Archive for the ‘bankers’ Category

Class Warfare? Obama Tears Down Rich Instead of Inspiring Others To Get Rich

March 28, 2009

Barack Obama wrote a book about hope and be came president promising it. So why’s he doing everything in his power to snuff it out?

Think about it: In Obama World, what are we supposed to “hope” for? Certainly not vast riches.

By Adam Brodsky
The New York Post

What would be the point? His budget swipes massive amounts of wealth from top earners.

Consider, too, his resentful rhetoric toward them. Recall his despicable failure to block the House from moving to rip up private contracts and confiscate past earnings via a 90 percent, retroactive tax.

Really, in this climate, who can muster enthusiasm for personal fortune-building?

“Bankers and executives on Wall Street need to realize . . . that the days of outsized rewards . . . have to be over,” Obama lectured Tuesday.

Yes, bankers and Wall Streeters hurt the economy. But most of their dubious activities occurred before government involvement, when their own fates (and their firms’) were still on the line. Wall Streeters couldn’t have intended to fleece taxpayers, because until last year no one imagined federal bailouts. Indeed, many risky loans were made at the behest of government — not in defiance of it.

No wonder people like AIG exec Jake DeSantis feel persecuted and betrayed. In his resignation letter, which ran in Wednesday’s New York Times, DeSantis describes how he and others like him (folks who, he says, had little to do with the shenanigans that ruined AIG) view the threatening demands to return their bonuses as broken promises, despite their “years of dedicated, honorable service.”

DeSantis doesn’t blame Obama, but the president has contributed to a culture in which such feelings of hopelessness among the well-off (and those who want to be) surely must be on the rise.

Consider Obama’s claim this week that the economy “only works if we recognize that we’re all in this together,” with “responsibilities to each other.” He seems to be saying the fruits of one’s labor must go to help others. Or that there’s no need to work hard; someone else will care for you. Gee, now that’s inspirational.

Anyway, he’s 180 degrees wrong: Capitalism works when folks compete with each other, when they take risks and try to score big — not when they let the other guy pay their way.

“Outsized rewards” motivate. They offer something to dream about.

In trying to strike gold, Wall Streeters made bets that channeled capital to where it was demanded, even if they wound up with snake eyes and dragged the nation down with them.

Obama talks about the national importance of personal financial motivation. Americans, he says, “can’t afford to demonize every investor or entrepreneur who seeks to make a profit. That drive is what has always fueled our prosperity.”

But he can’t have it both ways. And in his eyes, there’s just something amiss when some folks earn significantly more than others. “Twenty years ago,” he says, “if you went into investment banking, you were making 20 times what a teacher made. You weren’t making 200 times,” as some investment bankers do now. Yes, but what’s the problem?

Never mind that teachers, like those in New York, can now earn handsome six-figure salaries, with lifetime job-security and unmatched benefits. The question is, why shouldn’t folks on Wall Street hope to make big bucks — especially if they’re willing to take big gambles?

Obama says Wall Streeters “need to spend a little time outside of New York” — to see that folks in North Dakota, Iowa or Arakansas “would be thrilled to be making $75,000 a year.”

That’s backward: Wall Streeters shouldn’t go to Arkansas; Arkansans should come to New York — and see the grand opportunities that lie before them. That’s how you inspire hope.

Let’s face it: If youngsters can’t even fantasize about becoming the next Bill Gates or Warren Buffet, what “hope” is there for the American dream?

Not much — alas.

Welcome to Obama World.

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London Protesters Threaten Bankers, Evoke Executions

March 27, 2009

Mark Barrett, a professional tour guide, spent last Saturday painting Barack Obama’s election catchphrase “yes we can” on a banner that protesters will carry as they try to occupy London’s financial district April 1.

Barrett is helping organize a protest outside the Bank of England, one of several called to express anger against banks and bankers and mark the arrival in London of leaders of the Group of 20 nations — including Obama, now president.

By Thomas Penny and Brian Lysaght
Bloomberg

“We want a very English revolution,” he says from a café near his home in north London. “The first English revolution in 1649 was about winning sovereignty for parliament over the king.” Now, protesters are campaigning for sovereignty for everyone.

All police leave has been canceled to increase security and financial workers have been told to wear casual clothes amid warnings that protests could turn violent.

