Rep. Ryan: Let's Be More Liberal On Bank Accounting Rules

[OyWool]

"Let's fix the rule that caused it. Mark to market."

Are you serious? It wasn't the years of market pumping and irresponsible investments that caused this crash in the first place? Mark to market made sure our banks had ANY cash left over during this spending spree. Rethink your argument, guy on msnbc.

[milkgodnl]

Do they actually want to *lower* of the reserve ratio so that banks become even *more* leveraged? It is this high leveraging that got us into this mess. Making banks more leveraged would catastrophically affect people's life savings if they needed to withdraw it for food, rent, or taxes.. I guess the republican free marketeers could care less about people's hard-earned savings.

[CarryANation]

This is amazing bullshit. The mark to market rule was put in place after Enron to stop FRAUD. The alternative to "mark to market" is "mark to fantasy model" which means the banks can just make up practically any number they want.

Hey I have an asset and it's worth a billion dollars, accord to my mark-to-fantasy-model.

And they want to lower the reserve requirement? Banks will NOT lend anyway they are using the money to pay off their bad derivative bets.

Republicans are Communists straight up.

[Sp0ilTheFun]

Actually republicans are more fascist they have socialist ideas but they benefit more than the people do :).

[CarryANation]

there is no difference between a communist and a fascist, they are the same thing

[TedinLasVegas]

Given that political scientists cannot decide on a unified definition of fascism; that's a strange statement to make.

Th two main ideas that most poli-sci types can agree on, though, is that fascism is nationalistic and collectivist.

Which is why conservatives cannot be facist. Conservatism abhors collectivism and collectivism is central to fascism.

[CarryANation]

"Given that political scientists cannot decide on a unified definition of fascism; that's a strange statement to make."

"Political scientist"? That means "liberal arts major not smart enough for sociology"

"collectivist"

Do you jerk off to Ayn Rand novels, Mr Master of the Universe? lol new fag

[TedinLasVegas]

No, no, no. Poli-Sci major = future lawyer, civic planner or political staffer.

No, I'm just a thinker -- challenging liberals to do the same for a change.

[CarryANation]

"civic planner or political staffer"

i.e. you're a fag republican intern

[TedinLasVegas]

What is your fixation on homosexuality?

No, I'm a bit older than that (interns are usually in their 20s) and I'm monogamously married to my wife - never even dabbled in homosexuality.

[CarryANation]

I'm sorry I was being politically incorrect. I apologize, I should not have used the word "fag" that was inappropriate of me. I should have said "sodomite". My bad.

[SubmarinerAndroid]

you're jealous

[gisforgary]

what a wingnut! poly sci types that aren't neocon can agree on a definition of fascism because it doesn't describe them. neocons live for denial. i don't have a lot of room but fascism is 1) corporate based. mussolini realized words like "socialism" and "liberal" were worker-centric and had to demonize them. everything is for the corporate good -- like corporate bailouts. 2) fascism has to appear centrist. left is too individual and right is just plain stupid unless you are stinky rich.

[TedinLasVegas]

No wingnut and you just gave ONE of the dominant definintions of fascism and I, as a Conservative Poli-Sci type, would not disagree with your explanation,

Except, neocons are part of the debate; being a neocon should not preclude participation in debate and discussion. (Funny how only liberals try to keep opposing views out of debate.)

However, Fascism is also connotated as being Nationalistic and Collectivist.

[gisforgary]

yup -- nationailsm like gw bush's "patriot" mantra. whats more nationalistic than w ketchup with your freedom fries? grow up.

an economist did a great job of explaining bush economics -- he called it communism for the rich. i think 700 billion in giveaways via paulson and bush to bank execs would qualify as highly specialized collectivism.

please don't play the bush years are over poop -- neocons are out of ideas good night.

[TedinLasVegas]

Patriotism and Nationalism are two different concepts; simply put, Patriotism is loving your own country more than any other and Nationalism is hating any other country. I am a Patriot, I don't hate any other country.

Collectivism is a broader concept than just the rich. Collectivism would entail drawing all persons, of all economic strata, to a "common cause". (Sounds like Obama!)

Bush wasn't a conservative, don't lump me in with him.

[gisforgary]

i refuse to believe you rode the short bus in. did you ever think you can use the word patriot to promote nationalism? freedom fries were born out of hatred for france. w ketchup was born out of a hatred for hating the liberal ms. heinz-kerry.

fascism under mussolini wasn't to benefit the worker -- it was to benefit the corporate leaders. i studied futurism in italy -- its fascinating and scary.

my assumption is you voted for bush twice so please don't play ms macbeth or i will vomit.

