Robert Reich explains how the conflict of interest in mortgage lenders paying credit-rating companies yielded a slew of profits a few years ago and generated the current housing meltdown in which mounting mortgage defaults are pulling lenders and credit-raters down, too.
It's called "karma," boys, and the path of destruction is wide and deep. But karma does not account for collateral damage to innocent bystanders--like children of defaulters or low-level laid off bank employees--who were just in the wrong place at the wrong time.
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