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HUFFPOST SUPER USER
karen1p
01:43 PM on 07/25/2010
"It's no secret that I admire Gretchen Morgenson of the New York Times. Her articles have penetrated deeper and deeper into the realities and logistics of the Great Financial Meltdown. But she continues to drag myth alongside of reality. True, it is difficult to get your mind around the idea that Wall Street managers WANTED bad mortgages, but that simple piece of truth is unavoidable. In the article below she draws ever nearer to this truth, saying that the real question is "what did they know and when did they know it?"
She even spots the extremely important fact that the worse the loan the more money was made by Wall Street. My objection is why not ask the next obvious question, to wit: "If Wall Street's profits went up as the quality of mortgages went down, isn't the obvious incentive to create increasingly bad paper?" And in what world has Wall Street ever done anything to diminish profits on moral grounds?"

Continued above
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HUFFPOST SUPER USER
mtgurl
01:01 PM on 07/25/2010
Gretchen, BO should put you in charge. You rock!
12:44 PM on 07/25/2010
Duh.

And thanks, Congresspeople, past and present, for being too lazy and/or stupid to see to it that you had even a basic understanding of the financial markets, before you gutted the regulatory structure that had given our economy stability for decades.
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HUFFPOST SUPER USER
Dan1902
United we bargain,divided we beg!
12:14 PM on 07/25/2010
Greed has 2 faces Ugly and Uglier!!!
11:09 AM on 07/25/2010
You know, people keep saying that only the big banks, and in particular a few individuals like Fuld, Lewis, Blankfein and Dimon, were served by the bail out - that it wasn't as far reaching as promised - but that is untrue on at least 2 levels:

1) Our elected officials also made out really nicely, including the former president and the current one. And I mean they must have made out REALLY well because not a single one of them has called for the prosecution of those who pertetrated the global fraud that laid waste to the nation they serve. So anyway, that's well over 500 other people who benefited. And THEIR families.

2) The banks did not just benefit from our bail out. They got to keep 8 years worth of proceeds from their fraud, they got to keep the insurance money thay AIG had to pay out on their fraud. They got to sit on our bail out money long enough to irreparably strangle the small banking and small business base so that they could buy up those assets...with our bail out money...at a fraction of their value.

We may have given Blankfein and Dimon $50b, but they got at least $500b value out of it and in doing so devastated so many millions of families that we all know someone who is struggling to feed his/her family now.

So can't no one say the bail out didn't have far reaching effects.
ladyearth
Give birth to your dancing star
10:01 AM on 07/25/2010
Our United States currency now carries "In Greed We Trust." dont'cha know.
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HUFFPOST SUPER USER
wikwox
So there I was, playing the piano....
09:24 AM on 07/25/2010
As surely as Wall St. continues it's evil ways so do thier defenders the Banksters in the Senate. If you don't like the Financial Reform bill take heart: At this very moment Banksters are seeking ways to render it worthless, just like the rest of the senates "work".
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HUFFPOST SUPER USER
Magick1
Dark fire shall not avail you. You shall not pass
08:42 AM on 07/25/2010
Wall Street, a crime syndicate too big to fail.
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intotheabyss
Imperialism is a form of insanity.
09:03 AM on 07/25/2010
Bingo!
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WOODSTOCKER51
HAVE A NICE DAY!
08:07 AM on 07/25/2010
.AS ANY RETHUGLICAN KNOWS..."ITS ALL ABOUT THE WEATHLY AND THIER VERSON OF FREE MARKET CAPITALISM".........
HUFFPOST SUPER USER
USNDC
Smartest President ever ? ... not even close.
08:02 AM on 07/25/2010
I would like to see someone ask our enabling career politicians these "same" questions.

Our politicians are dirty.

They reached into the pockets of the taxpayers ... to our money ... and handed it to their friends in Wall Street.

They took our money and gave it to their friends.

You can complain about Wall Street all you want ... but think we should focus on our corrupted career politicians first.
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HUFFPOST COMMUNITY MODERATOR
Mensch99
07:22 AM on 07/25/2010
A primer on the development of the current crisis

http://comment.rsablogs.org.uk/videos/
06:56 AM on 07/25/2010
In 1970, Congress passed the Racketeer Influenced and Corrupt Organizations (RICO) to eliminate the ill-affects of organized crime on the nation's economy.

