Tuesday, November 26, 2013

Wall Street creates new bogus securities to crash us again

It's amazing that this story is not getting prime time coverage. Recall that the recent financial crises was created by deliberately selling homes to people the bankers knew could not afford them. They then bundled these mortgages into securities that were fraudulently rated safe knowing full well the mortgages would default, and in fact bet that they would. They get rich and crash the economy.

Well they're at it again.

Many of those homes that were foreclosed have been bought up by a few companies that decided to rent them out to the very people that lost them in the first place. And with Wall Street they've created rent-backed securities that they're selling like hotcakes, no doubt again fraudulently rated safe. To be safe these securities require that 95% of the properties be rented. And yet the companies that bought and manage them are deliberately looking for excuses to not rent them by jacking up prices, or dissuade renters from staying by not maintaining the properties. In other words, they are likely betting again that they fail and then creating the circumstances that they will fail, reaping huge profits that will ultimately crash the economy again. It's their fucking strategy and they are transparent about it, again knowing they will be bailed out with the people's tax money.

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