Buffett explains how Phil Gramm created the crisis

  1. This post has been removed.

     
  2. You have chosen to ignore posts from IamYourDaddy. Show IamYourDaddy's posts

    Buffett explains how Phil Gramm created the crisis

    Such an ignorant rant.... no where in the bill does it address Derivatives

    And you have no clue as to what you are talking about

     
  3. You have chosen to ignore posts from mrkleen2002. Show mrkleen2002's posts

    Buffett explains how Phil Gramm created the crisis

    [Quote]Such an ignorant rant.... no where in the bill does it address Derivatives

    And you have no clue as to what you are talking about[/Quote]


    I dont know about you guys, but when it comes to the economy, I am listening to this guy IamYourDaddy - he knows his stuff.

    I mean come on, who the hell is Warren Buffett? Clearly he knows nothing about making money?

     
  4. You have chosen to ignore posts from mrkleen2002. Show mrkleen2002's posts

    Buffett explains how Phil Gramm created the crisis

    Greg - see if you can follow along

    The above article notwithstanding, Warren Buffett has bashed Phil Gramm on numerous occaions - you can use "the google" to find article after article where Buffett is quoted from many years ago as calling the risky investment instruments Gramm unleashed “financial weapons of mass destruction.”

    Poof.
     
  5. This post has been removed.

     
  6. You have chosen to ignore posts from hippydippy. Show hippydippy's posts

    Buffett explains how Phil Gramm created the crisis

    Oh, don't worry about anything, last week the Bush Economic team said all this is is a crisis of confidence. We just have to improve the mindset of the American herd and then everything will be fine.

    Remember, BANKS ARE NOT FAILING PEOPLE, we just have to feel good and it will all turn around. So, pay no attention to the man behind the curtain, just listen to the great and powerful OZ and you'll be fine.

    Oh, November, where are you.

    P.S. Mr. Buffet is right. There's a lack of conscience and shame and no reason (in the classic American, founding fathers sense) to check our lust for profit. At least (without government interference) it's a self-correcting system because it can't sustain unbridled milking for too long- it will fail- as it's doing. But breathing new life into a failed system is just prolonging the inevitable. The change must be real and symbolic to be meaningful and long-lasting. Dealing with mischievous executives is just like raising children, you need to be firm and resolute or they'll do it again.
     
  7. You have chosen to ignore posts from Pymus. Show Pymus's posts

    Buffett explains how Phil Gramm created the crisis

    But Kirk - Warren Buffet is an old man like McCain. I thought old men didnt know what they are talking about. Even Barak Obama thinks old men cant multi task. Now you want to take the opinion of an old geiser to tell me whats what?

    You are confusing me.

     
  8. You have chosen to ignore posts from Pymus. Show Pymus's posts

    Buffett explains how Phil Gramm created the crisis

    By the way Kirk- This whole mess of giving loans to people who couldn’t afford them is directly attributable to

    Bill Clinton (DEMOCRAT)
    Bernie Frank (DEMOCRAT)
    Chris Dodd (DEMOCRAT)

     
  9. You have chosen to ignore posts from TheArtist-formerly-known-as-Boo. Show TheArtist-formerly-known-as-Boo's posts

    Buffett explains how Phil Gramm created the crisis

    [Quote][Quote]Such an ignorant rant.... no where in the bill does it address Derivatives

    And you have no clue as to what you are talking about[/Quote]

    I dont know about you guys, but when it comes to the economy, I am listening to this guy IamYourDaddy - he knows his stuff.
    I mean come on, who the hell is Warren Buffett? Clearly he knows nothing about making money?
    [/Quote]

    You know it is NOT NOT NOT NOT a crime to say I dont understand the whole situation. The financial mess is very complex. But the basics are not. Anyone getting behind talking points on either side on this issue demonstrates emphatically that they are a fool and no little about finance.

