tag:blogger.com,1999:blog-1527766217650773141.post9222663815880231457..comments2023-07-12T06:12:30.772-07:00Comments on Demand Side Transcript: Relay: Josh Rosner on SecuritizationAlanhttp://www.blogger.com/profile/07323700324276425194noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527766217650773141.post-87761254079093866972010-04-25T01:32:39.707-07:002010-04-25T01:32:39.707-07:00While his proposals are rational and sound I canno...While his proposals are rational and sound I cannot see the industry allowing this to pass. They make so much money from fleecing their "sophisticated" clientele and their whole bonus system is predicated on ripping off of others. You also have a political system in the US that basically is buyer gets all. which means Wall Street will be busy buying up representatives and senators to stop any coherent reform getting through, and certainly nothing that upsets their current business model. <br /><br />Though longer term I still think that the whole securitisation market is a scam. It is incentivised to get rid of the worst loans off the originators books or in the case of Northern Rock the best loans into certain peoples hands. If banks were unable to sell off these low rated loans then they may not make them in the first place. That would have stopped the sub prime bubble in the first place. Banking survived for hundreds of years before this form of financial engineering.David Lazarusnoreply@blogger.com