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KT2000

(20,585 posts)

7. A lot of the money was not there

Reply to Octafish (Original post)

Fri Jul 27, 2012, 06:02 PM

Jul 2012

to begin with. It was a house of cards. A single mortgage was resold several times in different formats. When the homeowner went underwater,the resold mortgage was like a flat tire on a semi. Then there were lots of flat tires and the semi could not move anymore. When their money disappeared, the financial firms needed to keep doing business and paying their clients.

The only winners were the financial firms that bet the house of cards would fail.

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Highlight:

What I don't understand is: WHERE DID ALL THAT MONEY GO? [View all] Octafish Jul 2012 OP

i read somewhere that the touted business profits are a function of gov't spending -- i.e. gov't HiPointDem Jul 2012 #1

Interesting. While corporate profits are at all-time highs, wages are at all-time lows... Octafish Jul 2012 #15

It went to cover defaults on mortgages harun Jul 2012 #2

Seems like WallStreetBigBanks are laughing all the way somewhere, courtesy of US taxpayer. Octafish Jul 2012 #17

A lot (perhaps even most) of that money went overseas. nt Romulox Jul 2012 #3

Keeping Offshore Invisible: A Study in News Management Octafish Jul 2012 #18

Rhetorical question, bro? Zorra Jul 2012 #4

Yes, Zorra-san. I hope to generate discussion as Corporate McPravda won't... Octafish Jul 2012 #11

LIBOR-manipulation story dwarfs by orders of magnitude any financial scams in the history of markets Zorra Jul 2012 #12

The Cayman Islands. Rex Jul 2012 #5

Corruption and the Offshore Interface Octafish Jul 2012 #19

Medical bills, home and auto repairs, mercenaries, drones, bombs, prostitutes, the usual. freshwest Jul 2012 #6

A lot of the money was not there KT2000 Jul 2012 #7

There never were trillions in bailouts econoclast Jul 2012 #8

Largely, it was lent back to the Fed who paid more interest than we charged the banks.... Junkdrawer Jul 2012 #9

Actually that razzle dazzle econoclast Jul 2012 #10

It never existed quaker bill Jul 2012 #13

It never existed. Basic macroeconomics explans it... TreasonousBastard Jul 2012 #14

What is really cool quaker bill Jul 2012 #16