BANKERS KNEW WE WERE HEADING TOWARD MELTDOWN

“We didn’t see it coming”


Bull #$%#! - Greenspan, Bernanke and Geithner can try to sing that tune all they want but it won’t play. There are dozens of reasons they should have seen it coming. Not the least of which that we paid them billions because they are supposedly so smart something like this could never sneak up on them.  But now comes official, straight from the horse’s mouth proof that they were told and took no actions to stop it.

FBI warned banking and US Treasury officials about out of control mortgage fraud 4 years before the crash. The FBI stated in September 2004 that we were on the verge of an “epidemic” of mortgage fraud that could lead to a financial meltdown. Assistant FBI Director Chris Swecker told CNN that "We think we can prevent a problem that could have as much impact as the S&L crisis," Dozens of Federal agents were engaged in tracking the problem all over the US with particular trouble in California, Florida, and Nevada.

Ironically the FBI felt that the banks were cooperating with them. That was correct, unfortunately, it turned out that “them” was not the FBI, but the mortgage scammers. Banks made no effort to reign in insupportable loans because they needed them to feed the limitless appetite for mortgage backed securities. These securities were then bundled and resold over and over as prime investments.

Then came the day of reckoning and here we are today trillions of dollars in debt, up to 16 trillion in capital lost and 8.5 million jobs gone. The American meltdown is upon us – but not because we did not know. That is a blatant lie; this is the same group of financiers who have led us into crisis after crisis. Did they know it was likely to melt down – probably so. What is a certain fact is that they knew their men in congress would rescue them once again and they would end up profiting whether their crazy bets paid off or failed. Roulette is a win/win deal when you have the dealer paid off.