Economy

Crewleader

(17,005 posts) Wed Mar 14, 2012, 09:55 PM Mar 2012

Subprime at the Car Lot

March 14, 2012

On the Road to Catastrophe
Subprime at the Car Lot

by MIKE WHITNEY

“Can you think of a better business model than being a Wall Street bank? You hand out 500 million credit cards to 118 million households, even though 60 million of the households make less than $50,000. You then create derivatives where you package billions of subprime credit card debt and convince clueless dupes to buy this toxic debt as if it was AAA credit. When the entire Ponzi scheme implodes, you write-off $200 billion of bad debt and have the American taxpayer pick up the tab by having your Ben puppet at the Federal Reserve seize $450 billion of interest income from senior citizens and re-gift it to you through his zero interest rate policy. You then borrow from the Federal Reserve at 0% and charge an average interest rate of 15% on the $800 billion of credit card debt outstanding, generating $120 billion of interest and charging an additional $22 billion of late fees…”

– Jim Quinn, The Burning Platform

Have you ever read a better description of how banking really works? It’s just one big looting operation that’s backstopped by the bandits at the Federal Reserve. Just think about it; millions of hard-working people were taken to the cleaners in an $8 trillion mortgage-laundering scam, and yet, not one of the miscreants who concocted the coup has ever seen the inside of a jail. How’s that for justice?

http://www.counterpunch.org/2012/03/14/subprime-at-the-car-lot/