[TedinLasVegas]

I haven't rode a bus since 5th grade, 1982.

Freedom Fries born out of hatred for France? Anger maybe but not "Hatred"; why is it liberals are ALWAYS desiring to assume the worst about people? It must be depressing to be a liberal.

[johnedwards1968]

Did you vote for Bush twice?

[TedinLasVegas]

Who else was I going to vote for? As bad Bush was, he was still the best choice provided in the general election.

I worked against him in the 2000 primaries but would you expect a thinking person to vote for Gore? That man is just about the biggest idiot to have come across the political screen in America!

Or, how about stab-your-comrade-in-the-back Kerry? Most of the men he served in Vietnam with refused to back him because of his duplicity.

Bush was bad, the dems were worse.

[johnedwards1968]

I seriously doubt either one of the dems would have been as disastrous as Bush.

The problem with the US is that there is a certain percentage who would vote for the Republican no matter what.

If Kerry, or Gore had been the Republican, you would have voted for them. Be honest with yourself.

[TedinLasVegas]

That is an extremely stupid statement; do you think the rank-and-file republicans are blind followers like the rank-and-file democrats?

Consider this, the rank-and-file republican is a conservative and votes republican because they're usually the more conservative candidate available.

The rank-and-file democrat is a conservative who votes democrat despite the fact that they seldom agree with their candidate.

Neither Kerry nor Gore are smart enough to be conservative; I voted for neither

[johnedwards1968]

WOW! They say you usually see in others, things which you don't like in yourselves.

So, you think Democrats are simply misguided conservatives? You really don't give conservatives much credit do you?

If everyone is a conservative, and some people do stupid things, then some conservatives must do stupid things! Think before you type!

[TedinLasVegas]

Let's be honest; we ALL do stupid things from time to time.

We're ALL in the same boat; we ALL need forgiveness. We ALL need Jesus.

[marniespeaks]

yeah, good idea let the corrupt failing banks have nothing in reserve so they can better cheat the customer and raise rates when they screw up again.

Buy American Only or Stop Shopping

Take your money out of the bank and put it in a Credit Union or non-bailed out US bank.

Flex your power people!

and look up H. R. 1207

[annarboriter]

So we prevent banks from failing by reducing their mandatory levels of liquidity. This thinking ought to stay within hearing range of dittoheads and neocons. It's just too easy for us liberals to call such nonsense out.

[justcallmebaby]

LOL. Look at Mike Barnacle's face! These pundits are comedic -- talking but saying absolutely nothing. Mr. R-Hair was talking out of his ass like we have come to expect from this crop of goopers. Barnacle tried to play off the incoherence.

[SabuPtolemy]

Funny. Paul Ryan calling the deregulation and greed uber alles banking policies of his own party 'too liberal'. Better late than never, right Paulie?

[coattail2]

It makes some sense. Businesses don't always borrow at the same rate that households want to lend so the reserve amounts are important.

By all means not the only practice that need be looked at though.

[DeletedDelusion]

Have they totally lost their minds?

[yemenboy01]

What the fuck is wrong with that guys head!!!

[biggerflexible]

Arrest this man.

[437thx1138]

Suspending mark to market or reducing it is creative accounting. Mark to market is it's value now. Not a future or projected value with a spin team to push it. As current results show.

Sounds like another bubble creating scheme to me. Enough book cooking. If I could cook my books I'd be a banker.

[TedinLasVegas]

The title is wrong; he said that the regulations were "too liberal" (0:54) not to make them more liberal.

What he's saying, I think, is that the amount of money that the banks have to keep on hand is based on prior balance sheets and the amount of assets and debts the banks had on hand back then.

If there is less available to the bank now then what there was when the last period ended, but the bank must keep a reserve based on what USED TO BE there, they can't loan.

[HateNeverCeasesHate]

Sorry mate, but the joke is on you. The market crash was caused WHOLLY by banks like AIG circumventing these regulations by inventing a thing called credit-default-swaps.

That allowed AIG to operate with very little capital on hand to back up their operations. Thus, when the market turned a little downward, AIG collapsed, and precipitated a market crash.

Essentially, this guy is recommending that we set up our banks for a similar crash, only bigger. Hence, lulz, hence this clip is posted.

[HateNeverCeasesHate]

I really don't know, I just hear things. I looked up credit-default-swaps, and it was introduced by U.S. Sen. Phil Gramm (R-TX), and it was tucked away as a clause in the general budget of the government.

