And the fastest growing bank asset in 2017 was… SUBPRIME!
By Simon Black - April 03, 2018


They say that goldfish have the shortest memory in the Animal Kingdom… something like 3-seconds.

But it turns out this isn’t actually true.

Researchers at the Israeli Technion Institute of Technology conducted an experiment in 2009 proving that even the tiniest fish could be trained to recall certain sounds after as long as FIVE MONTHS.

According to another study from the University of Chicago, Dolphins ostensibly have the best memories in the Animal Kingdom, and in an experiment were able to recall a distinct whistle after 20 YEARS.

Then there are bankers… financius dumbassus, a curious species not fully related to the Animal Kingdom, somewhat descended from protozoa, who display truly bizarre behavior when it comes to memory function.

Case in point: Throughout the mid-2000s, bankers engaged in woefully short-sighted, self-destructive behavior by loaning their depositors’ money to risky borrowers who put no money down to buy overpriced houses.

These loans called ‘subprime mortgages’. And before long, some even more self-destructive bankers began packing thousands of these subprime mortgages together into gigantic bonds, which bankers would trade among themselves.

Everybody in the financial system was in on it.

The mortgage brokers raked in huge fees for closing individual loans.

The investment bankers made money packaging the loans into subprime bonds.

And the ratings agencies (like S&P and Moody’s) made money slapping pristine “AAA” ratings on these bonds, essentially promising the world that they were RISK FREE.

Looking back they obviously weren’t risk free.

Banks were making risky loans to borrowers who had a history of not paying their debts based on the premise that home prices only increase in value.

And when home prices started to fall, the entire apparatus collapsed in late 2008.

You’d think that the entire financius dumbassus species would have learned from this experience.

But you would be wrong.

And that’s because financius dumbassus has an incredibly short memory.

Not even a decade after these loans nearly brought down the entire global economy, SUBPRIME IS BACK.

In fact it’s one of the fastest growing investments among banks in the United States.

Over the last twelve months the subprime volume among US banks doubled, and it’s already on pace to double again this year.

Bottom line– financius dumbassus is once again back to its old ways… making risky loans to borrowers with pitiful credit.

What could possibly go wrong?

Leave it to financius dumbassus to try the same thing again and expect a different result. It’s textbook insanity.

Of course, they don’t call it ‘subprime’ anymore. Now it’s called “non-QM”, meaning “non qualified mortgage.”

But it’s exactly the same thing– borrowers who don’t qualify for a conventional loan because of their pitiful credit and inability to make a down payment.

It’s as if they think they’ll be able to avoid the same consequences simply by changing the name. It’s genius!

As a friendly reminder, financius dumbassus isn’t making these suprime/non-QM loans with its own money.

Oh no. They’re making these loans with their depositors’ money. YOUR money.


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  • 45clive

    Even for those who don’t qualify for a conventional mortgage there are risks, and the banks and mortgage companies rub their hands in glee. Most people, including those who wouldn’t normally qualify, are honest people looking for a break. They do their best. If and when they become more vulnerable the banks and mortgage companies are only too willing to give them a push over the edge, causing the home owner to lose any equity they have managed to build up. BTW the taxman plays this same game.

  • guard4her

    I am sick of this “stupid banker” theme. These writers display absolutely no intelligence or understanding of society or government.
    First, we’re supposed to believe bankers “accidentally” got filthy rich making “mistake” after “mistake” after “mistake”?! The corollary to this idea is an underlying belief that, (duhh), bankers are really trying to help everyone out to the betterment of society, they’re saints but golly, they’re stupidity and short memories just get in the way!

    Check out this gem: “bankers engaged in woefully short-sighted, self-destructive behavior…”

    Here is a list of a few of the stupid, idiotic retarded bankers and their income in 2015:

    1. John Stumpf — Wells Fargo CEO — $19.3 million
    2. Jamie Dimon — JPMorgan Chase CEO — $18.2 million
    3. Matthew Zames — JPMorgan Chase COO — $17.6 million
    4. Mary Callahan Erdoes — JPMorgan Chase CEO of Asset Management — $17.1 million
    5. Daniel Pinto — JPMorgan Chase CEO of Corporate and Investment Bank — $16.7 million
    6. James Forese — Citigroup CEO Institutional — $16.2 million
    7. Thomas Montag — Bank of America COO — $14.8 million
    8. Michael Corbat — Citigroup CEO — $14.6 million
    9. Brian Moynihan — Bank of America CEO — $13.8 million
    10. William Demchak — PNC CEO — $12.7 million

    On top of being so stupid they made millions, they are so stupid and self-destructive that they forgot how to give their money away (being the charitable saints we know they are). What a bunch of short-sighted idiots!

    The overwhelming majority of the citizenry is in a war with a very small group of psychopathic elite in control of everything. Articles like the above simply add to the problem by covering up this fact with false ideas.

    • Number 6

      A Religious Minority at that, the same group your not allowed to criticise but the left and right wing media They own encourages the left to criticise whites, christians, men heterosexuals and old people And the Right wing media they own encourages the right to criticise blacks, muslims, women homosexuals and young people But both groups are forbidden from criticising the group who own the banks and the media, or even the banks it would seem. Its not difficult to see whats going on.

  • Number 6

    So the banks are just loveable stupid incompetents are they ? Yeah lets All laugh and shake our heads while they steal our money. Tax and Usury are slavery and those who perpetrate it should be charged as such !