THE 2008 BANKING CRISIS. (phrasal verbs in bold).
The 2008 economic collapse happened because of mortgage fraud. Mortgage originators (brokers) in places like Florida, San Diego, Baltimore etc…wrote up (prepared) housing loan documentation where the applicants were not required to come up with (supply) any form of proof of income. These were called self-certification products,in which the applicants took a figure out of thin air (invented a number) and put this forward (provided) as their yearly salary.The first 2 years of the loan agreement very often had a zero rate or a very low rate of loan repayments.
These individual mortages were sold by small local banks in Florida, the mid-west or LA to super-large commercial banks like Deutsche-Bank or JP Morgan in New-York who parcelled them up (put into packages) with other mortgages creating mortgage bonds which they sold on (to resell) to clients like pension funds etc…..Some of the banks (incl. Goldman Sachs) even bet against (to gamble that something will go down in price) the housing market by snapping up insurance against non-payment of the mortgage bonds. The big banks were helped by the ratings agencies like Standard and Poors or Fitch who without looking at (examining) the mortgages in detail were happy to give them a AAA rating. It»s necessary to fork out (to pay) ready cash to agencies like S and P because they are profit making companies (not regulatory bodies-as many people probably think).
So we can see that fraud was taking place on many different levels a) the mortgage originators (brokers-who signed-up the (self-certified) out of work Cuban or Mexican clients, b) the Big Banks on Wall Street, who without any doubt, would have carried out due diligence on these mortgages and realised the potential for disaster if house prices went down (decreased in value) but said nothing and put them forward (to suggest) for a AAA rating with the relevant fee attached, and c) the ratings agencies who were supposed to categorize junk as junk but instead declared these products to be AAA.
Nobody went to jail. They all knew they would get away with it because it»s impossible to prove criminal intent. Amazing!!! Nobody but nobody went to jail hahahahahahaha. And who paid for the rescue of the biggest insurance company in the world who guaranteed non-payment of the mortgage bonds? Yes the US tax-payer to the tune of 850 billion dollars. Hahahahahahaha. It»s completely unbelievable. These guys were printing money every day like it was going out of fashion. It was silent collusion inspired by some extremely intelligent people on Wall Street, who knew (because history told them) that they would never go to prison.
The person responible for the wholesale rescue of the US economy in 2008 was the American Treasuey Secretary Hank Paulson (the snake) . Where was he CEO before being appointed to a top government job by George W Bush? He was CEO of Goldman Sachs (otherwise known as Government Sachs) You couldn»t make this up. An example of where truth is stranger tha fiction).
Phrasal Verbs:
To write up = to prepare documentation.
To come up with = to supply.
To put forward = to provide/suggest.
To parcel up = to put into packages.
To sell on = to resell.
To bet against = to gamble that something will go down in price.
To snap up = to buy without hesitating because of the low price.
To look at = to examine.
To fork out = to make payment.
To take place = to happen.
To carry out = to do something.
To go down = to decrease in value.
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