Letters to the Editor

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PROTESTS: Wall Street brought down the economy

Letter by Richard A. Horn, University Place on Nov. 7, 2011 at 1:56 pm with 6 Comments »
November 8, 2011 10:10 am

Re: “What’s the real motive?” (letter, 11-5).

I agree with the writer that there probably aren’t successful entrepreneurs among the Occupy protesters. I am not a successful entrepreneur but have been a successful employee for 40 years. I am now retired and living on my 401(k) and Social Security.

I am a protester because the banking industry went out of control and lost 40 percent of my 401(k).

Some people want to blame Barney Franks for pushing subprime loans. Franks did not tell Washington Mutual executives to lend money to any borrower who came in the door without checking their ability to repay. He did not tell them to sell these bad mortgages to financial institutions that packaged them into collateralized debt obligations (CDOs) and created the housing bubble.

Standard and Poors provided AAA quality for these bad CDOs for the Wall Street financial institutions to peddle to unsuspecting investors around the world.

These Wall Street “entrepreneurs” were dishonest, if not criminal. They brought down the world economy. Anyone who lost a job or a home is a legitimate protester.

Leave a comment Comments → 6
  1. concernedtacoma7 says:

    ” lost 40 percent of my 401(k)”

    So your real beef is that your 401K was tied to a losing stock. If you were diversified you would have been fine.

    The government established a system that moved the risk from the lender to the taxpayer (fannie/freddie). Address the government and see through the rhetoric.

  2. BlaineCGarver says:

    Congress heavily pushed banks with sticks and carrots to make KNOWN bad loans so women and minorities, and others could borrow money for housing. Then, they twisted loopholes to sell bad loans and everything got worse. Here you have Outcome Based Policy at it’s worse…you have to deserve what is handed to you lest the system crashes.

  3. Concerned7,
    ‘should have diversified’ – only works if you do your own investing – not a common occurrence with 401(k)’s.

    ‘address the government’ yes let’s find out:
    – what the regulators were doing when Wall Street and the Banks started lying investors and gambling with the investors money.

    – why the bailouts when to Wall Street and the Banks rather than to the individual investigators.

    B-G-C – and I suppose the government forced Wall Street and the Banks to create Mortgage Backed Securities by bundling those sub-prime loans and selling them as top grade securities.

  4. xx98411 says:

    xring – please do some research…

    401k – you have many options to choose from… low risk to high risk to super duper risk… yes you can diversified via a 401k

    the regulators were watching porn when Wall Street was crumbling and they were too stupid to understand what was happening before them. And to make it worse they were too lazy to ask for assistance or at least raise a flag that something wasn’t right…

    No they did encourage them though and doubled down through Fannie and Freddie..

  5. alindasue says:

    xx98411 said, “401k – you have many options to choose from… low risk to high risk to super duper risk… yes you can diversified via a 401k”

    One of my husband’s 401ks (he has two jobs) just lost another $2000 in the last quarter. His options are set to a mixture of low, mid, and high risk with the bulk being low and mid risk. Sometimes, “diversifying” just doesn’t help.

  6. xx98411 says:

    alindasue – diversifying is but one strategy, the goals typicaly are to maximize gain, protect asset gains and/or minimize loss… it all depends on your specific situation, the choices available and market conditions.

    My response was to xring who I believe to be a naysayer to pretty much anything. If we need to choose words more carefully then…

    “… a person needs to effectively diversify his/her portfolio with a view of maximizing gain, protecting any gains and, if necessary, minimizing loss during periods of market violatibility.”

    sorry for your losses, they are tough to watch.

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