     
  10. You have chosen to ignore posts from TheArtist-formerly-known-as-Boo. Show TheArtist-formerly-known-as-Boo's posts

    Buffett explains how Phil Gramm created the crisis

    Dave, PS, and the rest of the kool aid gang, give it a rest on this one. It makes you look incredibly ridiculous and moronic to be battling it out of this issue. The financial meltdown happened because the right and left liked what they were getting from it. The left got to pad their resumes as champions of the poor and downtrodden, "lookie lookie here is a home loan for you even though you cant read". And the right the champions of the free market too "see hear friends, there is much money to be made and leave no dime on the table when it is over".

    The only problem is that there has been and will forever likely be a business cycle. You know UPPPPPP and DOWNNNNNN. Housing prices were inflated creating a very classic bubble. When Wall Street and Main Street counted on rising values to keep in all going they forgot that its a house not an investment. POP goes the bubble and CRASH down comes the house of cards. I had a chance to take an interest only loan, a 107% loan to value loan I said I cant afford it. I did not have thankfully so a chance to buy a CMO which is a piece of a mortgage security repackaged as a short medium and long debt.

    Cheers to all of the idiots that think this is a partisan debacle. Its a national debacle and everyone involved including in part the public should be ashamed.
     
  11. You have chosen to ignore posts from IamYourDaddy. Show IamYourDaddy's posts

    Buffett explains how Phil Gramm created the crisis

    The Commodity Futures Modernization Act of 2000

    Note the word modernization ... it mean is trying to keep up with the jones, the de-regulation is trying to catch up with what's happening in Europe



    The Commodity Futures Modernization Act was passed by Congress and signed into law by President Bill Clinton in December 2000. It was an attempt to solve a dispute between the Securities Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) that arose in the early 1980s. At that time, Congress had enacted legislation to expand the scope of what was defined as a commodity. This resulted in some overlap between the regulatory scope of the SEC and the CFTC.

    There are also basically two types of sellers: the farmer, or commodities producer, and the investor. The investor in the purchasing example will eventually be a seller, since they have no use for 5,000 bushels of wheat. Even if the price in December is less than what the investor paid for it upon purchase, the investor will sell the commodity in December.
    Farmers are free to sell when they want. They usually sell after the harvest so they know the amount they have in hand, but they may also sell before their harvest to pay for the materials required for their crop. However, if they sell more than they grow, they will need to become buyers when the contract is due to make up for the short fall.
    Investors liked this process so much that someone decided to start treating stocks as if they were commodities. For instance, someone started selling in June 2005 a contract to deliver 100 shares of General Electric (GE) stock in December 2006. This type of financial instrument is called a single stock futures contract. It is this type of contract that resulted in the Commodity Futures Modernization Act being drafted and passed.
    Everything in the public markets tends quickly to become regulated by some governing body. A single stock futures contract had features of both a commodity, which is governed by the CFTC, and a stock, which is governed by the SEC. Both agencies wanted jurisdiction over transactions of this type of financial instrument. They could not come to an agreement in the 1980s, and the result was that this type of financial instrument was banned. Since there was demand for this instrument, and this sort of instrument was being sold on European markets, Congress stepped into the dispute with the Commodity Futures Modernization Act. The purpose of the Commodity Futures Modernization Act was to resolve the dispute between the two governing bodies since they could not come to an agreement on their own.

     
  12. You have chosen to ignore posts from IamYourDaddy. Show IamYourDaddy's posts

    Buffett explains how Phil Gramm created the crisis

    I dont know about you guys, but when it comes to the economy, I am listening to this guy IamYourDaddy - he knows his stuff.
    I mean come on, who the hell is Warren Buffett? Clearly he knows nothing about making money?

    ======================

    Warren Buffett is a legend and he has made many great investments

    Some Derviative got so advance that is hard to understand, some even use it to hide bad assets by fancy repackaging but Derviative have been around years before Gramm and etc. and this product is used all the time.

