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Wall Street didn't cause the financial collapse crooked Politicians did

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posted on May, 29 2011 @ 02:52 PM
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I was watching the HBO movie "Too Big to Fail" and it was a very good movie. It really gave you a behind the scenes look at what happened as well as books written about the subject. The movie is flawed in this respect. It puts all of the blame on Wall Street and Investment Banks and made it look like the Politicians were just trying to save the day. This is false.

The Politicians are directly responsible for the financial collapse. They blame Wall Street greed but whose suprised that Bankers are greedy? This is what really happened.

The Banks were making a lot of money from bundling mortgage backed securities and then selling them to investors. These mortgage backed securities were backed with good credit and a good down payment.

The Bankers got greedy and said we can make even more money with this if we give out more loans because real estate is booming. So there wasn't enough people with good credit getting loans in order to feed the greed so they came up with this scheme called credit default swaps.

So you could give a mortgage to someone with a 520 credit score and little down payment and buy insurance from AIG to cover the risk. This way you make the bad credit mortgage backed security more appealing to investors and now everything from pension funds to various organizations are investing huge amounts of money into these cheap securities.

This is where the Government crooks come into play. A loan has Underwriting Standards that it has to go through. These Guidelines are determined by Freddie and Fannie. Freddie and Frannie are controlled by the government. So in order to do the credit default swaps they had to first get politicians to ease the underwriting standards.

In comes Barney Frank and George Bush. The investment banks gave huge amounts of money to both parties in order to get them to ease underwriting standards. You then heard Frank and the Democrats saying everyone deserves to own a home and Bush was saying everyone deserves to live the American Dream.

At the end of the day, these politicians could care less about poor people owning a home. They got a lot of money from Investment Banks and politicians used the "American Dream" and they were like salesman for the Investment Banks.

The way you could have avoided this was to restrict the number of these risky loans that could be given out and you do this through Freddie and Fannie. Bush at least tried to get more control over Freddie and Fannie but when he did Barney Frank basically called him a racist and said he didn't want poor people to get loans.

So Wall Street couldn't do anything without corrupt Politicians.

The Banks went wild but when the bubble bursts AIG couldn't cover the insurance taken out on all of these bad credit loans and the collapse threatened the entire system. AIG would have crashed and these banks would have to absorb the losses and they would crash. You had 401 k's, life insurance policies and more wrapped up in all of this.

I'm not saying this to make an excuse for Big Banks but I expect them to be greedy and I don't vote them into office. The Politicians are responsible because they could have said no or were going to limit these risky loans but they didn't. The Big Banks paid them off and made these politicians salesmen for their product.




posted on May, 29 2011 @ 02:55 PM
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If you want more insight, what "inside job"
Its a great documentary about the collapse. Just a heads up, you'll probably be furious after watching it, haha.



posted on May, 29 2011 @ 02:58 PM
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wall street bankers ------ crooked politicians
they are one in the same.
Politicians make big money off stock
and are immune to insider trading
laws.

And the tax payer foots the bill.
They assume no risks

what a crock

how else do you think Newt Gingrich's wife
can have a $500K account at Macy's on
his salary.

edit on 5/29/2011 by boondock-saint because: (no reason given)



posted on May, 29 2011 @ 02:59 PM
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reply to post by Matrix Rising
 


www.abovetopsecret.com... you read my thread on WALL STREET?,THOSE BANKERS AND OTHERS DID DO IT,YOU ARE RIGHT.



posted on May, 29 2011 @ 03:23 PM
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Actually, the crash of 2008 was caused, or at least encouraged, by mainstream media.

For months ahead of time, they ran story after story talking about how there was a recession coming. What happens? Companies start laying off workers to prepare for the coming recession, and the workers then start defaulting on mortgages and other bills. Result? Companies have less money coming in, lay off more workers, and there is a market crash and a recession.

Too Big to Fail was an excellent movie. However, in a truly Capitalist system, Lehman Brothers, Fannie Mae and Freddie Mac, AIG, Meryll Lynch, GM, and GE would have all been allowed to fail.

