Originally Posted By: Kaotic
Originally Posted By: sinij
Nobody understood what these securities were and regulators did not step in and said, "wait a second, these are not AAA assets!". So a whole bunch of bankers made BILLIONS selling risky junk bonds as a ultra-secure assets.
You're asserting that since the regulators didn't do their jobs we need more regulators?


That is exactly what he is saying. Intentionally misrepresenting an investment is fraud.

The various govt entities already had the power to put a stop to it, but did not.

The Obama administration has decided not to prosecute anyone politically connected in connection with the collapse. However, the Obama allies have this daydream that if only "more" regulations were in place, that the govt would somehow not only detect but have the political will to halt the next big scheme concocted by super wealthy super connected Wall St types.

The irony of course is that the same types who masterminded this whole situation arent much bothered by additional regulation - their legions of lawyers lobbyists and fixers make an extremely good living navigating the legal and regulatory waters. Its the smaller "not too big to fail" entities in the industry that really get hammered.

For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)