Comments on: Retroactive Liability for our Financial Woes http://thesituationist.wordpress.com/2008/09/27/retroactive-liability-for-our-financial-woes/ Fri, 17 May 2013 13:24:55 +0000 hourly 1 http://wordpress.com/ By: Lochgelly http://thesituationist.wordpress.com/2008/09/27/retroactive-liability-for-our-financial-woes/#comment-16351 Thu, 11 Feb 2010 02:37:04 +0000 http://thesituationist.wordpress.com/?p=3454#comment-16351 Good editorial…Even Time Magazine predicted the crisis

http://www.time.com/time/business/article/0,8599,1723152,00.html

Mortgage lenders knew that they were selling bad mortgages but they didn’t care because they knew they could separate the liability from the mortgage…and the guys on the street were making a killing on commissions…

The big banks new their “little’ bundles of bad assets were doomed but they didn’t care because there were plenty of trades going on…they could dump them…hedge fund managers didn’t care…it wasn’t their money…and that AIG insurance would salvage a crisis.

AIG didn’t care because this was a massive new market…massive.

And worst of all….the rating companies…Moodys and Standard and Poors didn’t care because business was booming in this new market.

I think all of these entities could be convicted under existing Consumer Protection statutes….however, a new retroactive liability Financial Fraud statute would be even better…

Ever hear the expression…pipe dream?

Sigh…I can’t wait till it gets warm again…I need to go trout fishing.

]]> By: Points of Interest, #32 « Mind, Soul, and Body http://thesituationist.wordpress.com/2008/09/27/retroactive-liability-for-our-financial-woes/#comment-13674 Sat, 04 Oct 2008 00:36:59 +0000 http://thesituationist.wordpress.com/?p=3454#comment-13674 [...] Situationist has a provocative post about using the law to make those financiers, whose reckless practices have ruined the economy, pay to cl….  It makes a very good case.  Throw the get rich quick ”house flippers” in with the [...]

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