Looks to me like they’re just scratching the surface on the orchestrated financial crisis of 2008, the one that got the 0ne elected. Gotta wonder if they’ll just use this as the white wash.
Think about it. Goldman worked with Paulson & Co. to set up subprime instruments, which Paulson & Co. then shorted while Goldman told everybody they were long. Looks like that’s the pin that popped the bubble.
One thing is sure, they’d better get as much swept under the rug before they lose control of Congress.
I happen to disagree. All bubbles are popped by more than one pin. In addition, this deal is immaterial to the bubble.
There is a single factor (already pushed under the rug) that created the bubble: the Community Reinvestment Act (1998) that MANDATED a percentage of bad loans to be issued to people that could not have possibly repay them. That percentage was increased (by Congress) until it reached 52 in 2007. As a result the 65% homeownership rate --- which was EXTREMELY robust, having remained unchanged for decades through all the booms and crises --- has increased to 69%. This means that 12 million American homeonwers cannot afford their houses.
One should also avoid mixing the housing bubble with the financial crisis.