Anders Floderus AF icon
 
My name is Anders Floderus. The main content of my site is two studies, of the subprime crisis (under work, unfinished posts are within parenthesis) and of marxism. Besides these, there are a few posts on me and on my site, a couple of unrelated posts and, in my native Swedish, a few posts of little general interest.
On top, I have a menu bar with links to all posts. You can find the same links in the right column. At the bottom of the main column is a list of all posts ordered by date but with the Swedish posts at the end; the date is the date when it was first published or for a major update.
Me and my site
A few posts on me and my site. A presentation of myself, a description of how you navigate the site and a place for corrections and attributions if any.
To the first post:
The subprime crisis
Since at least the 1970s, the US has gone for deregulation. At least for the banks. The result is a change from rewarding success to rewarding failure, with more freedom and less risk for the bankers. As late as the 1990s, senior bank executives could go to jail; after the subprime crisis, only a few low level executives got some token prison sentences. To save the economy, maybe it was necessary to save the banks. Saving the bankers is incentivizing continued plunder and deceit.
There are agencies for supervising the bank. However, mostly they just refuse to do anything. Even should some agency try to do something, most of the time it is actively obstructed from above.
With bank induced liar's loans, with accommodating appraisers and new types of securities, the banks created a financial bubble. The result was gigantic fictional profits and gigantic rewards for the bankers. When the bubble burst, the bankers kept their money. The losers were the tax-payers, the pension funds, even their own banks. To make the most from what remained, the bankers came up with new tricks. Extracting unwarranted fees from the borrowers, provoking foreclosures, even foreclosing already paid homes. Destroying and robosigning documents. With the courts taking the side of the banks, the borrowers had little chance.
The bankers are touting low regulation as the way to prosperity. But too little regulation can be just as bad as too much. Even highly regulated communist Cuba is more prosperous than most Latin American countries, no matter how little regulated they are. Like south american drug lords, the bankers don't have to care about the law.
The bankers are touting great rewards for great risks but they are only risking other people's money. Their enormous profits during the subprime bubble made people believe that the bankers were brilliant. When the bubble burst, the bankers were still touted as brilliant. They claim that banks don't defraud because fraud doesn't pay but they make fortune upon fortune with deceptive methods. They do demonstrate smartness but only when it comes to things like manipulating people, invoking regulations on others and relieving regulations for themselves.
A compilation of what I've found on the net and in books. Introduction and a table of contents:
Marx and marxism
Mainly a short analysis of Karl Marx's Capital and Friedrich Engels' Anti-Dühring. Analysing Marx's "science". "Science" is but a catchword to make people believe there is some substance behind his words. His labor based "real value" is not more "real" than a "real value" based on for example weight. His "great discovery", "the revelation of the secret of capitalistic production through surplus value", is nothing more than the discovery that the capitalist makes money.
Marx's laws are completely meaningless. According to him, it's a law that things are red; every time you see something red, the correctness of this law is confirmed. However, this law is only valid for things that are red. Likewise, every time you see a thing that is partly red, it confirms the dialectical law that things are at the same time both red and not red.
Introduction and a table of contents:
Unrelated
Some thoughts on electrical cars and feminism.
In Swedish
A few posts written in my native Swedish. Some thoughts of little general interest. To the first post:
Contact
I am still tinkering around a bit. Although I am working on updating some posts, it's a slow work; with no feedback, I don't feel very inspired. So, if you are interested and want more, please tell me so.
You can reach me by mail: anders22 at andersfloderus dot com
Posts sorted by language and date:
 
Apr 11, 2016
Alternatives Better than production
  Instead of production
  Investing in production did not give the profit that the bankers wanted. So they found alternatives. Like lobbying, buying back own stock, commodities, "innovations".

Feb 22, 2016
Selection Link selection from NakedCapilalism
  For more information
  This is a selection of posts from the blog Naked Capitalism. I have no special selection criteria, I just found them interesting. They are sorted by year, month and name.

Feb 22, 2016
(Conclusion) The End
  All you need to know
  The conclusion post is not finished.

