With Lehman Brothers filing for bankruptcy and AIG looking less solvent than it should, you would have thought that banks would have stopped been greedy and start looking to solve there only problem.
What caused the problem – greed – on a scale that should have never been allowed, bundling ever big bad investments and selling them as good ones, the net result being that the banks can no longer stay solvent, and are dropping like flies. Look at Fannie Mae and Freddie Mac, between the two companies they secured over $6 trillion of mortgages in the US, and they couldn’t stay solvent.
Continue reading “Confessions of Economic Karma.”