I really love to hear all the news on mortgage fraud, bad loans, sub-prime, and the collapse of available equity. The sub-prime loans that had no chance of ever being repaid may cause the collapse of the US housing market as we know it for a decade! They knew this when the loans were issued! To compound the fraud...these knowingly bad loads were packaged and sold around the globe. If you haven't heard the banks overseas are tettering on the edge of slovency with loads of bad notes (from our sub-prime collateralized mortgage obligations CMO's!) Yet for those that caused the problems are leaving their corporations with bonuses, and full retirement to the tune of millions as in Countrywide. What is up wiht this?
They should be leaving the firms in handcuffs and shackles. This government seems to always give a pass to the banks, they threw the book at Enron, Martha Stewart, and a few others...but no big players as of yet have been arrested for this major mortgage fraud. When are we going tyo hear of some arrests, some indictments? They will do a lot to restore calm in the markets. Instead Walls Street climbs higher in a suckers rally acting as if it is just a pebble ont he road. It isn't. It is far deeper. The Federal Reserve intervantion last week for .75 bp was only the 5th time the Federal Reserve has done this. It was unprecidented, and was done for a greater reason than mortgages, A bank(s) was introuble, and perhaps out of cash!
It really makes you think about the values that are running this country at every level. It is all about the buck, elections, values, and payback! This debacle could lead to a very deep recession, and those that perpetrated it are getting a pass! Why was it easy to act like a bully and throw the book at Martha Stewart...when the resets a lone this wear from sub-prime will be over 500 billion dollars...that is 10 times higher than last year!
So was it right to arrest and prosecute Martha and give the banks and lenders that could cause a global recession a pass?