The Surprising Ignorant Class

As of January of 2007, it was obvious for most people who pay a little attention, the stock markets and debt market had something amiss. When bonds fund specializing in collateral debt packages with 6% to 8% yields are paying 30% to its investors, something does not add up, the math does not add up, the risk taken does not add up, and the ratings companies overrated the products in purpose, as we know today.
There is no need of a Ph.D. in economics to realize something is not straight.
To obtain those results superfluous risks were taking and all CEO’s and top management at major leading financial institutions were accomplices and enablers of the big con on the people. To add INRI at this problem the so call self-regulators justified the creation of so called “hybrid investments” for decades every single time we create the golden goose is all the old con of the pyramid and when the pyramid it falls, poor Ponzy schemers look like saints.
After their con gets discovered we realized who was on it, lets start by the Chairman of the federal reserve whom “we have no signs of the housing market affecting the financial markets’ or “our banking institutions are strong” that what they say in June thru August, Now in September after it was clear they could not hide behind their false statements and Congress decided to have hearings int eh subject – can you imagine for congress to arrive to have hearings and the fed is deaf- the federal reserve and the Secretary of the Treasury –ex-Ceo of Goldman Sachs, and part of the big con- continued to deny any contagion from the housing debacle to the financial markets, in the mean time, behind the scenes the Treasury was having frantic meetings with major banks trying to figure out how to resolve this debacle.
If you had picked Trades magazine in April/ May 2007 edition, the front page was about the bonanza that these hedge funds and other hybrid investments did for 25 year olds, show them making hundreds of millions of dollars using “unregulated techniques”. Well, those hundreds of millions have to come from somewhere they do not get made out of thin air.
The sad part of the history is that as any other abusive operation it came from the most vulnerable, mostly from pension funds of municipal workers, teachers, basically anyone with a pension public or private. That is the sad part. In this story there is not much good to tell.

As long as most people pay taxes the government decides so create a supra welfare package to bail out all those heroes of the financial markets. Remember while these shenanigans are going on, kids are going to schools with not heat and bridges are failing in major cities and more than 90 millions Americans are under covered for medical ailments.
One has to wonder if the loss of people’s will to protest has created a new submissive slave society that refuses to evolve.