“It is an outrage that not one major Wall Street executive has gone to jail for causing the near collapse of the economy. The failure to prosecute the crooks on Wall Street for their illegal and reckless behavior is a clear indictment of our broken criminal justice system,” Mr. Sanders said in a statement.
How many people will accept this on face value? Most I suspect because there is no doubt irresponsible, greedy people took advantage of a unique situation by putting together risky investments misunderstood by investors who may also have been misled.
But you see, the real story is that none of what Wall Street did would have been possible had it not been for left leaning, even socialist style policy that pushed home ownership even among those who could not afford it; a political strategy that cajoled, even strong armed lenders into offering such mortgages. Ignoring unrealistic rising home prices coupled with overextended borrowers and pushing subprime borrowing is what caused the near collapse of the economy.
Pro people policies of the left and in Old Bernie’s case, far, far left sound great, even desirable … as long as you ignore the real world consequences and human nature. And we haven’t learned our lesson yet. You can get a FHA mortgage with as little as 3.5% down payment which requires mortgage insurance and, of course, higher monthly payments all which put the borrower at greater risk.