Quote:
Originally Posted by aklim
Sorry. If it is in the paperwork, it is YOUR fault for not reading it carefully. You invest, you can lose. Study your investment properly or risk loosing it. A fool and his money are soon parted. I have no sympathy. Now, if they fudged the numbers, that is another story.
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I don't think it was in the paperwork though I could be wrong. I think it's more like fraud, like if you needed to make a claim with your insurance company but they just tell you to F off.
Interestingly, in another article that I just found Greenspan also reversed himself on regulating those mortgage securities, something he resisted while it was going good.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/23/AR2008102300193.html?nav=rss_email/components
Quote:
Former Federal Reserve chairman Alan Greenspan called today for imposing some of the same sorts of regulations on mortgage securities he resisted when he was in office, acknowledging that the current financial crisis had exposed "a flaw" in his view of how the world and markets function.
The absence of significant controls on how mortgages are repackaged into larger and more complex securities has been cited as a central cause of the current financial crisis.
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"My question for you is simple," said Waxman, in a hearing of the House Oversight Committee that he chairs. "Were you wrong?"
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"Well, partially," said Greenpan, before parsing the distinctions between different types of derivatives that might have been regulated better.
As Fed chairman, Greenspan opposed regulation of the practices that allowed those subprime mortgages to be bundled into larger securities and sold to investors. Those securities subsequently weighed down the balance sheets of banks and other companies when the underlying loans began to sour.
Greenspan also oversaw a period of low interest rates that helped encourage sometimes loose lending.
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