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Grayson Sends Letter To Geithner, Bernanke Demanding Foreclosure Freeze, Warns Of Systemic Bank Failure Risk

Tyler Durden's picture


Alan Grayson is back on the scene, having sent a letter to Financial Stability Oversight Council which includes pretty much all of Wall Street's pawns, including Bernanke, Geithner, Bair, Gensler, Walsh, and DeMarco, in which he asks the FSOC to "suspend foreclosures until this problem is understood and its ramifications dealt with." And the ramifications, per Grayson, Zero Hedge and everyone else, will be dire for the banking sector: "So far, banks are claiming that the many forged documents uncovered by courts and attorneys represent a simple 'technical problem' with foreclosure processes.  This is not true.  What is happening is fraud to cover up fraud... The banks didn't keep good records, and there is good reason to believe in many if not virtually all cases during this period, failed to transfer the notes, which is the borrower IOUs in accordance with the requirements of their own pooling and servicing agreements. As a result, the notes may be put out of eligibility for the trust under New York law, which governs these securitizations. Potential cures for the note may, according to certain legal experts, be contrary to IRS rules governing REMICs. As a result, loan servicers and trusts simply lack standing to foreclose. The remedy has been foreclosure fraud, including the widespread fabrication of documents.  There are now trillions of dollars of securitizations of these loans in the hands of investors. The trusts holding these loans are in a legal gray area, as the mortgage titles were never officially transferred to the trusts... The liability here for the major banks is potentially enormous, and can lead to a systemic risk."

So now that Obama has declined to halt the foreclosure halt process, TARP 2 anyone?

Full letter attached (pdf)



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Thu, 10/07/2010 - 15:23 | 633328 traderjoe
traderjoe's picture

I junked you. While ZH has been on the case, so have more than a few other sites - many for a year or more. 

Don't know why you called him a sleaze-bag. He's writing a letter on a particular issue and (IMHO) correctly identifies the securitization issues - WHICH COULD IMPACT ALL NOTES SECURITIZED DURING THAT TIME (whether the borrower is delinquent or not). 

His efforts, at least in this particular instance, are appreciated from this quarter. 

Thu, 10/07/2010 - 15:44 | 633414 SloSquez
SloSquez's picture

Yes TJ, agreed.  Sometimes you have to settle for a lesser horse just so you can be in the race.  I'll take it, however it comes.

Thu, 10/07/2010 - 15:52 | 633441 hedgeless_horseman
hedgeless_horseman's picture

That is classic jockey-ho talk.

On the other hand, an owner might say, "I ain't paying to run no loser."

Thu, 10/07/2010 - 16:05 | 633501 SloSquez
SloSquez's picture

Stud fees bro, stud fees.  "Yes, this horse ran in the 19XX Derby and finished strong."

Thu, 10/07/2010 - 16:18 | 633557 Cognitive Dissonance
Cognitive Dissonance's picture

I almost bagged the head cheerleader in high school and finished strong in a field of 1,392.

Where are my stud fees? :>)

Thu, 10/07/2010 - 16:33 | 633605 SloSquez
SloSquez's picture


"I almost bagged the head cheerleader in high school"

Your looking for the "Rose Garland".  You missed, no stud fees if you don't plant the flag.  Truly enjoy your posts CG!


Thu, 10/07/2010 - 18:21 | 633843 Cognitive Dissonance
Cognitive Dissonance's picture

Maxwell Smart: "Missed it by that much." :>)

Thu, 10/07/2010 - 18:49 | 633904 SloSquez
SloSquez's picture

Such a tease....

Thu, 10/07/2010 - 21:48 | 634210 kathy.chamberli...'s picture

now CD i was  cheerleader in H.S. but not the HEAD one. TOO MUCH

pressure. get my drift.

Thu, 10/07/2010 - 15:48 | 633436 Henry Chinaski
Henry Chinaski's picture

His efforts, at least in this particular instance, are appreciated from this quarter. 

And the other 98% of the time the socialist sleaze bag votes with Nancy Pelosi...

Changing the subject, they say the time to buy is when there is blood in the streets.  Metaphorically, residential real estate is about there.  But maybe this time around the indication of the market bottom will be more literal.

Thu, 10/07/2010 - 16:02 | 633483 Cammy Le Flage
Cammy Le Flage's picture

Whatever description one has for this member of Congress he brings up good points in same and this is decent.  Except there is no rule of law in this country anymore and anyone blaming the current administration on that fiasco is simple-minded.   The rule of law has been eroded over time for many reasons.

Thu, 10/07/2010 - 16:09 | 633523 Nacho.Libre
Nacho.Libre's picture

This is what I want to know.  I'm on time with my mortgage and am not underwater.  BUT, I did refi in 2007 and though Everbank is the original lender, MERS is listed as a nominee for the lender and their successors.  So, I've been paying Citimortgage for a few years since they picked up the note.  When I finish paying this off, will they be able to give me title free and clear?  I imagine if they can't foreclose on someone then how can they give me title when I'm done paying?



Thu, 10/07/2010 - 16:22 | 633575 traderjoe
traderjoe's picture

This is the crux of the matter - when the very chain of title for millions of homes is placed into question. [Can you imagine millions of homeowners simultaneously asking for proof of note possession?]

Just my opinion, but if you are paying, aren't close to a payoff, then I wouldn't do anything yet. Who knows how this will play out. It's very early days. Grab some popcorn, stay informed, and see what happens...

Thu, 10/07/2010 - 16:50 | 633646 Nacho.Libre
Nacho.Libre's picture

Actually, when this first came up on Zerohedge, I called Citi and asked them for copies of the paperwork.  They had no idea what I was talking about when I said that the papertrail on foreclosures was bad.  I asked them to fax me over proof that they owned my loan.  What they sent was a copy of the deed of trust that lists Everbank as the lender, some random guy named Tommy Bastian as Trustee, MERS as the nominee for Lender and Lendor's successors and assigns.  It also says MERS is the beneficiary under this security instrument. 

Under the section of TRANSFER OF RIGHTS IN THE PROPERTY it says "The benficiary of this security instrument is MERS...and the successors and assigns of MERS.  This security instrument secures to lender: (i) the repayment of the loan, and all renewals, extensions, and modifications of the note; and (ii) the performance of the Borrower's covenants and agreements under this security instrument and the note.  For this purpose, borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property in the county of...." 

It seems to me, this random guy is in charge of the house while MERS just gets the note payment.  If I check the county records, Everbank is still listed as the grantee, but so is MERS and "public" on another doc.  I probably need to get to the courthouse to check it out.  How do you all read this?


