The Wall Street Conspiracy
Millions of homes foreclosed, entire communities devastated, America careening toward economic collapse. Are these headlines from the Great Depression of the 1930s? Or doomsday reports about today’s America? The answer, of course, is both. Some experts believe we’re actually in worse shape than we were in the 30s. But if you think the current economic meltdown happened by chance—that it was a perfect storm of bad breaks and bad timing—think again. The evidence is mounting that this crisis was spawned in a fetid swamp of corruption and greed. And all roads lead to a small intersection in downtown Manhattan: the corner of Broad and Wall Streets.
America’s recovery from the 9/11 attacks seemed nothing short of miraculous. Industry, jobs and the economy seemed to roar back stronger than ever. Housing prices resumed the steep upward climb that began in the mid 1990s. The good times, they told us, were here to stay.
But we all know what happened next.
The mass media has regurgitated the story of the meltdown so often that no one bothers to question it. Here’s what they tell us: banks made loans to unqualified borrowers, then packaged and sold those loans in bundles to big investors. They also cooked up an amazing variety of different kinds of loans, the so-called “adjustables.” People were lured in with cheap initial payments, and when the increases kicked in—no problem. Houses were always going to be worth more in the future, and borrowers assumed they’d make it all back when they sold. The public was inundated with bank commercials hawking second and third mortgages. You could buy a second home, put your kids through college, fix up that old bathroom—and all with borrowed money. As long as house values kept going up, everyone was fat and happy. But when prices fell, the you-know-what hit the fan.
Americans found themselves barely afloat in a sea of debt. And just at that moment, the life raft sprang a leak. All those adjustable-rate mortgages did what they were supposed to do—they adjusted. People couldn’t afford the payments, so they unloaded their houses. The more rates went up, the more houses came on the market. Supply did its dance with demand, and pretty soon the buyers ran off and hid completely. The downward trend picked up speed. People panicked and did whatever they could to get out. The effect was as predictable as it was devastating. The U.S. economy fell like a bank safe thrown off a skyscraper.
[ Jesse Ventura's Take ]
Even though the Securities and Exchange Commission charged Goldman Sachs with fraud in April of 2010, Goldman was able to settle the case by peeling 550 million dollars off of its bankroll. They didn't have to admit they did anything wrong. And they got thirteen billion in the bailout! Lucky for them, the head of the SEC's enforcement division is a former Goldman Sach's executive. No one on Wall Street or Washington is going to pay the piper as long as the taxpayers are paying for the lessons. Is there another crash coming? In the meantime, I'll be watching my money. I don't trust any of these crooks.