Quote:
Originally Posted by jyl
The word "fraud" is tossed around pretty lightly there. The subprime story has a lot more overconfidence, carelessness, greed, and grievous mistakes in it, than actual fraud. Madoff on the other hand was 100 pct fraud.
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From the interview:
BILL MOYERS: Who's covering up?
WILLIAM K. BLACK: Geithner is charging, is covering up. Just like Paulson did before him. Geithner is publicly saying that it's going to take $2 trillion — a trillion is a thousand billion — $2 trillion taxpayer dollars to deal with this problem. But they're allowing all the banks to report that they're not only solvent, but fully capitalized. Both statements can't be true. It can't be that they need $2 trillion, because they have masses losses, and that they're fine.
Fraud is the precise word that one uses to describe those who attempt to deceive in this way.
Geithner is
not just "mistaken" or "overconfident" when he tells us that the banks are solvent, but they need $2 trillion dollars too. He is lying; he is trying to deceive the public to cover up just how bad it is.
I've posted the link to this comic strip before, but it explains the
FRAUD precisely and identifies the participants in the subprime situation (we are really past the subprime mess and are entering a fiat currency collapse, but the subprime situation, was a significant point in this collapse):
http://www.suburbanhousehunters.com/about/mortgage-crisis/
Those who engaged in the fraud (some of it civil fraud, some of it probably criminal) have been allowed to get away with it unpunished. They haven't even been forced into bankruptcy court to face their creditors.
Not only have they been allowed to get away with it, they have been
rewarded with literally hundreds of billions of dollars of bailout money.
Try to call it other names if you want; but it is
fraud.