It seems like you are just pasting the term "liberal" on everything you are frustrated with. I don't think you know what a liberal law actually is (ie one with lax regulation), so I'm not sure what else to say to you.

[TedinLasVegas]

The modern, American liberal interferes with the market in nonsensical ways - as though by attempting to change the market, human nature itself can change.

IE., the CRA of 1977, as enforced since the early 1990s, demands that financial institutions make bad, high-risk loans.

Then the BRA of 1999, as enforced since 2000, relaxed restrictions against making bad, high-risk loans so that the banks could survive.

Might as well pass an act changing the laws of gravity; you still hit bottom.

[JJarv213]

CRA did not cause high risk loans. Read the studies instead of listening to a retard like Hannity.

[TedinLasVegas]

I don't listen to Hannity.

I do, however, read Thomas Sowell, Ph.D (Economics) and others...

[Superplatanoman]

Sowell is a hack.

[TedinLasVegas]

REALLY? Your grounds for such a claim?

That he's smart enough not to agree with the moron-in-chief?

[Superplatanoman]

Moron-In-chief? This is the same guy who wants a moron (Sarah Palin) in office. He supports everything Bush does. He's a political hack.

[TedinLasVegas]

WOW, are you delusional or what!?

Sowell took shots at Bush over the years too; just as I have.

But, Palin would (will?) make a better president that our current idiot-in-chief!

[Superplatanoman]

Took shots at George Bush? Yeah. Whatever. Palin is dumb. She doesn't know Africa is a continent. Anyone who thinks she will make a great president is a partisan hack like the pseudo-intellectual Sowell.

[TedinLasVegas]

Do you actually believe that unverifiable report about Palin? Even after she's been on record speaking about problems in particular countries of Africa - before she was a VP candidate?

There is no depth to the foolishness you libs are willing - even desiring - to believe!

Obama's so dumb, he thought 25 DVDs was an appropriate gift to give a foreign Head of Government! My teenage daughter's knows better than THAT!

Obama's a fraud! And an incompetent one at that!

[Superplatanoman]

Yes, I believe it's true especially after seeing her interviews with Katie Couric and other people. She's stupid. I don't care about stupid dvd's. Palin is dumb. That's a fact.

[terrence0258]

If you went to Harvard Law became the president of the Harvard Law Review and graduated at the top of your class, would you even say there is a possibility that I was smarter than you if I went to Matanuska-Susitna Community College. You can call Obama lots of things but dumb isn't one of them and you can call Palin even more things but smart isn't on the top of that list.

[TedinLasVegas]

I bet that if you were to take a look at the educational credentials of all of the CEOs, COOs, CFOs, etc. of all of these failed businesses, you'd find similar pedigrees.

Harvard is more of a name brand than it is of quality, just like the rest of the Ivy league. Overrated and overblown.

[terrence0258]

Dude they are smarter than all of us because not only did they bankrupt us when things were going well, they are also bankrupting the world right now and they're still rich. You also gotta admit that the curriculum at Matanuska-Susitna Community College and Harvard Law are a little different. No disrespect to the Republicans anointed one but I will never vote for someone who believes people and dinosaurs lived at the same time.

[TedinLasVegas]

True, I wonder how far removed from reality the curriculum at Harvard is?

So, do you always let other people make up your mind for you about science, or are you at least a little inquisitive?

[terrence0258]

Everything that I want to know I try to read as much about it as possible. I am currently reading some books about Keynesian economics, I recommend you do the same if you are a Republican, maybe you can stop being tricked. Their is also a book by this guy named Darwin called The Origin of Species, I recommend it if you follow the Palin School of Science.

[TedinLasVegas]

Oh, you mean Darwin's book: On the Origin of Species by Means of Natural Selection, or the Preservation of Favoured Races in the Struggle for Life?

Have you hit the part where he argues that the Europeans are the "Favoured Race" of Human Kind? The part that Hitler loved so much?

Read it; lots of nonsensical statements in it.

How many evolutionary steps are there from Cow to Porpoise? Millions of steps with no evidence...

Yet your faith holds you still...?

[avalsonline]

do you have an alternative?

[stengevarsel]

You are referring to a 150 year old book. The theory of evolution does not use "The Origin of Species" as a bible, since it is a scientific theory, not a religion. Pointing to "errors" in Darwin's book as proof for problems in the theory is weak at best.

[TedinLasVegas]

I could spend my whole life pointing out the errors in the "Theory" and you'd still choose to believe the lie because you want it to be true.

