One root cause of the curent financial crisis

Posted by Mike Sylvester - 10/3/08 @ 8:47 pm - Filed Under National Politics

As I have said in previous posts the Securities and Exchange Commission (SEC) created part of this mess back in 2004 by allowing the big five investment banks to use more leverage which weakened their balance sheets significantly.

Karena Goldner emailed me a link to a New York Times article that is worth your time as long as you ignore the overly partisan statements. 

Mike Sylvester

Comments

3 Responses to “One root cause of the curent financial crisis”

  1. Bobett Kelley on October 3rd, 2008 10:02 pm

    I totally agree, who was minding the store?
    The Accounting Firms folled the SEC rules?

    SEC change the rules for just a little while….
    enhance our assests to mark-to market, change Fasb 157, ect. to stimulate our economy.

    Looks like SEC is trying. It pails to the realization that Banks are not just banks, Insurance companies are not just Insurance companies, and Mortgage Companies are not autonomus anymore. It’s blurred and diversified
    and intermilgled with all markets. This started
    a long time ago.

    Let’s unwravel this mess America!

  2. Karen Goldner on October 6th, 2008 7:59 am

    Karen, Mike. I’m KAREN. You are married to KARENA :-)

    k

  3. Mike Sylvester on October 6th, 2008 6:15 pm

    Karen,

    Thanks for the reminder…

    Senile at 41, not good…

    Mike

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