Once again, just like here, Michael Hudson nails it–and his book, Killing the Host, is going on my to-read list. Allow me to quote (or is this called transcribe?) the part from the interview in the above vid that really struck me.
“They make their money for the same reason they’ve paid billions in civil fines–not criminal fines for the fraud. It used to be that Chase (Bank) made money by getting deposits at a low rate and lending them out a higher rate. But now what they do is they create credit for junk mortgages and they don’t even hold the mortgages. They find suckers to sell (the junk mortgages) to, like the German Landesbanks, pension funds, and anyone who will buy these junk mortgages. And it turns out that all of these (junk mortgages) are a fraud and that Alan Greenspan came in to deregulated fraud. So now, essentially, the fraud sector is part of the financial sector.”
But there is one worst-thought that I wish to add to this (mess). Obviously Michael Hudson is telling the truth here. But I have the following question regarding financial fraud and debt deflation. It’s one thing to remind us that a German Landesbank could be the sucker of whatever side of the trade wall-street put together before and after the subprime crisis and the great recession that started in 2007. This type of financial activity goes on everyday and it looks like the near and far future will only expand upon this activity. Yet, someone has to be sold these mortgages that are ultimately bundled together into what are known as derivatives. Who is that “someone”? Well, if you think you can tolerate my skeptic, cynical mindset, here’s an answer–and I think I may have tried to allude to this in other worst-posts (see tags). As bad as wall-street is, I’m not sure it’s the one to blame–which is so much of what the interviewer alludes to in the video. I mean, as much as I admired the occupy movement, there was one thing that held me back from supporting it fully. And it goes something like this. Any citizen of the US that can’t pay off his/her consumer debt (that is, debt that excludes a car or a mortgage–because these things are part of necessity and not want) within thirty days is complicit and is also practically aiding & abetting the banks by supplying endless amounts of debt. I mean, who is to say that all of these derivatives, with their credit default swap tranches, subprime technicalities, junk this or that, etc., aren’t really just a way for the powers-that-be to hide the fact that #americant screwed the pooch after it won the cold war? There was obviously a choice of direction #americant could have taken once the soviet union fell. We chose the wrong one. On top of that Americans, post the lie of Reaganomics, exist because of debt–we all know that. No one would have their house, the jewelry, their cars, EVERYTHING, without being indebted to it all. Hence, maybe someone should be thanking the banks for preventing a crash similar to the great depression (at the end of the dipshit dubya bush administration). Or maybe not. What the fuck do I care. All I know is that I’ve been debt-free my entire adult life. Proud of it, too. Good luck (debtor) suckers. And. Rant on. -t