Fiscal irresponsibility - McCain & Obama tax policies

[ChinoCoug]

Originally Posted by Mormon Red Death

The problem with Asymetric information is determining how much is asymetric.

How much more does the bank know than the average consumer?

thank you! what a refreshing response from the other side.

when investment banking is in bed with commercial banking, commercial banks can make bad loans to companies whose stocks the investment banks are trying to push and pad their balance sheet and 10-Qs.

It's hard to quantify how much they're deceiving their shareholders, but the bubble should be a clear indicator it's too much.

[Archaea]

Originally Posted by ChinoCoug

You're mom's a lesbian.

This is an automatic response until you come up with something substantive.

So you show you have no limits by insulting a person not associated here. And your response to MRD's response was pathetic. Demonstrate an iota of honesty and I'll respond in kind, but I find you to be the most dishonest person here.

[ChinoCoug]

Originally Posted by Archaea

So you show you have no limits by insulting a person not associated here. And your response to MRD's response was pathetic. Demonstrate an iota of honesty and I'll respond in kind, but I find you to be the most dishonest person here.

You're mother's a lesbian.

[ERCougar]

Originally Posted by ChinoCoug

You're mother's a lesbian.

I'm confused...
Are you calling him your mother?
Are you saying your mother is a lesbian?

Multi-verb sentences are so confusing...

[ERCougar]

Originally Posted by ChinoCoug

thank you! what a refreshing response from the other side.

when investment banking is in bed with commercial banking, commercial banks can make bad loans to companies whose stocks the investment banks are trying to push and pad their balance sheet and 10-Qs.

It's hard to quantify how much they're deceiving their shareholders, but the bubble should be a clear indicator it's too much.

I really hope you're not claiming that these isolated instances (if they occurred at all) are the cause of our lending crisis now.

[ChinoCoug]

Originally Posted by ERCougar

I really hope you're not claiming that these isolated instances (if they occurred at all) are the cause of our lending crisis now.

think about it this way. If you're both an investment bank and a commercial bank, and the companies whose stocks you're pushing aren't doing so well, wouldn't you be tempted to have your commercial bank lend money to the company to make them look like they're doing better? That's why there needs to be a wall between investment and commercial banking.

and no, that's not the cause of the current crisis. Ma'ake can give you more details on that.

[ERCougar]

Originally Posted by ChinoCoug

think about it this way. If you're both an investment bank and a commercial bank, and the companies whose stocks you're pushing aren't doing so well, wouldn't you be tempted to have your commercial bank lend money to the company to make them look like they're doing better? That's why there needs to be a wall between investment and commercial banking.

and no, that's not the cause of the current crisis. Ma'ake can give you more details on that.

How does lending money to a company make them look better?

Forgive my ignorance, but isn't that the role of an investment bank--to finance investment opportunities? Or are you talking about institutions like e-trade? Are you suggesting there is a conflict of interest in offering both traditional loans and investment vehicles? I don't see it.

[Indy Coug]

Originally Posted by ERCougar

How does lending money to a company make them look better?

Forgive my ignorance, but isn't that the role of an investment bank--to finance investment opportunities? Or are you talking about institutions like e-trade? Are you suggesting there is a conflict of interest in offering both traditional loans and investment vehicles? I don't see it.

It improves their capital position?

[ChinoCoug]

Originally Posted by ERCougar

How does lending money to a company make them look better?

Forgive my ignorance, but isn't that the role of an investment bank--to finance investment opportunities? Or are you talking about institutions like e-trade? Are you suggesting there is a conflict of interest in offering both traditional loans and investment vehicles? I don't see it.

more cash on hand makes your balance sheet look better.

investment banks help companies raise money by selling securities. so it's in their interest to make those companies' stocks look good.

[Mormon Red Death]

Originally Posted by ChinoCoug

this is a problem in banking when investment and commercial banks cook their books. hence the need for more regulation. hence the need for an Obama presidency.

Have you ever heard of sarbannes-oxley? We have enough regulation