I like Matt Taibbi’s article better than the WSJ article posted previously. For one, it doesn’t contain the knee jerk threat that all these deadbeat homeowners brought this on themselves and are only going to drive up the costs of mortgages. Yeah, yeah, we’ve heard all of the blame deflection and threats before, Wall Street. You can’t really do anything worse than what you’ve already done. Nobody cares to be threatened and bullied by the screw-ups who blew up the global economy and ruined the American justice system to satisfy their greed on steroids. We know, WSJ, it’s your Edward Murrow masquerade of “objective journalism” where you take a stab at pretending to care about anything other than the epically disastrous Greenspan-brand “pure capitalism” (read: enrich the top 1%, print money, and socialize the risk for the financial institutions who make terrible bets with immense leverage) as an excuse to cover up the massive frauds and accounting scams and con games of the geniuses of finance.
Here’s an excerpt of the new Taibbi article from the new issue of Rolling Stone.
I also recommend his new book, Griftopia.
This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and labyrinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench. Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments. Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.