https://www.commondreams.org/views/2017/08/09/wall-street-thieves-find-new-ways-steal-us
Sure enough, only a decade later, here they come again! Rather than investing America's capital in real businesses to generate grassroots jobs and shared prosperity, Wall Street is siphoning billions of investment dollars into speculative nonsense — such as high-profit securities "secured" only by rickety bundles of subprime auto loans.Car dealers, eager to goose up sales, have been hawking new vehicles to lower-income people, offering quick credit approval. Banks — eager to hook more people on monthly car payments — have been approving these subprime car loans without verifying the buyer's ability to pay. Then, a Wall Street bank's investment house buys up thousands of these iffy individual loans, bundles them into multimillion-dollar "debt securities," and sells them to wealthy global speculators. Last year alone, banks sold $26 billion-worth of these explosive bundles of car loans.This is just another paper-shuffling con game, a repeat of Wall Street's subprime mortgage scam a decade ago. It generates fast, easy money at the start for superrich speculators and greedy banksters — but as more and more low-income buyers are unable to make their car payments, defaults build up and the whole financial bubble pops.Wasting America's much-needed investment capital on a predatory lending scheme that intentionally puts people in cars they can't afford with loans they can't repay is not only stupid, but immoral... and it's killing our real economy. Why are we letting elite Wall Street loan sharks do this to us?These same practices of bundling and re-selling were the cause of the 2007 crash in the housing market that led to millions of American families losing their homes. But, 10 years later ... where did all those houses go?
No comments:
Post a Comment