Busted: Bankers and The Global Economy

February 18, 2009

More Fraud for Global Economy

sir-allen-stanford1Most people that have considered the recent plight and cause of the downturn in the global economy have realized that Bernard Madoff is just another tip of the iceberg where fraud is concerned. Now U.S. officials have added philanthropist Sir Allen Stanford of the Stanford Group to their short list of finance fraudsters.

Stanford is accused of “massive fraud,” although this writer cannot see how Stanford’s fraud is any worse than the Madoff fraud or for that matter, banking fraud by financial institutions and bankers that started the global economic downturn and housing collapse to begin with.

I suppose the idea that Stanford’s fraud is “massive” is supposed to make us feel better in that justice is being done. Bunk. We have a long way to go baby until the criminals that belong behind bars, the perpetrators of global financial ruin are removed from their posts. Most offenders of gross financial illiteracy are still operating with impunity as the U.S. government casts there eyes in the distance in the hope of looking for other scapegoats.

sir-allen-stanford-and-moneyStanford is one of those convenient scapegoats ripe for the picking. Until this writer sees action against the current bevy of offending bankers, people in high places that sanctioned criminal activity and financial ruin while supposing to know better, the U.S. government has little credibility in tracking offenders or really cleaning up the banking and finance mess that plagues the nation or the world. ~ E. Manning

July 9, 2008

Securitized Loans and Economic Whiplash

U.S. citizens have known for years that the U.S. government is involved directly in home loans. This is done chiefly through Freddie Mac and Fannie Mae. What may have been assumed is that the government is simply involved in old-fashioned business of old-fashioned home loans, while profiting from making ordinary interest on those loans.

These “for profit agencies” were set up by the federal government with a special role. They buy large pools of mortgage loans made by banks and other lenders, attach a guarantee that the loans will be repaid and then sell securities backed by the future payments on those mortgages. The federal government of the United States supports, backs and profits from sell securities back by mortgages that these agencies purchase.

Bankers are not alone in having destroyed the economy along with adversely affecting the global economy. This is part and parcel of why the (more…)

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