Oh, and on the copy of the Note that was faxed to me, was the original note I signed with a stamp on the bottom that says "pay to the order of citimortgage, inc. without recourse by everbank.  Signed Betty Y. Ellis Vice President." No date or indication that the there was a title transfer.

Thu, 10/07/2010 - 22:12 | 634244 calltoaccount
calltoaccount's picture

The banksters have gotten away with it for years in the equities markets with Cede & Co., the nominal owner of all the securities in your brokerage account.  That's how the shorting, naked shorting, counterfeiting, DTCC loan/sell the same shares over and over again without having to actually deliver ponzi works-- and is made further unaccountable to anyone.    They've succeeded in getting the SEC to look the other way--  and plundered the country with abandon and impunity.  

They just adapted the M.O. to RE, sleight of handing the original fraudulently procured mtgs into esoteric, intentionally misrepresented, mens rea laden MBS CDO and CDSs.  Same guys, different floor.

But the coverups will be harder because the stench of dishonesty is rising.

Thu, 10/07/2010 - 21:25 | 634157 Hooter Shaker
Hooter Shaker's picture

We paid our mortgage off last November.  GMAC was holding the note at the time of payoff.  They never sent any information that our loan was down to the last payment even though our year end statement from the previous year showed we were closing in on freedom.  Instead, they sent us a new payment book.  Needless to say, they weren't very happy to see the loan paid in full and getting "paid in full" documentation was like pulling teeth.  We finally got it, complete with a shitty attitude from customer service. 




Thu, 10/07/2010 - 21:18 | 634148 Ned Zeppelin
Ned Zeppelin's picture

I've been a real estate lawyer for many years. You raise a very valid question. If you for years are paying your mortgage debt to X, but Y still owns the loan, that is a problem. 

This is why the title companies will be next on board: Homeowner sells home, goes to closing, MBS servicer says pay me $200K and I will release mortgage. Title company dilemma soon to emerge: how do we know you are the proper payee? Prove it.  

Closing cancelled pending title insurance underwriter review. Guaranteed. 


Thu, 10/07/2010 - 17:17 | 633713 pamriallc
pamriallc's picture

first we had people in say.... Arizona who bought their neighbor's house for 25% of what they owed on their own home---- ONLY TO THEN DEFAULT ON THEIR PREVIOUS HOME WHILE LEAVING THE BANK WITH THE BAD DEBT--- REGARDLESS OF THEIR CAPACITY TO PAY.

now we have chumps like GRAYSON who while politically impotent, have decided to allow people who are CURRENTLY NOT PAYING THEIR BILLS the right to live in a house, rent free, on some BS technicality.

truth is that only people in DEFAULT are being foreclosed on.

many people, in light of feeling good about themselves, bit off more than they could chew and decided to let their house go back to the bank.  that's a normal system.  what's NOT NORMAL is the heavily politicized, socialized system that makes "do-over weddings" and "do over drunken shopping sprees" and "do over credit card binges" and "do over home purchases" some kind of government "responsibility" ----

GRAYSON is *precisely* what's wrong with our system.  these socialized, mass market solutions BREED INSTABILITY vs letting the people go broke, letting the houses swiftly into hands of those people willing to assume the risk, offering a credible market.  Instead Grayson is willing to morally bankrupt the system for a flight of political "technical" fantasy that says someone who isn't paying their bills should stay.  Like a bad marraige where the parents "stay for the kids" what we end up with is a system of screwed up kids.

I say "accelerate" the process, purge the excesses, allow a free market, and place people of true moral responsibility in place of those trying to impose the will of "political fantasy" while they are paid to Robin-Hood the system (salary wise) with our own tax dollars.

Thu, 10/07/2010 - 18:36 | 633870 Kina
Kina's picture

OK a bank shill, or ulta selfish/jealous person.

Interesting, rule of law never applied to the big guys, or they get off of criminal behaviour through a slap on the wrist. Here we have fraud, a criminal act and you also don't want the rule of law to affect the big guys.

Those little peasants who have trouble paying their home loans in the middle of the greatest 'recession' since the GD, those lazy cheating bastards, throw them out you say.

Let the banks smash down their doors, pilfer their belongings, even if it is the wrong house, who cares.... go the banks, hey. How dare the little guys get a break.


What a selfish, jealous scum bag position to take. Go back to your desk, manipulating gold and silver.

Thu, 10/07/2010 - 21:30 | 634170 Ned Zeppelin
Ned Zeppelin's picture

PAMRIALLC, you're obviously a bought and paid for, and remarkably uninformed tool. Who is paying you to post this bullshit? 

Thu, 10/07/2010 - 21:05 | 634123 PeterSchump
PeterSchump's picture

Tell us when all of you are done jizzin' on his picture.

Thu, 10/07/2010 - 21:45 | 634199 kathy.chamberli...'s picture

this website

is really informative. have been following it for a couple of years. learned so very very much. i believe they broke the fraud crime and discovering MERS etc. i started putting two and two together. i thoroughly went through all of my loan and closing paper work from chase, mortgage broker, title work, everything. nothing was truth all fudged and different numbers. different dollars amounts on the sellers HUD compared to my the buyer's HUD. no final loan application and the initial one made out and falsified with forged signature's by the mortgage broker. Truth in Lending, Joke, all lies. Good Faith Estimate, joke all different amounts and numbers. property taxes, joke property didn't legally exist in the public records until 4 days before closing. can you imagine the appraisal for this property was done before it was even a legal and filed in public records. no records what so ever. i called and wrote for a year to chase and tried to tell them they got an appraisal done on a property that didn't even exist. i ask chase to rescind the sale for two years. these jokers are utterly crooks in sheep clothing. i tell you, america is unbelievable how gullible we all are to believe these servicers know what in the fuck they are doing and sticking it really well to honest folks.

Thu, 10/07/2010 - 15:48 | 633438 ZackAttack
ZackAttack's picture

The way I look at it, he might be a nutbag, but in this particular case, he appears to be *our* nutbag.

Also, it's really entertaining to watch him rip economists new orifices when they come to the House.

Thu, 10/07/2010 - 16:12 | 633542 RockyRacoon
RockyRacoon's picture

Sleazebag reads ZH.  No way he comes up with truth on his own.

Who cares where it comes from as long as it gets out there.  There was someone who could have signed that letter that you would have approved of -- who is it?

Thu, 10/07/2010 - 16:27 | 633595 Waterfallsparkles
Waterfallsparkles's picture

I applaud Senator Greyson for taking this issue head on.  Thank God for Senators like him to make sure the Rule of Law is upheld in the Country.  I truly admire his gumption for persuing this issue as so many are overlooking the Fraud.

