Translating panton ton kakon as "all kinds" is questionable at best, the sort of creative exegesis most right wingers denounce when used by liberals. Panton means "all" kakon "evil". I don't see "kinds".

PS, you might wonder why President Carter started deregulating industries if it has turned out to be such a bad idea. Some have called Carter a libertarian because he started the deregulation movement and deregulated more industries than any other president. Why? Because the massive regulations from the FDR era has caused the economy to ground to a halt. We had high unemployment and high inflation at the same time, which Keynesian economists thought impossible. Carter's deregulations caused renewed investment and economic growth, though Reagan gets the credit.

Actually, the best translation is that the love of money is the root of all kinds of evil. The human heart is the source of all evil. Envy and covetousness are also evils.

Is it easier for a camel to go through the eye of a needle than for a rich man to enter heaven? And what is the next verse? All things are possible with God. But it's not the wealth that rich people have that makes it difficult for them to repent, but the fact that their money is often more important to them than spiritual things.

“First I said that the CDS and derivatives market were the unregulated market.”

They were created by investment banks, not spontaneous generation. And they are highly, highly regulated by the SEC.

“…this is the market responsible for 90% of the loses.”

No, the CDS market was fairly successful. It was the mortgage-backed securities that caused almost all of the losses.

“it did surprise Alan Greenspan when the predictable crash happened, he was stunned.”

Of course Greenspan blamed the market. He didn’t want anyone blaming him for flooding the world with credit, which is what most financial experts are doing. And Greenspan was referring to his economic theory that the Fed never does any harm; only the markets can do that. But he never backed down on his view that the MBSs and CDSs reduced risk.

“why have past housing bubble bursts like the S and L loans in early 90s never did nearly a tenth of damage of this one”

Because the S&L crisis wasn’t a bubble. There was no credit expansion that drove housing prices. Tax law drove investment in housing before the S&L crisis because housing was a great shelter for income against taxes. Then Congress changed the tax law and investors dumped houses on the market which caused prices to plummet.

“Oh, yes in the case of the Great Depression and the Great Recession ('29 and '08 respectably) Banks were allowed to speculate wildly.”

Commercial and mortgage banks did not speculate at all. They sold the mortgages they created to Fannie and Freddie who repackaged them as derivatives, which Greenspan said reduced their risk. Rating agencies gave those securities AAA and AA ratings. AAA is equal to US government bonds. How can you call investing in AAA-rated securities wild speculation? That defies logic!

“Simply, Both the Chicago and Austrian schools have had free reign in the last 20-30 years and I am familiar with both.”

Not true at all. If you knew anything about either school, you would know that the Feds violated each of their principles of central banking by pumping huge amounts of excess credit into the system. Milton Friedman and FA Hayek are turning over in their graves. The financial services industry is the most heavily regulated industry in the US after healthcare. The only significant deregulation that took pace was repealing Glass-Steagall, which merely allowed commercial banks to get into investment banking. However, none of the investment banks that failed or had trouble were commercial banks. And a great deal of the change in regulations had to do with adopting the European regulations for banking called the Basel accords, which btw were supposed to be so much tougher than our own.

When the crisis started, Europeans bragged that their more heavily regulated banking system would deflect the crisis; in the end, they suffered worse than the US. So much for regulation savings us all.

Greed and sin are constants in life. Humans never get much better or worse. However, economic/financial cycles like the latest one have been happening about every decade for the past 400 years. It's illogical to blame cycles on constants. Blaming economic cycles on greed is like blaming airplane crashes on gravity.

So, is the love of money the root of all evil? Is it easier for a camel to go through the eye of a needle than for a rich man to enter heaven? Please, none of the creative exegesis from you capitalist fundamentalists that that you condemn when it comes from liberals.

First I said that the CDS and derivatives market were the unregulated market. This is a fact.... Phil Gramm help make the CDS market the largest unregulated market in history of man (68 trillion at its peak).
and this is the market responsible for 90% of the loses. (ask yourself why AIG was one of the first big players damaged, even though they did not buy or sell mortgages)

And you are right it did surprise Alan Greenspan when the predictable crash happened, he was stunned. Quote:

Referring to his free-market ideology, Mr. Greenspan added: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”

Mr. Waxman pressed the former Fed chair to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Mr. Waxman said.

