[MD] growth and sustainability

[Platt Holden]

> > [woods]
> > > the Fed. has been handing out billions of dollars of loans to banks
> 
> [Craig]
> > Banks shouldn't be borrowing, they should be lending.  That's part of
> the
> > problem.
> 
> 
> Platt:
> The problem causing the problem was the government forcing banks to make
> loans to deadbeats.
> 
> woods:
>    I agree to an extend, but that's small game compared to what the
> Investment 
> Firms on Wall Street, not Fannie and Freddie, I'm talking about the big
> fish.  
> They have accumulated credit swap black holes as big as 40-90 trillion
> dollars, which so far 
> linger in debt and haven't been opened up into the market.  It's a debt
> sitting around just 
> as the U.S. national debt sits around. 

Could you explain further? I'm unfamiliar with "credit swap black holes" 
that can be "opened up to the market."  Also, isn't you 40-90 trillion 
dollars a bit exaggerated? In 2007, the entire U.S. economy (GDP) was only  
13.8 trillion. 

> On Wall Street the problems are in
> the trillions 
> whereas the deadbeats are chump change, merely in the single digit
> billions maybe at 
> most near 20 billion.  The economy of the U.S. would have absorbed this
> easily.

Absorbed? How?  Do you mean banks shouldn't foreclose on non-paying home 
mortgages?

>  What is 
> downward spiraling the market is the subprime mortgage defaults made by
> the big wall street 
> investment firms, in which they had a debt of ca. 4 trillion released into
> the market.

How does a big Wall Street investment firm make and then default on 
subprime mortgages?  

(skip)
> woods continues:
>      Platt, the deadbeats would have been absorbed.  That's small money. 
> It's 
> 
> wall street's gambling habits, it's legal Las Vegas, that caused a global
> economic 
> crisis.  The world's a bit bigger than Tom and Betty's little mortgage
> default.  That's 
> a side-show distraction don't ya think?

Would like to know how deadbeats get "absorbed." But, yes. No doubt there 
were some money managers on Wall Street who acted stupidly. All financial 
investments carry risk.

Platt