We all know about the housing collapse and the stock crash and the bailouts. Well the House of Representatives has just passed a bill to eliminate the regulations over derivatives. Lets consider what that means. After the bailouts some regulations on certain types of financial instruments were put back in place and now we are eliminating those regulations. In England, they are actually promoting a new housing bubble similar to the one that happened in the United States. Why would anyone intentionally replicate something that has already failed? The answer is that a few made a lot of money on the financial collapse.
Wall Street created some rather fancy financial transactions, we call these derivatives. They knew that these products that they sold would fail and bet on them failing. As someone recently said, basically it is like someone making a car that they know will have and accident, selling you the car and then taking out insurance on the car having an accident.
Why would congress go back to allowing Wall Street to sell toxic financial instruments? The next crash is going to be worse and it is coming. Some people plan on making a lot of money on this coming crash.
Monday, December 9, 2013
Subscribe to:
Posts (Atom)