Why blaming capitalism for the problems of fascist government policy is wrong:
It doesn’t take a rocket scientist to figure out that when you back junk sub-prime loan packages with tax payer dollars, lenders have a massive incentive to make outrageous loan deals.
The “fraud” is the moral hazard our government created when it backed the sub-prime loan market with Fannie and Freddie, effectively making junk loans AAA rated.
Of course, the rating agencies all rated the sub-primes as AAA BECAUSE OF THE VERY FACT that Fannie and Freddie were backing the loans!
This is like US Treasury bonds being rated AAA because its impossible for the US to default on them. They will simply inflate if they have to, but they will always make the payments.
Don’t blame capitalism for the problems created by fascist crony politicians getting in bed with Wall Street.
Fannie and Freddie now want 800 billion in bailout monies to pay back the corrupt bankers that made these deals.
YOUR MONEY will be given to the banks, courtesy of Barney Fwank.