Greenspan-CDO valuing errors were 'utterly unexpected' (4:55 mark of 7:20)

[underpants]

Run time: 07:21 https://www.youtube.com/watch?v=dDGyooDzf0s   Posted on YouTube: February 18, 2009 By YouTube Member: Views on YouTube: 0   Posted on DU: February 19, 2009 By DU Member: underpants Views on DU: 630

 
He is answering a question about what regulation is needed when so many borrowers are "illiterate" in respect to the obligations they have actually taken on

Greenspan speaks about avoiding catastrophies and how they can and have been "arbitraged away" including avoidance of the crisis in currency which was avoided he then says

'What was utterly unexpected was that these triple A (missed that word) and Collateralized Debt Obligations basically backed by subprime American mortgages would turn out to be a misreading of what their potential values were. That came as a shock. Remember when P&P Parabar (?) set this whole thing off what was utterly shocked by the fact that they thought they had triple A assets and turned out not to be the case. That set the whole chain. What was important about that was that is that it was utterly unexpected. The next crisis we will have and we will have one will be totally unexpected, I don't know how essentially one resolves that'

the Q&A #4 video at the link had a question about 'hindsight'
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5084773&mesg_id=5084773
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5084773&mesg_id=5084773

[rrneck]

1. Better to claim stupid than crooked. nt

[NorCalDem]

2. Yes, unexpected to those that think the free market...

can do no wrong. THOSE OF US THAT LIVE IN THE REAL WORLD SAW THIS COMING A MILE AWAY IDIOT!!!

I fucking hate Greenspan...

[balantz]

3. These financial elite fucks never "retire" do they?

Old Soylent Greenspan is still feeding us crap.

[JDPriestly]

4. So, several years ago, my husband and my neighbor and I looked at the housing

prices and considered the incomes of our friends and neighbors and thought: Impossible. This cannot end well. What in the world is going on?

But Greenspan and the elite economists with all their mathematical formulas didn't see this huge bus of a crisis when it was just a few feet in front of them.

They are idiots. They did not want to see the truth because it a) did not fit into their ideological framework, b) because they were making a lot of money and c) because getting George W. Bush elected in 2004 was all that mattered to them.

[underpants]

5. Speaking of b)

Ever wonder why an Ayn Rand disciple would suddenly love him some regulation?
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=426548&mesg_id=426548