Financial cesspit
Financial cesspit

Just added this interview to the site’s economics video page:

INET’s Interview with Charles Ferguson, the Director of “Inside Job” hat tip Jesse’s Cafe Americain

It looks like the documentary is worth watching.

Reality always wins. Papering over the financial cesspit in the US simply allows the noxious brew to fester out of site. The Obama administration is embedding crony capitalism as the modus operandi of the US.  As they say, the first step is acknowledging you have a problem. The first step is necessary step for alcoholics and debtoholics alike, both at the individual and national level. Having your government and much of your economy captured by vested interests is a problem. A big problem. Fix it people. Apply the law and lock up law breakers. Irrespective of which financial institution they work for.

It is hard top overestimate the extent of Fraud in the US as is clear from this guest post on Naked Capitalism:

Double Dip In Housing Largely Caused By Failure to Prosecute Mortgage Fraud: For those who doubt that fraud is rampant in the mortgage paperwork mess, see thisthisthis,this,this andthis.

There are obviously other factors responsible for the softening housing market, such as the end of government stimulus programs regarding housing, and poor employment conditions. But as I’ve pointed out early and often, these problems are all interrelated.   See Another Nobel Economist Says We Have to Prosecute Fraud Or Else the Economy Won’t Recover.

If that does not do it for you, check out the category on The Big Picture, from which this comment is taken:

Impossible Foreclosure: Never Late on a Payment: Post bailout, the giant banks have become too large to manage themselves… How else can BoA threaten foreclosure proceeding with on a house that never missed a mortgage payment; indeed, the owners were NEVER late on any mortgage payments! There was never a risk of default, or delinquency. And yet, BoA is automatically generating foreclosure notices (which no one at BOA can figure out how or why).

The obvious answer is the illegal processing of foreclosures. When lawyers, bank executives and there outside contractors are paid to violate the law, the local State Attorney General needs to prosecute these felons. Where Lawyers perjure themselves, swearing they have verified, reviewed and confirmed foreclosure files they never so much have looked at, they need to be disbarred.

Its called the rule of law, and its long past time we actually enforced it.

Applying the rule of law. What a novel suggestion. Or does that only apply to the little people, when it works against them?