Dec 18, 2015
Theory If looting is incentivized, looting wins
  In theory, theory and praxis are the same
  There is a difference between theory and praxis. In physics, you have Newton's law of gravitation. It is a fundamental theory but it is not enough to construct an airplane; in praxis you also need the laws of aerodynamics. If you miss the effect of metal fatigue, you can get a crash no matter how well you understand gravitation and aerodynamics. And if somebody puts a bomb in the luggage department, no physical laws will help.


Oct 10, 2015
Regulation Regulating for looting
  To regulate or not to regulate
  At least since Carter, American Presidents have supported federal deregulation. The result? The Savings and Loans crisis. As a result of this, further deregulations were effected and we got the subprime crisis. Many banks made big profits, until they needed bailouts. With deregulation, the American economy was good, more or less. Until it crashed.

Sep 09, 2015
Competence Competence is competence to loot
  Competence or incompetence
  In the olden times, people got rich by producing and by investing in production. Nowadays, competence has changed. If you want to get rich, production is seen as an unnecessary step.

Jun 15, 2015
(Politics) About Politics
  Defeating democracy
  No matter how you vote, the banks win.

Jun 15, 2015
(More) Not only mortgages
  There are many ways to skin a cat, one more time
  Wall Street does not only target home owners. Communities, education, health care, pensions, energy, defense and other branches are bleeding profusely.

Jul 17, 2014
Financial crisis On the financial crisis
  Don't make me angry. You won't like me when I'm angry.
  I write about the financial crisis because the banks and their behavior make me angry and I want people to know; about bank behavior and about me being angry.


Jun 30, 2014
Settlements Handouts, others pay
  There are so many borrowers. What does it matter if some are defrauded?
  In spite of all investments in banking reviews, they did not work out. Criticism and costs grew and the situation became untenable. So the reviews were ended, officially to save money for distressed homeowners. The reviews gave a lot of money to the reviewers; maybe the banks were ripped off but they didn't seem to mind very much. The $8.5 billion settlement imposed put a limit to how much they had to pay; it also meant that those responsible did not have to fear any personal consequences.


Jun 30, 2014
Reviews Making a mess
  How not to search for damages done
  According to former Fed Chairman Alan Greenspan, bank examiners are good at promoting sound banking practices but bad at discovering fraud; they are not even supposed to look for fraud. So fraud is not against sound banking practices. And even if the examiners are good at promoting sound banking practices, they can't stop the banks from routinely driving people into foreclosure.

Jun 23, 2014
Obstructions Feds obstruct examinations
  The administration is the problem
  SEC, the Securities and Exchange Commission, is there to regulate the securities industry. It does not succeed and that's no wonder. SEC and Wall Street intermingle; at a conference, the entire staff of the SEC was thanked for "the really amazing things they have done ... to the country, to the financial community, and not to mention a lot of [Wall Street] law practices." SEC's director of enforcement answered with an offer to Wall Street; presumptive wrongdoers could use the SEC as a negotiator, should they need to talk with the Department of Justice.


Jun 23, 2014
Regulators Many regulators, no regulation
  Lots of squealing, little wool said the devil, sheared the pig
  There are several organizations to control the finance market. Like the Securities and Exchange commission, SEC. The Department of Justice, DoJ. The Office of the Comptroller of the Currency, OCC. What they have in common is a next to complete unwillingness to prosecute for even the most blatant crime. Most of the Fed top executives come from Wall Street, most of the lower executives want to go to Wall Street; it's no wonder most federal investigations find little or nothing to report.

Jun 15, 2014
Bad friends Courts against the banks
  When your friends turn agains you
  The courts are the banks best friends, no matter how strong the evidence. When banks cheat and go on cheating, it's because the courts let them; should they sometimes lose, it is just a minor inconvenience, just costs for doing business. But sometimes the judge does take offence at the banks.

Jun 15, 2014
Sarbox Feds won't use the law
  Nothing but bad judgement
  As a result of the Enron Scandal, in 2002 the Sarbanes-Oxley Act (Sarbox) was enacted. Without Sarbox, the administration managed to put away at least some of the top men behind the Enron scam. Several senior executives were sentenced, with up to 24 years in prison. With Sarbox, not one of the top men behind the subprime crises has been sentenced.