Thu, 10/07/2010 - 19:06 | 633935 The Alarmist
The Alarmist's picture

You can say he's politically astute, but there is no doubt that he made a very good living essentially chasing ambulances.

Thu, 10/07/2010 - 15:17 | 633300 Dolar in a vortex
Dolar in a vortex's picture

This guy is the quintessential sleazy politician.

That doesn't mean that all of his positions are wrong, just that he's a lower life form.

Thu, 10/07/2010 - 15:31 | 633364 gmrpeabody
gmrpeabody's picture


Thu, 10/07/2010 - 15:43 | 633407 Turd Ferguson
Turd Ferguson's picture


This guy is the consummate sleazebag, douchebag, asshole, partisan hack. The exact type of politician that needs to be fired next month. 

(I applaud his efforts on this issue, however.)

Thu, 10/07/2010 - 15:52 | 633445 traderjoe
traderjoe's picture

Some of us, myself included, are hoping for a great reset that ends with a more free, independent, and peaceful society. 

One of, IMHO, the key triggers for this will be when those not in elite circle start fighting amongst themselves. When they turn on themselves/their masters in order to preserve their own skin. When a state AG sues all of the big banks. When an otherwise un-likeable senator gloms onto an issue, even if just to win an election. I don't know how far it will get, but the banks don't really have a scapegoat here. They shredded, threw out, and just simply failed to transfer documents (assets) into trusts, but still collected the money from the trust buyers. Let the games begin!

Thu, 10/07/2010 - 16:04 | 633497 coop
coop's picture


Thu, 10/07/2010 - 17:03 | 633681 Breaker
Breaker's picture

" I don't know how far it will get, but the banks don't really have a scapegoat here. "

In all fairness, you need to add at least Fannie Mae to the mix. Poke thru the MERS website. Fannie was deeply involved in creating MERS during the Clinton years. I suspect Fannie is the supposed authority for MERS suspending state recordation laws for mortgages or deeds of trust, which it does. Or if we poke further, I bet we find Barney Frank and Chris Dodd with their fingers on this with authorization or their typical committee bullying of private parties.

This doesn't excuse the banks. But it will be important information to disseminate to remind people that most really big problems are created by the government. Here's how MERS describes itself on it's website.

"MERS is an innovative process that simplifies the way mortgage ownership and servicing rights are originated, sold and tracked. Created by the real estate finance industry, MERS eliminates the need to prepare and record assignments when trading residential and commercial mortgage loans."

Eliminate the need to record assignments?? Wow! It just declares it has overturned centuries of land recordation laws. A private company can't do that. There's stinky government stuff under this hood.

Thu, 10/07/2010 - 19:11 | 633943 The Alarmist
The Alarmist's picture

Nice sentiment, but the "great reset" you are hoping for would  be nothing more than the expropriation of property and wealth from one sector of society to another. Every where this has ever been tried it has led to disharmony, resentment, and civil strife.  You may dream of a utopia, but you will destroy civil society that has benefitted the majority of the people and will, in the process, merely install a new criminal elite to return us to the dark ages or to repeat the mass privation you still see in "fair" societies like North Korea and Cuba.

Fri, 10/08/2010 - 00:25 | 634447 weinerdog43
weinerdog43's picture

Perhaps if you were not such a douchenozzle yourself, people might respect your opinions a tiny bit too. 

Thu, 10/07/2010 - 15:17 | 633305 ReallySparky
ReallySparky's picture

I don't know about you all, but that beard is way creepy. Yikes.

Thu, 10/07/2010 - 15:23 | 633325 bugs_
bugs_'s picture

Bad color choice.

Thu, 10/07/2010 - 15:24 | 633327 doomandbloom
Thu, 10/07/2010 - 17:07 | 633688 mrhonkytonk1948
mrhonkytonk1948's picture

YES!  Some way to agree with a post without adding to the clutter.  Make it so!

Thu, 10/07/2010 - 18:08 | 633816 oddjob
oddjob's picture

anything to do with facebook is gay,even a link.

Thu, 10/07/2010 - 15:34 | 633376 hedgeless_horseman
Thu, 10/07/2010 - 16:10 | 633535 pan-the-ist
pan-the-ist's picture

You have problem with Comrade Grayson's beard?

Thu, 10/07/2010 - 17:04 | 633683 midtowng
midtowng's picture

He shaved it off months ago.

Thu, 10/07/2010 - 21:31 | 634172 Ned Zeppelin
Ned Zeppelin's picture

I believe the name of that beard is a "prison pussy." 

Thu, 10/07/2010 - 15:18 | 633306 RobD
RobD's picture

Does this guy have a bodyguard and how much does he pay him?

Thu, 10/07/2010 - 15:18 | 633307 H. Perowne
H. Perowne's picture

Less than a month left for Taz. Hope he started looking into dogcatcher positions . . .

Thu, 10/07/2010 - 15:22 | 633320 frankTHE COIN
frankTHE COIN's picture

Tell it !

Thu, 10/07/2010 - 15:22 | 633321 virgilcaine
virgilcaine's picture

Grayson is starting to look like Louis Cypher aka Lucipher, in Angel Heart. Old Mickey Rourke Movie. 

Thu, 10/07/2010 - 16:45 | 633635 Waterfallsparkles
Waterfallsparkles's picture

Never judge a book by its cover.  He is doing the right thing for the American People.  He is also preaching the Rule of Law and that everyone should follow it, including the Too Big To Fail Banks.

How dare you criticize a Senator for doing the right thing because of his looks.  If that was the case I could think about a lot of other great Senators that do not look that good but do great things.

Thu, 10/07/2010 - 17:07 | 633686 hedgeless_horseman
hedgeless_horseman's picture

He is a congressman.  We would not dare to criticize one of our cock-sucking senators. 

Thu, 10/07/2010 - 21:36 | 634180 Ned Zeppelin
Ned Zeppelin's picture

+1. Especially Senator "Banking Bob" Casey, specialist in financial institution analingus. 

Sorry for the harsh language Bob, but you richly deserve it for furtively shoving through that notarization bill in a pathetic attempt to help the banks hide their problems with these MBSs. Douchebag.  

Thu, 10/07/2010 - 15:22 | 633322 deez nutz
deez nutz's picture

TARP 2? Hey, why not.  The first TARP only cost 50 BILLION!! what a great deal for the taxpayer!! 

At least car sales are going good.  I guess the trunk space is the most important factor for todays customer!

Thu, 10/07/2010 - 15:28 | 633329 Cognitive Dissonance
Cognitive Dissonance's picture

So now that Obama has declined to halt the foreclosure halt process, TARP 2 anyone?

