Sep 17, 2013

financial crash

A good interview with Barry Ritholtz who has spent a lot of time investigating the 2008 financial crash and written a book about it. It's long-ish but then this was a complicated confluence of events.
So it really was about fucking the poor? 
I don’t know if the guy who said that was being a little flamboyant, but, ultimately, yes. Here’s the problem with banking. People have described a banker as someone who is willing to lend you an umbrella on a sunny day, ie, if you really need the money, you can’t get it. As I said in Bailout Nation, the history of commercial credit has, for millions of years, been based on the borrower’s ability to service the debt. What took place from 2002 to 2007 is that the borrower’s ability to service the debt was replaced with a new standard for making loans. That standard wasn’t, “Hey, how do we fuck the poor?” but it was the ability of the lender to sell that debt to a Wall Street securitiser.

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