Jun 15, 2014
Protected Protecting banks
  Trust them, they won't do it again
  In spite of what Obama says, there are cases where you can prosecute; even if we disregard the Sarbanes-Oxley Act, there is a lot to do. Document fabrications and forgeries. Overstating how much the borrower is in arrears. False claims in court that the bank had offered borrowers mortgage modifications. Persistent and "outrageous" misstatement of material facts by foreclosure mills.


Jun 15, 2014
Best friends Bank friendly courts
  More help from my friends
  As a rule, courts take the part of the banks. Still, few are so outspoken as the judge who said that if the bank was foreclosing, he wasn't going to consider any evidence that the foreclosure was in error.

Jun 07, 2014
S and L The Savings and Loan crisis
  Savings and Loans - The subprime crisis light
  The subprime crisis is about accounting control fraud, about senior executives engaging in extensive fraud for personal gain. It is about creating fictitious profits through grotesquely overvalued assets; it is about looting your firm through exorbitant salaries, fees, bonuses and other perks; it is about leaving the losses to clients and taxpayers.

Jun 07, 2014
Promotion Federal subprime support
  A short story of federal housing support
  Promoting financial development is one of the duties of the government. In 1913, the Federal Reserve System (the Fed) was created. It is a central bank independent of the government, meant to counteract financial panics by helping banks with temporary liquidity problems. It is also controlling the supply of money, selling Treasury securities and supervising the bank system.

Jun 07, 2014
CRA Credit Rating Agencies
  Not for purchasing, selling or holding securities
  When you invest your money, you don't want junk; you want some sort of assurance that your investment has a certain quality. That's what Credit Rating Agencies (CRAs) are for. A CRA is a firm that assigns credit ratings, giving securities a rating according to how likely they are deemed to fail. The ratings are labeled AAA or Aaa at the top over B and C-something to D at the bottom.

Jun 07, 2014
Securitizing Bundling mortgages
  Hiding the risk
  Banks used to keep the mortgage until it was paid. With securitizing this changed. Securitizing, putting mortgages together in packages, is often advantageous compared to dealing in individual mortgages. Risks are spread and there is less paperwork.


Jun 07, 2014
Growing The mortgage bubble grows
  Everybody joins
  Fees from investors were a profit machine for firms selling securitized mortgages. Looking for more profit, more and more firms set up own departments to take over the whole process. On the safest home mortgages, they could not compete with government supported Fannie and Freddie so they choose other targets: loans too big for F&F and subprime loans.

Jun 07, 2014
Crash The mortgage bubble bursts
  Letting others take the loss
  At first, most trading in Mortgage Backed Securities (MBSs) was done behind closed doors, between two parts. As bonuses were depending on fees and fees were depending on sales volume, the banks were more interested in big volumes then in making good deals. There was no real market price, one firm sold to another, this in turn sold to a third and so on, raising the price, creating a fictitious value without any regards to any underlying value. Each time, the seller recorded a fictitious profit; each time, the he got a real fee. In 2006, the banks opened a market place for MBSs and with this followed a more realistic appraisal. The prices fell, first slowly then faster; more and more loans were defaulting; at the end of 2007, the big MBS indexes had fallen by 80%.

Jun 07, 2014
Unexpected Bankers don't know
  It was the best of times, it was the worst of times
  Early in 2007, the financial sector saw all that it had made and it saw that it was good. Due to the liberation of markets, the economy had reached a level of stability so far unprecedented; the economies that took the most aggressive measures reaped the biggest rewards. Secretary of the Treasury Hank Paulson told President Bush: "This is far and away the strongest global economy I've seen in my business lifetime". One year later he said "This is the most serious thing that we faced".

Jun 07, 2014
Bailout Bailing out the banks
  The big bail-out
  The subprime problems became so big, the Congress thought it had to do something. In the face of strong opposition, it approved the Troubled Asset Relief Program (TARP); Henry "Hank" Paulson, Secretary of the Treasury and former Goldman Sachs CEO, got $700 billion of "necessary" taxpayer dollars to bail out those he found worthy; "Troubled Assets" was very widely defined so Paulson could use "his" money for almost any purpose.

