Posts Tagged ‘economic collapse’

Small Time Crooks Vs. The True Masterminds Of The Economic Collapse

Recently two mortgage brokers and a real estate appraiser in Minneapolis were indicted on fraud charges for allegedly inducing lenders to make more than 1 million dollars in mortgage loans on properties based on false information regarding the properties’ values.

Over and over, we see stories like this play out across the United States, and yet the true criminals, the Wall Street financiers, the orchestrators of the worst economic collapse since the Great Depression, have  gotten away virtually scot-free with their ill gotten gains while the country continues to drown in foreclosures.

Now, I am not saying that the small timers aren’t guilty of fraud nor that they should not be gone after: of course they should. By the same token, Lloyd Blankfein of Goldman Sachs and Jamie Diamond of Chase certainly have dirty hands, and the scope of the fraud these men were involved in numbers in the billions of dollars, if not trillions, at this point.

Every day, I read stories about how the U.S. housing market continues to decline. Every day, I hear about more people losing their homes to foreclosure. Every day, I hear about the millions of unemployed who simply can’t find work because there is none to be had.

Contrast the plight of ordinary Americans with fortunes of the prime Wall Street movers, whose bank accounts are overflowing with cash, mostly owing to their ill-gotten gains made during this time of crisis. How can it be right that the very people who brought down our economy can profit nicely and get away with it?

Sure, some of the small timers, like the guys out in Minneapolis, are getting their just desserts for the crimes they committed, but the true atrocities remain unanswered.

Here We Go Again: Wall Street’s New Plan To Make Money Off Delinquent Loans

I read about this on Mandelman Matters this morning and I couldn’t quite credit it, so I had to go digging for the original story, and sure enough, here it is. Wall Street actually wants to securitize delinquent mortgage loans on residential properties to sell to

investors who in recent months have been willing to accept lower-quality assets in return for greater yield.

In other words, investors who are willing to make riskier bets  for a larger return. Isn’t treating our residential mortgage market like it was a casino what got us into this mess in the first place?  Of course the Wall Street folks haven’t felt an ounce of pain from the economic collapse, so I guess everything has been hunky-dory for them.  Most of them are wealthy beyond imagining, at the cost of millions of foreclosures across America, millions of broken dreams and shattered lives. So, I guess it is no wonder that these same wizards would think nothing of doing the same thing again. 

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