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Recursion

(56,582 posts)

43. You're half right, and where you're right is important

Tue Aug 11, 2015, 11:52 PM

Aug 2015

When Lehman went, through the absolute stupidity of Paulson and co., it all hit the fan.

Bingo. Ironically, "let them fail" being sort of a mantra here, letting Lehman fail was exactly the wrong thing to do.

the commercial banks couldn't have done ANY of this.

The commercial banks didn't do any of "this". That's why they're still standing and four of the Big Five IBs fell.

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The Glass-Steagall Partial-Repeal Did Not Cause the Financial Crisis [View all] ericson00 Aug 2015 OP

Even though you are 100% right, shenmue Aug 2015 #1

I await the flames. Someone needs to take the fight to them ericson00 Aug 2015 #3

No kidding. Octafish Aug 2015 #17

They have to post lies like the OP does every few weeks or so. Rex Aug 2015 #67

Pffft.... haikugal Aug 2015 #2

you're posting a point, I'm posting a counterpoint ericson00 Aug 2015 #5

Spin...more spin...I just wanted to help so everyone saw both sides. haikugal Aug 2015 #10

Glass-Stegall was established for a good reason....even if you don't see it that way Stargazer99 Aug 2015 #4

it was not fully repealed, and just because it was "established for good reason" ericson00 Aug 2015 #8

So you are happy that we don't have it artislife Aug 2015 #66

that is a ridiculous argument dsc Aug 2015 #76

Nice deflection! nt artislife Aug 2015 #79

Bankers wrote glass-steagall act BlueStateLib Aug 2015 #29

LOL. Not this again. PSPS Aug 2015 #6

Are you joking? Mortgage derivatives have been around since 1981 ericson00 Aug 2015 #11

Yes Mortgages have been underliners for that long. Springslips Aug 2015 #37

Sorry. Glass Steagall and the Commodities Futures Modernization Act were huge factors. merrily Aug 2015 #7

They always fail to mention CFMA Mnpaul Aug 2015 #38

It's also what made dealing in mortgage derivatives possible. merrily Aug 2015 #59

....! KoKo Aug 2015 #71

It's a myth according to whom? The banks? louis-t Aug 2015 #9

could also blame the banks who didn't run credit checks, or income checks ericson00 Aug 2015 #13

Riiiight, the banks didn't run credit checks... louis-t Aug 2015 #16

You demonstrated what i mean ericson00 Aug 2015 #20

Nothing to do with Glass Steagall? kcr Aug 2015 #32

You are WRONG about 'no credit checks'. louis-t Aug 2015 #73

Good points merrily Aug 2015 #21

Trust financial experts on the economy? Even Greenspan finally said that's a huge mistake merrily Aug 2015 #22

when did Greenspan attack the partial repeal of Glass Steagal? ericson00 Aug 2015 #34

After 2008, that POS suddenly realized that financial markets are not all knowing merrily Aug 2015 #60

Wasn't it those trustworthy bankers who offered those risky loans to people who could not afford jwirr Aug 2015 #26

He quotes Elizabeth Warren in that article that keeping Glass-Steagall would not have prevented 2008 Recursion Aug 2015 #41

It was when combined with derivatives, CDOs and insurance and bank loans of commercial banks. mmonk Aug 2015 #12

Great dilm that proved the old adage hifiguy Aug 2015 #24

A lot of us stupidly defended that liar in the 90's just because the republicans hated him so much tularetom Aug 2015 #14

Wish I could PM you a beer for that post, tom. hifiguy Aug 2015 #27

Thanks, I like beer tularetom Aug 2015 #31

Uh you could be channeling me... ibegurpard Aug 2015 #61

Woohoo....so fraking true....thank you!! haikugal Aug 2015 #77

It fed it a handful of steroids Warpy Aug 2015 #15

... magical thyme Aug 2015 #18

That's what Phil Gramm says! Octafish Aug 2015 #19

Elizabeth Warren also says it Recursion Aug 2015 #42

What does she say about Bill and Phil at UBS? Octafish Aug 2015 #49

I don't know, can you find a quote? (nt) Recursion Aug 2015 #50

Right here. Octafish Aug 2015 #52

Huh... I thought you were asking about her position on Gramm's job at UBS Recursion Aug 2015 #54

Bill Clinton has a job at UBS, too. Octafish Aug 2015 #56

I know she's in favor of re-instating it; I was pointing out that she doesn't think it would have Recursion Aug 2015 #57

Never said it caused the crash. It did allow many of us to lose OUR money in risky investments. jwirr Aug 2015 #23

Wait. That's wrong on several points. Recursion Aug 2015 #51

I suppose that was true of the banks that were purely investment banks but I don't think that was jwirr Aug 2015 #70

One of the cuts in "death by a thousand cuts" Armstead Aug 2015 #25

Sheer sophistry.. sendero Aug 2015 #28

TBTF existed long before the partial Glass-Steagall repeal ericson00 Aug 2015 #39

Rewriting history again, are we? Waiting For Everyman Aug 2015 #30

Sure appears that way! avaistheone1 Aug 2015 #55

Oh please. No one ever said it was ONLY Glass-Steagall. DirkGently Aug 2015 #33

How quickly we forget portlander23 Aug 2015 #35

OP, what do you know? Springslips Aug 2015 #36

Wow GummyBearz Aug 2015 #72

Wow! Springslips Aug 2015 #74

And you're wrong MFrohike Aug 2015 #40

You're half right, and where you're right is important Recursion Aug 2015 #43

Yes and no MFrohike Aug 2015 #44

Oh, I see what you're saying: I agree, the commercial banks screwed the IBs over Recursion Aug 2015 #45

No MFrohike Aug 2015 #46

It probably was dumb luck, or lack of aggression Recursion Aug 2015 #47

Probably MFrohike Aug 2015 #48

Good post. ronnie624 Aug 2015 #58

You need to comment on every bank thread that comes up. Springslips Aug 2015 #75

You are absolutely correct, however I personally do not think it should have been repealed still_one Aug 2015 #53

It contributed to the crisis. Betty Karlson Aug 2015 #62

problem is that people here often do say it CAUSED the crisis ericson00 Aug 2015 #65

The root cause of the crisis is the absence of a global surplus recycling mechanism. Betty Karlson Aug 2015 #68

Of course not! It just forced the public to bail out the perps eridani Aug 2015 #63

Would add some, but you got completely owned in your own thread so Rex Aug 2015 #64

+1 /nt RiverLover Aug 2015 #69

Eeyup. hifiguy Aug 2015 #82

Seems your bumper-sticker wisdom is receiving the relevant amount of disdain it earned. LanternWaste Aug 2015 #78

One post demeaning Sanders Trajan Aug 2015 #80

Clinton is the heavy Democratic favorite, I'm a grassroots fan ericson00 Aug 2015 #81