From Alternet: http://www.alternet.org/economy/are-bankers-now-setting-crash-2016
Conservative lawmakers overreact to progressive American changes—pushing the economy toward another crash.
By Thom Hartmann
December 3, 2013
This article was first published on Truthoutand any reprint or reproduction on any other website must acknowledge Truthoutas the original site of publication.
As the great Yogi Berra once said, “it’s déjà vu all over again.”
Right now, millions of Americans are still struggling to recover from the 2008 financial collapse.
That collapse was fueled by the housing crisis, when Wall Street banksters were running around betting on risky mortgage-backed securities that they could sell to investors and make billions from.
They were able to do that because the Graham-Leach-Bliley Act and the Commodities Futures Modernization Act had blown up rational banking regulations, and, as a result, we saw things like the so-called mortgage “liar loans”.
Banksters were able to turn billions of dollars in risky mortgages into trillions of dollars in derivatives.
And then everything went to hell.
Fast forward to today, and because of Dodd-Frank there are no more “liar loans.”
Banksters can’t run the same scam as they did during the housing crisis.
So, they’ve found a new way to come up with real-estate-backed securities that can be turned into derivatives, worth billions in profits.
How? They’ve become landlords.
As Marilyn Volan points out over at TomDispatch, in the past year and a half, banksters in Wall Street hedge funds, big banks and private equity firms have purchased hundreds of thousands of mostly-foreclosed houses across the country.
Continue reading at: http://www.alternet.org/economy/are-bankers-now-setting-crash-2016
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