He's right, before we turn into Greece.
For over a decade you pushed bad mortgage securities default swaps to "hedge" risk
He sold CDS on MBS?
knowing all along this was bad paper
Then why would he sell CDS on it?
and pushed these to the largest govt. providers of mortgage finance Fannie Freddie,
He sold mortgages to Fannie and Freddie or he sold them CDS?
Bernanke announced the Federal Reserve would begin buying 40BILL a month of mortgage backed securities... guaranteed to devalue private property
I thought it would trigger inflation, making housing more valuable?
“Then why would he sell CDS on it?”
Because he knew it would be paid for with a TARP, provided by his GS governmental employees whenever he needed, and that they would never have to eat it.
And thats what happened. The US government gave 10 billion of TARP funds to GS. Amazing, he can talk about the need for containing entitlements, as he enjoys the mother of all entitlements.
Wonder what a capitalist investment bank would look like? You know, one that doesn’t get governments funds anytime it it’s about to lose a bunch on bad investments.
Here’s a refresher course. The largest subprime suppliers were Fannie and Freddie with all major investment banks urging them on and parking trillions into shadow banking vehicles using default swaps. They didn’t even know how the risk investments worked, nor did they care. The off-balance-sheet vehicles, the derivatives and the ‘shadow banking system’ itself – was to find a way round regulation— regulation that was CREATED (Community Reinvestment Act) by the very people these jackasses support—liberals in washington, every one of them bought dogs (Dodd and Bawney Fwank, and nearly all on the Senate Banking Committee). If you think the Fed buying 40B a month with money they have to beg from overseas will help support values— well...enjoy your delusion.
Maybe it’s your rice bowl or something— hunger will do that.