“GSO Capital Partners, a unit of Blackstone Group LP, agreed to lend money to Hovnanian on the condition that the company default on a small portion of its bonds, in an effort to trigger a payout on credit-default swaps.”
The financial sector is huge, accounting for 20% of GDP.
When the major players cheat we all suffer. The 2008 collapse was due in large part to Credi Default Swaps fraud, selling mortgage securities and then shorting them, and phony ratings. And now they are still doing it. The proposed changes are “voluntary”.
We know that works well. Even Greenspan admitted he was wrong when he held for years that the financial market could self-regulate. Credit derivatives are a $10 Trillion, with a capital “T”, market. That could cover a lot of healthcare, education and SS funding.
The money for a healthier, better educated and secure America is there folks.
Just in the hands of thieves and fraudsters. And it got there by redistribution…from the have nots to the have mores.
And the GOP wants to cut taxes and then social safety nets to pay for that.
That is where AOC is coming from. She may be overreaching a bit, but she has Americans in her heart.
Venezuela did not get Chavez and now Maduro by accident. They got there because the elite felt above the law and were corrupt. Venezuela was the richest in South America for a while. Except the wealth was concentrated at the very top.
We are not Venezuela for a lot of reasons. But damn if it doesn’t seem some on the right are trying really hard to get there.
And Trump is carrying their jockstraps.
IN MY NOT SO HUMBLE OPINION…this time.
Oh, please forget the lectures on the evils of socialism. That is not the subject nor the solution. A more equitable free market is the goal in which the cost of doing business includes social safety nets and benefits. Costs that are fair for doing business in the strong economy of a nation with good freedoms and the rule of law. And not a country in which the “oligarchs” steal, then rule, then steal some more. That’s Russia.
Still…in my not so humble opinion.