Not just Tarp 2. We all understand that this could be the excuse needed to implement QE 2.0 Mega Trillions, right?

I'm know that some people here think I'm cynical. I'm not simply because a cynic disbelieves regardless of the evidence. A realist, which is what I consider myself, assumes he's being played until he can reasonably be persuaded otherwise. Considering what's going on today, that a safe default position to take.

In that vein, I understand Grayson is considered some sort of folk hero by many here on ZH. But even if that's truly the case and his motives are pure (as pure as a Congressman can be) that doesn't mean he isn't being used as a tool. The powers that be want an excuse to pull the trigger. "Come on, make my day." Is Grayson and company that excuse?

Thu, 10/07/2010 - 15:35 | 633384 docj
docj's picture

Well said, CD.  Good food for thought here.

Cynic.  Realist.  Sort of the same in this nutty age in which we reside, eh?

Thu, 10/07/2010 - 15:37 | 633390 traderjoe
traderjoe's picture

It will be interesting to see how this plays itself out. I have been very intrigued to see how silent the MSM has been on the securitization aspect. While a bit technical, it can likely impact millions upon millions of titles/notes, whether paying or not. Also, the media has most certainly been apologetic for the banks, not appropriately labeling this as systematic fraud. This <should> be the lead story every night. 

Getting to your point, I think QE will happen no matter what, since the Fed/PTB knows the system is collapsing upon itself as the mathematically predetermined end of fractional reserve banking. QE X will be an attempt to delay and forestall this inevitable collapse for as long as possible. 

This document/securitization issue, IMHO, is the black swan the banksters/PTB did not anticipate. It's just too sloppy. 

And the public/low level government (state's AG's) have a meme that sets up well against the bank - fraudulently kicking granny out because no one transferred the note. And freezing the real estate market because no title insurance is available for any securitized note/title for how long?

I am hopeful that this might be the mistake that sinks them. Hopeful, watchful. 

But, QE X happens no matter what. The Fed heads are scared, unsure, and need to do something. I wrote a little opus on another thread about my QE/Fed opinion, so won't repeat myself...

Thu, 10/07/2010 - 15:46 | 633424 Cognitive Dissonance
Cognitive Dissonance's picture

I wrote a little opus on another thread about my QE/Fed opinion, so won't repeat myself...

How about a link to it then? I missed your opus and I know I would enjoy reading it. I'm sure others would as well.

Please......with ice cream and a cherry on top? :>)

Thu, 10/07/2010 - 15:57 | 633466 traderjoe
traderjoe's picture

Thanks for asking... ;)


The Fed has no choice. It's not an excuse, or even a reason, but they have no choice. Why else would the Fed willfully destroy the dollar? The Dow's at 11k. Employment is at least steady. Not rosy - but we haven't definitely slipped back yet. What do they see? [Even Guy Adami on Fast Money asked this question.]

They see the end of the global fiat fractional reserve ponzi if they do nothing. They see EU bond auctions failing without ECB support. They see Ireland teetering, Greece cheating. Riots could break out at any time. They see munis teetering on BK. CA, IL have billions in unpaid bills. The unfunded liabilities kicking in. Perhaps they see China saying no mas on more Treasuries. They see a Congress that can only pass a nefarious banking/notary law in unison. 

There can be no austerity - only cuts GDP and makes the problem worse. There can be no stimulus (unless they buy the debt themselves). 

Without more QE, the banking system will implode in months, weeks. 

They know the odds of QE IIb failing are overwhelming. But they have no choice. The collapse will happen any way, why not throw that one last Hail Mary pass? Maybe, just maybe, they get lucky. A new technology magically appears that changes productivity. 

They know food prices are going up. That millions of people around the world will starve in the coming food panics, riots, and shortages. They know that gas will go to $5+ a gallon. They know corporate profits (see Conagra, SBUX, etc.) will get squeezed. They know savers are getting crushed. That middle class families will be torn apart with the stress and strain of paying their increasing bills with lower wages. 

They don't care about all of that. They just want to see if they can re-start the party one last time. You didn't expect them to go quietly did you? You didn't expect BB to come on TeeVee one night and confess: "We're a private corporation. We create money out of thin air and take your collateral (productive assets and labor) in return. Fractional reserve lending is fundamentally flawed. It didn't have to be this way. The Treasury can issue it's own currency. Without debt. Without interest. But that wouldn't have made us rich and powerful, and that was the point. Sorry about that."

They will thrash about more as the air gets thinner and thinner. They see the likely end-game. They will push it into the future are long as possible. And just before the inevitable happens, they will press the panic button - a false flag, a civil insurrection, a world war. And then they will make their escape and hope to pop back up again when it is safe - as the savior to a devastated and downtrodden citizenry desperate for help. 

It's a sociopathic institution that cares nothing for the long-term health of our country, from its very inception to its dying breath. 

Thu, 10/07/2010 - 16:05 | 633502 Popo
Popo's picture


Thu, 10/07/2010 - 16:48 | 633645 FEDbuster
FEDbuster's picture


I am not a big Grayson fan, but he did try to audit the FED and is taking on the banksters.

Thu, 10/07/2010 - 16:05 | 633503 Popo
Popo's picture


Thu, 10/07/2010 - 16:09 | 633526 It is a bargin ...
It is a bargin my friend's picture

Traderjoe...hats off, class stuff and very worringly logical

Thu, 10/07/2010 - 16:14 | 633547 pan-the-ist
pan-the-ist's picture

Do I invest long term in equities to protect my money from inflation (as a hedge against their plan actually working?)

Thu, 10/07/2010 - 16:23 | 633578 Cognitive Dissonance
Cognitive Dissonance's picture

Bravo! Bravo! Concise and to the point. But full of heart. Nice!

Now if CD had written that, it would have been in 10 Chapters posted over a month and you would have forgotten the question by the third paragraph of Chapter 1 of 10. :>)

Thu, 10/07/2010 - 16:44 | 633634 Bob
Bob's picture

LOL!  Now that's a sincere compliment! 

Thu, 10/07/2010 - 16:30 | 633599 RockyRacoon
RockyRacoon's picture

Good stuff.  Thanks for taking CD's invitation to repost it.

Thu, 10/07/2010 - 16:46 | 633638 Bob
Bob's picture

Extraordinary clarity.

Thu, 10/07/2010 - 17:08 | 633690 centerline
centerline's picture

Nicely put.  I would add in the unfunded liabilities / aging population as yet another factor they see coming.  Peak oil is another one.  I have a feeling that this "end game" has been going on for longer than we realize - and more of the worlds issues are based in strategizing around this problem.

