on May 11, 2012
A very revealing look at what happened when Wall Street crashed. One fact that seems to have been largely overlooked by the mainstream media is that there were plenty of warnings from experts that the housing bubble, the default swaps, the credit derivatives and other exotic instruments would not go on indefinitely. In fact, AIG insured way, way more than it had in assets to pay off claims. Bear Sterns stock was successfully manipulated to death. Bernie Madoff may have confessed, but most of the guilty parties are still walking around, still living in their mansions and flying in their private jets.
It is not necessary to understand all the details of how the various frauds were pulled off in order to realize that something was fundamentally wrong with the way Wall St. did business. Unfortunately, the reforms have so far been entirely inadequate. And because most of us do not know how the scams were pulled off, we don't know how to demand the reforms needed to prevent its happening again.
This is a very, very scary movie.