Economic Weapons of Mass Destruction: Mortgages in the Era of Mass Terror

Source: Truthout

As the New York Times reported, “The banks that created risky amalgams of mortgages and loans during the boom — the kind that went so wrong during the bust — are busily reviving the same types of investments that many thought were gone for good.”

In other words, the well-heeled boys are back in town, peddling predatory mortgages to be bundled and sold on Wall Street. Even the Times, generally bullish on business, struck a cautionary tone. “The revival also underscores how these investments, known as structured financial products, have largely escaped new regulations that were supposed to prevent a repeat of the last financial crisis.”

 The term “terrorism” means any activity that—

(A) involves an act that—
(i) is dangerous to human life or potentially destructive of critical infrastructure or key resources; and
(ii) is a violation of the criminal laws of the United States or of any State or other subdivision of the United States; and
(B) appears to be intended—
(i) to intimidate or coerce a civilian population;
(ii) to influence the policy of a government by intimidation or coercion; or
(iii) to affect the conduct of a government by mass destruction, assassination, or kidnapping.

More Americans have frozen to death since the economic crisis began than have died in all terrorism attacks on U.S. soil in the last two decades—September 11th, included.

As for the question of legality, Griggs Wimbley, a resident of small town North Carolina, is an expert on how the wave of recent foreclosures were in violation of U.S. criminal laws.

He spent the better part of a decade investigating and fighting his own fraudulent foreclosure. “I’ve seen nothing but cheating,” he said. He called Wall Street’s reign throughout 2000s “a ten-year crime spree.”

Why would Wall Street intend to intimidate millions of civilians? The rationale is that if people aren’t terrified of being thrown out of their homes, they won’t continue to repay the astronomical debts that are apparently the only thing keeping our economy afloat.

Loss of security. State of fear. These are the same words, the same phrases that we are hearing people in Boston express. If mass insecurity and terror of default were what the banks wanted: it’s mission accomplished. Yet, the banks aren’t accused of terrorism. Nor are their financial products classified as WMDs.