[volunbeer]

I am not one for conspiracies but I would love to know the answer to your question as well. It still boggles my mind how so few “experts” saw the coming tsunami and the systemic risk it posed to our economy.

I know greed took over but our government definitely facilitated the problem by changing the rules and threatening lenders if their portfolio did not have the right demographic spread. The lenders did the predictable thing and lowered standards and then greed took over and why not? They made money on the origination of the loan and if they did not make it a competitor would. Enter Freddie/Fannie and it was risk free money for the banksters who lined the pockets of the politicians to keep the party going. Wall Street got into the act by creating “investment instruments” out of mortgages and they lined the pockets of the politicians too.

The “Friends of Angelo” program is the perfect illustration of how corrupt our politicians have become. Will follow this investigation with great interest!

[LomanBill]

>>It still boggles my mind how so few “experts” saw the coming tsunami and the systemic risk it posed to our economy.

 

 

 

"We didn't truly know the dangers of the market, because it was a dark market," says Brooksley Born, the head of an obscure federal regulatory agency -- the Commodity Futures Trading Commission [CFTC] -- who not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country's key economic powerbrokers to take actions that could have helped avert the crisis. "They were totally opposed to it," Born says. "That puzzled me. What was it that was in this market that had to be hidden?"

http://www.pbs.org/wgbh/pages/frontline/warning/view/