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Forum Post: Crisis = Wall Street creation

Posted 13 years ago on Nov. 15, 2011, 7:11 p.m. EST by qazxsw123 (238)
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http://blogs.reuters.com/david-cay-johnston/2011/11/15/meltdown-redux/

Wendy Edelberg, who was the commission’s executive director, said on Friday that “while you can never predict all panics, the flip side is this crisis was caused by human actions and was avoidable.” She showed with hard numbers that, contrary to the nonsense being peddled by Wall Street and the politicians it finances, the meltdown was a Wall Street creation. Edelberg presented charts showing that loan delinquencies “were lower by an order of magnitude” for government-sponsored Fannie and Freddie than for Wall Street’s mortgage-backed securities. Delinquencies at one point were 15 percent for Fannie and Freddie versus 40 percent for Wall Street. Edelberg also outlined who bought the obviously bad loans. No one did. She compared the bad loans to soup with so much fat no one wants it, so it is put in the refrigerator. Once the mixture chills the fat rises to the top and is skimmed off.

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[-] 0 points by seaglass (671) from Brigantine, NJ 13 years ago

The endless right wing trolls in here love beating on Fanny and Freddie and blaming poor people for the whole thing. Just more largely racist ranting if u ask me.

[-] 1 points by qazxsw123 (238) 13 years ago

You know, once you've been conditioned to self-reprimand, that's what you do. Also, F&F had very bad managers--a friend of mine used to work there for 8 years and she saw the horrible waste. Still, those who want to discredit any institutions serving the 99 percent should be denounced.

[-] 0 points by seaglass (671) from Brigantine, NJ 13 years ago

The Gov't is a mess. So much of it has been bought and so much more neutered by the 1%.