If you can handle the profanity, the movie “The Big Short” is definitely worth seeing to understand how the mortgage market created the 2008 crash that nearly collapsed our banking system, if not for the taxpayer-funded bailout. What is astonishing is the absolute fraud and criminality up and down the mortgage industry, big banks and SEC. Yet for possibly the largest theft in history, no one went to jail except for a single midlevel banker. How is that possible? Corruption and collusion at the highest levels of banking and government.
Since 2008, the big banks have consolidated and become more powerful. Depositors are now considered unsecured creditors, meaning you will be last in line to get money back if a bank fails. The Federal Reserve began printing money (calling it QE) and lending it to banks for free (zero interest rate policy) to maintain buyers of U.S. Treasuries and feed the ballooning federal debt. The government massively under-reports inflation and calls the difference GDP growth. They also understate unemployment, while everyone looks the other way as 50 million people are now on food stamps.
How much longer do you think this can continue?
Mike Fisch, Boise
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