In an explosive interview on Bill Moyers Journal, William K. Black, a professor of economics and law, alleged that American banks and credit agencies conspired to create a system in which risky loans could receive AAA ratings and zero oversight, amounting to a massive “fraud” at the center of U.S. finance.
What’s more, said Black, Timothy Geithner, President Barack Obama’s Secretary of the Treasury, is currently engaged in a cover-up to keep the truth of America’s financial insolvency from its citizens.
A single bank, IndyMac, lost more money than the entire Savings and Loan Crisis. The difference between now and then, says Black, is a drastic reduction in regulation and oversight. That financial calamity was brought about not by mishap or accident, but following after a concerted effort to undermine and remove all regulations, allowing a creditor free-for-all that hinged on fraudulent risk ratings for bad loans.
A recent New York Times and CBS News Poll shows a surprising increase in the belief that the economy is rosy and turning around. Obviously most of them have not seen this PBS video. I encourage you to view it so you won't be fooled. This is one of the most enlightening videos on what the banks have done that I have ever seen. It is absolutely extraordinary.