Quote:
Originally Posted by O.A.F.K.1.1
The banking system did not nearly collapse due to commissions.
Sure in total there is some negative sum due to transaction frictions, but that in no way constitutes systemic risk in the way one party being unable to meet their exposure does.
The current structure of payments rewards money being constantly in movement, new products being created to facilitate this regardless of their actual value to society or the investor, and traders who should be trusted advisers act as salesmen for investment vehicles maximising their commission.
Everyone was getting rich of mortgage backed derivatives in the noughts. Except the buyers, of course.
Sure a lot of people got high on their own supply but it takes a whole load of people being asleep at the wheel (to give the most generous interpretation) for the 07/08 crash to happen and it was entirely predictable - because people did predict it and no one wanted to hear about this.
Between revolving door regulators, ratings agencies incentivised to give the highest ratings to dog**** and traders who didnt know or didnt care what they were selling to clients, plus the investment banks who created the dog**** in the first place, there was a conveyor belt of fraud designed to move the wealth of society into the pockets of a small number of the criminalest guys in the room.
Then they got caught out by their own greed and stupidity colliding, got a public bailout and pushed 40-50% of that bailout into their own pockets