I agree Bugs, and I think that will happen. Maybe not all, but some execs from the Worldcoms and Enrons of the world have been sentenced to serious prison terms, to enjoy their retirement years.
If the big wigs at the top are guilty of fraud or other crimes, I expect they’ll pay the appropriate penalty, as naieve as that may sound. Many of these brokers and LOs who used shady prqactices to make a quick buck during this frenzy, will end up back where they came from, Jiffy Lube, soon enough. I know one who is freaking about about A) what he’s going to do for a new career, and B) how he’s going to pay for his condo that he bought on a no doc stated income loan that even he couldn’t afford 3 years ago, let alone now.
As far as all those MBS’s coming back to hurt Average Joe’s retirement… well there again, if Average Joe isn’t monitoring and understanding his investments, who’s to blame when they go down the toilet?
I don’t know about “stealing from the MBS’s by misrepresenting” The MBS buyers had to know they were buying junk risky loans, they just all expected non stop appreciation. And again, if there was fraud, then individual people are liable. We’ll see how that plays out, how many get caught and pay the price.
