8/10
Bernie Madoff destroyed by goverment Ponzi scheme.
13 January 2023
This is a very interesting documentary, but has some leftist slants. The biggest is the decision by the documentary makers to totally ignore the cause of the 08 housing crisis that triggered the collapse of the Bernie Madoff Ponzi scheme. In the documentary, they simply place the blame on large financial corporations taking large pools of bad mortgages and selling them to whoever would buy them. Certainly, we see that explored in depth in movies like Margin Call. Later, we see a clip of former president Obama referring to the lack of government regulations as an enabler of the housing collapse, and it's later ramifications. It's absolutely true that big time mortgage bankers created exotic financial instruments to disguise sub-prime mortgages and sell them worldwide to anyone willing to take the bait when the market sank into a morass of worthless loans to keep their corporations alive. But the question of why large financial institutions would torpedo the housing market with a blizzard of sub-prime loans and thus force themselves to play musical chairs with piles of worthless mortgages is never mentioned. The answer is that they did so with the greatest reluctance, but had to because of government regulation. Yes, the government demanded lending standards be reduced supposedly so that the poor and disadvantaged could buy homes. President Clinton demanded Freddie Mac and Fanny Mae have at least 50% of their mortgages be sub-prime. Congress took it from there and soon essentially anyone capable of walking into a financial institution could get a mortgage making use of notorious financial instruments like the "liar loan". Of course, speculators and people with little money yet eager to buy a house went wild. Not surprisingly, a Cloverfield monster sized housing bubble was created, and as all financial bubbles do, it finally burst in everyone's face. There is no regulator protection from bad politics.
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