The story, “Banks’ Self-Dealing Super-Charged Financial Crisis,” chronicles how over the last two years of the housing bubble, Wall Street banks perpetrated one of the greatest episodes of self-dealing in financial history.
Faced with increasing difficulty in selling the mortgage-backed securities that had been among their most lucrative products, the banks hit on a solution that preserved their quarterly earnings and huge bonuses:
They created fake demand.
Read the story and learn how they did it.
There is also an entertaining version that aired on NPR’s Morning Edition.
But wait, there’s more… The multimedia extravaganza continues with a podcast we did with Planet Money that goes into a lot more detail.
And with all this high-brow financial stuff, we felt this story might need some leavening. So we brought in the Gregory Brothers of Auto-Tune the News for their take. They did a video called, “We Didn’t See It Comin’,” which is guaranteed to bring a smile.
There is also a comic that lays it out for folks who like their news in pictures.