The Monster That Ate Wall Street

Thank you for this article explaining the intricate transactions that caused this wild ride. Now I see why AIG was so important. Yes, as one commentator mentioned, selling mortgages to people who had no business with them contributed to the financial fiasco we have, but that is far from being a primary cause. We should say, "Yes" to demanding close regulation and providing for a way to kick out anyone who does not use due diligence to keep on top of these clever deals.

Excuse me, but isn't a certain President and a Senator and a Congressman getting a free pass on this? Who was it who pressured Fannie and Freddie to make those subprime loans? Your article is nothing but a whitewash job. john Willis, Kingsport, TN

A little clarity. The Katrina debacle holds blame for city, state and federal officials, too. Unfortunately for the Bush administration--masters of the game of blame delegation--the Home Land Security department and related legislation was their own creation. It clearly makes the Federal government in charge of any and all disasters that overwhelm or threaten to overwhelm state and local resources.

The GOP controlled congress when Katrina occurred, which was part of the reason they lost the reins, and they were in the process of taking over congress just as the Credit Default Swap was being created. I wish we could just let them twist in the wind, but it would mean tighter credit if you wanted to buy a car or a house, and probably a depression like we haven't had in seventy five years.

Keep printing money Washington! Have yet to hear anything about how bad inflation will be a year from now. HOw are we going to get the entire world (even citizens of USA) to buy into this crap? NOBODY on "main street" wants this. Make WALL STREET pony up its fair share first and foremost, and then ASK the citizens to help with the rest. I have yet to hear how the GREEDY b@stards on Wall Street are going to help us. Oh that's right they pump all the MONEY they stole back into the Market and become even richer, while people like me have to worry how the hell I can afford to put gas in my car, pay for my child, and my house at the same time. And in ten years Wall Street will do the same DAMN thing, and of course have to turn to US the tax payers for help once again.

Stop the pointing fingers, do something. It's greed of the CEO 's who walk out with millions, and the home=buyers who knew they will not be able to continue payment. So, what?? walk away. I wish we all could have that mentality, then blame others.

Once again the people of USA are being sucked into the Black Hole, known as Washington D.C. You can take all the foreclosures, bankruptcies and other bad loans for the past 50 years and they won???t add up to 700 billion. This thing about foreclosures and bankruptcies has been going on for centuries. This is just another slight of hand by our ???friends??? in Washington to cover up their own blundering mistakes. The average person is about as smart as a bag of hammers when it comes to finances. They???re not too bright when it comes to understanding the words, supply and demand. Right now our economy is based on at least 80% of what we consume from foreign countries. We hardly make anything anymore. Foreign countries own much of our stock. They can make or break us any time they please. Example: Japan could not win the war, but look at them now; they supply us with many different products. America must wake up and ???demand??? retribution from our congress for the slop jar attitude at handling ???our??? money. If they don???t start writing letters and making phone calls then they deserve what they get.

Newsweek: How ???credit default swaps??? ??? an insurance against bad loans ??? turned from a smart bet into the monster that ate Wall Street.

How is this different than what the house republicans want. Us (American taxpayer) to sell insurance against bad loans. The only way this works is if we regulate in addition to insure.

It's not my money, says JP Morgan, why should I worry? We need to put them on a slow boat to a third world country with no chance to return.

Yes, don't blame the gun when someone gets shot. Blame the one who fires the shot. String 'em all up! Every last one of them. We're all waiting for the indictments.

Great video of C-Span2 hearings on Freddie and Fannie:

http://www.youtube.com/watch?v=_MGT_cSi7Rs&eurl

The only way to fix this mess is to regulate the banking and finance industries, eliminate K street corporate lobbying and enact strict campaign finance reform, otherwise politicians will do what's in their best interests, not ours.

for us average Joe/janes, letting these institutions Grossly overinflate real-estate prices by paying appraisers to overexaggerate their true worth, knowing fully in advance they were putting us in a bind financially. There wasnt too many buyers. They created that by opening the wastegate to anyone with no money down, but the catch was you were buying something not worth even half its asking price 5 years ago. Why bother with $40,000 loans when you can get away with $200,000? If they default, we'll pass the buck.....

Appraisers should be strictly regulated by independant groups who have no conflict of interest with any party invloved. If they get caught doing this crap, they should be liable for all that money......

Thank you, Matthew, for your insightful article. Is it possible for you to give us a general idea of the amount of commissions were made from all of these CDS dealings in these past 14 years? In other words, when these financial manipulators were digging the foundation out from under our financial system, how much did they take home? And how much will they pocket from this $700,000,000,000 bailout? Jeff Pease/Charlotte, NC

This isn't a financial Rescue Bailout Plan. This is a Financial Sellout Plan for the American Taxpayers.

This isn't a financial Rescue Bailout Plan. This is a Financial Sellout Plan for the American Taxpayers.