How it all started (a cartoon)
"Gee, I'd like to buy a house but I haven't saved any money for a downpayment and I don't think I can afford the month payments. Can you help me?"
So begins a funny and informative (and, at times, offensive: don't show this to your kids) cartoon that takes you through the origins of the financial crisis. Source? Anonymous. Probably a former investment banker with inside knowledge...
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This is the question of lack of governance in the banking system. I am sure there are enough guidelines to be fulfilled by the applicants before application approved. Why the bankers allows this to happen. May be their interest is to lend money as many as possible so that they will meet their annual sales target and in return to receive fat bonuses. If this is the case we should take them to justice. Another question, what is the role of banks regulator? We must remember one criminology theory, which says, crime toke place because of Opportunity, Ability, and Desire. Someone may be in the position relate this theory with what was happening in the present financial system.
Posted by: baker | Oct 29, 2008 9:41:10 AM
The 'former investment banker' or other anonymous cartoon creator did a wonderful job in details on securitazations but forgot a few items in the origination side - "can't get a liar loan? let me help you generate some paystubs with photoshop. Don't have enough cash in reserves? let me help you generate some bank statements with photoshop. Aren't really going to move into the house? Well, just state that you are and move wherever you want after settlement. Aren't in the country legally? That's okay, I'll sign a form saying I saw your green card and the list goes on and on and on.
Posted by: Anonymous | Oct 29, 2008 10:20:17 AM