Knowingly entering a Ponzi scheme, even at the last round of the scheme, can be rational economically if government bails out those participating in the Ponzi scheme.

There was a conspiracy to defraud. = RICO
The securities sold were worthless and paid for by new contracts, the bailout was foreseen and expected = PONZI

Bernie Madoff got 150 years and forfieture of gains. That is the precedent.
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HUFFPOST COMMUNITY MODERATOR
realitytrumpsbull
Two 'alves of coconut!
07:33 AM on 07/25/2010
So, do you think there's going to be the mass Wall St. Trials of 2010/2011? Frankly, I hope the DOW drops to about 2,500 points, and stays there for a couple-three decades, and becomes a psychologically unimportant sideshow that no one really cares about anymore, and the put the capital gains tax at 14,000% making it definitely NOT worth your while to dabble around on the stock market anymore. Bleach down that whole business, so nothing grows there anymore.
09:38 AM on 07/25/2010
Wow....please tell me you're joking. Are you aware what the equity markets are?
05:14 PM on 08/14/2010
Congress should be prosecuted under RICO.
HUFFPOST SUPER USER
karen1p
05:44 AM on 07/25/2010
What does it say when the Fed knowing of the financial mess that is Wall Street only sends in TWO regulators to deal with "the possible collapse of our financial system"??? Does it mean that there is collusion? When with the Savings and Loan collapse, there were 550 regulators sent in for something no way near to what just happened. I believe it is collusion.
HUFFPOST SUPER USER
karen1p
05:41 AM on 07/25/2010
This article proves what I believe.....Wall Street is making billions from defaults. Otherwise, if they KNEW these loans were bad, why would they NOT call it out? No, they simply kept looking for investors and then bet against these pools to fail. It is brilliant....and fraudulent....and illegal.
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WOODSTOCKER51
HAVE A NICE DAY!
08:08 AM on 07/25/2010
"investors "

.......A.K.A. THE WORLDS WORKING POPULATION
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HUFFPOST SUPER USER
Magick1
Dark fire shall not avail you. You shall not pass
08:41 AM on 07/25/2010
Yes, they do make money from defaults. Nothing will stop them from getting every penny from mainstreet that they can unless there are laws that put them in jail. And, probably, even then, someone else is waiting in the wings with a new scam.
11:58 AM on 07/25/2010
There are laws to put these people in jail. Lloyd Blankfein should be in prison as we speak. Dimon is a bit more slippery. Definitely Fuld and Lewis should be in prison. Specifically:

Blankfein demonstrated his intent to commit fraud by the architecture of a scheme that had Goldman Sachs benefiting from failure of investments that they were hard selling to investors as low risk. There are dozens of e-mails that outline his intent.

Lewis had Bank of America ginning out loans of every kind and selling them all to the investment banks as having the same integrity. THAT's fraud. He lied to his shareholders about the value of Merrill Lynch. That's CLASSIC fraud.

Fuld had bundled "loans" in his securities that have no corresponding assets. That's fraud twice over: Fraud by the consumer bank who sold him the bogus loans and fraud by him when he represented them to his investors as having real worth.

But besides all that, the handful of CEOs who participated in the construction of these fraudulent securities have broken RICO laws.

It would take a thimbleful of effort for the Department of Justice to get Lewis to tumble on Blankfien or Fuld, but he was the first person given immunity. Andrew Cuomo was prohibited from charging him criminally, I suppose by the White House.
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studana51
Old and tired
05:40 AM on 07/25/2010
Is this something that wasn't already a given ?
Been sleeping ?
HUFFPOST SUPER USER
karen1p
05:53 AM on 07/25/2010
Many, many, many people believe it was borrowers who were irresponsible and took out equity to buy big screen TVs. So, not only are they sleeping, they are having psychodelic dreams.
05:16 PM on 08/14/2010
Borrowers were irresponsible.
But that is not where the real problem lies.

Both can be true, it's not either or.