This video, as our colleague Steve shared, is relevant today. Yes, Steve, it is even more relevant today because in 2010 it had only been 4 years of criminal behavior with no action – in 2016, it has now been 10 years and its like a snowball from hell rolling out of control – TBTF. “Feed Me, Seymore!”
Georgetown law professor Adam Levitin testifies before Congress regarding the securitization disaster.
“Take Servicers out of the loan modification business… Servicers were never in the loan modification business – they’re in the transaction processing business…” Adam Levitin testifies before Congress in November 2010. Did Congress act on Professor Levitin’s suggestion – Hell No!
And why not, you ask yourself? Delusional preservation of their fictitious pension funds and other Wall Street investments, maybe?
Think about it. You’re a local politician because, originally, you think you can make some small contribution to society (or because you can’t find another job with the same pay and benefits). You run for office and people like you because you are charismatic. When you get elected to office you find out there is already a system in place that puts your hopes and desires to help society on the back burner until you build seniority (which takes quite a few years). But in the meantime, if you play your cards right – you can advance on the monopoly board. And as you advance more perks are added to your basket of benefits.
By the time you are in Congress, or a USDC judge (if you are so lucky), you’ve mentally justified (been brain-washed) that the perks and investments outweigh your desires to help society, so you are a good soldier and play along with the majority of your party and don’t make any waves – because if you do you might not have the same cushy job next time around. And that’s because the people that fund your election make certain somebody else gets the money. Unfortunately, there is always someone in the wings willing to sell his/her soul to the devil. Explore the 113th Congress’ personal wealth and investments at OpenSecrets.org.
In the case of the judiciary, those that have to run every few years still have the problem. Those appointed to the lifetime tenure of the USDC still have the value of their pensions and investments to worry about – and they fear if they upset the system they’ll have nothing to retire on either. If you had to face lying and cheating attorneys and their clients everyday – your world would be colored differently too.
The banksters tell them they don’t have anything to worry about – that the systemic risk is under control. They know better – but because they are so highly invested their protagonist personally caves and recreates itself into a believer of deliberate lies because the alternative is more than they can mentally handle.
If someone lies to you and you know in your heart that you are intentionally being deceived – but the alternative is to lose everything you’ve worked for all of your life, it is sometimes easier to look the other way and tell you pragmatic self the shut up and hope that the situation will magically right itself without your help.
This is the delusional protectionism and justification process. There is just to much debt and destruction to continue ignoring the warnings.