01-17-2020, 07:34 PM
** 17-Jan-2020 World View: Gen-Xers and the financial crisis
It was the Gen-Xers who got masters degrees in "Financial Engineering"
in the 1990s who purposely created tens of trillions of dollars of
fraudulent subprime mortgage backed synthetic securities, and sold
them in order to swindle the Boomers in their fathers' generation.
The Boomer managers were not directly responsible for creating the
fraudulent securities because they had absolutely no clue what the
"Financial Engineers" were doing.
However, the Boomer managers are still criminally liable, because the
result of the fraud was obvious: The Gen-Xers would take a million
dollars of B-rated securities, use financial engineering to slice and
dice them, and end up with a million dollars of AAA-rated securities.
The Boomer managers had no clue how the slicing and dicing worked, but
the magic alchemy of change B ratings to AAA ratings was perfectly
obvious to them, and so they're equally criminally culpable. I would
have been perfectly happy and delighted to see BOTH the Gen-X crooks
and the Boomer crooks go to jail. I still think they should all go to
jail. Unfortunately, Obama decided to take a fraction of their
illegal gains rather than prosecuting them.
I wrote about all this in 2010:
** Financial Crisis Inquiry hearings provide 'smoking gun' evidence of widespread criminal fraud
** http://www.generationaldynamics.com/pg/w...100414.htm
If you're interested in how the financial engineering worked, I described
it in 2008:
** A primer on financial engineering and structured finance
** http://www.generationaldynamics.com/pg/w...080123.htm
As for motives, it's well-known that Gen-Xers hate the Boomers, their
parents' generation. Just ask a Boomer.
Also, check out my articles on the movie "The Big Short":
** 26-Dec-15 World View -- 'The Big Short' - an infuriating movie about the financial crisis
** http://www.generationaldynamics.com/pg/x...tm#e151226
** 27-Dec-15 World View -- Reader comments on 'The Big Short' and the financial crisis
** http://www.generationaldynamics.com/pg/x...tm#e151227
The first of these two articles explains in detail how the Gen-Xers
were guilty of purposely committing massive criminal fraud in order
to screw their divorced fathers, and how the Boomer managers knew
what was going on and joined willingly in the massive criminal fraud.
They were all a bunch of frigging crooks, along with Obama, and not a
single damn one of them has gone to jail -- or even gone to trial.
It's sickening and disgusting. But what do I know? I'm just a
Boomer.
Tom Mazanec Wrote:> I don’t think Xers thought “I’ll screw the Old Man.” I think Xers
> thought “I’ll make as much money as I can anyway I can.”
Guest Wrote:> This. Plus it was Boomers in charge of the companies selling these
> products. X-ers wouldn't have been higher than middle
> management. Contrary to John, I don't buy the argument that that
> executives didn't understand that the derivatives they were
> selling were effectively worthless. These are/were very smart guys
> with decades in the financial field. There wouldn't have been
> snowed by some 35-year-old dude.
It was the Gen-Xers who got masters degrees in "Financial Engineering"
in the 1990s who purposely created tens of trillions of dollars of
fraudulent subprime mortgage backed synthetic securities, and sold
them in order to swindle the Boomers in their fathers' generation.
The Boomer managers were not directly responsible for creating the
fraudulent securities because they had absolutely no clue what the
"Financial Engineers" were doing.
However, the Boomer managers are still criminally liable, because the
result of the fraud was obvious: The Gen-Xers would take a million
dollars of B-rated securities, use financial engineering to slice and
dice them, and end up with a million dollars of AAA-rated securities.
The Boomer managers had no clue how the slicing and dicing worked, but
the magic alchemy of change B ratings to AAA ratings was perfectly
obvious to them, and so they're equally criminally culpable. I would
have been perfectly happy and delighted to see BOTH the Gen-X crooks
and the Boomer crooks go to jail. I still think they should all go to
jail. Unfortunately, Obama decided to take a fraction of their
illegal gains rather than prosecuting them.
I wrote about all this in 2010:
** Financial Crisis Inquiry hearings provide 'smoking gun' evidence of widespread criminal fraud
** http://www.generationaldynamics.com/pg/w...100414.htm
If you're interested in how the financial engineering worked, I described
it in 2008:
** A primer on financial engineering and structured finance
** http://www.generationaldynamics.com/pg/w...080123.htm
As for motives, it's well-known that Gen-Xers hate the Boomers, their
parents' generation. Just ask a Boomer.
Also, check out my articles on the movie "The Big Short":
** 26-Dec-15 World View -- 'The Big Short' - an infuriating movie about the financial crisis
** http://www.generationaldynamics.com/pg/x...tm#e151226
** 27-Dec-15 World View -- Reader comments on 'The Big Short' and the financial crisis
** http://www.generationaldynamics.com/pg/x...tm#e151227
The first of these two articles explains in detail how the Gen-Xers
were guilty of purposely committing massive criminal fraud in order
to screw their divorced fathers, and how the Boomer managers knew
what was going on and joined willingly in the massive criminal fraud.
They were all a bunch of frigging crooks, along with Obama, and not a
single damn one of them has gone to jail -- or even gone to trial.
It's sickening and disgusting. But what do I know? I'm just a
Boomer.