    Warren Bufett himself had bought over 20+ billions dollars worth of derivative in 2002 (currency forwards)

    So not all Derviative is bad just the one Warren didn't make money or understand

     
  13. You have chosen to ignore posts from lrecliner. Show lrecliner's posts

    Buffett explains how Phil Gramm created the crisis

    If the final vote in the House and the Senate had been along party lines, with the Dems against it, then this would be a partisan issue the lefties on the board could crow about. They still do ...however....

    The facts tell a different story. This legislation had overwhelming bi-partisan support. Everybody, it appears, must have thought this was a great idea at the time. It wasn't until the gravy train de-railed that the finger pointing began.

    Sorry folks, but if you are going to blame Washington for the credit crisis, you got to blame both sides of the aisle.
     
  14. You have chosen to ignore posts from easydoesit2. Show easydoesit2's posts

    Buffett explains how Phil Gramm created the crisis

    "Sorry folks, but if you are going to blame Washington for the credit crisis, you got to blame both sides of the aisle". Irecliner

    "Cheers to all of the idiots that think this is a partisan debacle. Its a national debacle and everyone involved including in part the public should be ashamed." ArtistFKABoo

    AMEN!!!!!
     
  15. You have chosen to ignore posts from mrkleen2002. Show mrkleen2002's posts

    Buffett explains how Phil Gramm created the crisis

    [Quote]Cheers to all of the idiots that think this is a partisan debacle. Its a national debacle and everyone involved including in part the public should be ashamed.[/Quote]

    You are correct, everyone involved is to blame.

    However, when one party cotrolls congress for 6 and the white house for 8 of the last 8 years, and something like this happens - they deserve more of the blame - which is exactly what is happening.

    If you dont get that, you are an even bigger idiot than the public at large.
     
  16. You have chosen to ignore posts from IamYourDaddy. Show IamYourDaddy's posts

    Buffett explains how Phil Gramm created the crisis

    Warren Buffett stake in Goldman Sachs


    Was done with a Derivatives



    The Wall Street investment bank astounded its rivals by raising $10 billion in fresh capital — $5 billion from Berkshire Hathaway, Mr Buffett’s main listed company, and $5 billion through a public share offering. Shares in Goldman rose 6 per cent to $133.00, giving Berkshire an instant theoretical profit on a side deal, under which it has warrants to buy up to $5 billion of new Goldman shares at $115 a share at any time in the next five years.

    http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4821506.ece

     
  17. You have chosen to ignore posts from ps2man. Show ps2man's posts

    Buffett explains how Phil Gramm created the crisis

    its the fault of the racist program affirmitive action
     
  18. You have chosen to ignore posts from lrecliner. Show lrecliner's posts

    Buffett explains how Phil Gramm created the crisis

    [Quote]

    You are correct, everyone involved is to blame.

    However, when one party cotrolls congress for 6 and the white house for 8 of the last 8 years, and something like this happens - they deserve more of the blame - which is exactly what is happening.

    If you dont get that, you are an even bigger idiot than the public at large.[/Quote]




    It doesn't matter who the President was the last 8 years, since Bush wasn't even in office when the legislation (Gramm-Bliley-Leach) that is being blamed for the Credit Crisis was passed. It isn't Clinton's fault either, since a VETO would have done no good. He would have been beaten by an override and would have had to sign it either way.

    The final vote in the Senate was 90-8-1. In the House it was something like 362-56-15. What does this mean? Hardly anyone opposed it, including the Democrats. Yes the Republicans had a majority, but it wasn't as big a majority to account for such a lopsided vote.

    Who is more to blame???? Sorry Mkleen, but you can't get "a little pregnant"
     
  19. You have chosen to ignore posts from mrkleen2002. Show mrkleen2002's posts

    Buffett explains how Phil Gramm created the crisis

    [Quote]Who is more to blame???? Sorry Mkleen, but you can't get "a little pregnant"[/Quote]

    You can say what you want, but we both know that the Republicans are going to pay more of a price for this.

    Didnt say it was right, but thats how it goes....so deal with it.
     

Share