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Originally Posted by Cynthetiq
Well, hopefully this gets completed.
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This is a game of smoke and mirrors and will have no meaningful impact on anything. It is like moving the deck chairs around on the Titanic. The Titanic needed a captain and crew with the ability to make minor course corrections well in advance of a collision with an iceberg. What comes from this WH is reactionary, too little too late.
The credit default obligations (CDO's, CMOS's, or CDS's) market often cited for the "crisis" is a zero sum game. On every trade someone was "long" (betting on increase) and someone was "short" (betting on decrease), and you have the "house's cut" (fees). When the government bailouts the "long" positions, like they did with AIG, there is a direct benefit to the "short" positions, like Goldman. So you end up with a company like Goldman being made whole, profiting on the risks they took and collecting fees. To go after these firms after the fact, does not leave me with a feeling that they know what they are doing. Now he announces a plan that with hurt some financial firms and benefit others.
And at the end of the day the guy with the mortgage, which was the basis for all this, still got his home foreclosed upon. Thanks a lot Mr. President.