Considering the so-called subprime crisis has eerie similarities to the 80’s S&L crisis, well, it’s like deja vu all over again. [Keating]
…and there’s a Bush around here somewhere, I can smell him…
Of course, nothing will come of it, and nobody will go to jail, and he still might (fat chance) become president.
His total lack of financial and economic knowledge notwithstanding (hey, it makes him the perfect dupe).
(See quote at bottom.)
The subprime mess, the credit crunch, junk bonds and thou
It all started with Milken.
Looking back, few would doubt that high-yield bonds helped to democratize corporate finance and began to shift power from banks to capital markets as the primary intermediary between savers and borrowers. Through the magic of the leveraged buyout, these junk bonds helped to make companies more responsive to shareholders and laid the foundation for the growth of private equity.
“In the United States, the only respectable form of socialism is socialism for the rich.” -John Kenneth Galbraith