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Banks Are Setting Us Up Again; This Time The Fall Could Be $2.6 Trillion or More
Tuesday, September 18, 2012 11:07
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Banks Are Setting Us Up Again; This Time The Fall Could Be $2.6 Trillion or More
Are you counting on the Republican congress to save you from the Corproaches?
September 17, 2012
By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning
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And you thought ‘going off the fiscal cliff’ meant the other guy? |
Just five years after they played a primary role in engineering the worst financial crisis since the Great Depression, America’s big banks are quietly setting the world up to do it all over again.
Only this go-round the costs will be far higher and the damage much worse. This time the fall could be $2.6 trillion or more.
Let me explain.
It started back in the mid-2000s. Wall Street was busy packaging low-rated subprime loans into securitized offerings that were somehow worth more than the sum of their parts.
In reality, what they were doing was little more than laundering toxic debt while raking in obscene profits along the way.
You know the rest of the story as well as I do. Not long after, the stuff hit the proverbial fan and it was not evenly distributed.
Well here we go again…More>>
