“(Remember that most of the failed mortgages that we are always talking about on Piggington have been sold off to investors. There losses are seperate from what the fed is trying to deal with here.)”
How we casually treat these investors (the bagholders) as if they don’t deserve much weight or are inconsequential in the whole scheme of things is almost immoral. They were just there to help Americans buy into the stupid “American Dream”. And now they are getting abused and fleeced. They trusted Wall Street; they got sold “investment-grade” assets. Now they wake up to find out Wall Street is really full of lying robber-baron bastards.
The best cure that the Bush Inc. could mete out is to parade the CEO’s and top dogs of these lying, conning, entities in front of the world and give them the most public humiliation.
In China, they would be shot. Here, a similar more humane public humiliation is necessary, if there is such a thing. For one, make them give back all the fraudulent wealth they have amassed – take CFC’s Mozillo for instance. Insider trading is a good start to charge him with to haul him off to prison pronto.
What the Fed is doing now – bailing out these bastards – is almost sickening to these investors.
