NNN0LHI drops a steaming coil of Financial Advisor Bouncy...

[asdf2231]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4144084

NNN0LHI  (1000+ posts)      Wed Oct-01-08 02:56 PM
Original message
Just got home from an interesting visit with my Republican financial adviser

I sat listening patiently as he tried to explain to me how the current financial collapse happened.

First off he said this is caused by Clinton's economic policies. I just kept listening. Then he got to the part how the reason the economy was so good under Clinton was because Reagan's financial policies were kicking in during his term.


Then he got to how the blacks were at fault for getting all these loans they couldn't pay.

Thats when I stopped him.

I asked him how many of those black people were involved in drafting their own loan agreements?

He thought about it for a second and said none.

So I asked how many of those agreements were written by trained and well schooled lenders?

He caught on and quickly said all of them.

I asked if that meant anything to him?

He meekly said yes as he realized he just made a big asshole out of himself in front of me.

I could see he knew at this point he was skating on thin ice and about to lose a client.

So I asked him if he could tell me exactly what did cause this problem and who were the culprits?

He admitted that yes Bush and the Republicans have caused this and went on to explain the details of how they did it.
Here is how they did it:

http://www.nysun.com/business/ex-sec-official-blames-ag... /

Ex-SEC Official Blames Agency for Blow-Up of Broker-Dealers

'They constructed a mechanism that simply didn't work'

By JULIE SATOW, Staff Reporter of the Sun | September 18, 2008

The Securities and Exchange Commission can blame itself for the current crisis. That is the allegation being made by a former SEC official, Lee Pickard, who says a rule change in 2004 led to the failure of Lehman Brothers, Bear Stearns, and Merrill Lynch.

The SEC allowed five firms — the three that have collapsed plus Goldman Sachs and Morgan Stanley — to more than double the leverage they were allowed to keep on their balance sheets and remove discounts that had been applied to the assets they had been required to keep to protect them from defaults.

Making matters worse, according to Mr. Pickard, who helped write the original rule in 1975 as director of the SEC's trading and markets division, is a move by the SEC this month to further erode the restraints on surviving broker-dealers by withdrawing requirements that they maintain a certain level of rating from the ratings agencies.

"They constructed a mechanism that simply didn't work," Mr. Pickard said. "The proof is in the pudding — three of the five broker-dealers have blown up." snip

This alternative approach, which all five broker-dealers that qualified — Bear Stearns, Lehman Brothers, Merrill Lynch, Goldman Sachs, and Morgan Stanley — voluntarily joined, altered the way the SEC measured their capital. Using computerized models, the SEC, under its new Consolidated Supervised Entities program, allowed the broker dealers to increase their debt-to-net-capital ratios, sometimes, as in the case of Merrill Lynch, to as high as 40-to-1. It also removed the method for applying haircuts, relying instead on another math-based model for calculating risk that led to a much smaller discount.

So there you have it. Right from the horses mouth.

Don

So Dildo Baggins dug up some newspaper article and then crafted a "Imma HERO!" bouncy to wrap around it...



Massive Epic Fail.
 

[GOBUCKS]

This bouncy is even less believable than the recent one where a DUmmy described having a moonbat conversation with his doctor about another patient.

At least you can believe a DUmmy may have a doctor.... uh herbalist?...er..uh shaman?

But what use would a DUmmy have for a financial advisor? Oh, wait, maybe that's the democrat title for a pawn shop operator.

[BlueStateSaint]

At least you can believe a DUmmy may have a doctor.... uh herbalist?...er..uh shaman?

Dealer?

[JohnnyReb]

At least you can believe a DUmmy may have a doctor.... uh herbalist?...er..uh shaman?

Dealer?

Witchdoctor.

[franksolich]

What is the grouchy old primitive doing with a Republican financial advisor anyway?

Shouldn't he be using a Democrat, liberal, or primitive financial advisor?

[jtyangel]

Yeah, and a financial advisor is going to cave under pressure of a few words fromtheir client He's right(your FA), although he was far more blunt about it and said it in terms not in pc codeword and AGAIN YOUR SIDE NH whatever helped to pressure mortgage companies and others into the whole equality thing and then you made it a ripe haven for cons on both sides to make shitty deals. We all know how your squeaky wheel pressure groups work and how limp-wristed corporations in the day of 'social responsibility' roll over at the site of a 'scary(ie pot clanging) black person in a suit'. Your FA was right considering he was discussing the CAUSES of it. Business, gov., and individuals all have culpability here and plenty of companies have bit the dust already and individuals. Now if we could pull some politicians down with it, namely one of the ones running for president who was involved in this whole mess, then maybe we'll have a little 'social justice' of our own. 

Oh and Clinton, along with Greenspan as advisor, did get through many of the 'adjustments' that made this all possible. Even a few of your DUers are starting to get that and now that nothing is at stake, they are starting to bail on him. DUmmie!

[USA4ME]

NNN0LHI

I asked him how many of those black people were involved in drafting their own loan agreements?

He thought about it for a second and said none.

So I asked how many of those agreements were written by trained and well schooled lenders?

He caught on and quickly said all of them.

Yeah, it's a bouncy, but just for fun let's say that it happened.  The above part makes no sense.

Yes, lenders put products on the market that were way too risky, but there's the part where the customer has to take responsibility and note that just because the lender will loan them X amount of money doesn't mean they necessarily should take it, that maybe they should only borrow two-thirds of X.  All that NNN0LHI is saying is that black customers were so enticed that it caused them to be too weak and stupid beyond their ability to say no, and in turn, to not act in their own best interests.

.

[DumbAss Tanker]

Yeah, and a financial advisor is going to cave under pressure of a few words fromtheir client He's right(your FA), although he was far more blunt about it and said it in terms not in pc codeword and AGAIN YOUR SIDE NH whatever helped to pressure mortgage companies and others into the whole equality thing and then you made it a ripe haven for cons on both sides to make shitty deals. We all know how your squeaky wheel pressure groups work and how limp-wristed corporations in the day of 'social responsibility' roll over at the site of a 'scary(ie pot clanging) black person in a suit'. Your FA was right considering he was discussing the CAUSES of it. Business, gov., and individuals all have culpability here and plenty of companies have bit the dust already and individuals. Now if we could pull some politicians down with it, namely one of the ones running for president who was involved in this whole mess, then maybe we'll have a little 'social justice' of our own. 

Oh and Clinton, along with Greenspan as advisor, did get through many of the 'adjustments' that made this all possible. Even a few of your DUers are starting to get that and now that nothing is at stake, they are starting to bail on him. DUmmie!

Yes, even under the DUmmie's version of it, the real question would not be who was Prez at the time, but why did the SEC change the rules, i.e. just who really put the pressure on them to do that.  I suspect the names Schumer, Frank, and Dodd would figure prominently in that...

[Chris_]

Negative-100 bongs. Try again, DUmbass.