PredFan
Diamond Member
- Oct 13, 2011
- 40,820
- 7,055
The point is they didnt create it. Our government did. They just participated.
Bovine feces. The government did not take good loans and mash them up with bad loans. The government didn't BET on the bad loans.
They may have let it happen, but they didn't DO IT, the banks did. And when it was done, the government BAILED them out.
Why? Because our politicians are BOUGHT and PAID for by Wall Street lobbyists.
Oh look...we are back to getting the fucking money out of politics again. Whodathunk?
Bundling bad loans with good loans then selling them off was a government plan to use as an incentive to get lenders to make bad loans. Carrot and stick. The stick was that unless banks made their quota of bad loans they wouldn't be able to open new branches, they couldn't merge, or acquire assets. Banks that refused to make bad loans were automatically engaging in discriminatory practices.
There were banks, small ones, that refused to make bad loans and didn't need bail out money. They were healthy banks. Last year when the government was seizing hundreds of banks a week, these healthy banks were taken over by govenment regulators for engaging in discriminatory practices and making a profit due to those discriminatory policies.
Good luck getting the lefties to understand this let alone accept it.