Power of Story
Send a Tweet        
- Advertisement -

Share on Google Plus Share on Twitter Share on Facebook 6 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 3 (9 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   17 comments
OpEdNews Op Eds

"The Big Short" and Bernie's Plan to Bust Up Wall Street

By       Message Robert B. Reich     Permalink
      (Page 1 of 3 pages)
Related Topic(s): ; ; ; ; ; , Add Tags Add to My Group(s)

Well Said 7   Supported 6   Must Read 4  
View Ratings | Rate It

opednews.com Headlined to H2 1/12/16

Author 47089
Become a Fan
  (120 fans)
- Advertisement -

Reprinted from Robert Reich Blog

From youtube.com/watch?v=ShFViyMl8ZY: The Big Short -- Screwed 2015
The Big Short -- Screwed 2015
(Image by HOT NEW TRAILERS)
  Permission   Details   DMCA


If you haven't yet seen "The Big Short" -- directed and co-written by Adam McKay, based on the non-fiction prize-winning book by Michael Lewis about the housing and credit bubble that triggered the Great Recession -- I recommend you do so.
- Advertisement -

Not only is the movie an enjoyable (if that's the right word) way to understand how the big banks screwed millions of Americans out of their homes, savings, and jobs -- and then got bailed out by taxpayers. It's also a lesson in why they're on the way to doing all this again -- and how their political power continues to erode laws designed to prevent another crisis and to shield their executives from any accountability.

- Advertisement -

Most importantly, the movie shows why Bernie Sanders's plan to break up the biggest banks and reinstate the Glass-Steagall Act (separating investment from commercial banking) is necessary -- and why Hillary Clinton's more modest plan is inadequate.

I'll get back to Bernie and Hillary in a moment, but first you need to know why Wall Street wants us to forget what really happened.

The movie gets the story essentially right: Traders on the Street pushed highly-risky mortgage loans, bundled them together into investments that hid the risks, got the major credit-rating agencies to give the bundles Triple-A ratings, and then sold them to unwary investors. It was a fraudulent Ponzi scheme that had to end badly -- and it did.

Yet since then, Wall Street and its hired guns (including most current Republican candidates for president) have tried to rewrite this history.

- Advertisement -

They want us to believe the banks and investment houses were innocent victims of misguided government policies that gave mortgages to poor people who shouldn't have got them.

That's pure baloney. The boom in subprime mortgages was concentrated in the private market, not in government. Wall Street itself created the risky mortgage market. It sliced and diced junk mortgages into bundles that hid how bad they were. And it invented the derivatives and CDOs that financed them

Next Page  1  |  2  |  3

 

- Advertisement -

Well Said 7   Supported 6   Must Read 4  
View Ratings | Rate It

http://robertreich.org/

Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.


Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon



Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Republican's Big Lies About Jobs (And Why Obama Must Repudiate Them)

Paul Ryan Still Doesn't Get It

What Mitt Romney Really Represents

What to Do About Disloyal Corporations

The Gas Wars

The Minimum Wage, Guns, Healthcare, and the Meaning of a Decent Society