Wall Street is running us into the ground
William Greider is right: during the housing bubble fraud ran (and still runs) rampant on Wall Street.
Nowadays pundits blame our economic meltdown on poor blacks who bought more house than they could afford and public-sector unions that have pensions and health plans. That’s the narrative--and Republicans as well as Obama and the Democrats don't really object to this slander. The facts is that fraudulent and criminal Wall Street firms caused our economy to collapse during the housing bubble. Why fraudulent and criminal? Simply stated, Wall Street sold worthless crap as gold—that’s to say, they bundled mortgages of dubious value and sold them, with the connivance of the rating agencies, as AAA-rated securities. These they sold the world over to deceived investors. When this Ponzi scheme ended, the housing market collapsed and folks ended up in the poorhouse—except the Wall street folks who made fortunes with taxpayers footing the bill!
Greider's point is well taken—heads should roll. Sadly, Obama is not up to the task, caught up as he is, in Democratic Party right-wing corporatism.
Feb 3 2011 - 6:51pm