A Financial 9/11: How the Wall Street Crash Changed America Forever

YahooFinance/TechTicker ^ | 4/8/10 | Aaron Task

[LomanBill]

[Government guaranteeing the loans/losses is what sets these things into motion.]

 

As of June 2007, None of Ameriquest/Argent Mortgage's loans qualified for underwritting by Freddy/Fannie.

 

Their predatory product was securitized and pumped into the Wall Street pipeline; evidently without any regulation at all - with the associated derivative exposure created BY THE MARKET to insure itself.

 

The securitization process effectively gave Ameriquest/Argent access to unlimited capital... but only so long as the pipeline was flowing into the bubble.  Very clever.

[Oceander]

Markets don't fail. People fail. The crash in 2008 was the inevitable, logical response by the markets to the immense amount of distortion, false incentives, and uneconomic pressure the federal government - mostly through liberal policies - put on the markets.

Put it this way - gravity holds my car's tires to the ground and makes it possible for the car to move forward by simply rotating the tires (no gravity, no contact friction, no movement). However, if I aim my car at the edge of a cliff and step on the gas pedal, it is not a "failure of gravity" when the car lurches forward, over the edge of the cliff, and smashes itself - and me - to pieces on the jagged rocks below. That is the inevitable, logical consequence of my failure to understand Gravity 101. Just so for the 2008 Crash - the market forced a massive correction to account for the decades and decades of asinine, uneconomic distortion the federal goverment had applied to the markets, and what's worse, still continues to apply unabated.

Markets don't fail. People fail.

[LomanBill]

[Free market is also runned by people who are disciplined and has some degree of ethics.]

The market is amoral and goes where the bottom line tells it to.   If there was buffering by a Moral/Ethical Compass, it has been significantly decayed pursuant to the progressive demoralization of American society.

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1. Ideological subversion is the process which is [a] legitimate, old word, and open. You can see it with your own eyes.  All American mass media has to do is to "unplug bananas" from their ears, open up their eyes,  and they can see it.  There is no mystery.  

 

It has nothing to do with espionage. I know that espionage intelligence gathering looks more romantic.  It sells more deodorants through the advertising.  That's probably why your Hollywood producers are so crazy about James Bond types of films. But in reality the main emphasis of the KGB is NOT in the area of intelligence at all.

 

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"....

---KGB Defector Yuri Bezmenov, circa 1984

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[Creating an investment vehicles that are designed to eventually blow up and leave someone holding the bag is not exactly smart economics]

It is if you're not the one holding the bag.  

 

Hos 12:7
7 The merchant  uses dishonest scales; he loves to defraud.
NIV

 

Plus they didn't believe the vehicles would blow up.   The industry was under the shared delusion that "Real estate always goes up".    Oops!

[nor good for the nation]

Why would an industry built using H1B slave laborers whose feet were being dangled over the fires of the caste system care about cash-cow America?   The Sub-prime industry essentially became an engine for wealth redistribution.  Might have even kept running too - if folks hadn't gotten greedy and gamed the system into self-destruction.

[If a serious investigation was ever conducted on the mortgage business, how Moody rated high risk securities as AAA]

The ratings were based upon the information supplied with the loans.  Argent mortgage, for example, was fabricating FICO scores.   For Liar Loans, the FICO score is the only number of meaning regarding he borrower's credit worthiness.

 

Combine with less-than-reliable appraisals... and you have AAA A$$PAPER (and a bubble expanding at an accelerated rate) in the making.

It's good that you're asking questions though, Fee.   Keep digging until you are satisfied you see the truth with your own eyes and mind... and then dig some more; THAT is an essential American Freedom we still have, for now.

 

"ALMIGHTY GOD HATH CREATED THE MIND FREE"

--Thomas Jefferson