Edwynn
Posts: 4105
Joined: 10/26/2008
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quote:
ORIGINAL: Aswad
quote:
ORIGINAL: DesideriScuri
Very interesting read. Thank you for the link.
You're welcome, of course.
I'll note that I'm not sufficiently familiar wtih the matter to guess at the credibility of her conclusions, but it's an interesting datapoint, I think.
IWYW,
— Aswad.
I am familiar enough with economics and the banking system and the financial meltdown in particular to tell you that her story is complete bollocks.
Her claim that sub-prime loans amounted to 5% when they in fact accounted for as much as 32% at the peak would be the first giveaway for those who know what they're talking about.
The notion that it's China, not the Fed, that determines the interest rate in the US and across also made for quite a laugh.
The writer of the article is just one of numerous shills sent to their duty by the conglomerate media at the behest of their financial conglomerate brethren in the all-out effort to deflect attention from the underlying cause, that being the major deregulation that allowed all these financial shenanigans to even come into existence.
The Chinese did not send out salesmen to poor neighborhoods to talk granny into a re-fi that would blow up in her face in two years.
The Chinese did not conjure up these "ninja" no-doc loans.
The Chinese did not invent Collateralized Debt Obligations, nor Credit Default Swaps.
Neither did low interest rates, whoever actually determined them, cause or instigate any of the above. Greenspan, not Chinese savers, did in fact keep interest rates too low for too long, but as much of a bellows as that was to overall asset inflation, the interest rates did not in any way mandate all this 'financial innovation,' which in fact only came about due to the financial deregulation that allowed it.
Tiresome as it is to have to repeatedly dispel myths perpetrated by the financial industry in their great effort to avoid responsibility, I shall maintain the effort.
< Message edited by Edwynn -- 11/17/2012 12:11:40 AM >
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RE: The new Face of China - 
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