Bundling sub-prime loans
While many, many executives garnered in hundreds of millions in bonuses for buying up these packaged loans into cheat funds, the country was eating the poison every day for the last several years.
Anybody with an extrapolation table and common sense knew there would be hell to pay if not one year, another. But by then they would be rich and the stockholders would have made a few bucks.
Had it not been for the FDR bank amendments to the banking laws, we would have by now had a severe depression, not just a recession. Borrowing huge sums and only paying the interest has also helped with the total collapse not happening. But that day will also come sometime.
With $100-150 oil on the way, and if a cut-off should occur at the pumps or the flow stopped otherwise, desperation will come with that very quickly.
Of course IF that should happen we would immediately blow-up somebody, borrow more money to keep it going and ward off depression again---for awhile!
At about this point some on here will say: negativity, negativity, all of the time!
Economics is a simple subject studied by simple people usually, because there isn't much to it. All theory and most of the time useless.
Good resources, good workers, and common sense is all that is needed. But you have to hang the lawyers and uber-capitalists, also.
(did you notice the first thing Pakistan's ruler did when he seized power this week? he threw out the judiciary and then put the lawyers in jail!)We have always liked that though in that, and the South American area.
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