Are you glad you don't own Goldman Sachs stock today?
Financial Shares Tumble After Goldman Sachs Charged With Fraud
"Financial shares tumbled after the Securities and Exchange Commission charged Goldman Sachs Group Inc. with fraud related to packaging and selling collateralized debt obligations linked to subprime mortgages.
"Goldman Sachs, the most profitable firm in Wall Street history, tumbled 10 percent to $165.02 in New York Stock Exchange composite trading at 11:12 a.m. in New York for the biggest intraday decline in a year."
And just think, all of this would have been prohibited by the Glass-Steagall act, which was repealed ON CLINTON'S WATCH by the 1999 Gramm-Leach-Bliley act, which passed with overwhelming majorities of both parties in both houses of Congress.
OF BOTH PARTIES
IN BOTH HOUSES OF CONGRESS
Don't blame it ALL on Phil Gramm just because he was one of the co-authors of the bill (eyeroll).
THE DEMOCRATS ARE JUST AS MUCH TO BLAME FOR THIS.
So you're blaming Bush for something that happened in Congress in 1999?
And you realize that the Enron scam started on Clinton, watch, right?
Bush was the one who BUSTED Enron.
Shovel Ready, correct. And the surprising thing is, most of the subprime loans that defaulted were taken out by WEALTHY real estate speculators. They were trying to buy up more properties than they could qualify for, to make more money.
Then OOPS the real estate bubble burst and they were faced with big losses. So they defaulted and wrote off the tiny down payments they had made, and they just walked away. It was cheaper than selling at a loss and being forced to write a check for the unpaid loan balance.
EXACTLY WHAT HAPPENED IN THE 1980's. When the market value of a house drops below the remaining mortgage balance, people just walk away and leave the keys in the mailbox.
So they did it all over again in the 2000's.
Smart, real smart...
- Anonymous1 decade agoFavorite Answer
If Congress is going to pass laws insisting that financial institutions lend money to people unable to pay it back, then the financial institutions are going to make the loans, but they are naturally going to look for a way to get the bad assets off their books. AIG, GS and other companies offered those products to financial institutions, and they bought them. I blame the politicians who advocated making loans to uncreditworthy customers.
- Anonymous1 decade ago
Obama took office only 15 months ago and already the US economy is coming back. Goes to prove that from Reagan to Clinton or from Ford to Carter, Dems always picks up the reoukes mess.
- Anonymous1 decade ago
BWOOOOOOSH CORP WALLSTREET DEREGULATIONS
STARTED WITH ENRON...KLOWN