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2008 housing crisis - why did no one go to jail? (1 Viewer)
- Thread starter IC FBGCav
- Start date
BassNBrew
Footballguy
Hope and change. Now instead of roping people into bad loans to improve the bottom line, Wall Street just buys the home directly and gets a tenant to pay the loans. Much easier to evict a person than foreclose on them. I estimate Wall Street may have control of 10% of the homes in many markets and are trying to expand this number. Just a matter of time before this house of cards comes tumbling down.
msommer
Footballguy
Please explain your reasoning why someone should have gone to jail, with reference to statutes violated
pinkham13
Footballguy
Too easy. They packaged sub prime and F rated securities into bundles and received A+ ratings. They bankrupted their investors selling garbage as triple a rated.
parasaurolophus
Footballguy
I assume the higher ups are at such arms length that it would be difficult to get a conviction. Going after the little people and leaving the higher ups is bad press so pretty much nothing happens.
timschochet
Footballguy
I thought the laws were weak and bad and people took advantage. I’m not aware that laws were broken. Am I wrong about this?
Long Ball Larry
Footballguy
i agree with your explanation of why it was all very wrong and perhaps illegal, but what are the criminal statutes that would have resulted in jail time?
Long Ball Larry
Footballguy
i guess it's not really true that no one went to jail, though in an overall sense, i am still not totally clear on what crimes there were with a lot of the subprime manipulation, except in cases like these where the fraud and deception were individualized and obvious.
https://ig.ft.com/jailed-bankers/
https://money.cnn.com/2016/04/28/news/companies/bankers-prison/index.html
https://ig.ft.com/jailed-bankers/
https://money.cnn.com/2016/04/28/news/companies/bankers-prison/index.html
![[scooter]](/data/avatars/m/22/22287.jpg?1659477690){kind=avatar}
[scooter]
Footballguy
True, but it was mostly legal to do that under the laws at the time.
In a capitalist system, the best way to grow the economy and create jobs is to limit the amount of government regulation of private business. It would have been bad for the economy if the government interfered with their ability to self-regulate.
pinkham13
Footballguy
You know the routine. Pay a fine without admitting guilt. Typical hand slap for bankrupting investors and pension funds.
Long Ball Larry
Footballguy
pinkham13
Footballguy
No I’m not a lawyer. Financial institutions have a fiduciary duty to their customers. They misrepresented the securities and bet against them. When they got sued they settled without admitting guilt. Doesn’t mean people shouldn’t have gone to jail like they did for the S and L crisis in the eighties.
Dinsy Ejotuz
Footballguy
Issuing loans based on information you know is bad is fraud, and selling those fraudulent loans to others is 100% definitely fraud.
If you really want to dig into what could have been possible read up on the S&L scandal from the late-80s/early-90s. A LOT of people went to jail for that one and it was dwarfed in size by the 2008 crisis.
Also, since we're on the subject, this is one of the all-time great speeches in the Senate. Byron Dorgan, 1999, arguing against the repeal of Glass-Steagall.
Last edited by a moderator:
pinkham13
Footballguy
The way Obama was talking all this hope and change I thought he would put some of them in jail. Instead he hired them to his cabinet just like Trump Bush and Clinton did. Rolling stone did a piece on it.
Dinsy Ejotuz
Footballguy
Obama did a lot right in dealing with the crisis, but the decision not to pursue these guys was terrible IMO.
parasaurolophus
Footballguy
This quote from that article is what I was getting at...
"I certainly understand the frustration of the people who want to see accountability for those who brought on the financial crisis," she told CNNMoney. "Some of these institutions where we are finding criminal conduct, the level of accountability stops at a lower level and doesn't rise up."
pinkham13
Footballguy
Is lying under oath to Congress a good reason?Long Ball Larry said:
https://www.rollingstone.com/politics/politics-news/the-people-vs-goldman-sachs-245191/
IC FBGCav
Footballguy
I won't get too deep but when you promote and sell worthless stuff while selling worthless stuff to those people you should be ended. Legally who knows, money dictates law on this country. But let's say you are right. Crappy humans deserve crappy humans.
msommer
Footballguy
parasaurolophus
Footballguy
Dude i needed those 20 knives! I use the grizzly skinner all the time. The bat knife is great for steaks and the buck ripper is great for cutting rope. The crocodile slayer is awesome for cantaloupe.
Ditkaless Wonders
Footballguy
You don't toss the kid who owns the only ball out of your game.
Stealthycat
Footballguy
who demanded the overloaning ? who wanted everyone to get $300,000 loans they couldn't afford ?
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