The FEDERAL HOUSING FINANCE AGENCY is now suing the top 17 U.S. banks, for their role in the cause of the Great Depression of 2008.
The lawsuit essentially says that these banks did not disclose all the risks of the mortgages that were made to unqualified buyers of homes, and that when the mortgages were sold to Fannie Mae and Freddy Mack they were not made in “good faith.”
It is seeking $196 billions in damages.
The U.S. Government is conducting a propaganda campaign through all the major media corporations, like the Wall Street Journal, saying in effect… “See! We’re going after the bad guys!” The real “Bad Guy” however is the U.S. Government.
In today’s world, most people know that a “Heart Attack” is not a disease, but simply an “Event” in a disease process called “atherosclerosis.”
A “Precipitating Event” is the first event that discloses the disease.
This disease that causes a heart attack is “Atherosclerosis.” “Atherosclerosis” is a slow accumulation of fatty plaque in the arteries of the body. It normally takes up to forty years before a “heart attack” or a “stroke” occurs. American children start eating hamburgers at an early age and by the time they are thirty streaks of fat are found in their arteries. When they are fifty or sixty they have a “heart attack.”
THE GREAT DEPRESSION OF 2008 WAS THE PRECIPITATING EVENT
The disease is called “Unpayable Debt.” It took about thirty years to reach the Precipitating Event. Instead of hamburgers, Americans were eating money loaned by banks.
SELLING ON CREDIT
American banks started selling “on credit” in the early 1980’s.
American factories had been sent overseas and American workers were receiving high pay because their unions and the giant American car manufacturers, General Motor, Chrysler and Ford knew that they had to have their cars sold.
This method applied to other manufacturers as well.
Large items, such as cars or boats or recreational vehicles were sold “On time.” The purchaser gave very little money to the bank and the bank loaned enough to pay for the item purchased plus all the interest and fees.
NOT ENOUGH MONEY
In the 1990’s the American public did not have enough money to buy goods.
The U.S. Government told the banks: “Loan them money on their houses!”
“Equity Loans” came into being. People borrowed on their homes to buy goods. The price of homes started to rise.
The U.S. Government said: “Build more homes!”
The banks responded: “They have no money!”
The U.S. Government said: “Give them money!”
The banks lent everybody who could walk through their doors enough money to buy a house. The loans made were fraudulent! And the U.S. Government knew it!
The U.S. Government bought the fraudulent loans through their operatives, Fannie Mae and Freddy Mac. It is absolutely impossible for an immense modern government and two immense mortgage giants not to know that the mortgages being written were not fraudulent!
TODAY THE U.S. IS IN A DEPRESSION
Americans are unemployed, hungry and in a nasty mood. The politicians are shifting their rhetoric and blaming each other for the economic disaster.
What to do?
This is the classic answer for every American problem: “Take them to court and sue their butt!”
What does “suing” do? It makes lawyers rich.
The money that the banks have in their coffers was given to them by Ben Bernanke in a QE1 or a QE2. He gave the banks close to two trillion dollars.
Take a little back and make the public happy. It could only happen in America!