Current+Carli

-the FBI is searching for the "executive wrongdoing" that prevented the fall of both AIG and the Lehman brothers -the government tried to find 700 billion dollars of taxpayer funds to try and help the other firms that have lost billions of dollars in investments that didn't go too well -the Lehman brothers went bankrupt 10 days after their clients lost trust in them and their company -2 days after the brothers went bankrupt, the government gave the company 85 billion dollars -the FBI has already set off 500 prosecutions on the faculty of AIG for giving out inappropriate loans to people who the staff knew couldn't ever pay the loan back
 * Bullets**

-Why wasn't there higher security on the staff at AIG? -Why were the Lehman brothers checking to make sure that there were no leaks or inappropriate deals occuring in their company? -Was it necessary for the government to dish out 85 billion dollars to a company that messed up so badly? -After the Enron incident in 2001, why was the FBI and the government not being more wary and careful of all their workers? [|AIG is probed by the FBI]
 * Questions**

-so many foreclosures are occurring, that the only sensible solution is to rebuild the mortgage taxes to prices that people can actually afford; this can be achieved with little or no taxpayer money -the administration is so confident about this solution by Bush, that they say that the American taxpayer needs to give a check for 700 billion dollars -this can be achieved if the government utilizes their power over the United States and provides incentives so that the mortgages can be affordable - if the NACA (the Neighborhood Assistance Corporation of America) can make affordable solutions for everyone, this can help businesses and services, as well as investors
 * Bullets**

-What if the government considers a reasonable price too high for people having to pay these taxes? -How is the government going to have enough money to pay for everything if they have lowered the price of taxes and mortgages? -How can the goal of creating a reasonable price be achieved with little or no taxpayer money? [|Mortgage Crisis]
 * Questions**

-the FBI believes that Fannie Mae and Freddie Mac put a lot of pressure on ratings agencies so that they could award top ratings to securities they issued -so far, no fraud or leaks have been uncovered, but the inspection is just in a "preliminary stage" -to bail out Mae and Mac, the governmnet has pledged to spend almost 300 billion dollars -as said before, the FBI has not found anything yet, however when they do, they will prosecute immediately
 * Bullets**

-How can the government afford to spend 300 billion dollars when the economy is so poor? -Why weren't Mae and Mac caught earlier in time when they started this fraud? -If all these companies are being investigated, what happens to the clients? [|FBI investigates Freddie Mae and Fannie Mac]
 * Questions**

-involving the subprime mortgage crisis -the loans that banks would give out to people were called NINA loans- you don't have to prove that you can pay it back- they never checked your income -these are at the heart of the crisis -**Question**: WHAT HAPPENED IN BANKING!?!?! what were bankers thinking? -global pool of money- the world's investments -investment managers: army of people -investors made the economy grow by investing in safe, boring investments... -our pool of money doubled in size in 2006 -main reason for this: poor countries got rich and started making things that rich countries wanted -the U.S. housing market became the main investment -global investors could now buy into the U.S. housing market -suddenly, mortgages were bonds -in the history of the world, nothing was growing faster than the housing market -everyone who wanted a mortgage had already gotten a mortgage, but the global pool of money was greedier than ever -starting around 2003, **Wall Street** would loosen things up a bit -from there, the market started falling -all you had to do was state how much money was in your bank account -the industry called this a liar's loan- NINA (no income, no asset) you don't have to state anything-- you just need to have a credit check and a pulse -sometimes, the pulse wasn't necessary-- in Ohio, 23 dead people were given loans -in the new system, the company holds the mortgage for a month or two then sells it to Wall Street -Wall Street was constantly checking the risks of these mortgages- they were not lying -the technology at Wall Street told them not to worry -but apparently, their numbers were way off- this was data from the old days -nearly 41 percent of the pool is nearly 60 days over due -16 and a half percent are in foreclosure -the foreclosure rate has to stay under 10 percent- we are already over that, and climbing! -it could go over 50 percent -companies could use a trillion dollars -workers in the companies said that the deals they were giving didn't feel right, but they didn't question anything because they were making money
 * NPR Broadcast**