The Ponzi Scheme Breaking Wide Open
The lawsuit, filed by the Sacramento Municipal Utility District, is based on federal and state antitrust claims. It alleges Charlotte, North Carolina-based Bank of America and more than a dozen other banks conspired to pre-select winners of municipal derivative auctions, coordinated their pricing, and accepted kickbacks disguised as fees from co-conspirators.
Soon you will learn that trillions of dollars of loans were made NOT because they were sound offerings.....but created simply to generate fees originating the loans and even bigger fees from Credit Default Swaps. Our entire financial and retirement system is infected with these loans and improperly marked on the books as assets.
As a matter of fact.....so many loans were made on this basis that it is now mathematically impossible to pay them back due to evaporating cash flow and/or decline in underlying asset collateralizing the loan.
When you infect an economy with a mathematically unsustainable amount of debt, and cut off credit and raise interest rates.....absent a new policy, the economy will collapse due to trying to service the massive debt suffocating the declining cash flow until there is relatively no economy left.