“There are a lot of hacked-off people,” said Mike Bowron, commander of the City of London Police. “There’s potential for disruption and certain individual groups see violence as their raison d’etre.”

The global economic slump has raised unemployment to more than 2 million in the U.K., with more people joining jobless rolls last month than at any time since 1971. The economy shrank 1.6 percent in the fourth quarter, the most since 1980, and there is growing anger at the more than 40 billion pounds ($58 billion) the government has injected into ailing banks while insuring 585 billion pounds more in risky assets.

Beheading Charles I

Class War, an anarchist newspaper, has produced a special edition to promote the protest with an image of former Royal Bank of Scotland Group Plc CEO Fred Goodwin, whose house was vandalized this week, on a guillotine under the headline “Ready to Riot.” Another shows people dancing around a fire with the slogan “How to keep warm in the credit crunch — Burn a Banker!” Public anger erupted at Goodwin’s 703,000 pounds annual pension after RBS was bailed out by the government.

The English Revolution culminated with the beheading of Charles I in 1649, ending the so-called divine right of kings in England. Today’s protesters say they draw inspiration from 17th century radicalism.

Four marches will converge on the Bank of England at midday on April 1 for a protest the organizers call “Financial Fools Day.” At the same time, there are plans for a blockade of the European Climate Exchange, in Bishopsgate, to protest against the market in carbon emissions.

Clog Up the Roads

“There’s an avowed intention on their behalf on the 1st of April to stop the City either by just clogging up the roads and preventing people getting into work or, if they’re allowed to, getting into some of those institutions,” said Commander Bob Broadhurst of the Metropolitan Police, who is in charge of the policing operation.

“What we’re seeing is unprecedented planning amongst protest groups,” he told reporters on March 21. “There are some clever, innovative people with lots of ideas.”

Police, who are detailed to provide security for the world leaders attending the April 2 G20 summit at the Excel Conference Centre in east London, will also have to deal with a labor union-organized protest march to Hyde Park tomorrow, demonstrations at the conference center itself and an anti-war march on the U.S. Embassy.

Around 10,500 officers will be available during the week….

Read the rest:
http://www.bloomberg.com/apps/ne
ws?pid=20601110&sid=aBXS1tLJEC4A

Related:
http://michellemalkin.com/2009/03/2
7/the-coming-g20-riots-the-spread-of-mob-rule/

 Anger, Lawlessness Fueling U.S., Global Economic Revolution?

Social Unrest: Hurt by Economy, Europeans Vent Their Anger

 Obama Buys Into Anger, Fear as Political Tool

A university professor who is organising a protest at next week’s G20 summit was suspended from his job after warning bankers could be “hanging from lampposts”, a spokesman said Friday.

University of East London professor of anthropology Chris Knight told the BBC that demonstrators would be “hanging a lot of people” during protests in London against the summit next Thursday.

“Professor Chris Knight has been suspended from his duties at the University of East London, pending investigation,” a university spokesman told AFP. “In order not to prejudice this process we cannot make any further comment.”

Read the rest:
http://www.breitbart.com/article.php?i
d=CNG.3d0f93885e25228857d515468
22cbc2f.101&show_article=1

Michael Moore Turns Against Obama, Geithner, Bank Bailout

February 13, 2009

Filmmaker Michael Moore, who says the Wall Street bailout is “the biggest swindle in American history,” is asking bankers to help him make a movie proving it.

The 55-year-old Michigan native posted an open letter on his Web site yesterday seeking volunteers to “step up as an American and do your duty of shedding some light” on the almost $1.1 trillion in losses and writedowns globally. Moore also sent the letter to people on his e-mail list.

While some bankers may be tempted to get involved with the filmmaker who pilloried former President George W. Bush’s response to the Sept. 11, 2001, terrorist attack on the U.S., they should think before they contact Moore, said Davia Temin, chief executive officer of crisis-management firm Temin & Co.

By Pat Wechsler
Bloomberg

“When you’re in a firestorm, you don’t stand up,” she said. “You duck. I’m sure Moore will keep names confidential, but these things have a way of boomeranging when you tell a friend because you’re excited about being on a movie set.”

