“Wall Street’s Shadow Market”

“A lot of people still don’t get it. This crisis is not because of sub-prime mortgages. That was just the trigger. The bomb was the Credit Default Swaps (CDS). This was nothing but a Ponzi Scheme. The money was not there to back up this “insurance”.

This is like you taking out insurance on your house and when it burns down the insurer says it doesn’t have any money to pay the claim. Wouldn’t you call that a scam? They were collecting lots of money while they never had any intention on paying up on their obligations.

At the same time the Wall St. firms were using that “insurance” as a “guarantee” that the junk they were selling was investment grade. And then everyone was inflating their assets and their profits to make it look like there was all this growth in the market. But it was all a hoax. The most collosal scam in the history of the world. Trillions of dollar created out of nothing. 100’s of billions of dollars stolen from investors like you and me without us even being aware because it was all part of a mutual fund in a 401K. Credit agencies and auditors looking the other way. The Bush Administration giving the green light to economic raping and pillaging.

And then comes the bailout that mostly rewards the very same people that created this mess. $700 Billion was just a downpayment.”

http://digg.com/users/FrankHope

read more | digg story

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