There were approximtely $1.4 trillion worth of subprime loans outstanding in the United States by the end of 2007. By the first quarter of 2009, there were forclosure filings against approximately 4.4 million properties. If it was only the subprime market's fault, $1.4 trillion would have covered the entire problem, right?
Yet the Federal Reserve, the treasury, and the FDIC forked out $13 trillion to fix the housing “correction”… With all that money, the government could have bought up every residential mortgage in the country – there were about $11.9 trillion worth at the end of December 2008 – and still have had about a trillion left over to buy homes for every American who couldn’t afford them.
--Nomi Prin, former VP at Goldman Sachs from her book It Takes a Pillage: Behind the Bailouts, Bonuses, and Backroom Deals from Washington to Wall Street (with thanks for the reference to Matt Taibbi of Rolling Stone Magazine). Ms. Prin "frequently makes the point that the bailouts were more about paying off bets than they were about stabilizing the economy."
We've been had as chumps.
Try to have a great weekend, y'all.
Posts
No comments:
Post a Comment