[addmoreice]

well if you could actually support your claim with evidence it might be a good starting point.

here, let me show you how it's done:

embryological developmental stages, ERV's, chromosome 2 fusion, SINES, LINES, phylogenetic tree, genetic tree, attavisms.

see? evidence. all of it points to common descent and evolution.

[addmoreice]

why bother. these people see things as they see them. THEY read THERE book and believe whatever it says. it is 'perfect' and so they think thats how people with a basic knowledge of science consider evolution. like a bible.

the really ironic thing? these people exhibit common "in group dynamics" which are predictions of evolutionary psychology.

[dennist3hmenace]

Trick question alert. No one suggested a cow ever turned into anything.

Learn2common ancestor

[TedinLasVegas]

No trick question, Evolution "theory" suggests that cows and porpoises have a common, land-dwelling ancestor that was extremely similar to a modern cow.

[addmoreice]

yeah, and the evidence supports this.

you do realize that evolutionary 'theory' has more evidence to support it then the theory of GRAVITY, yes?

you do realize that we gene map on average 4 species a week now...and all the evidence lines up PERFECTLY with evolution's predictions?

wtf does this have to do with politics anyways?

[CarryANation]

TedinLasVegas - the CRA had NOTHING to do with the mortgage crisis nor the economic collapse caused by derivatives.

You are either lying, or ignorant. Which is it?

Tell me the ratio of bad CRA mortgages to bad NINJA or Jumbo subprimes?

You don't know, so stop lying you sodomite.

[TedinLasVegas]

Really, not from the reports I've read. It also fits, logically.

Why the name calling? Your argument that weak?

[CarryANation]

You misunderstand. I'm not arguing with you, I'm calling you a liar, and providing a brief description of what you are lying about, and the truth.

You are a GOP spammer, probably a paid or volunteer intern, and you are just posting talking points. You don't care about truth you just do propaganda for the GOP. You people are easy to spot.

[TedinLasVegas]

You mean I can get paid for this???

Cool, who do I talk to?

No, this is just entertainment during breaks at work.

[hideflolife]

TedinLV,

Learn your facts - stop being a demogogue. If you really want to learn, google: calculatedriskblog.

You'll learn that it wasn't just CRA/BRA loans - these represent an extremely small percentage of loans.

So stop spreading the ideologue bullshit.

hdll

[TedinLasVegas]

I've got my facts down. CRA loans make up more than half - about 2/3 - of all loans in default.

That's a pretty big share; kinda like the 2x4 that broke the camel's back.

[hideflolife]

Oh really, prove it. Give me a credible link.

hdll

[TedinLasVegas]

Prove what?

[zapponsalvia]

I think you are right Ted, the world is only 6000 years old and the Flintstones is a very accurate depiction of world history. Evolution is a totally ridiculous explanation for biological diversity! These liberals Ted, when will they see the truth??

[hideflolife]

You said you had your facts down about CRA loans making up more than half - and according to you about 2/3 - of all loans in default. Present me with evidence to this supposed fact. Put your money where your mouth is.

[hideflolife]

TedinLV,

It's clear that you have no idea what mark to market is all about and why it's important in reserve calculations.

Think of it this way, when assessing your current net worth, you'll consider cash in your bank and your current house value. You can't say my house used be worth $200K, so I'll use that value in my net worth. The market provides the most accurate valuation.

Accordingly, banks can't value their assets aribitrarily. And they can only loan based on assets they own.

[WildRiverman]

On policies of total borrowed funding, Obama is fast learning our own privately held accounts, as well as the world. is not buying into his BS spending policy's that the educated know are doomed to failure based on history alone. Mkts crash, and Obama crashes with them. I can go a few years without making one penny on my limited wealth, and that is the mindset of most as evidenced by the freefall of the mkts in Obama's first 50 days.

[Richardgwm]

Any company that is "too big to fail" is also too big to be allowed to exist.

Break up the banks or this will happen again within ten years.

[KataVideo]

Break up AIG as well. there's no legitimate reason for aig to exist after two bailouts

[WhoRonPaul]

eliminate mark to market accounting. that became the culprit when everyone did this -- cdrfp (dot) com

[CitizenWorm]

Is he actually advocating that these banks leverage themselves further than they already have? Either I've misunderstood what he said or what he said is a very bad idea.

[flang]

I think he's using words that he doesn't actually understand, that's the problem.

[Karlfalcon]

THIS

[CarryANation]

Not at all, he knows exactly what he is saying, and he knows perfectly well that it's 100% bullshit.