Wednesday, October 24, 2012

No Responsibility

So, I'm almost finished The Monster by Michael W. Hudson. There's a part in it where some state regulators are trying to shut down the predatory lending scam. Wall Street poured out billions and billions of dollars to predatory mortgage companies so that they can gouge people and Wall Street can then "securitize" these shitty loans. The regulators are saying: Make Wall Street liable for the fraud and theft of these lenders. These Wall Street assholes are saying that this will create "uncertainty" and unnecessary risk for them.

Supposedly it's beyond Wall Street's resources to do due diligence on the loans they buy back from the loan sharks they front the money to. Besides, what if an unscrupulous morgtage lender lies to, say, Lehman Brothers? Should Lehman brothers be on the hook for billions of $ in lawsuits just because they bundled one crooked loan into their securities?

It would have been nice if the ripped-off borrowers could absolve themselves of all responsibility for their predicaments too, no? Especially since Wall Street enabled the whole disaster.

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