William Black On The Edge With Max Keiser

19 Mar

If you wanted the clearest possible picture of what it is we are faced with here today, this just might give you the foundation to build it.

Max Keiser, irreverent expat and wildly direct extrapolator, and William Black, academe, philosopher, educator, former Federal Investigator and brilliant distiller of facts such as these:

“As what the FBI, publicly in it’s 2004 Congressional testimony identified as “An epidemic of mortgage fraud”

and so the recipe for optimizing accounting control fraud and accounting with the weapon of choice, is real simple… You grow exponentially, like a ponzi scheme, you make really bad loans (those first two are connected and I’ll come back to that in a moment), the third thing is you have extreme leverage and the fourth thing is you put on only trivial loss reserves.

If you do those four key things, you are absolutely guaranteed, and that’s the key, guaranteed to report record short term profits. And of course with modern executive compensation plans, you are guaranteed to be rich as a king, within a year or two.  And if a bunch of us lending organizations get together and do this at the same time, you will also create a financial bubble

And you will keep it going by hyper- inflating it which will allow you to refinance the bad loans as the home prices appreciate and that means instead of thisthing  collapsing in a year or two it takes seven or eight years to collapse and when a really big bubble collapses then you get the great recession.”

That sure sounds like a planned and executed event visible in the rear view mirror and out the windshield ahead of us from here…

Ah, but don’t take our word for it – listen to the two of them spell it out for you yourself… Besides Max is always fun to watch. :D


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