Sunday, December 15, 2013

More evidence on the cause of the financial meltdown

See Taibbi's article as more evidence emerges that predatory lenders intentionally took advantage of vulnerable borrowers. Therein he said it "should put to lie once and for all the oft-repeated myth [...] that the financial crisis was caused by the government 'forcing' banks to lend to poor people. In reality, of course, the subprime bubble exploded because financial companies and banks were in a mad rush to get as many iffy borrowers into loans as quickly as possible – and not because they were forced to, but because they made assloads of money doing so." And they did so by betting against the bundled loans, knowing they'd fail because they were in fact designed to do so. As did the rating services who gave them secure ratings so they could be sold en masse, thereby also committing fraud. And all of them knowing full well it would crash the economy but who gives a shit, they made a fortune with this scam.

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