Moore declined to comment, according to a spokesman for Overture Films LLC, who asked to remain unidentified because he doesn’t represent the filmmaker directly. The company is owned by Starz LLC, part of cable billionaire John Malone’s holdings, and is the movie’s distributor for North America. A release date hasn’t been announced.

The filmmaker, whose documentaries skewered General Motors Corp. and the U.S. health-care industry, is in the middle of shooting the movie, according to his Web site, http://www.michaelmoore.com. He made his name with the 1989 release of “Roger & Me,” documenting Moore’s unsuccessful efforts to confront former GM CEO Roger Smith about his management of what then was the world’s biggest automaker.

Moore’s Reputation

“Moore’s reputation is locked in,” said Howard Rubenstein, president of Rubenstein Associates Inc. a New York- based public-relations firms that advises hedge funds, private- equity firms and banks. “Whatever he touches gets gored. Wall Street better gird itself. The Huns are invading.”

Bankers should counter potential fallout from Moore’s venture by assembling a rescue program to buy houses going into foreclosure and give them back to their owners, Temin said.

“Popular culture has always had a love-hate relationship with Wall Street,” she said in a phone interview from her New York office. “Now that we see that much of what people were paid was based on vapor, that needle has moved to hate. Wall Street needs to figure that out and respond to it.”

While the Overture spokesman wouldn’t comment on the title of Moore’s movie, the filmmaker asked in his e-mail for responses to be sent to bailout@michaelmoore.com.

Moore claimed on his Web site to have heard from a “few brave people” already.

Read the Rest:
http://www.bloomberg.com/apps/news?
pid=20601103&sid=aHUG.o9FDZFA&refer=us

Stimulus Fails To Thrill

February 12, 2009

The stock market fell 20 points in its first half-hour on Thursday, an apparently negative reaction to the Obama stimulus bill and Tim Geithner’s bank bailout plan.

The Dow Jones Industrial Average fell in early trading, reflecting overnight internatioanl investor gloom.

Led by banks, the Dow was down across the board as investors worried the stimulus plan wouldn’t be enough to help the economy.

The first rise in retail sales in seven months had buoyed futures but traders shrugged it off as regular trading got underway.

The stimulus bill looks like a little bit of a wet blanket,” said Randy Frederick, director of trading and derivatives at Charles Schwab. “There is some concern that maybe this thing won’t work as well as expected.”

At the same time, Barack Obama, with the assistance of the liberal media, likened himself to Abraham Lincoln.

There was general disappointment in the stimulus and not joy across America.

Many of the stimulus provisions will take years to kick in and the economy, in the meantime, looks like it will continue to be flat or on a downward slope.

The public has low expectations for the package, with a large number of people feeling the package won’t have much effect on them.

After the troubles of the last few weeks it is not at all certain that the Obama hope remains alive — maybe it is on life support.

Pan Pylas of the Associate Press wrote today: “The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner’s bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks’ toxic assets would be bought.”

Sudeep Reddy wrote in today’s Wall Street Journal, “The latest version of the economic-stimulus package is expected to provide less near-term support for the economy and make it less likely that the economy will pull itself out of recession before late this year.”

Andrew Taylor of the Associated Press wrote: “The $500-per-worker credit for lower- and middle-income taxpayers that Obama outlined during his presidential campaign was scaled back to $400 during bargaining by the Democratic-controlled Congress and White House. Couples would receive $800 instead of $1,000. Over two years, that move would pump about $25 billion less into the economy than had been previously planned.”

“Officials estimated it would mean about $13 a week more in people’s paychecks when withholding tables are adjusted in late spring. Critics say that’s unlikely to do much to boost consumption.”

Expect a full blown media swoon to tell us how great the stimulus really is — even if we don’t feel that way…

Related:
http://www.cnbc.com/id/29158596

Will the stimulus bill boost public confidence?

 Obama: No Vision as Foundation to Spending; Except Maybe Socialism

Obama’s “My way or the highway” vs “better ideas”

World stocks sag on concerns about Obama plans

Dow Falls 400; Geithner Recovery Plan Worries Investors

http://bonniekaryn.wordpress.com/2009/02/12/fe
bruary-11-2009-the-senate-and-congress-agree-o
n-a-stimulus-bill/

http://michellemalkin.com/2009/02/12/here-it
-is-all-1434-pages-of-the-porkulus-conference-report/

Sudeep Reddy in today’s Wall Street Journal:

http://online.wsj.com/article/SB1234398173
72075155.html?mod=article-outset-box

Andrew Taylor, AP:
http://apnews.myway.com/article/
20090212/D96A0AGO0.html

Related:
http://conservativemeanderings.wor
dpress.com/2009/02/12/a-trillion-
dollar-failure/

A bank employee counts US dollar bank notes. The euro fell sharply ...

