This is a fascinating PBS interview with University of Missouri economics professor William Black, who tells how we got into this financial mess.
If you listen carefully, he tells you specifically that all of these bad loans were given to everyday people who LIED when getting their loans. They lie about their income, how much debt they’re in, etc. Then the bankers purposely avoid background and credit checks prior to making the loan because they can make more money lending to those who they KNOW will never pay it back. How is this so? Their plan is to bundle up these loans, which they know are bad, and sell them in various packages to the public, with a triple A rating, and make huge record profits. And these huge “record profits” will give these bank CEOs big bonuses. As Professor Black puts it, our entire financial system has become a giant Ponzi scheme!
What’s interesting to me is that ALL the blame is going toward corruption at the top. Though the big CEOs, bankers and politicians certainly deserve their share of the blame, they are not the only ones involved in this scandal. Where is the responsibility to the people who took out loans they KNEW they couldn’t pay back? This financial meltdown is corruption at all levels of society, bottom to the top.
You’ll hear about Obama’s financial board members, as well as those in the Bush administration, who remove all these regulations that were in place to safeguard lending. You’ll hear about Larry Summers, one of Obama’s chief economic board members, blocking good derivative regulation which would’ve stopped a lot of this calamity. In fact, the very regulation Larry Summers stopped was the very regulation which would’ve stopped the AIG debacle from ever happening.
Obama is not going to fix our current financial situation, he’s part of the problem. The same financial goons who created our financial mess are the same ones creating this “bailout” and massive spending, buying up these toxic loans, which they themselves created.
Geithner wants us to believe he’s helping us, buying up these toxic loans with our tax dollars. What a joke. This is nothing but a huge transfer of wealth to the bankers, big CEOs and politicians, and then suckering the American people into buying up these “liars loans”, and acting like it’s to our own benefit to do so.
But one thing I want to stress again, the corruption STARTED at the bottom, with people taking out loans they KNEW they couldn’t repay, and WEREN’T going to repay. The only reason these loans were so disastrous was because people did not pay back the loans they took out. The greedy politicians and CEOs at the top only took advantage of the situation.
So to “bailout” this situation, Obama prints up trillions of dollars, and hands it all to the corrupt bankers (THE VERY ONES WHO GOT US INTO THIS MESS) and pays off their toxic loans. Those who created the problem, are now posing as the solution! Those like Geithner, who was one of the chief regulators while all this was going, is put in charge of the disaster he himself created. Geithner was one of the heads of the Federal Reserve in New York, whose job is to regulate banks.
Who pays the bill? The responsible upper middle class, and middle class, who save their money. The U.S. dollar loses its value, and their savings accounts are devalued. We’re rewarding irresponsibility, and removing justice.
Because nobody knows how much money Obama is going to print up, investment in this country to upstart entrepreneurs has practically become nonexistent. Legitimate investors are worried about hyperinflation. The wealthy investors are putting their money in other countries, or moving it into gold, so that they’re not robbed in this Ponzi scheme.
Plus Obama and his goons are going to be tackling universial healthcare, and free college for all… Who knows what may happen in our near future.
Idiot commentators on various news networks act like taxing the rich at very high rates is the way to fix this! How RIDICULOUS. I saw this idiotic woman on MSNBC saying even if the wealthy were taxed at 90% (like things were during World War II), it wouldn’t hurt them. Stupid woman. GOOD business men, like myself, had NOTHING TO DO WITH THIS MESS. Why should I foot the bill?
Then I see all the corporate owned news programs deriding the tea parties. I even saw an episode of Jon Stewart on comedy central, making fun of the tea parties. So it’s not just the news, it’s everyone including late night comedy. They play them out as if they’re all just a bunch of stupid rednecks, who don’t know why they’re even out there. Their “coverage” of the events reminds me of those news reporters in the UK, who talk about Americans being so stupid. They find one idiot on the streets, asks them all kinds of questions (which the idiot obviously doesn’t have a clue about), and then they say, “There you have it, Americans are idiots.”
When I see these idiots having a mainstream voice on news programs, but obviously lack all financial and economic knowledge as to how things work, or who is to blame, I want to scream, and throw stuff at the TV. These same commentators demonize all CEOs and business men, instead of correctly placing the blame on the small few who are corrupt. And taxing the wealthy will NOT get the money back from the corrupt bankers, and politicians who CREATED this mess. They’ve moved their money out of the country, I’m sure. These same idiots are flocking to Obama’s rallies, and cheering him on, as him and his goons steal your money.
Taxing the wealthy is NOT the fix to this. Properly regulating the financial market, and stopping these bankers is how to fix things. I still can’t believe people think Obama is such a great guy. He’s a crook at all levels. But to everyone reading this: Most CEOs, and bankers are NOT corrupt like this. Just listen to this economist. 90% of the bank CEOs during the savings and loan debacle during the 1980s COULD have engaged in fraud, leaving them with huge profits, but they did not. Most business men are GOOD people.