Thu, 10/07/2010 - 17:26 | 633737 ReallySparky
ReallySparky's picture

Golf clap.

Thu, 10/07/2010 - 22:12 | 634246 docj
docj's picture

Heh - I was going to say precisely this but you beat me by a few hours.

This brief, concise, heartfelt essay by traderjoe is precisely the reason I continue to read ZH.

Thu, 10/07/2010 - 17:30 | 633745 hamurobby
hamurobby's picture

Very good!

We need another Thomas Jefferson.

Thu, 10/07/2010 - 21:23 | 634155 Ned Zeppelin
Ned Zeppelin's picture

Traderjoe, you are right on. 

Thu, 10/07/2010 - 15:45 | 633418 LeBalance
LeBalance's picture

ZHers think thou a cynic? oh no not that!  what is a cynic?  Maybe someone who *knows* that politicians' intestinal workings are reversed. How else to explain what issues from their lips?

but maybe that is not what a cynic is, just a symptom of being such.

Son of Gray is a puppet, part of the circus.  If you feel he speaks for your "cliche" then he has captured your lusts and you are less likely to act.

CD is a Cynic? Humph!

Thu, 10/07/2010 - 15:54 | 633460 Bob
Bob's picture

Guess you've got CD beat on cynicism . . . unless you have your own silly heroes, of course. 

Thu, 10/07/2010 - 21:28 | 634166 Ned Zeppelin
Ned Zeppelin's picture

I am very uncomfortable with anyone beating on Alan Grayson for simply pointing out the truth, for whatever reason he may be doing it.  Based on my relatively small exposure to his public statements, the guy seems to be on target with his allegations of malfeasance and corruption.  If you say this is only helping bring on QE 2.0, are you saying he should shut up? To me, that makes no sense. Read traderjoe's post, he calls it right, QE 2.0 is coming regardless of this pesky securitization problem that threatens the value of all privately issued MBS. 

Thu, 10/07/2010 - 21:54 | 634221 kathy.chamberli...'s picture

im with you on this one. if i haven't become a cynic yet, then i am a dumb ass.

Thu, 10/07/2010 - 15:55 | 633463 ZackAttack
ZackAttack's picture

Politically, TARP 2.0 isn't going to happen, nor is StimPack 2.0.

Watching the primaries, you'll note that everyone who voted for TARP is going down. So far, only two Senators (Lincoln, McCain) who voted for it have survived.

Thu, 10/07/2010 - 16:01 | 633481 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Benny and the Inkjets (Thank you Tyler for that one) doesn't need tarp 2.0

I just read somewhere an arguement that 500 billion or 2 Trillion will be received with a yawn reflex... he is sending the Inklings out to prime the pomo pump as it were

Thu, 10/07/2010 - 16:27 | 633596 Ferrari
Ferrari's picture

I don't trust anyone on TV, or in Grayson's case, I don't trust any politcian. However it seems a little unlikely that he is doing the banksters' bidding. For such a job wouldn't they employ the usual suspects such as Frank, Dodd, Chuckie & Boener? I'm not certain your wrong, I just find it more of a stretch than neccesary.

Thu, 10/07/2010 - 23:37 | 634389 StychoKiller
StychoKiller's picture

Aren't you the one that posted the thesis that there is more than one faction of TPTB?  Isn't it possible that one faction ripped off another and the truth of the situation is finally becoming known to the "victims?"  It's either that or Grayson sees that his fellows attorneys haven't been fed for awhile, and the resulting uncovering of the various fraud(s) is truly a RE Lawyers Full Employment act.

Let the games begin!

Thu, 10/07/2010 - 15:24 | 633330 malek
malek's picture

I don't care how he calls or justifies it: suspending rules and distorting reality even more isn't going to really fix anything...

Thu, 10/07/2010 - 15:24 | 633331 bugs_
bugs_'s picture

Could there be a systemic failure of systemic failure?

Thu, 10/07/2010 - 15:25 | 633336 malek
malek's picture

Isn't the failure of a failure a good thing?

Thu, 10/07/2010 - 15:57 | 633468 Bob
Bob's picture

Is this a Captcha 22?  I keep getting problems like that . . .


Thu, 10/07/2010 - 16:05 | 633505 MsCreant
MsCreant's picture

Propped up markets.

Thu, 10/07/2010 - 15:25 | 633341 homersimpson
homersimpson's picture

I didn't know Cypress Hill had a new member...

Thu, 10/07/2010 - 16:06 | 633510 MsCreant
MsCreant's picture

What happened to the one he was born with? Or does he have 2 now?

Thu, 10/07/2010 - 15:29 | 633352 ArsoN
ArsoN's picture

Not a fan of his political party but most of the stuff I've seen from Grayson has been pretty good.  (at the very least smart and fairly well thought out ...more than I can say about the rest of the obviously sub average intellect chimps)

Thu, 10/07/2010 - 19:20 | 633954 ArsoN
ArsoN's picture

Yeah, less enthusiastic about those.  I was thinking:



Thu, 10/07/2010 - 15:30 | 633361 williambanzai7
williambanzai7's picture

Here is a trading idea for you, all this talk of TARP II will inevitably lead to a big bump in firearm sales.

Thu, 10/07/2010 - 15:35 | 633381 gmrpeabody
gmrpeabody's picture

Where is RGR trading today?

Thu, 10/07/2010 - 15:52 | 633444 Cognitive Dissonance
Cognitive Dissonance's picture


Six month chart. $14 and small change.

Looks like it has put in an interim bottom here and may move higher going into the elections. Ballots and bullets?

Thu, 10/07/2010 - 16:09 | 633524 williambanzai7
williambanzai7's picture

Well, it was trading higher when Goldman's case was dominating the news.

Thu, 10/07/2010 - 15:32 | 633367 Nonconformist
Nonconformist's picture

Fear not! A simple change to the IRS code and all this will blow over.  Maybe a few servers will get nailed for fabricating documents or blowing a foreclosure but the TBTFs will survive.

Keep in mind, the government has known about this process for a long time and didn't have any problem with it.  Expect a few cosmetic changes to the process and a few more safeguards to prevent outright foreclosure screw ups and life will get back to normal.

Thu, 10/07/2010 - 15:43 | 633409 traderjoe
traderjoe's picture

Are you really going to be able to get all of those RMBS holders (including foreign governments, pensions, and investors who won't just play ball) to NOT sue to recover their entire investment (that now is worth between $0 and .$50)? How about the plaintiffs attorneys that smell big defendant's and sympathetic plaintiffs?


