Comments on: The Looting of America http://www.cchange.net/2009/08/05/the-looting-of-america/ Covering the transformations to social, environment and economic sustainability Sun, 18 Dec 2011 00:51:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Bill Baue http://www.cchange.net/2009/08/05/the-looting-of-america/comment-page-1/#comment-10565 Bill Baue Mon, 14 Sep 2009 16:47:22 +0000 http://www.cchange.net/?p=1526#comment-10565 Todd, great to hear about your discovery of Sea Change through Audubon Magazine -- welcome to the Sea Change community. I agree wholeheartedly with your terminology! For more on this, check out our coverage of <a href="http://www.cchange.net/search-results/?cx=partner-pub-5033166913516338%3A78bssu-fo4l&cof=FORID%3A10&ie=UTF-8&q=economic&sa=Search" rel="nofollow">economic issues</a>. We look forward to hearing more from you. Best, Bill Co-Host/Producer, Sea Change Radio Todd, great to hear about your discovery of Sea Change through Audubon Magazine — welcome to the Sea Change community.

I agree wholeheartedly with your terminology!

For more on this, check out our coverage of economic issues.

We look forward to hearing more from you.

Best,
Bill
Co-Host/Producer, Sea Change Radio

]]> By: Todd Spare http://www.cchange.net/2009/08/05/the-looting-of-america/comment-page-1/#comment-10564 Todd Spare Sun, 13 Sep 2009 01:37:26 +0000 http://www.cchange.net/?p=1526#comment-10564 Just learned about Sea Change (Audubon Mag). This post is very late however....I am having trouble with the term Economic downturn....I prefer the term "Grand Theft" Just learned about Sea Change (Audubon Mag). This post is very late however….I am having trouble with the term Economic downturn….I prefer the term “Grand Theft”

]]> By: A Summer of Sea Change Radio | Sea Change Radio http://www.cchange.net/2009/08/05/the-looting-of-america/comment-page-1/#comment-10558 A Summer of Sea Change Radio | Sea Change Radio Wed, 09 Sep 2009 21:09:35 +0000 http://www.cchange.net/?p=1526#comment-10558 [...] Leopold tells us about The Looting of America, which is also the title of his new [...] [...] Leopold tells us about The Looting of America, which is also the title of his new [...]

]]> By: Bill Weye http://www.cchange.net/2009/08/05/the-looting-of-america/comment-page-1/#comment-10537 Bill Weye Thu, 20 Aug 2009 14:11:37 +0000 http://www.cchange.net/?p=1526#comment-10537 I'm the Web dude for Sea Change. Here's my comment about the guest Les Leopold: Either Leopold doesn't entirely understand the financial meltdown, or more likely he has dumbed down his explanation to the point that it doesn't make sense. he says that financial institutions combined these risky loans (securitized) and sold them as financial instruments ... with the help of credit rating agencies who gave them (mostly) great ratings .... which is true as far as it goes. BUT why did the rating agencies give great ratings? And was it as simple as that: good ratings and people bought the instruments? NO. it wasn't that simple. these products were insured by AIG (mostly) ... I've heard that 90%+ of these products worldwide were insured by AIG and yes, I know that the rating agencies had an interest in giving these financial products good ratings, but that's too simple of an answer .... it's that and the fact that the products were insured by a company that had a great reputation until that point (AIG). without that insurance NOBODY touches these things ... insurance is the key, which Leopold never mentions. these financial wizards are reckless, but they're not idiots. they want to know that they're going to get paid, thus the insurance. Look at the history ... in the beginning (I believe the law was changed 1996 to allow for these types of securitized assets), nobody would buy these financial products ... then AIG sees a way to make money by insuring these things (insurance called credit default swaps). THEN the securities start selling, after they are insured. Thus, we have AIG, who is still paying off insurance to these financial companies (well, actually, the taxpayers are paying off the insurance policies). I’m the Web dude for Sea Change. Here’s my comment about the guest Les Leopold:

Either Leopold doesn’t entirely understand the financial meltdown, or more likely he has dumbed down his explanation to the point that it doesn’t make sense.

he says that financial institutions combined these risky loans (securitized) and sold them as financial instruments … with the help of credit rating agencies who gave them (mostly) great ratings …. which is true as far as it goes. BUT why did the rating agencies give great ratings? And was it as simple as that: good ratings and people bought the instruments? NO. it wasn’t that simple. these products were insured by AIG (mostly) … I’ve heard that 90%+ of these products worldwide were insured by AIG

and yes, I know that the rating agencies had an interest in giving these financial products good ratings, but that’s too simple of an answer …. it’s that and the fact that the products were insured by a company that had a great reputation until that point (AIG).

without that insurance NOBODY touches these things … insurance is the key, which Leopold never mentions. these financial wizards are reckless, but they’re not idiots. they want to know that they’re going to get paid, thus the insurance. Look at the history … in the beginning (I believe the law was changed 1996 to allow for these types
of securitized assets), nobody would buy these financial products … then AIG sees a way to make money by insuring these things (insurance called credit default swaps). THEN the securities start selling, after they are insured.

Thus, we have AIG, who is still paying off insurance to these financial companies (well, actually, the taxpayers are paying off the insurance policies).

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