A breaking story has shown a new angle to the Subprime
Market Crash in 2008: namely, that both Standard & Poor's and Moody's
accepted bribes for higher ratings before the crash. This flies directly in the
face of previous statements made under oath before Congress in which they
testified that they had never received any sort of payment for increased
ratings. While I'm sure this particular bit of news will go unnoticed as the
majority of the world is engrossed in the Catch-Me-If-You-Can style chase of
Edward Snowden and the political dramas playing out, in a way, this is
particularly more significant. Combined with the other evidence that has come
to light with LIBOR, the way subprime mortgages were marketed, and the massive
fraud perpetuated by the banks themselves, this is evidence of a wide ranging
and systematic effort to defraud and steal from the people of the world. This
is evidence that the banks not only defrauded the people who trusted them to
invest their money, they had the connections to make sure bank bailouts were a
realistic opportunity - which in turn, just made them more money, since the
major financial institutions have gone back to business as usual….To Read More…
My Take - Okay...so everyone is 'shocked'
no one is going to jail? Let's make an attempt to get some clarity. None of
this would have occurred if it wasn't for Jimmy Carter's Community Reinvestment
Act. It was claimed that ‘the CRA was passed as a result of national pressure
to address the deteriorating conditions’. The real push for this was from
community activists, from such groups as the National People’s Action in
…..guess where……Chicago .... claiming that the banks were Red Lining. In other
words they were deliberately not giving loans to blacks. The media, print and
electronic, brow beat this false accusation into the nation’s perception of
reality, and that was an easy sell because everyone hates the banks anyway.
However, there is a penalty for that kind of interference, especially since the
charges of racism were false. The banks were, at the end, required to put out
CRA loans to the tune of over 50% of their lending to people who clearly couldn’t
make the mortgages. The only thing that saved them was the price of housing
kept going up. However, many of these
investment people believed a collapse
would be inevitable and created fraudulent financial tools to cover themselves.
The inevitable was worse than anyone could have thought, but we need to
understand this; all this corruption started with the federal government, under
Jimmy Carter, forcing economic policies on banks that ultimately would
eventually be disastrous. So why aren't more people going to jail? I would have
to believe this would expose a great many government employees and politicians
to even more unpleasant scrutiny.
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