The economy recession now partly comes from the mortgage crisis, which is led by the Countrywide fraud. It is happy to see that Angelo Mozilo, the former boss of Countrywide get charged on June 4th. There are still many people like him who lead to this financial crisis today. If SEC can keep doing research, the market will become better and better.
One of my classmate worked for a mortgage company two or three years ago. At that time, he just graduated from the college but he made more than a hundred thousand a year because of his mortgage job. He admitted that he didn’t do anything very serious but to close mortgage or to help the company pack the mortgage and then sell it to other big companies such as Citibank. They know some mortgages were very bad and toxic but still what they need to do is to make it look good and fill out legal documents so that they can be accepted by big mortgage companies. I think what he experienced is a miniature of that time, the time when Angelo Mozilo was pride of his toxic subprime mortgage. It is shown that the mortgage market was not regulated and almost controlled by some big companies like Countrywide. When they were earning so much money from the bad mortgages and the innocent people, they didn’t think about anything else but money. They didn’t think about the market will get into a recession and so many companies will go bankruptcy today. Their sight was so short that they didn’t even think about they will be punished by all the unethical things they did. The punishment for Angelo Mozilo is a good warning for many other similar people but those haven’t get punished yet. They should have a clear mind when they are earning money too easy without considering what staff they are selling.
Although this is a bad time that people fail, this is also a good time that people think, thinking about what they should do in the future and what they did in the past. It is a time for people to calm down and consider whether they are doing the right things.
