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JAY: So this clip we played from the film, it makes it quite clear that this was a very conscious activity, this subprime mortgage fiasco. What I mean by “conscious,” not just on the part of Wall Street, but to enable this they needed their political allies in Washington to create the legislative regulatory space for this scheme. Talk about this.
JAY: Now, in the film you break down how the subprime process worked, deals being made in parking lots and such. So talk about the whole dropping of the review process. It used to be that if someone wanted a mortgage, you had to prove that you had the income to pay it. That seemed to be a diminishing asset in the eyes of these banks.
JAY: Well, they also insured them. So they were betting both ways: they rode it on the way up, and when it crashed they had insurance money. Of course, it turned out to be public money through AIG that wound up in Goldman Sachs’ pockets.
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