<strong>Written By:</strong> Diogenes
<strong>Date:</strong> 2007-09-25 10:46:51
<a href="/article/101013933-the-credit-crunch-that-never-was-is-over">Article Link</a>

In the fall of 1983, my husband and I purchased our first home. Several months later he got a job in another city but we were straddled for 2 ½ years with a house we could not sell because interest rates climbed to 22% with mortgages as high as 14-16%. Years later, I found out that our Congress changed “old and outdated” banking laws to render to national and international bankers, one of the most major coups of the century! The law which Congress passed is called the Depositary Institutions Deregulation and Monetary Control Act (1980 Deregulation Act), which basically lifted all restrictions on U.S. banks as to the amount of interest they could pay or charge investors/creditors. At the time this was heralded as being “good” for America since banks would have to pay market rates on savings, which conveniently rose to 22% for a short period of time. That was not a bad short-term price to pay for banks being able to pay very low rates for savings and charge usurious rates for credit cards from 9 ½% to 35% with home equity lines of credit being tied to prime. The high interest rates were appreciated by the serfs who have ceased to remember their joy.

This globally trumped up liquidity and credit crunch was orchestrated by the key players: the international bankers: Goldman Sachs, Barclays, BNP Paribas, Bear Stearns, Citigroup, JP Morgan Chase, and Bank of America. They would not buy commercial paper from one another or lend to one another. Come on. This was reported as being shocking when in fact, it was the standard insiders game designed to facilitate major changes to U.S. regulations by scaring Congress and the rest of the country first. Once the Security and Exchange regulator has been folded into one agency—like Britain’s Financial Services Authority, instead of having separate regulators for commodities and derivatives, the world will go back to calm—for a little while. The next thing you are likely to hear is that the world needs a global financial regulator. But before that can happen, the national regulatory laws have to be harmonized to prepare the way

<a href="http://www.newswithviews.com/Veon/joan49.htm">http://www.newswithviews.com/Veon/joan49.htm</a>

   

I liked one article's term for the sub-prime mortgage fiasco: 'Mortgage Laundering'.

Sums it up perfectly.

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“The war is not meant to be won, it is meant to be continuous, the essential act of warfare is the destruction of the produce of human labour”