Quote:
|
Originally Posted by host
Hey ace! Where you been?
|
I have not had much to say. Defending Bush, the economy, our military actions against terrorists, is pretty repetitive. The Democrats offered a glimmer of hope last year, and spiked some interest when they took control of Congress, but they have proven to be a bunch of gutless, whiny, unfocused politicians in the worst way.
Quote:
|
It's much worse than you think, ace....and it isn't an overreaction to sub-prime. Mortgage bond tranches all the way up to AAA have been clobbered. All of the paper had toxic, high risk loans mixed into it, and Moody's S&P and Fitch failed to examine and actually skeptically rate the mortgage and corporate bonds. Investors did not make demand clauses when they bought the bonds, they simply look at how the above rating firms, rated the paper....
|
A number of factors are converging. Just like there was irrational exuberance in the 90's the current conditions are being met with whatever the opposite of "exuberance" is, but in either case it is irrational.
Seems to me that if you add up all the "write-downs" happening and those that will happen, they add up to more than the sum total of the sub-prime market, the issue that triggered all of this.
I am agreeing that you were correct, but I still hold the position that the reaction was over-blown and not rational. Just let me know when it is safe to go back into the "water".