Collateralized Debt Obligations

Collateralized Debt Obligations

Let's talk about Collateralized Debt Obligations. A criminalized financial tool to collect subprime mortgages, the gangster bankers took the worthless papers to the corrupt bond raters who marked them triple AAA. This forgery enabled the brokers to sell them to investment banks, insurance companies and other financial institutions.The effort is similar to a Ponzi scheme, which lasts until the suckers stop investing at the bottom of the pyramid. The subprime scam continued until housing prices started to fall. This ate into the homeowner's equity and raised his mortgage payments. Soon, the sale price was lower than the debt on the house.Although the corrupt government bailed out some financial institutions, they refused loans to small business and to potential home buyers. This has led to increased bankruptcies and unemployment.. After consumer spending hit a downward spiral, massive lay-offs have occurred persuading job holders to tighten their belts.The coming depression is likely to be greater than the 1930's version. FDR assembled a new crew that improvised attacks on the real problems of the people. Obama is staffing with many of the crooks who put the financial scheme together or those who ignored it.They detest the ordinary citizens who suffer. The Homeland Security will punish anyone who objects to the rape of our country.