Busted: Bankers and The Global Economy

March 4, 2009

U.S. Mortgage Panic Ensues

tsunami-financeA mortgage panic is setting in. More than 8.3 million U.S. residential mortgage holders owed more on their loans in the fourth quarter than their property was worth as the recession cut home values by $2.4 trillion last year. An additional 2.2 million borrowers will be underwater if home prices decline another 5 percent. Do you have one of these mortgages? Probably not if you have been in your home more than 5 years and made sensible choices with financing. 10 million homes is small potatoes compared to number of residential mortgages out there in the United States. However, the crooked system of weights and balances that bankers designed are now a house of cards ready to crash as more Americans appear to be losing their homes.

The banking and finance system has plowed virtually every mortgage into a profit making system of toxic securities. The system of high finance is beginning to panic as it realizes that it must comply with trimming and modifying home loans to keep their customers viable as they lose their bottom line. Why are the system of bankers and high finance trembling in their boots? Confidence continues to dwindle and stock prices fall. Trading value is the bread and butter of publicly-traded companies. Banking and high finance are trembling due to the toxic securities that they built to underscore and enhance their profits. With toxic mortgage-based securities failing, this puts banks, investors and insurers like AIG in the position of holding the bag of spoiled goods that were originally designed to spur runaway profits and build a system of financial prosperity.

mortgage-tsunamiWe are witness to what has happened. Bankers and high finance have designed their own self-destruction that has been left squarely in the hands of government and citizens to miraculously rectify. The fallout from all the speculation and rampant leveraging has been an enhanced recession which is likely to lead to a depression. No man lives on an island. The world of finance is no exception. Sooner or later, greed and fraud bite back. The only problem for the nation is that the taxpayer is covering the systemic failure with their own blood, sweat and tears. ~ E. Manning

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