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Originally posted by ftfl

What caused the collapse of the Wall Street. CBS News 60 minutes.

http://www.cbsnews.com/video/watch/?id=6298084n&tag=contentMain;contentAux

http://www.cbsnews.com/video/watch/?id=6298082n&tag=contentMain;contentAux

Enjoy/

Freddie.

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y take in brief
Satyajit Das , An ex manager of hedge fund of Indian origin settled in Australia had written about coming collapse much before it happened.

He had also warned that ENTIRE WORLD will have to pay for the same which has yet not happened. (China is unwilling to pay for it).

It is interesting that AIG booked CDS premiums as “income” as there were no specific rules regarding provisioning, margin etc by regulators for “financial product insurance”. However, a very little understanding of accounting would have made it clear that AIG cannot book insurance premium 100% as income . Complicity of their accounting firm is so obvious and appalling.

Credit rating agencies granted A+++ rating without considering AIG exposure

While moron Bush was complicit another moron Obama has DONE NOTHING to check the big banks.

Obama is missing Trees for wood!!!

USA’s woes are directly and absolutely resulting from persistent negative trade balance with China and still China has been given MFN (Most favored nation status). USA has positive balance of trade with India.

Obama has proved to be proverbial moron inexperienced person (As was projected by Hillary in her primary campaign) Obama has proved himself as most ineffective mediocre person (Only person who can beat him is our own MMS). So long as he is unchecked, USA and world would keep paying

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Originally posted by Nightmare
y take in brief
Satyajit Das , An ex manager of hedge fund of Indian origin settled in Australia had written about coming collapse much before it happened.
He had also warned that ENTIRE WORLD will have to pay for the same which has yet not happened. (China is unwilling to pay for it).

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Of course, after the fact everyone claims to have predicted it and warned the whole world and no one took notice.
"Experts" that claim to have foreseen the financial collapse are dime a dozen these days.

However, the fact is that only a very small set of folks understood the true meaning of what was happening between say 2003 and the collapse in 2007 - 2008.
And an even small (rather, no more than a handful of folks) had enough conviction to act upon it instead of thumping their chests after the event.
This handful of folks made big bets against the financial markets and ended up reaping huge profits and are today millionaires and some have retired.
An excellent book on this subject is The Big Short.

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It is interesting that AIG booked CDS premiums as “income” as there were no specific rules regarding provisioning, margin etc by regulators for “financial product insurance”. However, a very little understanding of accounting would have made it clear that AIG cannot book insurance premium 100% as income . Complicity of their accounting firm is so obvious and appalling.

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CDS income is similar income as insurance premiums (because that is what it really is).
The problem was twofold - one, they did not understand/admit the true risk of the underlying products that they were writing the CDS on.
Secondly, they did not make enough (or any) provisions for losses.

Your assessment of what Bush did and what Obama is doing are correct!