For a long time, it has been almost universally accepted that the current, and ongoing, world economic crisis was triggered in 2008, when the wider-world found itself confronted with the nightmare reality that a relatively-small gang of de facto racketeers, comprising the already-fabulously-wealthy bosses of many of America's largest financial institutions, had been allowed to increase their own personal fortunes massively by using the legally-registered corporate structures which they controlled, to raise countless billions of dollars illegally, but isolate themselves from personal liability, via their subordinates' creation, and peddling, of a mountain of what was arbitrarily defined as 'Triple "A" low-risk bonds/securities' (now popularly referred to in accurate deconstructed terms as, 'toxic debt').
In reality, this counterfeit 'investment product' was linked to a frighteningly-familiar, thought-stopping, Utopian fairy story of 'ever-expanding future profits' that its authors had steadfastly pretended would continue to derive from long-term, high interest-rate 'mortgages' and 're-mortgages' (now popularly referred to in accurate deconstructed terms as 'liar loans') which had been previously granted to vast numbers of ethnic minority, and/or poor, and/or elderly, and/or unemployed, and/or disabled American home buyers without the slightest verification that these vulnerable borrowers would ever be able to repay their debts.
Furthermore, knowing that one day private, and institutional, victims of their $ multi-billions global racket would almost certainly challenge the authenticity of the poisonous fiction (due to their inevitable losses) and demand repayment, the bosses of the US financial institutions which had profited the most from peddling 'toxic debt' backed by 'liar loans,' had fraudulently taken out insurance with 'American International Group' (AIG) to off-load their risk and, thus, avoid having to pay back their ill-gotten gains. Hidden within 'AIG' was a form investment bank exposed to massive risk. Eventually, 'AIG' needed over $182 billions of US tax-payers money to be made available to it by the US Federal Reserve Bank and the US Treasury, in order to escape from insolvency and collapse due to 'toxic debt' liabilities. http://en.wikipedia.org/wiki/American_International_Group
When confronted with the unthinkable reality that, due to their unfettered greed and corrupting influence, the bosses of numerous major financial institutions have become an ongoing threat to democracy and the rule of law around the globe, and given an apparent choice between dishonour and financial collapse, world leaders chose dishonour, but we've still got financial collapse.
Readers of this Blog might recall that, several months ago, US President Barack Obama created a 'working group' to investigate the underlying causes of the current world financial crisis.
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| Eric Schneiderman |
It has now been announced that the current, New York Attorney General, Eric Schneiderman, has finally filed a civil lawsuit in which 'J.P. Morgan Chase &Co.' is accused of defrauding 'investors' out of $22.5 billions in the form of losses on $87 billions of so-called 'low-risk mortgage-backed bonds' which had been created and peddled by (the somewhat ironically-named investment bank) 'Bear Stearns.'
Amazingly, the staggering financial crimes against humanity described in this recent NYAG civil lawsuit are limited only to the period 2006-2007. However, attorneys representing J.P. Morgan Chase &Co. have immediately defended their corporate client on the technical grounds that the bank only acquired 'Bear Stearns' in March 2008.
http://www.bbc.co.uk/news/business-19797396
http://www.bbc.co.uk/news/business-19795646
David Brear (copyright 2012)
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