The whole ponzi scheme of derivatives was conceived by Gordon Brown when he was Chancellor of the Exchequer in the UK. Gordon Brown also created the agency that regulated the derivatives with a credit rating of AAA, the best available. It was Gordon Brown's replacement (lapdog) Alistair Darling, that decided that the Barclays takeover of Lehman Brothers couldn't proceed due to British anti trust laws.

The British Government have an awful lot to answer for with respect to the collapse of the World economy in 2008.
edit on 29-5-2011 by babybunnies because: (no reason given)



posted on May, 29 2011 @ 03:29 PM
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You blame the politicians for what happened but then you say the banks had to bribe them to get the laws eased so they could do their crooked scams. The banks are clearly responsible for what happened if they weren't then they wouldn't have had to get any laws changed.



posted on May, 29 2011 @ 03:33 PM
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At the top of the pyramid, it's the banksters who pull the strings. The politicians are their puppets and do as they are told. That's not to say that they aren't also totally corrupt and crooked.



posted on May, 29 2011 @ 03:35 PM
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Originally posted by buster2010
You blame the politicians for what happened but then you say the banks had to bribe them to get the laws eased so they could do their crooked scams. The banks are clearly responsible for what happened if they weren't then they wouldn't have had to get any laws changed.


That doesn't make any sense.

Like I said, the Banks are greedy but the simple fact that are Politicians can be bribed and bought is what's troubling. You will always have greed coming from Wall Street but that greed can only go so far if Politicians say no.



posted on May, 29 2011 @ 03:35 PM
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Originally posted by boondock-saint
wall street bankers ------ crooked politicians
they are one in the same.
Politicians make big money off stock
and are immune to insider trading
laws.

And the tax payer foots the bill.
They assume no risks

what a crock

how else do you think Newt Gingrich's wife
can have a $500K account at Macy's on
his salary.

edit on 5/29/2011 by boondock-saint because: (no reason given)


Yes, the tax payer foots the bill because that's a deliberate part of the plan. which is the transfer of all the people's wealth from the people to the banksters.... Once the people live in poverty you then have total control over them, because you control how much food they are allowed to have, especially when you outlaw people from growing their own.
edit on 29-5-2011 by wcitizen because: (no reason given)



posted on May, 29 2011 @ 03:37 PM
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Originally posted by Matrix Rising

Originally posted by buster2010
You blame the politicians for what happened but then you say the banks had to bribe them to get the laws eased so they could do their crooked scams. The banks are clearly responsible for what happened if they weren't then they wouldn't have had to get any laws changed.


That doesn't make any sense.

Like I said, the Banks are greedy but the simple fact that are Politicians can be bribed and bought is what's troubling. You will always have greed coming from Wall Street but that greed can only go so far if Politicians say no.


You're forgetting that it is the banksters who choose who is allowed to be a politician and who isn't.



posted on May, 29 2011 @ 03:49 PM
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Originally posted by MJZoo
If you want more insight, what "inside job"
Its a great documentary about the collapse. Just a heads up, you'll probably be furious after watching it, haha.


Inside Job was like you said, an infuriating movie. It got me so mad it made me question my initial emotions. Interesting to see Soros and Spitzer. Screwed up world we live in lol.



posted on May, 29 2011 @ 03:54 PM
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reply to post by Matrix Rising
 


I saw a write up for the movie Too Big to Fail in the newspaper. William Hurt was interviewed and basically spouted off pro status quo mumbo jumbo. The guys in charge are there for good reason because they know what they are doing, and they got the education, so let them take care of things while we go play American Idol. Yea. Fk him. Hollywood sock puppet.



posted on May, 29 2011 @ 04:04 PM
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nothing goes down in this country without the government nod

this is a fact

the fact is the majority of money wall street makes is over seas because they cant make any money here.

those people who blame wall street and bankers do not know how they work or how business works

those are the facts.

fanny and freddy was the root cause and nothing was done.

the real reason they pumped money into an already failing system is because they didnt want to truth to come out.

and people are stupid and they believe that government can do no wrong and the patsies are were and will always be the banksters and wall street.
edit on 29-5-2011 by neo96 because: (no reason given)



posted on May, 29 2011 @ 04:11 PM
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Gordon Brown was responsible for bailing out the money crisis caused by derivatives. Whether that was wise or not is still in the melting pot. Also these so-called bad credit mortgages from small people? wherever is the definitive information on that? is it not possible that the money was simply stolen by whomever. There is much more to the 2008 crisis than simple loans. I thought I should add this link as a few extra thoughts,

gramercyimages.com...

