Ted Rall for May 28, 2013

You may well be correct on every point.This is a very clever and accurate comic.I would suggest that the problem (and it is a big problem) cuts across all sides of your political system. Reining in your financial systems is extraordinarily important and extraordinarily difficult.Otherwise, the USA will face being marginalised on the world financial markets. The GFC was a very nasty thing, and all fingers are pointing at the USA for precipitating it.That does not excuse Greece et al for being sloppy. That house of cards was just waiting to fall over.

You may well be correct on every point.This is a very clever and accurate comic.I would suggest that the problem (and it is a big problem) cuts across all sides of your political system. Reining in your financial systems is extraordinarily important and extraordinarily difficult.Otherwise, the USA will face being marginalised on the world financial markets. The GFC was a very nasty thing, and all fingers are pointing at the USA for precipitating it.That does not excuse Greece et al for being sloppy. That house of cards was just waiting to fall over.

If the SEC had thrown a couple of Wall Street Banksters in jail in Sept or Oct 2008, the rest of the guilty fraudsters would have fallen over themselves providing state’s evidence in exchange for immunity or probation, and the “crisis” would have been quickly resolved. You don’t have to throw all the b*st*rds in jail, just make them think you are going to, they’ll do all the heavy lifting for you.

It’s not like this is the first time it has happened. Some of us are old enough to remember the Savings and Loan crisis of the 80s. We also remember which party cried and moaned whenever regulations were proposed to prevent a replay. Nice try, though.

Contrary to Ottodesu’s comment, the facts are that your “reason” is completely incorrect. First of all, the main reason for the collapse IS from derivatives, but the act you refer to has nothing to do with it, and in fact its impact has been measured.It was the false (and unregulated) belief by banks that they could package and sell “bad debt,” which encouraged them to go and GET bad debt in order to resell it. Greed is universal. It needs no encouragement. And the reduction or avoidance of any sort of regulation of banks (thanks, Reagan, Bush, Clinton, and Bush) contributed even more to it.

I’ve never agreed with such a great idea more in my life. I’m so sick and tired of seeing the 1% destroy so many lives in their greed with complete immunity to persecution. Stealing the funds millions of families have saved (had saved) so they can continue their posh, extravagant, obscenely rich life styles while hard workers loose their homes, food, medical coverage. Put the criminals in prison, where they belong. And “Right..” guy, you are as insane as you are ignorant and we will overcome and continue to overcome your ignorance and bigotry.

The 1% didn’t steal the funds, they guys buying houses they couldn’t afford were the thieves, aided and abetted by government policies and laws.

A story related to me from a Realtor when some charges were brought for fraud here in the Atlanta area. He had dealings with the Realtor who ended up in jail:

A house he was listing was valued at about $250K and needed some repairs. He and the owner decided to ask $300K so there would be room to come down in price to allow for the repairs to be made by the buyer. Along comes a another realtor who wants to know if they would agree to sell if for “$400K” on paper.

The scam was, he told us, that the realtors, appraiser and closing attorneys would get a higher commission due to the higher prices. They had a guy who could “qualify” for a Di-Tech superloan for $400K, which meant the loan amount would’ve been $500K. Why? Because the government suddenly removed the down payment requirements and the mortgage companies knew they could nearly double their income by offering loans worth more than the house because the value would ALWAYS go up. (Thanks, Gov Cuomo!!! – then Sec HUD)

So some dude making $80K (if that) a year is given $500K for a house that is really only worth $250K. After the closing costs (about 8% or $40K) the buyer gets to pocket $160K. With this they’re gonna buy a big car or two, flat screen TVs, furniture, etc.

Bob said just wait a year or two, cuz suddenly the interest-only period of the loan will end and the buyer will suddenly see their payment jump from $500/mo to $3000/mo. These people know how to play the system, so they wait the bank out until the foreclosure notice comes. Then they simply mail the keys to the bank. In the meantime, they have stripped the house of everything of value.

When the bank sends an inspector to the recently vacated house, he discovers something shocking. The $500K mortgage covers a house now worth maybe $200K due to all the damage (that was there to begin with and never fixed) plus the cost of the fixtures the tenant removed.

That’s how the bank “stole” the money… it drove off in the moving truck with the buyers who could never hope to afford it.

Oh, BTW, the realtor, appraiser and closing attorney that Bob knew were all convicted of fraud and got 60 days in jail, which was really 30, plus hefty fines and legal bills. The buyer got away with it without losing a penny.

It was really the 1% that made out, right? The only thing they made was the interest money. In reality, the “predatory borrowers” are the one who stole from all of us. Then the Govt stole even more with the bailouts to their buddies. Guys like me got it up the ass cuz we did nothing except get stuck with both bills: one from the lowered house values the other from the cost of the bailouts.

I’m not excusing the bankers, just laying the blame where it squarely belongs:

1 – the govt for making the rules to allow this to happen2 – the real estate biz which did everything they could to profit from the rules3 – the scammers who used the system to their advantage

oh, and BTW, the real estate sector is the only one who hasn’t had their rules changed int he wake of this, so the commission greed will continue and this WILL happen again

False. You, of course are referring to ‘sub prime mortgages’. No banker was forced to provide them, as a matter of fact, a number of banks refused and came through the crisis in very good shape.

Sure he did – by launching his ‘Teach to the test’ software to assist educators with ‘No Child Left Behind’.

I personally think the fact that no bankers have been even indicted speaks very poorly about the banking system, the SEC, the cozy relationship between big banks and big government, and a justice department too lazy or incompetent to do its job.

Having said that, the first thing to do is to ensure this cannot happen in the future. It is time to restore Glass-Steagall. You’re either a commercial bank, which has to stay solvent, or you’re an investment bank, but not both. If an investment bank could be allowed to go broke, you’d see far better investements.

Ted, one heck of a sniper rifle you’ve got there. You nailed it, nailed it dead center.

The problem is that there are no requirements that you create value in order for you to make money. When you buy a share low and sell it high, you create money, but no value. When you package a loan and sell it, you create money, but no value. This is something that started in Venice in 1171 and seemingly people haven’t caught on to the fact that there’s something fundamentally wrong about it in that time. Don’t blame Reagan or Obama. Blame the Venetians.

I like your way of thinking. The ones with the most money use it to keep things going their way. Not only did we not get election reform, which we very badly need, we got Citizens United. In many states, funds are being taken away from education and senior needs and being used to lower business taxes.

The Golden Rule: Those who have the gold make the rules.

In short, no democracy can survive without a well-formed middle class.