Jun 07, 2014
Rules How mortgages should be treated
  There are rules but you don't have to follow them
  The subprime crisis did not end with fraudulent valuations. It is still going strong, with forged documents and assorted accommodating agencies. To understand what happened, you have to know how to handle and how not to handle different types of documents.

Jun 07, 2014
Paradigm Profiting on failure
  The Times They Are A-Changin'
  Until 1971, New York Stock Exchange firms had to be partnerships. If a partnership firm went bankrupt the partners were personally responsible, the creditors could seize their personal wealth. In the 1980s, things began to change. Now Wall Street is hooked on other people's money. Short time profit and direct reward became the norm; instead of big profit or big loss was, you got big profit or no loss. Top management only risk what they own in company stock and can't sell, there might be time restrictions forcing them to keep some stock for some years.

Jun 07, 2014
Specializing Special Companies
  With a little help from my friends
  To facilitate securities handling, banks use specialized companies; for registration, for default and foreclosure handling, even for robo-signing documents.

Jun 07, 2014
Defaulting Forcing Default
  To default or not to default
  Default is when the borrower does not pay his mortgage. Sometimes he's sick, sometimes he lost his job. Sometimes the bank is actively driving him into both default and foreclosure. Sometimes a borrower stops paying although he has the money; if the house value has fallen so much it is worth less than the remaining debt, it can be financially advantageous just to leave the house.


Jun 07, 2014
Dirty tricks Dirty Tricks
  There are many ways to skin a cat
  The banks have many ways, legal and illegal, to hurt borrowers. Adding fees, unnecessary insurances, unwarranted or protracted foreclosures and much more.

Jun 07, 2014
Victims About victims
  They don't deserve to stay in the house
  The banks didn't do anything wrong but four million people were reportedly wrongfully foreclosed.

Jun 07, 2014
Death Was it murder?
  The deadly game
  People die. Maybe the death of Larry Delassus was one of those things that happen. The death of Sunny Sheu has to be unique. Or?

Jun 07, 2014
Municipalities Duping municipalities
  Going for the big kill
  Not only homebuyers are tricked by the banks. When a municipality needs to finance a common project, it can go through a bank and issue a fixed rate municipal bond. This does not generate much money for the banks so they can suggest what they claim are better alternatives. For example Variable Rate Demand Bonds, letters of credit, Interest Rate Swaps. The result can be disastrous.


Jun 07, 2014
Motivation Money, a bad motivator
  To get bad performance, you got to pay well
  A common meme on Wall Street is that to get good performance, the pay has to be good. Unfortunately for them, studies show that CEOs tend to perform worse with better pay.

Jun 07, 2014
Knowledge Bankers know
  It takes a lot of knowledge to really fail
  There always have been harbingers of higher wisdom. Like those initiated in the Eleusinian Mysteries, a long time ago. Former Federal Reserve Chief Alan Greenspan talks about things that "only we fully understand".


Jun 07, 2014
Appendix Finance Appendix
  Terms, Abbreviations, Institutions, Persons, References
  Reading about finance, it is difficult to remember everybody involved, all words and abbreviations. So I wrote a list.


Jun 07, 2014
Contents Finance Contents
  Contents Finance Posts
  

Mar 02, 2014
Feminism About feminism
  Men are not like women. Men don't gripe about toilet seats.
  Women are not like men. Women are more beautiful. I prefer women because I was born that way. I was born a physical man with a man's gender identity and a man's customary sexual orientation. As long as I have known about male and female, I have known I am male; as long as I have cared about male and female, I have cared about females.

Mar 09, 2013
About Me Presenting myself
  I think people should be nice to each other
  I never had a difficult life. Second of six brothers and sisters, I grew up in Luleå, Sweden, 70 miles south of the Arctic Circle. My father was consultant physician at the town hospital. I suppose that counts as upper middle class, in Luleå maybe the upperest class in town. After school I worked with computers until retirement.

