments on: Blame Game III http://alephblog.com/2008/10/18/blame-game-iii/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Fri, 25 May 2012 21:31:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Erik Kengaardhttp://alephblog.com/2008/10/18/blame-game-iii/comment-page-1/#comment-21964 Erik Kengaard Sun, 14 Jun 2009 02:22:29 +0000 http://alephblog.com/?p=1042#comment-21964 We have the government that some people deserve. It is important to assign blame - or fault - so that appropriate corrective action can be taken. An effective approach would be to use the approach of a tort lawyer. Who had what duties, and to what extent did they perform? Bankers, for example, have no duty to protect the public interest. Congress does (via the oath of office, incorporating the preamble into the substance of the constitution). Bankers, of course, have a duty not to commit fraud, but few bankers have been indicted, at least do far. Congress, and the administration of Bush and Clinton, and now Obama, are the main culprits. Chris Dodd is a tool of the banking industry. Look it up. Barney Frank and his insane crusade to give houses to the poor destroyed Fannie Mae and Freddie Mac. Not sure? Review the transcripts of the House Financial Services Committee meetings. Tom Davis (House Committee on Oversight and Government Reform under Bush) fiddled while Rome burned (he investigated baseball while the financial industry crashed). Congress writes the rules. Bankers operate within the rules or go to jail. Few bankers are going to jail. We all get the government some people - those who don't get involved - deserve. We have the government that some people deserve.
It is important to assign blame – or fault – so that appropriate corrective action can be taken. An effective approach would be to use the approach of a tort lawyer. Who had what duties, and to what extent did they perform? Bankers, for example, have no duty to protect the public interest. Congress does (via the oath of office, incorporating the preamble into the substance of the constitution). Bankers, of course, have a duty not to commit fraud, but few bankers have been indicted, at least do far.
Congress, and the administration of Bush and Clinton, and now Obama, are the main culprits. Chris Dodd is a tool of the banking industry. Look it up. Barney Frank and his insane crusade to give houses to the poor destroyed Fannie Mae and Freddie Mac. Not sure? Review the transcripts of the House Financial Services Committee meetings. Tom Davis (House Committee on Oversight and Government Reform under Bush) fiddled while Rome burned (he investigated baseball while the financial industry crashed).
Congress writes the rules. Bankers operate within the rules or go to jail. Few bankers are going to jail.
We all get the government some people – those who don’t get involved – deserve.

]]> By: David Merkelhttp://alephblog.com/2008/10/18/blame-game-iii/comment-page-1/#comment-19516 David Merkel Wed, 22 Oct 2008 17:28:02 +0000 http://alephblog.com/?p=1042#comment-19516 Annette, that’s a good one, I hadn’t thought of that. William, that's another cause, but even with naked shorting and selling of CDS, you can't destroy a firm with a strong balance sheet and free cash flow. Annette, that’s a good one, I hadn’t thought of that. William, that’s another cause, but even with naked shorting and selling of CDS, you can’t destroy a firm with a strong balance sheet and free cash flow.

]]> By: Annette S.http://alephblog.com/2008/10/18/blame-game-iii/comment-page-1/#comment-19489 Annette S. Mon, 20 Oct 2008 13:01:51 +0000 http://alephblog.com/?p=1042#comment-19489 Another example of manic optimism were the Buy-vs-Rent calculators you could find on bank's and financial websites. I simply never encountered even a single one that gave the option of a DECLINE assumption in home price appreciation. It is this kind of pollyana attitude that gets people into trouble. Talk about lack of respect for the devil's advocate-side of the equation! Another example of manic optimism were the Buy-vs-Rent calculators you could find on bank’s and financial websites.

I simply never encountered even a single one that gave the option of a DECLINE assumption in home price appreciation.

It is this kind of pollyana attitude that gets people into trouble. Talk about lack of respect for the devil’s advocate-side of the equation!

]]> By: Williamhttp://alephblog.com/2008/10/18/blame-game-iii/comment-page-1/#comment-19488 William Mon, 20 Oct 2008 03:06:16 +0000 http://alephblog.com/?p=1042#comment-19488 I think the naked shorts who fail to deliver borrowed stock on time deserve blame. Patrick Byrne has a lot to say about this. I think the naked shorts who fail to deliver borrowed stock on time deserve blame. Patrick Byrne has a lot to say about this.

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