“Absolutely, precisely,” Mr. Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.”

When this history of the economic period is written, many students will ask why, after the Great Depression, did the US again allow banks to wildly speculate. The only answer will be the sin of Greed.

"So we have to ask why housing prices collapsed in order to know what caused the crisis. They collapsed because they had reached unsustainable heights as a result of credit expansion by the central bank."

Or a better question, why have past housing bubble bursts like the S and L loans in early 90s never did nearly a tenth of damage of this one (the only other exception is the real estate bubble of late '20s). What is the difference between the different real estate bubbles? Oh, yes in the case of the Great Depression and the Great Recession ('29 and '08 respectably) Banks were allowed to speculate wildly. Lesson to learn, keep banks boring and not allow them to speculate wildly.

Finally, "Just curious, but how do you have the confidence to proclaim an economy theory wrong without even learning a thing about it first?"

Simply, Both the Chicago and Austrian schools have had free reign in the last 20-30 years and I am familiar with both. I think both fail in the assumption about humans be rational first and foremost. The behaviorists have that on them. So do Christians in understand humans as sinners needing redemption.

"Theses markets are the LARGEST UNREGULATED MARKETS MAN HAS EVER BUILT."

That's simply not true. Investment banking is not as regulated as commercial banking, but it is still highly regulated, mainly by the SEC.

"They transformed investments into gambling."

That would surprise Alan Greenspan, most mainstream economists, the IMF, and many other institutions. All proclaimed the mortgage backed securities as instruments that would reduce risk for banks and investors. As for issuing one instrument and then "betting" against it, the accurate way to describe those transactions is prudent risk management. It's taught in all business classes as proper risk reduction.

Remember that mortgage backed securities and credit default swaps went bad only after the collapse in the price of the underlying asset--house prices. Had housing prices not collapsed, the world would still proclaim the MBSs and CDSs to be brilliant innovations.

So we have to ask why housing prices collapsed in order to know what caused the crisis. They collapsed because they had reached unsustainable heights as a result of credit expansion by the central bank.

Just curious, but how do you have the confidence to proclaim an economy theory wrong without even learning a thing about it first?

Good theory, if it were only true. The damage done to the economy in the last few years was done in the Credit Default Swaps and derivatives markets. Theses markets are the LARGEST UNREGULATED MARKETS MAN HAS EVER BUILT. They transformed investments into gambling. There was derivatives on who would win elections.

They were the most free markets ever devised my man, and they failed. And yes the failing was moral. Goldman Sachs, as example, bundled, promoted and sold Mortgage Securities, saying they were the best investment with one face, while betting they will fail with CDS on the other. (If I did something similar by bumping stocks on one hand while dumping them on the other, I would rightly be spending time in the jail) They weren't the only ones playing this evil game. We have seen similar ponzi schemes in Oil, Energy, Gold.

The Bible is clear. The love of money is the root of evil and we have real life proof in the last year.

It would have been far better had Davos held meetings on what’s wrong with mainstream economics. There is no evidence whatsoever that the world financial crises resulted from a failure of morality. Mainstream economic theory teaches that crises are random events, in other words, they have no definitive cause.

However, there is a minority school of economics with a theory of crises that goes back centuries called the monetary theory of business cycles. The theory’s best known proponent was the Nobelist F.A. Hayek. Most financial pros hold to this theory as well. The gist of the theory is that central banks pump vast amounts of new credit into the economy in order to recover from a depression or to simply make the economy grow faster. But credit expansion on that scale causes an unsustainable boom that always busts and results in depressions and sometimes financial crises, the greater the credit expansion, the worst the bust. High levels of debt and speculation are possible only with vast credit expansion by the central bank.

There is immorality involved in the monetary theory: central bank manipulation of money and credit is immoral. As the Church has always taught, just prices are found only in free markets. Central bank control of credit is not a free market, but a state-controlled market that dishonestly and unfairly manipulates coerces the credit markets for the benefit of large investment banks. The result is crises similar to what we have been through.