Oct 24, 2012
Navigate Site navigation
  How to navigate this site. Use the home page, the navigation arrows.
  My site might not be the most beautiful but I don't like most modern sites. They are too cluttered. Besides, I hate irritating animations and pop-ups when I try to read something.

Jul 22, 2012
Conclusion Marxism. Conclusion
  Concluding remarks. On Marx and democracy, on social beings and on the importance of being Marx.
  Marx did not like the bourgeois democracy where the people can select which member of the ruling class is to misrepresent the people in Parliament. Instead, people should be represented in communes and the communes should serve the people.

Jul 18, 2012
Capital 2-3 Marxism. Capital Book 2 and 3
  Third and last post on Marx's Capital. You put a book on a table. Why it can't be gravitation that keeps it there.
  This is the third part of my examination of Karl Marx's book Capital, comprising Book 2 and Book 3. In Book 1 I treated all chapters, although some were dismissed in just one or a few sentences. Now I omit those I don't find interesting. I do not intend to write about Book 4.

Jul 18, 2012
Science Marxism. Science no magical word
  On making predictions. Marx and others.
  As I have already demonstrated, Marx's materialism, dialectics, dialectical laws and value are nonsense. So is Marx's great discovery, the revelation of the secret of capitalistic production through surplus value. His science is not any better.

Jul 18, 2012
Religion Marxism as religion
  Marxism as religion. A surreal experience.
  Why do people like Marxism? Because somebody told them it is good. It has been called the religious instinct, the need many people have to blindly follow somebody or something they perceive as greater than themselves. Where Marx stands, he shows with his famous words that the philosophers have only interpreted the world, when the point is to change it. He is a man with a vision and a mission. He is not a philosopher, he is a prophet.

Jul 18, 2012
Value Marxism. "Real" value
  Marx's 'real' value, who needs it?
  Marx's "real" value is a most wondrous thing. It is a great discovery but still it is impossible to know, it is impossible to use, it is totally meaningless.

Jul 18, 2012
Laws Marxism. Dialectical Laws
  Marxism: All the dialectical laws are right, they are all tautologies.
  Marx's and Engels' dialectics is taken from Hegel, with some modifications. An important part of the dialectics is the dialectical laws. What's so great about them is that they are always right because if they are not right it doesn't count.


Jul 18, 2012
Dialectics Marxism. Dialectics
  With a little dialectic, Marx can always get out of it.
  To Marx and Engels, the difference between dialectics and metaphysics is very important. Dialectics is better. You can prove more things. You can use it to prove that the soul is immortal.

Jul 18, 2012
Materialism Marxism. Materialism
  If you can't tell idealism and materialism apart, the difference can't be important.
  Marxism puts materialism that is right, against idealism that is wrong. Materialism is believing consciousness is a result of an outer world, while idealism is believing an outer world is a result of consciousness. How do I know that you exist, that I am not dreaming you? How do you know that I exist, that you are not dreaming me? The Marxist answer is practice.

Jul 18, 2012
Marxism Marxism. Introduction
  Why do I write about Marx?
  I dislike Marxism because A: its theory is nonsense, and B: its praxis is atrocious. Marxism is used to divert people's discontent, to justify people's suffering. Marxism is belief in mystical powers known only by the initiated. Marxism is religion.

Jan 03, 2012
Capital 1b Marxism. Capital Book 1 part 2
  Second post on Marx's Capital. Why the merchant can't sell for more than his purchase price.
  This is the second part of my examination of Karl Marx's Capital Book 1, comprising the chapters 4 - 25. The chapter numbering can vary between different editions, one chapter being split in several or vice versa.

Apr 10, 2010
Corrections Corrections and Attributions
  So far, I've had no reason to do any corrections.
  This is where you will find corrections and attributions. If I add new pages or if I make major revisions to existing pages, you will find it in the middle column on the Home page, with a new date under "Sorted by language and date". Should people begin discussing my posts, I will use this page to document changes, until then too small revisions and too obvious attributions will not be documented.


Apr 02, 2010
Electrical cars Gas better for cars?
  Are electrical cars clean?
  If you drive an electric there is no exhaust, right? Except for the exhaust from the coal-burning power-station that delivers the electricity you need to charge your car. And the exhaust from the mining and transport you need to get the coal to the power-station.

