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Owner59 -> Global Pool Of Money Got To Hungry (2/26/2009 9:53:33 AM)
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Global Pool Of Money Got To Hungry
70 trillion dollars.
"After the piece ran on ATC, the show was inundated with emails of praise. "The key: They asked the right questions," said Les Cook, NPR's business editor who handled the pieces. "How did bankers get to the point that they were loaning money to people who had no chance of repaying it? The explanations were quite sophisticated. And clear enough that people who don't know much about how Wall Street works could understand them."
Davidson and Blumberg take you, the listener, along on their reporting journey where you meet (and in some cases may even like) the people who did the borrowing, the bundling, the loaning, the deceiving, and the profiting -- until it becomes clear that everyone involved is culpable.
"What makes this story interesting is that it's not a simple case of some bad actors, some criminals victimizing people," said Davidson, who began working with Blumberg on the story in February. "Sure, there were criminals at every step of the chain. But the core of this story is that almost everyone--from borrowers, to brokers, to bankers and wall street investors--effectively worked together: deceiving themselves and each other into believing that they could create massive wealth with little risk. Almost everyone involved was a victim and a victimizer at the same time."
http://www.npr.org/ombudsman/2008/05/the_giant_pool_of_money.html
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Bottom line,there was a huge pool of money looking for investments and not enough investments to invest in.
In the end,it came down to the NINA loan.Or,the "liars" loan.
They were the sub-prime loans that have turned toxic and that are still on the bank`s books,today.
And these aren`t Fanny/Freddy loans,either.Those loans were not NINA loans.
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Takes about ten minutes to listen to this report.
This will enlighten anyone,even neophytes as to how we got into this mess.
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