2011/08/31

The bankers are safe

Now isn't it good to know that?

Greg Palast — Hamptons Hurricane: A Bankers’ Katrina

2 comments:

Charmaine Clancy said...

At last I can sleep at night

gef said...

The clearest explanation I've seen of our banking crisis (hurricanes apart) came from an economist quoted in El País: Since deregulation in the Reagan years, banks were lending far more money (mostly mortgages) than they actually possessed, counting on constant growth of loan payments & interest (esp. as housing prices rose) to always have enough for new loans. A kind of pyramid scheme, unsustainable when the growth stopped and they were left with unsecured and unrecoverable loans.