December 30, 2008
-- by Dave Johnson
Your tax dollars at work: Former Merrill Lynch executive pays 37 million for NYC apartment (with taxpayer money).
He worked there 3 months, received $25 million bonus from TARP funds, quit, bought apartment. Go read.
Posted by Dave Johnson at December 30, 2008 9:06 AM
Underlying causes. We the people took out dumb mortgages. And the bankers were even dumber to buy them up and put them in CDOs. This was encouraged via Frank, Dodd, Greenspan, Bernanke, Carter, Clinton, Bush.
The Bankers put the dumb mortgages in dumb CDO derivatives. Then the Bankers bought dumb insurance from the Insurance Cos on the dumb mortgages held in dumb derivatives.
Ultra underlying cause. The Federal Reserve bank, not part of the Federal Government, encourages loose money and Congress will not balance the budget.
The little folks followed the lead of their Political leaders and Bankers and took a mortgage on a $600,000 CA house that was worth $300,000 in TX, MS and CA.
My uncle bought his house for $8,000 in MS in 1960 for cash. Hard to do now because we uncoupled the dollar from the gold standard in 1971 and the dollar has been purposely devalued by the Fed and Federal overspending. Clean up time. Unfortunately clean up means 12 million homeowners will owe on mortgages worth more than their house. This will take - anyone want to guess - 3-5 years to correct?
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