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Originally Posted by !@#$%!
yes there is a financial crisis. it works this way:
the problem is that the mortgages were turned into securities that could be sold or bought beyond the original issuing bank.
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But they were reselling the original dollar of debt 80 times.
Then this junk was used as collateral for more loans. To buy more junk.
It was a legal Ponzi scheme, so long as the value of housing kept going up, all was ok. But there was too much speculation by fucking flippers, who just walked away once they realized they wouldn't make any money.
Supposedly the derivatives are next and will dwarf the housing/mortgage problem. The executives and officers of these companies responsible should be sued and lose all their possessions in exchange for the taxpayers keeping the companies going. Its just an evolution of fascism, where the State serves industry.