I'm curious to see how commercial foreclosures will be woven into this narrative.
Meanwhile, this is a fun contrast:
Banks Bundled Bad Debt, Bet Against It and Won"Heads I win, Tails you lose!"
By GRETCHEN MORGENSON and LOUISE STORY, NYT
Published: December 23, 2009
In late October 2007, as the financial markets were starting to come unglued, a Goldman Sachs trader, Jonathan M. Egol, received very good news. At 37, he was named a managing director at the firm.
Mr. Egol, a Princeton graduate, had risen to prominence inside the bank by creating mortgage-related securities, named Abacus, that were at first intended to protect Goldman from investment losses if the housing market collapsed. As the market soured, Goldman created even more of these securities, enabling it to pocket huge profits.
Goldman’s own clients who bought them, however, were less fortunate.
Pension funds and insurance companies lost billions of dollars on securities that they believed were solid investments, according to former Goldman employees with direct knowledge of the deals who asked not to be identified because they have confidentiality agreements with the firm.
Again - I think the Tea Party anti-biz message could be tweaked to reflect legitimate anger at Wall Street and its Government enablers. From there, little logic is needed to demand MORE regulation of financial markets...
I'll be sending a few emails this evening.