“…Another example of the financial industry making money the old-fashioned way was the sub-prime mortgage fiasco which took place less than a decade ago. It was, in my opinion, the greatest financial crisis in our country’s history and a major cause of the recession of 2007-09. Hundreds of billions of dollars, if not a trillion or more, were lost because financial institutions around the world (led by U.S. firms) sold mortgage-related products that they knew would fail. Furthermore, the financial institutions actually took the other side of the sale.
I truly believe the general public’s lack of understanding of these transactions (or should say, transgressions) is the reason that not one high-ranking official of any financial institution was found guilty of these criminal acts. What occurred in the sub-prime mortgage crisis would be like if GM, Ford and Chrysler had sold cars that they knew would crash and then bought life insurance on the new owners so when they crashed and died, the car companies could profit twice. Trust me, if this was on the news tonight, the public would be up in arms and the car company executives would be going to jail. Yet, that is what happened, and almost none of the financial execs involved are being held legally accountable.
What would you think of a game where the rules were vague, changed every day without your knowledge, and there was no way to discern how to win? How would it make you feel to find out that not only do most other players have hidden agendas and allegiances, but they also have secret sources of information and much faster playing pieces than you? Given these circumstances, most people would choose not to play. It’s too bad, then, that most are already playing this stacked deck one way or another with their finances…”
So it came as no surprise to read this article over the weekend.
Say hello to the people in government responsible for this: