Alan Greenspan, Former Chairman of the Federal Reserve on the need to enforce the existing laws against fraud.
William Black points out 97% of the loans Country Wide provided to it were sold under false reps and warranties. If time pressed then listen from the 11.15 mark. It’s less than two minutes. You will then want to listen to the rest.
“On April 3, 2009 Black appeared on Bill Moyers Journal on PBS and provided critical commentary on the U.S. banking crisis. In the interview with Bill Moyers, Black asserted that the banking crisis in the United States that started in late 2008 is essentially a big Ponzi scheme; that the “liar loans” and other financial tricks were essentially illegal frauds; and that the triple-A ratings given to these loans was part of a criminal cover-up. He said that the “Prompt Corrective Action Law” passed after the Savings and loan crisis mandated that ailing banks should be put into receivership. Black also stated that trying to hide how bad the situation is will simply prolong the problem, as happened in Japan’s lost decade. Black stated that Timothy Geithner is engaged in a cover-up, and that the administration does not want people to understand what went wrong or how bad the banking situation is today”.
Let no one doubt the US is eating its cultural seed corn. There will be hell to pay, and rightly so.