Rarely do lies simply go out in the world and stand on their own. To have staying power, they require a complex network of ancillary lies and human enablers (sometimes knowing, sometime unwitting) who create a web of falsehood. These tangled webs can drain families’ bank accounts, get people killed, cause great institutions to fall, even help crash an economy.
|By: Michael W. Hudson Saturday May 14, 2011 1:59 pm|
|By: Dean Baker Saturday January 29, 2011 1:59 pm|
In The Monster, Michael Hudson gives us a detailed account of the how Roland Arnall created Ameriquest and made it into the giant of subprime lending. In the process the book implicates the major Wall Street firms, most importantly Lehman, who eagerly packaged junk loans into mortgage backed securities and more complicated instruments. He also notes the corruption of the three major credit rating agencies, who received big fees for giving these assets investment grade stamps. The list of aiders and abettors includes Massachusetts Governor Deval Patrick, California Governors Grey Davis and Arnold Schwarzenegger, and even the community group ACORN.