. That's how we got the bailouts. It was government corruption that ultimately made companies like Chase, Citi, BOA, Capital One, Fannie/Freddie, and the home builders the giants they are by forcing lending to people who couldn't afford it. They caused Americans to rack up so much debt that it tanked the whole economy. And until that debt is paid down, the economy is going nowhere.
Actually it was the Bush administration's easing of lending rules that caused, or shall I say set the wheels in motion, for the so called housing/lending crisis. This allowed people to be able to borrow money who would have never been able to under the old rules. Once it became apparent that many of these loans would fail, the smart IB's came up with a plan, it was called " CREDIT DEFAULT SWAPS "
Now I get this from someone I'm very very close to who works in the industry doing several hundred -k deals, up to several 10's of millions of $ deals, 100's of millions in some instances.
No CODE they don't hold guns to peoples heads forcing them to sign on the bottom line, that's flat out bogus propaganda. The closest thing to that are the shady Lenders who embellished a clients credit apps---that's a generic term, pros call them Financial STATEMENTS.
These bogus deals where then packaged and sold in gobs to Banks who did very poor due diligence and ended up " CHARGING OFF " "WRITING OFF " Millions per Q in losses due to the bogus loans. The FBI started investigating these while Bush was still in the Oval Office. It's all on record.
The Bailouts were a direct result of the Credit Default swaps which were backed BY AIG's insurance arm---and since AIG was a Multi-National, one that insured BILLIONS IN TOTAL of these swaps ( swaps that were useless from the first jump ) Well you can now do the math and see how the house of cards was destined to fail.
Did you 4 get Bush and his famous " Just go shopping statement?
I'll not get into JP Morgan and the infamous Goldman Sachs. I'd prefer not wasting John's bandwidth over something so obvious.
A local Bank took the TARP money ( even though they didn't need it ) Local paper publicized it and when the locals found out they started calling in saying " YOU GOT YOUR BAILOUT WHERE'S MINE " rotflmao The Bank could and would pay it back whereas those calling in ( probably not ) and sadly some had/have no intention---That's the absolute problem, along with complete ignorance of the ARM structured loan.
This whole mess caused these banks ( GOOD WELL CAPITALIZED BANKS ) to tighten lending and effectively hurt the good small business owners, THOSE who sometimes use 30 day capital lines for employee payroll---something lost on Bush, ALL a bit above his e-con teams collective heads. No lines of credit due to interest rate increases and sooner or later layoffs, and closed businesses.
Shall I go on? Bring Em All Home Cole
PS. I see where the old guard is getting ready to back 50 plus Tea Party candidates. Any comment in that regard? Know who they are?