The SCAMS continue FROM Houses To Autos

~Have we learned anything from the 2008 crisis? We have grown weary and leary of corrupt government. We learned that there is a revolving door between Washington and Wall Street. Positions can be bought, bartered, exchanged for favors. Political positions can be created for individuals with influence, money or clout. We know that before banks became too big to fail, they must be broken up into manageable controllable sizes or go into bankruptcy like other businesses that cannot be managed but the difference is – banks have regulators to make sure they stay in control. When the regulators fail to do their jobs, then they must be replaced. Checks and balances. No incestuous inside deals or looking the other way when corruption is clear. No manipulations or rigging of a banks rating system as done in the past for failing banks like Citigroup. The inside scheming between regulators and the Treasury Department to keep Citi from going into the FDIC receivership or bankruptcy. The Department of Justice should be just that, not a drop off for special treatment for any special groups or personal biases or interest. We know what the hidden securitizations of loans did to the housing market but we are now facing another type of securitization that looks to be more bailouts but this time in the auto industry.
Sale of bonds backed by car loans in the United States at a pre-crisis level – will the Department of Justice investigate before it’s too late? Like the housing securitization, the creators for car finance securitization, “can pad the debt with extra cash or introduce other safety features known as “credit enhancement” to generate higher readings on bonds comprised of riskier loans”. Citigroup Incorporated – the biggest bailout bank of the 2008 crisis is on another spree. With investors clawing for higher yielding assets, bankers are looking at the idea of credit markets to find a “make a deal”. “Citigroup Incorporated says could be backed by $100 billion or more financing”. Bankers are talking up the “make a deal” – they are telling companies that investors are biting at the bit with zeal and excitement according to the investment Company Institute. Investors have sunk almost $50 billion into mutual fund that by taxable bonds in 2014. What’s all this about? More ways of cash going to traders who can go through the back door to package loans in “securities”.

The contributor is not an attorney and the article is not intended to give advice.