It’s called “the rule of law”
I totally agree with your sentiment. Problem is that the current generation is guided by “the rule of man”.
Just wondering, did the bank bailouts secretly clear the books on these multiple mortgage back securities?
I think what happened was, the government (Barney Frank and Chris Dodd) created a safety umbrella over the mortgage industry, in the form of Fannie and Freddie. Those quasi-governmental corporations stood ready to back up mortgage paper, as long as certain increasingly loose guidelines were meant. All about enabling the little guy (Donk voter) to own a house. Enabled by the advent of cheap and plentiful software and computer power, the market in ever more complex securities composed of securities composed of home mortgages flourished. The result was that, relieved of ultimate financial responsibility for the paper, the market in secondary mortgages exploded. Many Wall Street fat cats grew ever more obese feeding the beast. The housing bubble was born.
Somewhere in early 2008, it began to dawn on folks that the bubble was, in fact, a bubble. The system crashed. In September, John McCain suspended his campaign (military metaphor, tsk tsk) to come to the rescue, at which point he lost the election.
Now comes the blame game. Time to analyze the dumps and identify the wrongdoers. Lots of entities lost their shirts investing in those securitized mortgages. If they can show they were sold a bill of goods, then they are entitled to recover. That is, if there is anything to recover! That is their reward for marshaling their talents in the service of public policy. God damn them all!