It seems bad enough that as I wrote in my blog yesterday, when subprime mortgage loans were showing signs that they were toxic, Wall Street simply re-packaged subprime mortgages into a new costume and called the loans Al-A mortgages. In other words, they took the subprime loans and called it by a different name. Both subprime and Alt-A loans were sold across the financial industry as funds called securitisatins. Insurance firms who bought the re-dressed Alt A securitisatins will be forced sellers since they cannot hold securities below investment grade.
Now, watching Jon Stewart weight into Jim Cramer, it’s obvious that Wall Street has been playing with our 401K and retirement funds. Cramer admitted under stress, that Wall Street is taking our funds and playing the stock market with it by short selling. He also admitted that he did short selling and at one time advised people that it was OK to do so. But now he says that it should be stopped!
I’m the last one to believe in Government intervening in the public sector, but the boys on Wall Street are playing with your money and mine. So where was the oversight of Bernard Madoff, Sir Allen Steward, the repackaging of the subprime loans, the large intuitional short sellers that can sway the market? Are we asking the fox to guard the hen house?
Many people are being forced into foreclosure because they are losing their jobs and can’t afford to make their mortgage payments. You know, people who are saying that the Government should not help people who are defaulting on their mortgage may be right. Maybe Wall Street and the banks should be the ones bailing out the homeowners that have lost their jobs because of their greed.
If you missed the show here is the link