Q: You’ve said that every country has scam artists; but only in a dying country, only at the low end of the most distressed third world, are people like that part of the power structure. Do you really mean that?
Matt Tiabbi: I lived in Russia for ten years, and one of the things that attracts me to this Wall Street story was that it reminded me of what I had seen in Russia. In the former Soviet Union, I saw this incredible pessimism. There was no belief in the future because there was so much instability that people who had the ability to take anything, steal anything were doing it. They wanted to get the money and get out of the country as quickly as possible. They might steal the money from the government and buy a villa in France. That was the modus operandi in those years. That’s how I see the financial services industry in America with the mortgage scam.
It’s the same mindset, whether it was the guys at companies like Countrywide who were pushing people into bad loans when they qualified for good ones, or the banks who were immediately taking these loans and selling them off to pension funds and insurance companies knowing that they were going to explode, or the hedge fund guys who were intentionally creating masses of crappy loans to dump off on other people, or the ratings agencies who were rating stuff that they knew was crap. Then at the very top you had companies like Goldman Sachs and Deutsche Bank that were basically getting the taxpayer to buy this stuff through the bailouts, knowing that it was severely over-valued. It was the “let’s get what all we can right now before it all blows up” mindset that you see in a third world country.
<Via AlterNet>
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