Now that Goldman Sachs is on the hot seat, I wish to remind my favorite news makers that a few hundred people loosing their homes 2008 did not spark the financial crisis that exposed the Credit Default Swap game the Wall street firms were engaging in.
It was the destruction of over 60 oil rigs in the Gulf of Mexico, and the damaging of 124 others that sucked what cash reserves were left in reserve of those firms which underwrote the insurance policies.
Please read the following news blurb about the Oil Platform destruction. Pay close attention to the dates, and when , and how suddenly John Mc Cain had dropped out of the Presidential race to meet with George Bush.
An oil rig is worth 300 Million. Multiply that by 60 and ask any Insurance company to write a check for that amount, and I am sure that would deplete the coffers of any financial institution already operating on empty, or a high debt ratio. It is my summation that it was this natural disaster that literally "blew the lid" off of the money games the big banks were playing. But instead of admitting they had to write a big check to big oil, they blame it on the few thousand people who might have lost their homes that may, (or may not have) been financed by Fanny, and Freddie......ridiculous!
http://www.thefreelibrary.com/...
http://en.wikipedia.org/...
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Oh, and let's not forget about the hundreds of million dollar homes lost on Gavaston Island, and the thousands of homes and Oil Tycoon skyscrapers up in Houston.
"All told, Hurricane Gustav could cost the economy $125 billion, with an additional $60 billion in insurance claims....."
http://useconomy.about.com/...