Reckless Endangerment: Must Reading for the 2012 Elections

Reckless Endangerment is an excruciatingly detailed history of how the U. S. and World financial systems almost imploded in 2008.  It is also a case study in corporate crony capitalism.  The painful truth is that the people who caused this collapse have not been brought to justice and the problems that caused the collapse have not been fixed.

What you will learn is that the problem came about because of far more corrupt and dishonest practices than you might have imagined.  Everyone from the employees of FNMA and Freddie Mac to Wallstreet brokers and mortgage brokers profited enormously and continue to profit because of taxpayer bailouts.  Dodd Franks did nothing to fix the problems.

The recurring problem is that people are being allowed to make loans and sell them in various kinds of securities to investors without ever having to worry about whether the loans will be paid back.  Everyone up and down the line gets fat fees off of these loans.  By bailing out the investors, the federal government virtually guaranteed that the problem will return.

You will learn that  what most people would think was fraud was going on at large financial institutions like Goldman Sachs who were simultaneously selling these investments to unsuspecting, if foolish, investors, while using their own funds to sell the investments short ( i.e . betting against these investment vehicles, betting that the price would fall below that at which Goldman was selling to their own cosutomers.).

There has been no real investigation into this and Forbes tells us it won’t happen because the federal government doesn’t want to undermine Goldman Sachs.  Shame on them all, including James Johnson and all the other architects of this mess for doing this to us.  Shame on us for bailing them out and taking money from other taxpayers to protect their billion dollar investments.