Apr 02, 2010
Nazi vs Commi Nazism vs communism
  I never understood why people were treating Nazis and Communists differently. After reading this, you will wonder too.
  What are the differences between Nazism and Communism? There are some. Still, there is a list much more impressive, that of similarities.


Apr 02, 2010
Capital 1a Marxism. Capital Book 1 part 1
  First post on Marx's Capital. Why he should have chosen supply and demand instead of labor.
  This is the first part of two of my examination of Karl Marx's Capital Book 1, comprising the chapters 1 - 3. It is an inquest into his thinking and especially into his exchange value. Parts I do not find interesting will be summarily dealt with or excluded.

Jun 11, 2013
Fruntimmer Om fruntimmer
  Jag tycker inte om fruntimmer. Dom uppskattar mig inte så mycket som jag tycker jag är värd.
  Jag har aldrig brytt mig om könsrollsdebatten. Jag tycker och jag har alltid tyckt att man skall vara snäll. Särskilt skall man vara snäll mot flickor. Och jag tycker att flickor skall vara snälla. Särskilt skall dom vara snälla mot mig. Även om det inte är någon särskilt framgångsrik strategi; när man frågar om dom vill träffa en igen så klappar dom en på huvudet och råkar vara upptagna. Till och med feminister föraktar snälla män: "De är gulliga men dem vill man inte ligga med".

Jul 20, 2012
Liedman Liedman väcker förundran
  Vad är höger och vänster? Sven-Eric Liedman väcker förundran.
  Professor emeritus Sven-Eric Liedman har väckt förundran på twitter med sin förfrågan. Han har frågat varför ingen avslöjar moderaternas locktoner. Även jag är förundrad.

Jun 15, 2010
Myrdal Beredd att offra - ingenting.
  Jan Myrdal är som Jokkmokks-Jokke. Ganska rolig i små portioner. Ganska påfrestande i större.
  Jag förmodar att alla länder som har lagar, flygplan och skyskrapor även har lagar mot att avsiktligt flyga in i skyskrapor.

Apr 02, 2010
Poesi Poesi. Några små försök.
  Det är vackrast när det rimmar. Ta och njut i flera timmar
  Som författare är jag intresserad av de rent tekniska uttrycksmedlen. Som ett experiment har jag gjort några försök med bunden form, med att skriva poesi.

Apr 02, 2010
Vera-Zavala Kommunist eller anti-kommunist?
  Demokratin, mångfald, frihet, välfärd enligt America Vera-Zavala. Kommunism eller anti-kommunism?
  Det väl ingen som förvånas över kommunisternas högljudda stöd till Saddam Husseins socialistiska Baath-parti. Åtminstone ingen som känner till kommunisternas stöd till nationalsocialismen.

Apr 02, 2010
Marklund Om vårdnadsbidrag
  Vårdnadsbidrag. Tycker alla mödrar att Liza skall besluta åt dem?
  Liza Marklund har i två krönikor tagit upp vårdnadsbidraget, det penningbidrag som kan betalas till föräldrar som stannar hemma och sköter sina barn. Hon är emot det.

portrait  
Contents:
About Me
Navigate
Corrections
Financial crisis
- S and L
- Promotion
- Securitizing
- CRA
- Growing
- Crash
- Bailout
- Rules
- Paradigm
- Specializing
- Defaulting
- Dirty tricks
- Victims
- Death
- Municipalities
- Motivation
- Unexpected
- Knowledge
- Best friends
- Protected
- Sarbox
- Bad friends
- Regulators
- Obstructions
- Reviews
- Settlements
- Alternatives
- Competence
- Regulation
- Theory
- (More)
- (Politics)
- (Conclusion)
- Appendix
- Contents
- Selection
Marxism
- Materialism
- Dialectics
- Laws
- Value
- Religion
- Science
- Conclusion
- Capital 1a
- Capital 1b
- Capital 2-3
- Nazi vs Commi
Electrical cars
Feminism
Fruntimmer s
Poesi s
Liedman s
Marklund s
Myrdal s
Vera-Zavala s
© Anders Floderus