Geithner, China and Foreclosure-gate

asiablues's picture

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Geoff-UK's picture

The bigger risk isn't delayed foreclosures or lawsuits from people being foreclosed on...it's mortgage backed securities (MBS) fraud.

 

So ask yourself:  why would a bank SHRED a wet note mortgage contract that's worth $250k???  Could they need to hide the fact that they issued multiple securities against the same mortgage?  And now they're worried about putbacks?  What's that word for what they did?  Oh yeah, "fraud."

 

That is what's WOULD drive the banks under.  If Congress wasn't going to bail them out with our tax dollars...which, trust me, they're gonna do.

 

We are doomed.--John Derbyshire 

f16hoser's picture

Banks keep 2-sets of books. They also move massive quantities of debt around from bank to bank depending on when each bank files their financials. Peek-a-Boo accounting or collusion, which ever trips your trigger.

Sad really. Rule of Law and Accounting standards are a fucking joke in America and the other countries are laughing their collective asses off!

non-anon's picture

I remember when the $60bn seemed like and is a lot of money for the SnL bailout just a couple of decades ago.

With trillions of dollars in vogue nowadays, billions seems miniscule by comparison but really isn't.

Personally, I don't think this will stretch out to years down the road. I believe either we have a class war and/or default on our national debt in a year or two.

Djirk's picture

Agreed, if people are not paying a debt they should lose the assets. Assets still have value, even in below the mortgaged amount.

Lawyers will win and some clever bankers are going to arb this thing. Panic = opportunity.

Could very well be a smoke screen that allows banks to take another paper hit while the FED pumps up the liquidity?

eatthebanksters's picture

And people who break te law should go to jail...the fuckers who started and continue this mess go scott free with bazillions of money from the sucker who are bought into their bullshit.  Yes, people who can't pay their loans back will lose their homes under the law.  But the assholes who melted the market down will profit handsomely and never do a day of time.

covert's picture

the americans are not nearly ambitious enough. what happened to we the people?

http://covert2.wordpress.com

 

dantes1807's picture

Foreclosure gate won't amount to much. Bank of America is proceeding. There have been no cases of any borrower not being in default getting foreclosed upon. And even if they did, the courts are there to stop wrongful foreclosure. Move along. Nothing there.

eatthebanksters's picture

Dante, either you don't read much or you're a dumbshit.  There is a documented case in Florida of a couple who owned a house, free and clear, no mortgage...and yet they were foreclosed on, by guess who?  BAC!!!   BAC  actually got the house, was sued, found out the foreclosure was a result of forged documents and gave the house, with some apologies and some coin, to the couple who were wronged.  By the way, its reassuring to know if you are wrongfully forced out of your house that the courts canhelp you get it back.  You're either a fucking MORON or a banker!

Bartanist's picture

The amount of money that the banks suck out of the economy every year is massive.

Pez's picture

“China’s growth prospects over the coming decade continue to look bright..."

Compared to what? Oh, you must mean all the street lights they're going to shut down in the US to pay for the bankster kleptocracy, or the Interstates they're going to sell off to China so we can pay tolls on them.

 

NotApplicable's picture

Not only are the street lights shut off here, they are removed in order to keep people from reporting them as broken or complaining once they find out the truth.

As for China buying the interstates, I thought that's what was Spain was doing.

merehuman's picture

No factory in the USA makes light bulbs. Government made the light bulbs we are used to ..illegal. ! Thanks a bunch, and there went GEs last plant on the East coast now moving to mexico. gee Thanks a bunch, DC + GE

SheepDog-One's picture

'Currency accord' yea I wouldnt bet on it, and Im also giving this market pump until Nov 3rd at latest. Mission accomplished already, no further need to pump the garbage.

ATG's picture

Chinagate = deliberate policy by corporate government to defraud Americans of their wealth...

SheepDog-One's picture

What do you mean? Biggest wealth transfer in world history is ALREADY complete! What are they going to steal now, the beans out of your beanbag chair? WTF?