Further to Jeff on TARP and Darleen on freezing foreclosures, which is about to go rampant (note date).
Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it's not something that happened last week. It happened when these loans were originated, in some cases years ago. [...]
The financial crisis was a product of our irrational reaction, which protected crony capitalism rather than capitalism. In capitalism, the shareholders who took the risk would be wiped out and the debt holders would take a discount but banking would go on.
Yes, but "our"?
It's a big problem and it turns out its name isn't free market capitalism. (Working title: Educating Ezra Klein: The Years of Hope and Change).
(h/t Zero Hedge)
More: The moral dilemma of walking away.
Sent from my iPhone
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