The Ending Of the Mortgage Casino

What ever happens in the Goldman Sachs SEC and criminal case is secondary to the ending of the great American Mortgage Casino Machine. The GS case is the ultimate conclusion to a decade long Housing/Real Estate bubble fueled via easy money, NINJA Loans, and complex predatory products. It was this machine that fueled the economy for the last decade. It was the housing casino that elevated top line economic growth. It was this casino mechanism that spurred all of that job growth. It was all a farce.

All of the growth we saw in GDP was a joke. It was all structured finance. Structured finance was the lightning rod for all of the fraud that occurred in the mortgage market. Watching GS in front of Congress this week as well as Blankfein on Charlie Rose last night just alerts to me how out of touch Wall Street is with regards to the real economy. They still have no clue what they have done and how it was the tax payer that saved their bacon. Americans at the moment have a front row seat watching financial reform get gutted in front of them. They have a birds eye view in 3D on how crony capitalism really works. Why do we need James Cameron when we have Congress?

What ever you think about John Paulson and GS doesn't take away from the fact that the Abacus product was a doomsday product that was guaranteed to blow up someone other than Paulson and GS. The product was set up to make John Paulson a boat load of money. In the end, Paulson made out like a bandit while ACA/ABN and IKB took it in the grill.

Meanwhile, CNBC and Bloomberg the two biggest Wall Street apologists constantly seem to make a case that GS is not entirely at fault. Well...We know that. We know that Wall Street is rotten to the core. Can someone please alert CNBC and BBG to this?

Wall Street again is so out of touch they are fighting over semantics of predatory parasitic fraudulent practices. Many Americans are watching this circus as it plays out. Americans simply can't believe that Wall Street created this mess, cleaned up on it before hand and then cried bloody apocalypse to get trillions in bailouts to reopen the Casino once again. Each and every way they have paid out hundreds of millions in campaign money to gut financial reform. The average American at this point has to be completely infuriated.

Goldman was one of the lucky bastards that received huge chunks of bailout money pumped via the Treasury and FRB, many have come to grips with the idea that the government essentially bailed out a decade long casino gambling spree financed by Wall Street and enabled by the Federal Reserve Board. Who was the biggest benefactors? Wall Street and the subprime supply chain.

It was socialism at the highest order bestowed upon the Wall Street Crony Elite. Its the biggest wealth transfer from tax payers to the power elite in the history of mankind. Our country can no longer find fault with Latin American Banana Republics and Russian Oligarchs. We are the quintessential Banana Republic but without any banana's. We are a Swiss-Cheese Economy with rotting cheese.