I finally checked out what the stink is with the Goldman Sachs scandal. Basically, rich fockers were using inside info concerning sub-prime loans to rip off we the people. Here's an analogy. A manager of a baseball team knows he can make decisions here and there and ensure his team loses. In the background he bets against his team. This is how pigs can lose and still win.
First thing George Bush did when he came into office was talk down the economy. The only way to keep things going was to sell those bonds. Unemployment went up. Interest rates went down. Everyone with a clue refinanced their homes.
It was Clinton who had brought the rates down to I remember as around 8 percent, maybe 7ish. He had balanced the budget. GW is the one who focked it all up. So what happened after everyone had refinanced? Well, other than new home sales, the mortgage market had dried up. That's when the selling of subprime loans picked up. That's when this Goldman Sachs thing took place, around 2005-06. Those are loans made to people who can't possibly pay them off. There were all kinds of loans being given out. An ARM is an adjustable rate mortgage. It's low at first, but based on inflation, it can sky rocket. There are balloon loans. I'm not a genius on any of this. I'm only blogging about it, because donkeytale says the left-o-sphere doesn't seem to be on it. Maybe I just wrote things that are not true. I don't think I did.
Here's a link and a movie. Knock yourselves silly.
Goldman Sachs fraud case stunning in its indictment of Wall Street culture
Down in the comments someone named moderate line came up with some good links.
The No. 2 contributor to Obama $994,795 and the No.4 contributor to McCain $230,095.He also gave a link to a PBS Frontline show on this stuff. I'm gonna watch it when I get the chance. I've always been an admirer of that show, back to when it first came out with Jessica Savitch.
Politics is a game where the guy with the most money gets to pick his referee.
Watch Frontline “The Warning”.