Yes the game is very one sided. Of course that is due to the human nature aspect of it. It's much easier to cause FUD in the investor/trader than it is to cause "HOPE". History shows so many OTC/Pinksheet companies fail so the FUD is easier exemplify or justify. Of course many companies have failed and continue to fail due to the short and distort players. Especially due to the so-called American based broker/market makers with offshore and Canadian based facilities who's shorting actions continue to go unmitigated. Then the OTC investor often has the incompetence and/or fraud of the startup company management team. Hence the huge risk of trading/investing in OTC stocks. On the other hand many risks could be removed if the SEC would pay closer attention and/or fund a special OTC division to enforce the rules. FINRA and the SEC are all but useless when policing these OTC activities.
I need to see the movie "The Big Short"! The top five banks played the US mortgage market like a fine fiddle. They funded exotic Option ARM, Interest Only, very low intro-rate mortgages for anyone with a pulse. My dog could have qualified for a mortgage during the real estate boom. The credit default swaps were shorted to death and the mortgage portfolio's over valued. The mortgage tranches were overvalued and manipulated by the banks to the secondary market investor markets. Wall Street profited huge while naïve homeowners were sold and took out these exotic mortgages to achieve the so-called "American dream". The average new home buyer didn't understand and/or couldn't afford most of these homes.
Home equity skyrocketed for a few years but in my opinion it was a set up of things to come. Reset interest rates caused most of these new home owners to default so the banks foreclosed while not only reaping profits from the falsified secondary market, but the profits from the resale of the foreclosed home and the FDIC insurances they receive from the bad loans. All while Wall Street and the Feds allowed this to go on and in my opinion by design! This is largely what caused the 2008 great recession and the bail outs, etc, etc.
I need to see the movie "The Big Short"! The top five banks played the US mortgage market like a fine fiddle. They funded exotic Option ARM, Interest Only, very low intro-rate mortgages for anyone with a pulse. My dog could have qualified for a mortgage during the real estate boom. The credit default swaps were shorted to death and the mortgage portfolio's over valued. The mortgage tranches were overvalued and manipulated by the banks to the secondary market investor markets. Wall Street profited huge while naïve homeowners were sold and took out these exotic mortgages to achieve the so-called "American dream". The average new home buyer didn't understand and/or couldn't afford most of these homes.
Home equity skyrocketed for a few years but in my opinion it was a set up of things to come. Reset interest rates caused most of these new home owners to default so the banks foreclosed while not only reaping profits from the falsified secondary market, but the profits from the resale of the foreclosed home and the FDIC insurances they receive from the bad loans. All while Wall Street and the Feds allowed this to go on and in my opinion by design! This is largely what caused the 2008 great recession and the bail outs, etc, etc.
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