The Great Financial Crash was a near worldwide occurrence. It was instigated by the large Wall St banks. They created new financial packages for sale with a fancy name to obfuscate what were essentially the proverbial 'Pig in a poke'. They were called Collateral Debt Obligations (CDO's)
CDO's were created by grouping together various mortgages, having them pronounced, triple 'A' investments by the rating agencies,such as Moodys, (who were owned by the Banks)
There were high demand for these CDO'S by Investment Banks , Insurance co's and Pension funds worldwide because mortgages were thought to be a safe,secure investment.
Greed prevailed, and US Govt Housing policy assisted in the mad scramble to issue mortgages to anyone that would take a loan.
Many loans were created with a low starting payment, which soared after 1 year. The financial unsophisticated were drawn in and then spewed out.
Joe Sixpack and Miss Trailertrash lost their McDonald Mansion with the 3 car garage when they could not afford the payments. The Banks kept pushing these doomed to fail mortgages,because of demand from Wall St to create CDO's and the Financial Institutions, who thought they were buying secure investments.
When the mortgages became non -performing because of payment failures , the whole caboodle was exposed as a massive scam.
Irelands Financial Institutions were affected by the CDO bust, but were also affected by the massive non-performance of loans to Property Developers.
Confidence in Financial Institutions was lost and there was world wide contagion. The US FED Reserve injected Trillions into US and European Banks , but the amounts are secret.
The underlying causes of failure have never been addressed and another Big Bust is due. which will be worse.
Greed was the cause and lack of regulation of that greed, because Finance has corrupted the Regulators.
No Bankers of consequence were jailed,so no pain and lots of gain for them.
Same tricks are being played at NAMA. as they gorge at the carcass of the failed Property Developers.
We all pay for the mistakes ,greed and corruption of Bankers and Regulators. That is why we have austerity and cutbacks in hospitals ,welfare ,schools etc.
Enda displays his lack of Financial awareness, when he says.'We all partied', It should read , ' The Bankers screwed us and are still partying on our bail-out money.'
