Senator Levin got testy with Goldman execs for peddling, in their own words, what they knew to be “shitty deals.” Of course, when you collapse the global financial system, it stands to reason that more than a few “shitty deals” by more than one shitty organization were involved.
When 93% or more of 2006 vintage AAA-rated subprime mortgage-backed securities are now rated as junk, that’s an impressively high rate of “shitty deals going bad.”
Not to be out-done on crafting “shitty deals,” 99% of Goldman’s ABACUS deal CDOs are now junk.
At failures rates approaching 100%, the SEC and credit rating firms had to be cutting “some pretty shitty deals” themselves to fail to see the rising risk in mortgage products.
There was and continues to be a “shitload” of collateral damage to the rest of us from “Wall Street’s shitty deals” which will be with us for a long time, as we have 103 months (8.6 years) to clear housing inventory at the current rate. That’s a lot of “shitty deals hitting the fan” for “a long, shit-flinging time.”