QUOTE(radek @ Thu 12th August 2010, 6:45pm)
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QUOTE(Milton Roe @ Thu 12th August 2010, 5:52pm)
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I kind of like the "oughties" as it stands for all those things we ought not to have done in the first decade of the 21st century, but did anyway... Admire Enron.
Enron was 90's. You're thinking Lehman Brothers and AIG (though dem Europeans were just as bad if not worse).
No, Enron went down at the end of 2001, just a few months later than 9/11. That scandal and creative bookkeeping (that would be a remarkable word if it had two p's!) took their principal accounting firm Arthur Andersen down in 2002, since obviously they didn't do their job (and probably were criminally negligent).
This all connects to the 2008 meltdown, in a way, because it was a warning that was sounded,but missed. Arthur Andersen had been the principal oversight for Fannie Mae and Freddie Mac. When it went down in 2002, the government used it own accounting office the GAO to have a look at these two companies, and didn't like what they found. By 2005, before the housing bubble had burst, this resulted in a big warning about Fannie and Freddie and CDOs and mortgage backed derivatives and big exposure by the government to bad housing debt and overleveraged housing related "securities." Greenspan at the time made the warnings, but at the same time refused to allow the SEC to do anything about it, saying essentially that it was a private business problem (apparently he thought Fannie and Freddie would just listen to him and get totally out of the housing reated securites business). Short story: they didn't.
The story of how the head of the Commodity Futures Trading Commission, a woman named Brooksely Born, tried to regulate derivatives in the late 1990's and was shot down by Greenspan, Rubin and Summers, and ultimately congress which had its finger in its ears, is told
here in this Frontline special you should watch.
Born got her chance to say "I told you so"
later. Of course it was too late. Greenspan had been out of office for 4 years and the economy had been in meltdown for two.
Anyway, the rest of it is history. Bear Sterns was saved by the Feds in early 2008, but when Lehman was going down, the Feds decided to let it. Its collapse touched off such a financial storm that the Feds had to bail out AIG and pass TARP as an emergency in late 2008, and off we go.
QUOTE(radek)
QUOTE(MR)
Ignore illegal immigration until one child in 12 in the country is born to illegals...Anybody for The Stupid Decade?
Who cares? Seeing as these are going to be (or already are) the people paying for your retirement you oughta be thankful. The stupid part is needlessly freakin' out about it.
Excuse me? These people are not going to be paying for my retirement. These people are not even going to pay for their own retirements. These are not engineers, nuclear physicists and heart surgeons who are sneaking across the border. They are, by even their own boosters' words, the poorly-educated people who are willing to do the minimum wage jobs that "nobody else wants to do." Except you don't build a world-class economy on the labor of people like that. But they cost the social services of your country just as much as a Ph.D. polymer chemist from China, here on an H1-B visa. More.
This is the way to destroy an economy. Places like New Zealand don't even let you emigrate if you're over 40, even if you've got a Ph.D. Because you probably won't pay for yourself before you retire. Our situation with the poorly educated from Mexico is that same problem, but in spades.
The stuff about jobs nobody else wants to do, is B.S., also. In this economy, there are plenty of U.S. citizens who'd do any job. I've a friend in the NYC metro area (Flushing) with a masters' degree in history, who can't find work as a secretary or a cook! He passed the state department civil service exam (no mean feat) a few years ago, but as a while male, he's been screwed by affirmative action. And the manual labor and blue collar jobs are all held down by "undocumented" people from Mexico. So it goes.