This week in outrageous economic shorts we quote insightful articles covering the JPMorgan Chase $13 billion settlement for bundling bad mortgages and pawning them off to unsuspecting investors. The case is due to the actions of two acquisitions made by JPMorgan Chase, Bear Stearns and Washington Mutual.
Banks are at it again, as usual, and these latest adventures in fictional finance are off the public radar. Maybe the public has lost their outrage and why the latest news is out of earshot. Maybe people are just exhausted, watching absurdity after outrage coming from these financial institutions and the ones who are supposed to watch them. After all, nothing ever changes.
Three years ago this past Saturday the economic crisis struck.
That's why the comments by Alan Greenspan on the very same day on Meet the Press are worth noting.
"There is no doubt that the federal funds rate can be fixed at what the Fed wants it to be but which the government has no control over is long-term interest rates and long-term interest rates are what make the economy move. And if this budget problem eventually merges to the point where it begins to become very toxic, it will be reflected in rising long-term interest rates, rising mortgage rates, lower housing. At the moment there is no sign of that because the financial system is broke and you can not have inflation if the financial system is not working."
Banks are at it again, as usual, and these latest adventures in fictional finance are off the public radar. Maybe the public has lost their outrage and why the latest news is out of earshot. Maybe people are just exhausted, watching absurdity after outrage coming from these financial institutions and the ones who are supposed to watch them. After all, nothing ever changes.
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