The Great All American Cover Up

The Great All-American Cover Up
Who really caused the financial meltdown?

I am perfectly aware of the cosmological pitfalls, think Lot’s wife, that attend looking back. Nevertheless; I need to be aware how we got here before guessing about how to get our collective heads above water for a breath. Furthermore, my step grandmother, Sitty Zeinab, informed me thus: ”they asked the pharaoh what made him such a despot and he replied: ‘No one stopped me’ …” . So here is to maybe we can stop them.
Hapless households looking to own a house for a house, or indulging in speculation so they can get a piece of the easy money mountain, did not cause financial meltdown. It is simply and outrageously the managers of hedge funds in cooperation with investment bankers. But no one (ABSOLUTELY NO ONE) is even hinting at that possibility. It is an outrageous conspiracy of silence. Here is the scenario: Hedge fund manager commissions investment banker to create a fabulous loan package. The banker collects hundreds of millions in fees (that does not appear as net income to the bank because they are paid out as bonus and wages to the loan arranging experts). Banks that made the loan go again to in vestment banker who securitizes the loans and says: let there be derivatives. And derivatives happen. Professors of finance and of financial economics write scientific papers about the optimality of derivatives from a societal well being vantage points. And the papers are published and the professors get merit salary increases in their pay which are irreversible even if you find that the papers are wrong later. And economics/business columnists who live on yet another planet, write economics/business columns simplifying (selling) for the rest of us dummies and the columnists write books that are widely purchased and quoted by other journalists and they too become rich. The hedge fund mangers are managing other millionaires’ money in the total privacy of their private equity .caves And they meet in international waters. And they are beyond approach. And they make tons of money for themselves. They buy publicly traded companies and make them private equity companies and then they (that will be the hedge fund managers) gut the company and then said company defaults on the loan. And then we have a credit crunch because the loan pool has been dried out by the hedge fund manager unconstrained borrowing, by our government fighting a preventive war on credit, and by insurance companies using the float (part of the pool isn’t it) to buy bad loans that they nothing about how to asses the default risk on.

Quite a scam. And no investigative reporter to be found. I am not surprised..