Scroll down to sleaze-watch.
edit on 29-5-2011 by smurfy because: Add link.



posted on May, 29 2011 @ 04:32 PM
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reply to post by smurfy
 


The money definately came from these bad loans. This is what caused the real estate boom. More people were buying homes and this caused the price of homes to boom. So a house worth $80,000 was now selling for $120,000 because of the boom.

I actually worked as a Mortgage Broker at this time and a real estate investor and I got out because I just thought something was wrong.

People would come to the office to get a loan with 530 credit scores and they barely paid a bill in their life but my boss would still say, send the loan to Countrywide or IndyMac and sure enough they would call us back saying the loan could be done.

So I sold all my real estate and quit my job as a Mortgage Broker.

This all occurred because Politicians eased underwriting guidelines through Freddie and Fannie because they were bought and paid for by investment bankers.



posted on May, 29 2011 @ 04:37 PM
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Originally posted by dl2one
reply to post by Matrix Rising
 


I saw a write up for the movie Too Big to Fail in the newspaper. William Hurt was interviewed and basically spouted off pro status quo mumbo jumbo. The guys in charge are there for good reason because they know what they are doing, and they got the education, so let them take care of things while we go play American Idol. Yea. Fk him. Hollywood sock puppet.


Good points and this was the flaw of the movie. It acted like everyone on the Government side just came in to save the day from these greedy bankers. The truth is, greedy politicians were the cause of a lot of things that went wrong and they will always blame Wall Street or anything else to try and take the spotlight of off them.



posted on May, 29 2011 @ 05:31 PM
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reply to post by Matrix Rising
 


wall street are crooked politicians
crooked politicians are wall street



posted on May, 29 2011 @ 05:38 PM
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reply to post by dl2one
 


Yeah it was weird to see Spitzer in there. It almost makes you think that the whole "scandal" he got caught up in wasn't just to make him lose all credibility. I mean, I don't doubt he did what he did, but from the sounds of it, it's a pretty routine thing for people in positions like that.



posted on May, 29 2011 @ 06:30 PM
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Originally posted by Matrix Rising
reply to post by smurfy
 


The money definately came from these bad loans. This is what caused the real estate boom. More people were buying homes and this caused the price of homes to boom. So a house worth $80,000 was now selling for $120,000 because of the boom.

I actually worked as a Mortgage Broker at this time and a real estate investor and I got out because I just thought something was wrong.

People would come to the office to get a loan with 530 credit scores and they barely paid a bill in their life but my boss would still say, send the loan to Countrywide or IndyMac and sure enough they would call us back saying the loan could be done.

So I sold all my real estate and quit my job as a Mortgage Broker.

This all occurred because Politicians eased underwriting guidelines through Freddie and Fannie because they were bought and paid for by investment bankers.


Points noted, but I am coming from a non-American perspective. In the UK, home ownership has always been expensive in relation to income, and still is, so much so that there was always a housing crisis, so much so that much of the housing stock was government or local government building for rental. There is still much public building, although what has changed is an option to buy for sitting tenants at an economical rate after a minimum of years in tenancy, alongside, (at the time) with part-ownership schemes for individuals to buy private property with government assistance. That goes back to the Thatcher years when she sold off most of the UK's "crown jewels" to fill the UK'S coffers, probably to make war.. that sounds familiar. Thing is, the actual ideas worked with most people behaving responsibly even though it still involved a major part of monthly income, and gave them a chance on the ladder and most likely not what the long-term intention was. This is a never ending story, has anything changed, if you want a mortgage does Fannie mae want a credit card, (greedy banking) rating blah blah.



posted on May, 30 2011 @ 07:21 PM
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The truth is that alot of people turned the stock market into a casino using other people's money and when the bets failed one after another that caused the market to collapse.

What was not seen or shown was how The Federal Reserve was forced into forcing the meeting in Oct 08 to happen because since they allowed it to happen it was up to them to fix it.



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