Tuesday, April 13, 2010

Washington Mutual

The failed bank Washington Mutual made subprime loans it knew were likely to go bad and then packaged them into risky securities, investigators say.

Is that manure I smell my dear Watson?

Before Washington Mutual collapsed in the largest bank failure in U.S. history, its executives knowingly created a "mortgage time bomb" by making subprime loans they knew were likely to go bad and then packaging them into risky securities, a congressional investigation has found.

Nooooo… really?

A new consumer financial protection agency, has been proposed by Obama has proposed as part of his regulatory overhaul, to stop lenders from preying on borrowers.

Well, they are going to keep Franny and Freddie and who many out there thinks that the administration that is literarily overrun by Goldman Sachs people will ever check out the tentacles of that bank?

And the main problems with insanely low interest rates, maniac printing of new notes and extra government cash thrown at new buyers of housing are still there, still increasing the debt bubble, still building on that financial disaster.

The truth is that Washington Mutual isn’t the first or by any means the last bank going out of business here. Everyone of them, EVERY SINGLE ONE, have after bankruptcy shown a 30-40 and even 50% in overvalue thanks to the scams. We’re counting 150 banks so far. If there’s no exception for this among the so far failures, raise your hand if you think the rest are really solvent…

We’re talking trillions, many trillions of dollars and the federal government has either already bought them through Franny and Freddie or promised tax dollars to cover the losses. You think last year was bad? Wait ‘till you see what this brings…

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