Subprime fraud for "dummies" (Cartoon)

docs.google.com...

with subprime this and that in the news, it is nice for a cartoon to pull off a better and easier to understand real life explanation.

note this is more than just sub-prime mortgages that are having problem's. in fact the layers above subprime are "enjoying quite the beating as well" but not talking about them keeps the problem looking a bit more contained. I think it just illustrates how desperate "America" was to allow such practices because the "debt driven GDP growth" depended on this which gave american's a false sense of wealth and their spending from this perception and result of the bubble in house values propt up the economy for a few years, it was not an accident, it was what was necessary to squeeze some more blood (debt) out of a dry hollowed out corpse (economy)

I call it fraud because the lenders knew the sub-prime borrowers would never be able to pay back their loans, and their is a law on the books against the practice of issuing loans that lenders know in good faith that debtors can not pay back. The law of fraudulent conveyance.

Enjoy



[edit on 16-2-2008 by cpdaman]