01/29/2010
on the Minority Mortgage Meltdown(Links added):
"Before you knew it, once-respectable Wall Street institutions were buying investment products even more ludicrous than Mexican bonds: They were buying the mortgages of Mexican strawberry-pickers.Why shouldn’t Wall Street trust in suicidal loans no sane person would ever imagine could be paid back? Time after time, when their bets paid off, they pocketed huge fees; when their bets failed, they sent the bill to the taxpayers.
With nothing to fear, the big financial houses bought, repackaged and resold investment products that included loans like the one issued by Washington Mutual to non-English-speaking strawberry pickers earning a combined $14,000 a year to purchase a $720,000 house.
But the financial wizards on Wall Street were trading these preposterous loans as if they were bars of gold. They may as well have bet the entire U.S. economy on a dice game in an alley off 44th Street.
Every mortgage-backed security bundle was infected with suicidal, politically correct loans that had been demanded by community organizers such as Barack Obama — as is thoroughly documented in Schweizer’s book.[Architects of Ruin: ]
On the off chance that mammoth mortgages to people who could barely afford food somehow went bad, Wall Street firms could be confident that their Democrat friends would bail them out.
Even the Republicans would have to bail them out this time: They had strapped the dynamite of toxic loans onto the entire economy and were threatening to pull the clip. Wall Street had infected every financial institution in the country, including completely innocent banks.
But now Obama says he’s going to "fight" Wall Street, which is as plausible as claiming he'll "fight" the trial lawyers. "[CAn’t WE AT LEAST GET A TOASTER? January 27, 2010]
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