Friday, July 13, 2007

Feds Knew Subprime Mortgage Danger 1 1/2 Years Ago

A Confession, a Communist Connection, and a Congress of Academy-Award Nominees

US federal Housing and Urban Development (HUD) Secretary Alphonso Jackson was in Hong Kong shamelessly trying to unload imploding subprime mortgage-backed securities (MBS) on the Chinese with the promise of a bailout by US taxpayers (he mentioned US government backing in a 7/11/07 Bloomberg interview, viewable on BNN Bubble News Network).

Even more telling, Jackson claimed that the federal government including he and Ben Bernanke foresaw today's subprime mess "about a year and a half ago" (late 2005 or early 2006).

Remember Jackson's claim when the politicians do their Casablanca Captain Renault routine that they are shocked--shocked--to learn that there had been risky lending going on in this country.

UPDATE 4/13/08: Jackson was trying to dump MBS on Asia the month before the August 2007 effective Fed funds rate spike and stock-market quake, and the start of Bernanke's panicked bailouts.

Does Jackson's MBS shilling count as insider trading?

Irony or Crime?

Alphonso Jackson update: You Paid $100k for Pictures of Your Fearless Government Leaders

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