Wednesday, June 26, 2013

"I'll Be Gone, You'll Still Be Here"

Brett Bogus | Jun 26, 2013
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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