Thu, 10/07/2010 - 16:04 | 633472 Nonconformist
Nonconformist's picture

What are they going to sue for?  If the IRS changes the rules about trusts holding mortgages all the banks need to do is go through some sort of notice process to establish ownership of the note (make sure there are no other claims on the property which the normal default notice process already takes care of). If there are no claims, the banks will go ahead and foreclose and the money is passed through to the MBS holders.  In the end, nothing will have changed other than the process will be cleaned up a bit.

Thu, 10/07/2010 - 16:12 | 633539 traderjoe
traderjoe's picture

I don't think it will be so simple. The buyers of the MBS likely relied on the representations and warranties of the sellers of the MBS that all notes/title documents were appropriately transferred into the trusts. I can't imagine an MBS being sold without such a basic representation. 

So, now the MBS sellers haven't transferred the notes/title documents. In some cases they may have destroyed them (and local real estate law requires wet ink original documents to prove ownership). Therefore, the buyers of the MBS did not receive full/the anticipated/any consideration for their transaction. Therefore, there was no transaction. The MBS buyers get their money back, and the banks have to eat the loans. The banks don't have that sort of cash lying around, and the houses are now worth 40-50% of their loan value. They can't cover that either. 

And they can't blame anyone but themselves for not doing their jobs in transferring paperwork. 

And in the meantime, during the lawsuits, who owns the loan/title? Who gets paid the balance when a home is sold?

Thu, 10/07/2010 - 16:41 | 633627 Nonconformist
Nonconformist's picture

I agree with what you are saying about the contractual issues but as long as the banks administer the trusts per the agreements,  I don't see how the MBS holders will be able to make a case that they have been harmed sufficiently to warrant undoing the trusts.  Obviously, the banks will need to get titles straightened out on all loans that are held in trusts and make sure they are meeting the warranties and representations but once this is done I can't see a judge stepping in and nullifying a trust.  Especially, if the bank regulators are supporting the banks position in court.

Thu, 10/07/2010 - 15:34 | 633382 pyite
pyite's picture

please stop using fucking SCRIBD - just post a link to the actual pdf.


Thu, 10/07/2010 - 16:27 | 633590 Voluntary Exchange
Voluntary Exchange's picture

+1 Hate SCRIBD

Thu, 10/07/2010 - 15:35 | 633385 Buttcathead
Buttcathead's picture

I aint paying nuttin to nobotty !  They can kiss my black ass.  Them cats in DC aint nuttin but a bunch of thugs for the Zombie Banksters.  So when do the Hindonburg Omen get started ?

Thu, 10/07/2010 - 16:00 | 633475 Bob
Bob's picture

Quit posin', g. 

Thu, 10/07/2010 - 15:37 | 633389 Rob Jones
Rob Jones's picture

It seems to me that the implications of this could go much farther than just foreclosures. Virtually everyone who has purchased a home through a mortgage broker in the last ten years or so has had the loan sold to some other lender. In some cases the loan may have been sold multiple times. If the paperwork was not executed correctly at each step, then the title to the home might be in legal limbo. If the servicer cannot foreclose, then how can it transfer title when the loan is paid off?

In the worst case, it might become impossible to obtain title insurance for any home which was sold in the last ten years or so, making it impossible to sell or refi even homes that were never involved in any foreclosure. I certainly hope this is not the case...

Thu, 10/07/2010 - 15:44 | 633415 traderjoe
traderjoe's picture

Yes, those are distinct possibilities and why this <could> be huge. 


Thu, 10/07/2010 - 16:15 | 633551 coop
coop's picture

Exactly. There are steps that must be followed when title is transferred.

I hope the Title Insurance Companies haven't spent all those huge title policy fees when I refinanced or purchased a new mortgage. It's almost as if they knew something like this was bound to happen.

Thu, 10/07/2010 - 15:44 | 633398 Bob
Bob's picture

Anybody notice his arch reference to the Dodd-Frank Financial bill which, "fortunately . . . provides a resolution process for these banks"????

Get it?

He knows it's TBTF: Too Big To Fix. 

He needs Secret Service protection now . . . or he would, at least, if he were talking about prosecutions and claw-backs. 

Thu, 10/07/2010 - 15:41 | 633400 Slartibartfast
Slartibartfast's picture

For how many eons now have we been told that the cornerstone of the markets was 'faith' in their ultimate 'accountability'?

Then what IS that burning smell? Could it be a smouldering pile of 'faith' and 'accountability', now in ashes? They just don't get it...they have systematically incinerated every possible basis to have any faith at all.

Thu, 10/07/2010 - 15:45 | 633419 HarryWanger
HarryWanger's picture

Still think this will become a non issue and swept under the rug. Nobody is sure, really, how big an impact this will have on banks, if any at all. 

Thu, 10/07/2010 - 16:15 | 633538 Popo
Popo's picture

Agreed. Quite amazing how ZH'ers can be so cynical, and at the same time (rather optimistically) think that this actually represents a threat to the banking system. There will be no threat. If they can change GAAP accounting to make bankrupt entities whole, they can change the laws to make illegally forged documents legal. This issue will go away and all that will remain are the standard angry howls from the blogosphere.

We have already seen the entire playbook: banks will be protected at all costs.

Thu, 10/07/2010 - 16:35 | 633607 RockyRacoon
RockyRacoon's picture

It's out there.  That's what matters.  Just info for those who need some.

Kinda like gold and ammo... useless until needed.

Thu, 10/07/2010 - 18:48 | 633896 JLee2027
JLee2027's picture

We have already seen the entire playbook: banks will be protected at all costs.

It's too late for that. They never would have gotten away with prior games if the public understood what was going on. We do now, here in this situation, that the banks are busted and have committed vast fraud. The bailouts failed. No more. It's over for them.

Thu, 10/07/2010 - 15:48 | 633430 AR15AU
AR15AU's picture

This smells like a controlled demolition of the banking sector. I mean, once a foreclosure freeze is in place, millions of homeowners in good standing will opt to stop paying their mortgages due to the moral hazard. This will start an approximate 3 month countdown to the failure of all the TBTFs and allow for a full blown nationalization of the banking system along with enough money printing to permanently cover the national debt. Is Grayson just a henchman in the socialist agenda masquerading as a freedom fighter? Hard to say.

Thu, 10/07/2010 - 15:56 | 633465 Henry Chinaski
Henry Chinaski's picture

And after the banking system is fully nationalized, it is later determined that the debts are valid and must be repaid to the goverment or the borrowers go to debtors' prison.  That is unless you are a member of the appropriate protected class or party.

Thu, 10/07/2010 - 15:48 | 633433 detersbb
detersbb's picture

What does he mean when he says in the final paragrapgh that fortumately the Dodd-Frank Bill contains a resolution?


