What were seeing in the subprime mortgage implosion is a deliberate transfer of money from the poor and middle class to the wealthy.
[Wall Street] “encouraged it; it funded it,” says Guy Cecala, publisher of the Inside Mortgage Finance newsletter. “Since the mid-90s, warehouse lending by Wall Street firms is what’s kept companies like New Century in business.”
But it won’t be Wall Streeters who go to prison but rather the proxies who ran the subslime companies for them. They all made gobs of money the past few years gouging and exploiting the unwary. Now many subslime companies are cratering and soon enough, some of those very same vultures will be swooping in to buy up foreclosed property on the cheap. Congress and regulatory agencies of course were asleep at the wheel and did nothing to prevent this debacle from happening. They know who their masters are. And where the cushy jobs are once they leave government.
All of which reminds of “I’ve Been Working for the Landlord” by The Fugs, off their recent “The Fugs Final CD (Part 1)”
Someone’s in the kitchen with Congress
And someone’s getting fucked I know-o-o-o
The landlord and the boss
They fuck the working closs
from New York to San Diego
The sub prime phenomenon was imported to the UK some years ago from the US and is mainly run by a handful of subsidiary companies who have really cleaned up here by overcharging those who can least afford it! However the UK mortgage markets are changing with new legislation which will hopefully stop this “legalised robbery”. Whenever there is adversity you can guarantee some blue chip company will move in to exploit it!