The financial regulatory bill is a "disaster," and its proposed consumer protection agency would create a Fannie and Freddie "on steroids," Sen. Judd Gregg, R-N.H. told CNBC on Monday."The bill is a disaster because it doesn't address the fundamental underlining causes of the economic issue, which were real estate and underwriting," he said. "This bill became, 'I want to score the most points against Wall Street.' Most of the initiative of this bill wasn't directed at solving the problem, but it was directed at scoring political points."Gregg, who sits on the Senate banking, budget and appropriations committees proposed underwriting standards along with Sen. Bob Corker, R-Tenn., yet they were not included in the final bill, he said.
Anyone who understands what went on culminating in Lehman Bros understands that it was the bond rating agencies like S&P whose incomprehension, corruption, incompetence and the economic structure of how they were paid to rate bonds sat at the center of the economic fiasco.
They understand that S&P and others rating of BBB mortgages and mortgage bonds, transmogrified at a rate of 80% into derivative CDO's rated AAA, which allowed banks acting as investment banks, and investment banks operating as casinos, to REMOVE THE RISK FROM THEIR BOOKS SINCE THE CDO'S WERE AAA, paying the desks, brokers and agents of sale at the 'moment' of sale, and then run around as undercapitalized as a tuchus with thong lingerie is dressed, so that when the non risk, risk crashed out, NO ONE HAD THE $$ to pay off the debt incurred by the falsely/foolishly systemically up-rated bonds .. IS WHAT NEEDED TO BE FIXED.
Why would Congress allow a system whereby someone can game the operations to make garbage into gold to go on?
Gee, I wonder why.
The answer is one of the major reasons why the tea party exists and draws in people.
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