World stocks sag on concerns about Obama plans

February 12, 2009

Thongs of happy Americans turned out on the Mall in Washington on January 20 to cheer Barack Obama’s inauguration.

And Europeans and much of the rest of the world also embraced the “hope” of Obama — as exemplified by a gathering in Berlin last July 24 before some 200,000 people.

After the troubles of the last few weeks it is not at all certain that the Obama hope remains alive — maybe it is on life support.

Pan Pylas of the Associate Press wrote today: “The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner’s bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks’ toxic assets would be bought.”

“Policymakers will argue these details will be hammered out over time, but in the meantime the economic and financial black hole will potentially deepen, and for markets this means risk aversion will likely remain elevated,” said Daragh Maher, an analyst at Calyon Credit Agricole.

Read the entire story:
http://news.yahoo.com/s/ap/2009021
2/ap_on_bi_ge/world_markets

obama_span_blog.jpg
Above: Obama in Berlin.

Related:
http://raymondpronk.wordpress.com/2008/0
7/25/obamas-berlin-speech-the-first-new-wor
ld-order-citizen-fellow-traveller-world-citizen/

Dow Drops 200 in 30 Minutes As Stimulus Rejected

“Republicans Rape Truth,” and The “Over the Top”

February 12, 2009

You come to us today on your bicycles after buying Girl Scout cookies and helping out Mother Teresa and telling us ‘we’re sorry, we didn’t mean it, we won’t do it again, trust us.’ Well, I have some people in my constituency that actually robbed some of your banks and they say the same thing.”

“America doesn’t trust you any more… I don’t have one single penny in any of your banks — not one…. I don’t want my money put into CDOs and credit default swaps and humongous bonuses.”

That tongue lashing came from Rep. Michael Capuano (D-MASS) to some of America’s top bankers yesterday.

Cute, self-serving and unnecessary.

Here’s a suggestion nobody will follow — aimed at all those involved in political theater: and you know who you are.

Over the top language just used to get your face on TV and, worse, to distort the truth, demeans our political pocess and tells our children that politics and lawmaking is a game of buffoonery for buffoons.

Politics, we have to conclude, is a say anything and get yourself on TV game.

Rod Blagoyevich showed that.

And he got into trouble.

But nobody seems to have learned anything from him.  Blago has been dismissed as an abhorrent aberration.  An abomination.  Shame on him.

But every other jerkweeed still in office can say what he wants.

Over night, nearly every TV report on the testimony of bank executives before Congress started with “Bankers were hauled before Congress yesterday…”

Well, “hauled,” in the care of people and not furniture, is a pejorative use of the word.

People going before Congress are being “hauled” these days because they are about to be pilloried as in exposed to ridicule and abuse.

That’s what it looks like so that is why media thinks “hauled” is appropriate.

Listen to the tone of testimoy and ask yourself, “are we seeking truth? ” Or are we  just being critical in the form of a question?

So you have to expect media to use a word like “hauled” when they  see the antics of Congressmen acting like moneys and putting words into the mouths of those executives they invited to testify.  Often at Congressional testimony the witnesses are  in jobs those we elected could never, ever be expected to do themselves because they just aren’t good enough.

Demonizing executives and others at testimony is demeaning.  Demonizing makes one feel superior, I suppose….  But in the end the practicioners might just end up like Blago (and I hope they do).

The legislators are making a mockery of the systems created by Jefferson and Washington to do what?  Get on TV?  Get reelected?  Distort the truth?  Create wrong impressions?  All of the above?

I remember when party leaders would quietly put an end to childish behavior.  But now there are too few senior legistalors left who have good sense and good manners themselves.

John Warner went home.

Are these antics in hearings meant to show that lawmakers are superior to workers and executives?

Well, you know what?  I just don’t believe that the lawmakers are smarter than anybody….  especially when they need to grab the “over the top” tool so often.

