Tom Maertens
Fed Chairman Ben Bernanke told the Financial Crisis Inquiry Commission in 2010 that that the Wall Street meltdown “was the worst financial crisis in global history;” that 12 of the 13 most important financial institutions in the United States were close to failure “within a week or two.”……
The speculation and outright fraud was enabled by years of deregulation and by Bush’s appointment of toothless industry lobbyists as “regulators.” Goldman Sachs, for example, sold subprime mortgages designed to fail and then bet against those instruments by selling them short (for which they were fined $550 million). Deutsche Bank sold its clients subprime mortgage bonds that one of its own traders had described as “pigs.”…..
The eventual collapse resulted when housing prices dropped, which increased mortgage defaults; that made mortgage-backed securities held by banks as collateral nearly worthless……These sweetheart loans gave recipients cash at near-zero interest rates (.0078) that they then loaned back to the government at 3 percent by investing in T-bills, a license to print money. So the financial class got bailed out but the middle class paid the price; a record 2.82 million homes were foreclosed just in 2009, according to RealtyTrac and millions of jobs were lost. A Fed survey found that American families lost an average of 23 percent of their household wealth between June 2007 and March 2009, a total of $19.4 trillion. After the S&L debacle, more than 800 bank officials went to jail.
But neither the Bush nor the Obama administrations conducted criminal investigations of the deceptive loan practices, the fraudulent accounting, the insider trading and the conflicts of interest behind the current crisis…… We are setting ourselves up for another crisis.……
The speculation and outright fraud was enabled by years of deregulation and by Bush’s appointment of toothless industry lobbyists as “regulators.” Goldman Sachs, for example, sold subprime mortgages designed to fail and then bet against those instruments by selling them short (for which they were fined $550 million). Deutsche Bank sold its clients subprime mortgage bonds that one of its own traders had described as “pigs.”…..
The eventual collapse resulted when housing prices dropped, which increased mortgage defaults; that made mortgage-backed securities held by banks as collateral nearly worthless……These sweetheart loans gave recipients cash at near-zero interest rates (.0078) that they then loaned back to the government at 3 percent by investing in T-bills, a license to print money. So the financial class got bailed out but the middle class paid the price; a record 2.82 million homes were foreclosed just in 2009, according to RealtyTrac and millions of jobs were lost. A Fed survey found that American families lost an average of 23 percent of their household wealth between June 2007 and March 2009, a total of $19.4 trillion. After the S&L debacle, more than 800 bank officials went to jail.
But neither the Bush nor the Obama administrations conducted criminal investigations of the deceptive loan practices, the fraudulent accounting, the insider trading and the conflicts of interest behind the current crisis…… We are setting ourselves up for another crisis.……
But the sheeple continue to trust in this corrupt and criminal system. They give it their blessing by continuing to vote, paying their taxes, keeping their savings in a bank.
ReplyDeleteTheir thanks for playing along will be the system puking them out into the street, starving and dying.
yeah and people denounce faith or say they have none...faith in currency's, faith in economists, faith in politics, faith in MSM. all have faith, just where is it placed
ReplyDeleteIt appears even Wall street is about to give the Devil his due. They're losing their jobs as well.
ReplyDeleteCharles - Wethehumanrobots.com
Layoffs sweep Wall Street, along with low morale
http://www.baltimoresun.com/news/nation-world/sns-rt-us-wallstreet-tre77k1ou-20110821,0,3459584.story
In the famous words of jim jones of the peoples temple "its too late" , do not resist, people come now to the pavillion, do not resist, its too late"
ReplyDelete