Vested interests - Melbourne Herald Sun- Topic: Cash Plus Money Loan
No money down, no income required, fudge the figures, and let someone else worry about the mess later - when the money needs to be repaid at much higher rates. In order to keep the property party in full swing lenders grabbed their subprime loans, bundled them up with a sprinkling of good loans, and thus created the ugly acronym of CDOs - Collateralised Debt Obligations. Let’s underline that point - the ratings agencies are paid by the very same people they assess. This led to the ratings agencies downgrading billions of dollars worth of these securities to their rightful rating - junk. In the fallout from the subprime slime, regulators and lawyers are looking into ways to hold the agencies accountable for their actions - but it’s really just hot air. Singling out any one party would expose the whole corrupt system, from the mortgage broker who sold dodgy loans for big upfront commissions, the bankers who turned a blind eye to the fudged figures and lax lending, to the greed of the hedge fund operators who recklessly punted other people’s money for big fees. Find Out More
No Tags