Making money pays taxes and hires people and pays for health care.  Witnesses who make money and provide jobs and pay taxes should be treated with respect.  In fact; we should treat all with respect and allow them to dig their own graves — which is what many lawmakers are generally good at.

President Obama, no virgin at “over the top” language, said Monday night,  “the federal government is the only entity left with the resources to jolt our economy back into life.”

He didn’t even say “good government.”

He also characterized the stimulus debate as a talk between those who had a solution (Democrats) and those who had no solution (Republicans). Of course if this were true there would be no need for bipartisanship — which has been sent to the ash heap after what?  Three weeks?

Can we never be honest? 

No.

Our government has become a pack of dishonest hacks making a mockery of good government.  And that government is about to get even bigger.

Those with some years and wisom watch all this over the top buffoonery on TV and shake their heads in dismay — many of us retired and will die soon, thank God…. with memories of Truman, FDR and Lincoln.

Well, not Lincoln.  That would be over the top.

The youngsters among us might just watch these jerks on TV because they have no jobs and are awaiting the only institution the president says can help: government.

Good luck.

Bad government.

Related:
“Banking Spanking”: Barney Franks Unleashed

Obama: Let’s Be More Honest About Economy, Plans, Republicans

Quotes from the banking hearings:
http://www.reuters.com/article/ousiv/id
USTRE51A7GY20090211

“Banking Spanking”: Barney Franks Unleashed

February 11, 2009

Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, has decided today to engineer a public flogging of top bankers: call it the “banking Spanking.”

But Franks also wants the bad guys to cooperate and behave.

Related:
“Republicans Rape Truth,” and The “Over the Top”

“I urge you going forward to be ungrudgingly cooperative.  There has to be a sense of the American people that you understand their anger … and that you’re willing to make some sacrifices to get this working, ” Franks said.

Franks also said he was angry that the TARP wasn’t executed better by the bankers.

But wasn’t he there in the Financial Services Committee, crafting the provisions of the TARP?

Franks also said the administration was taking “too much time” developing a foreclosure plan and called on companies that hold or service mortgages to suspend foreclosure proceedings until it is released.

He took shots at Treasury Secretary Tim Geithner’s bank bailout plan along the way.

Franks has criticism for everyone all around but hasn’t taken any responsibility himself….

John E. Carey
Wakefield Chapel, Virginia

Related from the AP:
http://news.yahoo.com/s/ap/2009021
1/ap_on_go_co/bailout_banks

http://michellemalkin.com/2009/02
/11/the-sanctimony-of-morons/

Bankers Vow To Work Toward Financial Reform
http://news.yahoo.com/s/ap/20090211/a
p_on_go_co/bailout_banks

Barney Frank
Photo: AP

Financial Crisis “Far From Over”

January 21, 2009

Our global financial crisis is a long way from over.

If you feel the need to hang a bunch of investment bankers, Wall Street types, lawyers and CEOs, you are likely having a “normal” reaction to reality.

But we still need to get behind the wheel and solve our economic ills.  And, in this commentators mind, a bunch of government spending isn’t the cure (it never has sufficed before).

But there still should be justice for the guilty.  Didn’t Enron’s Key Lay get the electric chair?
.
Get the rope.  Get Clint Eastwood.  Then let’s get Madoff!

But the problems have to be solved.  Bailouts of banks buys the mortgages and other debt that has lost value, little value and nobody will buy.  So the U.S. has to buy this debt.

There are also some 5 million “home owners” that will default on their morgages unless they get relief.

Accused swindler Bernard Madoff exits the Manhattan federal ... 
Accused swindler Bernard Madoff exits the Manhattan federal court house in New York January 14, 2009.(Brendan McDermid/Reuters)

The truth is, there may be some jail time passed out but the real problem is systemic which needs a lot of long-term fixing….

Headlines from London January 21, 2009:

“Banking Crisis May Last a Decade”

“Only Two London-Listed Banks By End of 2009”
…the government is now the largest, or only, shareholder in Lloyds/HBOS, RBS and Northern Rock and it seems highly likely that HSBC and Standard Chartered will be the only UK-quoted bank shares by the end of 2009.
http://www.telegraph.co.uk/finance/personalfinance/inv
esting/shares/4298704/Fundamentalist-View-There-wil
l-be-only-two-London-listed-banks-left-by-the-end-of-2009.html

*********************

By Philip Johnston
Telegraph (London)

Before the internet age, it was a rite of passage, a feeling that you had finally grown up and were considered responsible and trustworthy. As children, many of us might have had savings accounts or a few pounds in a building society deposited by an ageing aunt.