Ah, what is this about?  Ex Post Facto?  Congress already got the banks covered?

Thu, 10/07/2010 - 15:52 | 633447 davidsmith
davidsmith's picture

As a result, the notes may be put out of eligibility for the trust under New York law, which governs these securitizations. Potential cures for the note may, according to certain legal experts, be contrary to IRS rules governing REMICs. As a result, loan servicers and trusts simply lack standing to foreclose.

Let's see who in the United States government knew about this, and as a result, told them to engage in fraud in order to hide bad bank debt.


As I have said all along, this robosigning is not to get a faster return on a bad debt.  That bad debt has ALREADY been forgiven by the U.S. government.


This is ALL about HIDING BAD DEBT ON BANK BOOKS.  It is a conspiracy reaching right into the White House.


Now do you believe me?

Thu, 10/07/2010 - 16:03 | 633487 Bob
Bob's picture

Not yet. 

But we'll see. 

Thu, 10/07/2010 - 15:54 | 633450 Waterfallsparkles
Waterfallsparkles's picture

Trying to cover up duplication of Mortgages in many of these Securitization.  That is why in some cases 4 Banks are trying to Forclose on one House.  Also, seeing were after a home has been sold even with a cash Buyer a Bank appears out of the woodwork and tries to Forclose on the New Buyer thinking they have an interest in the House as they were not paid when the house sold.

I think they tried to cover up the Duplication of Mortgages many times over with the Nationalization of AIG and FRE, FNM.  But, with the Forclosure problem it is comming to roost again.

Think about it a Banks Securitizes one loan 10 times.  They do not give the Note to any of the Securitizations as there are more Buyers of the Securitization than the amount on the Note.  No wonder the Note is missing.  I think the Meltdown in 2008 was to cover up the Fraud.  Think about it Banks take a $100,000. Mortgage and sell 1 Million in Securitizations.  No wonder they made so much money, they Counterfitted 9 Notes for every 1 Mortgage. 

In my humble opinion of course.

Thu, 10/07/2010 - 16:03 | 633491 Cammy Le Flage
Cammy Le Flage's picture

Spot on observation.

Thu, 10/07/2010 - 16:07 | 633514 Bob
Bob's picture

My, my, it would be nice to see some serious criminals in prison rather than the petty incompetents that currently cost us so much to house . . . and these jet-setters could pay their own way, millions of times over. 


Thu, 10/07/2010 - 16:17 | 633554 MsCreant
MsCreant's picture

Even if you are wrong, great theory. Fractional reserve housing. Just like Gold, Silver, and every other naked short in this bad boy.

I salute you 10x (but I only actually have one salute to give)!

Thu, 10/07/2010 - 16:37 | 633615 RockyRacoon
RockyRacoon's picture

Fractional reserve housing.

I like.   Just a normal progression in the grand scheme.  Now, there's a crime for which some jail time would be unavoidable!

Thu, 10/07/2010 - 16:45 | 633629 Miles Kendig
Miles Kendig's picture

Yep.  Once again MsCreant hits it square.  Better than Walstreetpro2 even.

Fractional Reserve Housing  hahahahahahahaha  You're getting some great answers whith that gun.  Have at 'em some more

Thu, 10/07/2010 - 16:40 | 633618 Miles Kendig
Miles Kendig's picture

Since when did our financial system limit itself to 10X leverage?

+!  Sweet read

Thu, 10/07/2010 - 17:27 | 633739 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

This is the best theory on this thing to date. My question is how do they keep paying on the MBS when only $100,000 is being paid into the pot and $1 million is coming out per house? Someone (banks?) is either paying to keep the fraud alive or the junior traunches are going to get hosed!

Thu, 10/07/2010 - 17:57 | 633789 Waterfallsparkles
Waterfallsparkles's picture

Think about it no wonder they shorted the CDO's thru CDS's.  They put 1 Subprime Mortgage times 10 into all of the Traunches.  Just one Forclosure would skew the whole pool of Mortgages.  They also Ripped off the Mortgage Insurers like AIG, MBI, ABK.  They had them insure all of those CDO's with stuffed Sub Prime Mortgages.  Probably collected 10 times on the same Defaulted Mortgage.

Go another step.  They only put a good quality Mortgage in the Traunches 1 time for the acutal amount of the Mortgage but they duplicated the sub prime Mortgages by 10 times.  Destined to fail.  That is why they made so much money on their Credit Default Swaps and Mr. Paulson is rich beyond belief.

In my humble opinion.

Thu, 10/07/2010 - 15:56 | 633455 MuadDib
MuadDib's picture

The USD's fate was sealed back in 2008 when the US govt guaranteed and backstopped the financial system and the Fed bought up securitized garbage. 

Thus, the diabolical trinity -- the US Treasury, the Fed and the primary dealers -- are headed for the flames.  They are damned if they do, and damned if they don't (print $$$, that is).

Thu, 10/07/2010 - 15:55 | 633461 deepsouthdoug
deepsouthdoug's picture

So........did the final Dodd/Frank bill have an automatic $trillions bailout clause in it?  It was in the House version of the bill.  The Fed could give the banks $4 trillion without going to Congress.  Anyone know if it survived final passage?




Thu, 10/07/2010 - 16:04 | 633500 working class dog
working class dog's picture

Finally the president does something to help the  working class dogs!!


WASHINGTON (Reuters) – President Barack Obama will not sign legislation that could have made it more difficult for homeowners to challenge unjustified foreclosure actions, the White House said on Thursday.

White House communications director Dan Pfeiffer said Obama was sending the bill back to the House of Representatives for further discussion of how it would affect the foreclosure crisis, which has become a political lightning rod amid media reports that banks acted improperly to evict struggling borrowers.


White House spokesman Robert Gibbs said earlier that officials were meeting on the bill, which cruised through the Senate last week with no public debate and could have shielded bank and mortgage processors from liability for foreclosure documents that were prepared improperly.

Thu, 10/07/2010 - 16:06 | 633512 Gimp
Gimp's picture

Graysons picture looks like "el diablo"...yikes!

Thu, 10/07/2010 - 16:07 | 633515 williambanzai7
williambanzai7's picture

I thought this guy looked familiar to me and it just occurred to me why...

Thu, 10/07/2010 - 16:10 | 633533 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture


   .... < "insert" rude comment here> ......lolololol

Thu, 10/07/2010 - 16:10 | 633531 Miramanee
Miramanee's picture

Fraud = x
Depression = y
Social Chaos = z

y = -x
y = z

Thus, z = -x

We "need" fraud in order to keep society from dissolving into chaos. Fraud is our friend, our great benefactor. Fraud keeps us from experiencing total economic meltdown and chaos. We must embrace fraud, as it is our guru, our sovereign lord.

