The Con

Shattering Illusions: The Harsh Reality of Financial Exploitation

In this week's podcast, we're joined by Patrick Lovell, co-producer of the eye-opening 5-part docu-series The Con. Lovell, who personally experienced the devastating impact of the 2008 financial crisis, losing his home, delves into the depths of a compromised American financial system that continues to exploit the middle and lower classes to this day.

Initially, Lovell, like many others, internalized the blame for his predicament. Mainstream media perpetuated a common belief that individuals should bear responsibility for their mortgages, and a sense of shame was placed on people acting so irresponsibly. However, as Lovell's journey into the crisis reveals, this was far from a simple case of personal financial mismanagement. Across the nation, a domino effect ensued: as the economy faltered, job losses skyrocketed, leading to an unprecedented number of home loan defaults. This cycle of doom was not a natural economic downturn but the result of a meticulously constructed house of cards by financial institutions and their fraudulent schemes.

The crux of the crisis lay in the creation and misrepresentation of Mortgage Backed Securities (MBS). These financial instruments, packed with overvalued and unstable mortgages, were a ticking time bomb. Lovell's documentary exposes the ground-level malpractices: mortgage brokers inflating property values, falsifying loan applications, and even altering paperwork to approve loans. This widespread fraud was facilitated by a bonus structure that blatantly ignored glaring risks.

The mortgages, bundled into Mortgage Backed Securities, were passed around like a hot potato in the financial markets. Alarmingly, some buyers of these toxic assets were aware of their dubious nature but continued trading them, often offloading them onto retirement funds. The collapse of this fragile structure led to catastrophic losses for countless individuals, wiping out life savings and retirement funds overnight.

The government's role, or lack thereof, in preventing this catastrophe is another critical aspect The Con addresses. High-ranking government officials, including those appointed by the President, often had deep ties to the banking and finance industries. The documentary highlights the revolving door between government and finance, exemplified by figures like former Attorney General Eric Holder, who refused to pursue justice over the catastrophe and instead returned to a law firm representing major financial institutions after leaving office. This conflict of interest meant that those responsible for the crisis evaded any accountability, walking away with substantial financial gains.

The Con is a five-part series that sheds light on how large banks and financial institutions have hijacked the American financial system, exacerbating the wealth gap. As Lovell discusses in this week’s podcast, the 2008 financial crisis was not an isolated event but part of an ongoing exploitation of America's middle and lower class. With many fearing that we are on the brink of another financial upheaval, The Con is a timely and crucial exploration of the systemic issues plaguing our economy.