But to get one’s first cheque book was something special. Mine had the words National Westminster Bank written on the front, an imprimatur that could hardly have sounded more rock solid and British to the core, a guarantee of probity and quiet competence.

In those days, banks were forbidding places; there were no open plan offices. A visit to the bank manager, especially for an impecunious student trying to explain a £20 overdraft, was a terrifying experience conducted in a sternly avuncular manner from behind a large desk.

We are right to ben angry with the bankers

Fred Goodwin, former chief executive, Royal Bank of Scotland Photo: REUTERS

We all knew that such a world had disappeared. But it was none the less astonishing to wake on Monday morning to discover that the Royal Bank of Scotland – my bank, or at least the NatWest bit of it – had posted the biggest loss in British corporate history.

Nor did it take long for the shock to give way to fury. Charles Dickens captured the feeling well after the collapse of Merdle’s bank in Little Dorrit: “The air was laden with a heavy muttering of the name of Merdle, coupled with every form of execration.”

Well, there were a few execrations in my own household and doubtless in many others across the country. Both curses and questions. How could this have happened?

How is it possible to rack up a loss of £28 billion and yet be worth just £8 billion?

What happened to the RBS share of the £37 billion shelled out by taxpayers last October to recapitalise the banking system? What possessed the executives of RBS to buy a Dutch financial institution for way over the odds even as the Northern Rock fiasco was unfolding?

Beyond the sheer incredulity, there is anger that the people responsible have cushioned themselves financially against the privations that their recklessness will induce in millions of others.

The people at the top may lose their jobs, but they have already paid themselves so much in bonuses and struck such lucrative pension deals that they can retire in luxury while the rest of us face penury.

Extraordinarily, the vast bonuses were paid for what at the time was hailed as success but now turns out to be abject failure. Do they get returned, along with the knighthoods and gongs?

For those of us who did not know what a derivative was until a few months ago and had only a vague idea that Sir Fred Goodwin was “something in the City”, these are revelatory times.

It was evident from the steady flow of letters offering to lend money and urging us to take out new credit cards (all of which went into the bin in our house) that the banks were on a credit binge and that many people were being tempted to join in.

But surely, we all thought, they must know what they are doing. Even the near-collapse of Northern Rock after the first run on a bank since the mid-19th century, seemed like an isolated example of a badly run institution that had been led to the edge by incompetent and foolhardy executives and had to be rescued by the Government.

At the time, some cynical observers suggested that if it had been Southern Rock based in Guildford, it would have been allowed to go to the wall. But it was a big employer and an iconic institution in Labour’s north-east heartland, so it had to be saved. But at least it was one-off, wasn’t it? The other banks could not possibly be in the same leaky boat.

The discovery that they were sinking too has been more than a shock; it has been a betrayal. Their recklessness has bordered on the criminal. One figure from the Bank of England’s financial stability report last October exemplifies the enormity of their folly. In 2000, the amount of money held on deposit in British banks and the amount they were lending was roughly comparable.

Last year, they were lending £700 billion more than they were receiving. This was the mother of all bubbles, yet the bank bosses kept inflating it, egged on by the Government, the Bank of England, the so-called regulators and, let’s be frank, by those of us who borrowed way beyond our means.

In its report, the Bank said: “The seeds of this boom can be traced back to the development of financial and trade imbalances among the major economies over the past decade. Increased borrowing in a number of developed countries was in part financed with inflows of foreign capital, leading to greater integration in international capital markets. Benign economic conditions helped anchor expectations of continued stability. This, along with rising asset prices and low global real interest rates, boosted the demand for and supply of credit in a number of developed economies.

It added: “Over time, banks took on progressively more credit risk by lending to, for example, households with high loan to income ratios, leveraged buy-out firms and, in the United States, to the sub-prime sector.”

Read the rest:
http://www.telegraph.co.uk/finance/financetop
ics/financialcrisis/4301285/We-have-every-ri
ght-to-be-angry-with-the-bankers.html