OK but what about what happened to the loans after they were made? The loan originators in most cases didn’t hang onto them.
Okay, they sold the paper. Isn’t that an option with loans?
I believe I have read this was a new ‘animal’ but was it? Do banks and lending institutions sell paper to other institutions on a regular basis?
Perhaps it’s the paper bundled to Wall Street that caused the most problems. I can’t honestly imagine the banking and lending industry being able to bundle and sell this paper to Wall Street firms without some government agency having to sign off on it.
If they could, that’s amazing.
” OK but what about what happened to the loans after they were made? The loan originators in most cases didn’t hang onto them.”
They didn’t hang onto ANY of them. If they “warehoused” the loans, they would have gone under. They sold these worthless mortgages to Wall Street, who then securitized them, and sold them to unsuspecting pension funds, and big investors (insurance companies) . The regulators looked the other way, so they were complicit in all of this.
The biggest crook was Goldman Sachs, who sold billions of worthless paper to big companies, and then SHORTED the stocks of the very companies they has sold the worthless paper to. They should have gone to jail, but GS gave millions to Obama, so Holder never touched them.
There are a lot of dead bankers now.
http://www.nachumlist.com/deadpool.htm
Also, there’s the case of the Sr. Exec at CNBC, whose children and nanny were killed the very day the story broke about the $13 T missing from the US Treasury and the suit on getting it back.
Seems to me that certain people are working to cover up their tracks. Some of those in the US Congress and 0bama Administration.
The story that struck me the most when the bank crash hit was about the man in Britain who stepped off a railroad station area into an oncoming train.