Bloomberg Hides Government Causes of Financial Crisis

Someone needs a little history lesson on this topic.

Look at which President started the Community Redevelopment Act, which was put into place so “Every person could & should “ own their own home.

Jimmah Carter

Good find. But somebody forgot to tell Christopher Jared Warren to blame all of his actions on the government forcing him to make subprime loans, which has become Received Wisdom around here from people who never even knew there was a housing bubble until months after it blew up.

Warren’s confession is the sort of story I heard many times during the bubble. One of my clients had learned his craft at Ameriquest and had left to start his own subprime brokerage. My neighbor owned another subprime shop, as did my friend’s daughter. At the peak of the madness they were living in million dollar houses and driving Maseratis. The problem is they believed that the easy money would never end and they ended up broke, which I suppose is some kind of poetic justice.

A lot of that bailing out was done on the watch of President Compassionate Conservatism. Which ought to serve as a warning to all of those who think it would be fine to elect Romney.

>>some kind of poetic justice.

Unfortunately it's short of the kind of Legal justice [aka going to JAIL] that will discourage folks from such gaming in the future. They'll just move on to a new con game -- playing the percentages that, unlike Mr. Warren, they won't end up incarcerated.

Some of the folks who Empower(tm)ed Argent/Ameriquest with technology learned about Empower whilst building the technology that ENRON used to perpetrate its fraudulent manipulation of the energy market. My observation was that all they evidently learned from the debacle at ENRON was that it's bad to get caught and "gosh, giggle, we sure hope that doesn't happen here [at Argent]".

It's a mystery to me how manufacturing a false FICO score, securitizing the mortgage, and then flushing the resulting "AAA" derivative a$$paper/poison into the global economic infrastructure... hasn't been prosecuted as the obvious and deliberate FRAUD that it is.

But then, it was also a flabbergasting mystery to the Professor of Physics from UCI who I served on a jury with in 2004; who related how discouraging it was for him to see the widespread acceptance of dishonesty, and technologically adept cheating, among his students -- who rationalized their behavior because well "everybody does it" and "that's what you have to do to survive".

It is the manifestation of demoralization:

"According to my opinion, and the opinions of many defectors of my caliber, only about 15% of time, money, and manpower is spent on espionage as such. The other 85% is a slow process which we call either ideological subversion, active measures, or psychological warfare. What it basically means is: to change the perception of reality of every American that despite of the abundance of information no one is able to come to sensible conclusions in the interest of defending themselves, their families, their community, and their country.

It's a great brainwashing process which goes very slow and is divided into four basic stages.

The first stage being "demoralization". It takes from 15 to 20 years to demoralize a nation. Why that many years? Because this is the minimum number of years required to educate one generation of students in the country of your enemy exposed to the ideology of [their] enemy. In other words, Marxism-Leninism ideology is being pumped into the soft heads of at least 3 generation of American students without being challenged or counterbalanced by the basic values of Americanism; American patriotism..."

--KGB Defector Yuri Bezmenov

--Soviet Subversion of the Free Press (Ideological subversion, Destabilization, CRISIS - and the KGB)

http://www.freerepublic.com/focus/news/2095202/posts

As Liz has noted, not only do these amoral/demoralized Useful Idiots feel entitled to cheat, but they also feel entitled to the rewards of the system when their cheating results in its catastrophic failure. Hence the fiscally "conservative" bailout this generation of amoral interior decorators appropriated for themselves.

When this kind of behavior becomes "normalized" and, evidently tolerated, then it's symptomatic of a Republic, a System of Government characterized by the Rule of Law -- that isn't.

Somewhere in Hell, Nikita Khrushchev Brezhnev is caressing his shoe and softly chortling... "see, told you so, vee bury you".

“It’s a mystery to me how manufacturing a false FICO score, securitizing the mortgage, and then flushing the resulting “AAA” derivative a$$paper/poison into the global economic infrastructure... hasn’t been prosecuted as the obvious and deliberate FRAUD that it is.”

I suspect that it takes a lot of time and money to pinpoint where the fraud occurred in each mortgage. The borrower could have lied, the broker could have phonied up the numbers, the rating agency could have knowingly bestowed a false rating. Prosecutors may not want to devote the resources.

“Somewhere in Hell, Nikita Khrushchev is caressing his shoe and softly chortling... “see, told you so, vee bury you”

I remember watching Khrushchev pound his shoe at the UN. It was great theater courtesy of the Evil Empire.

[I suspect that it takes a lot of time and money to pinpoint where the fraud occurred in each mortgage.]

And when the cats are busy keeping terrorists from doing terroristee things, the mice they do play in the grey areas.

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