The Myth of the Subprime Crisis

"Similarly, if a security is created that is largely filled with subprime or ‘Alt-A’ mortgages, is fraudulently rated as a ‘AAA’ security and sold to pension funds, town councils and otherwise contractually conservative investors around the world, and the underlying assets perform the way one might expect them to – which is somewhat south of ‘AAA’ - we can blame subprime lenders and borrowers until the proverbial cows come home. But it doesn’t change the fact that these assets were packaged into securities that were misrepresented to investors. What is most astonishing about this crisis is the complete mainstream media blackout, let alone prosecutions, of ratings agency, investment bank, and hedge fund employees and executives without whom this fraud could not have been perpetrated. And this doesn’t even touch on the CDO issues, the CDS issues, etc."