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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  This 'wealth' is our retirement funds (2+ / 0-)
    Recommended by:
    hannah, ericlewis0

    Most of this wealth that vanishes comes right out of the pockets of anyone who has a pension fund through their work.  

    The people who got rich out of run up in housing have their money in cash.  The retirement fund invested by both public and private companies own these mortgages that are being written down.

    I don't think there is much anyone can do about this, but it's not a win for us.

    •  In '92 or '93, Greenspan justified (1+ / 0-)
      Recommended by:
      ericlewis0

      lowering the capital gains tax and then removing from sales of home entirely in order to "liberate the equity Americans had in their homes for the market".
      This was not too long after the debacle of churning housing lots by the S&L had finally been cleared up.

      Speculating with other people's money and assets has no down side, if the speculators are bereft of ethics and Profit is the only measure.  It used to be that one managed other people's money with more care and caution than one's own. It was a matter of honor.  No longer.
      It's no longer true of our stewards in Congress either.

      People to Wall Street: "LET OUR MONEY GO"

      by hannah on Fri Feb 10, 2012 at 09:46:39 AM PST

      [ Parent ]

    •  That's where the class action suits matter (6+ / 0-)

      There are already some of these in the works -- pension funds (especially public employee pension funds) suing the banks and investment banks for securities fraud, for lying about the quality of the mortgages that were bundled up into those CDOs, when the banks either knew or deliberately turned a blind eye to how much fraud there was all through the system and to the looming defaults. (In other words, "You told me I was buying an Audi, but really it was a rusty old jalopy, and you knew it.") If those suits are successful, Goldman Sachs and all those folks will have to cough up a mint to pay the pension funds -- which is good for taxpayers (for the public employee funds) and for retirees.

      That's why it's so important that the federal settlement does NOT prevent these lawsuits from going forward.

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