Thu, 10/07/2010 - 16:10 | 633534 Miles Kendig
Miles Kendig's picture

Just in time to add another 500-1,000K jobs at some new government agency or existing Clearing House shell that will supposedly untangle all of this under a fat contract in a few dozen years.

Thu, 10/07/2010 - 16:52 | 633651 fiftybagger
Thu, 10/07/2010 - 17:11 | 633694 Miles Kendig
Miles Kendig's picture

You'll haveta call me Jimmy Two Times on that classic clip.  WhoT !!

Thu, 10/07/2010 - 16:40 | 633625 Japhy Ryder
Japhy Ryder's picture

Someone mail Greyson a ZH t-shirt so he can wear it when on camera for C-span... :)

Thu, 10/07/2010 - 16:49 | 633648 Waterfallsparkles
Waterfallsparkles's picture

Thank God he reads Zero Hedge.  That way the little guys ideas make it main stream.  How much leverage does Zero Hedge have to Change laws or write a letter to the big guns like Geitner and Bernankie that would get any attention.  I am thankfull that he does read Zero Hedge and has the Power to make changes happen.  I applaud him.

Thu, 10/07/2010 - 17:35 | 633767 11b40
11b40's picture

I don't live in FL, and I am a 'vote the candidate' Independent, but Grayson caught my eye when he started ranting about the Supreme Court decision that opened the floodgates to allow UNLIMITED amounts of dirty money to pour into political campaigns.  I visited his web site some time back, and now get regular email blasts soliciting donations.  I don't really trust any of these guys in Congress, but Grayson does appear to be cut from a different mold.  He does not hesitate to speak his mind, and point fingers and name names.  We need much more of his kind of lunacy from our elected officials, IMHO.  You can agree or disagree with his positions, but at least he is not afraid to put them out there. This Mortgage fiasco is not the only example of him bucking the system.   Here are a few more (& some sound like he could be a big ZH fan and Fight Club member):

Dear ,

I've been thinking a little more about the Supreme Court's decision. This ruling gives foreign powers more rights than U.S. citizens. Imagine that! Aramco, a corporation owned by the Saudi Arabian government, will have enormously more influence in choosing your senator than you will. That's one thing that I meant when I said that "if we do nothing, you can kiss this country goodbye."

This will not stand. It cannot stand. There are too many Americans who love this country and won't allow it to happen. And you are one of them.

We are making a movement. If you have a moment, join over 80,000 people and sign our petition to support the "Save Our Democracy" platform at And then a mighty voice will rise up from the land.


Alan Grayson
Member of Congress

Dear ,

It's been a month since the Supreme Court spoke.

Now it's time for US to speak.

The Democratic Leadership has finally come out with a plan. And, thanks to your participation, the plan includes three of our proposals.

So far, the plan would:

  • Stop foreigners from buying our government.
  • Prevent government contractorslike Blackwater from stealing our elections.
  • Force disclosure to shareholders when a company wants to bribe and threaten elected officials.

The Supreme Court needs to understand that this is a democracy. OUR democracy.

It's urgent that we act. I'm going to be speaking with a key congressional committee chairman, Rep. Bob Brady, with a simple message: Let's go!

Chairman Brady is in charge of the House Administration Committee. Our bills are assigned to his committee. He needs to hear from all of us that saving our democracy just can't wait.

Please join me. Call Rep. Brady's office in the House Administration Committee and ask him to save our democracy. The phone number is 202-225-2061. Tell him that he needs to move the bill as fast as possible. You can also weigh in at the committee web site.

In the weeks ahead, I'll be keeping you informed. I'm working to include all of our proposals in the final bill, and make it as strong as possible. After all, it's not enough to disclose political looting and bribery. We must STOP it.

Call Brady's office in the House Administration Committee and tell him to MOVE the bill: 202-225-2061

Seven out of ten Americans think corporations ALREADY have too much influence over elections.

Eight out of ten Americans want restrictions on corporate spending on elections.

Almost eight out of ten Americans think that shareholders should get to vote before their companies spend one dime on elections.

Call Bob Brady's office at 202-225-2061 and tell him what you think. What we think.

Corporations are not people. Corporations do not breathe. Corporations do not fall in love. Corporations do not have children. Corporations do not lose their jobs. Corporations do not fight and die in war.

This is obvious to everyone but five justices on the Supreme Court.

Time to fight back.


Alan Grayson
Member of Congress

Dear ,

Next week, there is going to be a "debate" in Congress on yet another war funding bill. The bill is supposed to pass without debate, so no one will notice.

What George Orwell wrote about in "1984" has come true. What Eisenhower warned us about concerning the "military-industrial complex" has come true. War is a permanent feature of our societal landscape, so much so that no one notices it anymore.

But we're going to change this. Today, we're introducing a bill called 'The War Is Making You Poor Act'. The purpose of this bill is to connect the dots, and to show people in a real and concrete way the cost of these endless wars. We're working to get co-sponsors in Congress, but, we need citizen co-sponsors as well. Become a citizen cosponsor today at Act Now.

Next year's budget allocates $159,000,000,000 to perpetuate the occupations of Afghanistan and Iraq. That's enough money to eliminate federal income taxes for the first $35,000 of every American's income. Beyond that, leaves over $15 billion to cut the deficit.

And that's what this bill does.It eliminates separate funding for the occupation of Iraq and Afghanistan, and eliminates federal income taxes for everyone's first $35,000 of income ($70,000 for couples). Plus it pays down the national debt. Does that sound good to you? Then please sign our petition in support of this bill, and help us build a movement to end our permanent state of war.

The costs of the war have been rendered invisible. There's no draft. Instead, we take the most vulnerable elements of our population, and give them a choice between unemployment and missile fodder. Government deficits conceal the need to pay in cash for the war.

We put the cost of both guns and butter on our Chinese credit card. In fact, we don't even put these wars on budget; they are still passed using 'emergency supplemental'. A nine-year 'emergency'.

Let's show Congress the cost of these wars is too much for us.

Tell Congress that you like 'The War Is Making You Poor Act'. No, tell Congress you love it.

All we are saying is "give peace a chance." We will end these wars.



Alan Grayson

Dear ,

Awhile back, you signed our petition to save our democracy. Our plan was to pass legislation to counteract the corporate buy-out of our democracy that was legalized in the Citizens United decision.

It has taken time, but that legislation is happening.

The DISCLOSE Act is moving through Congress. Several of the principles contained in our Save Democracy legislation are included. I pushed our ideas to the Leadership, and made sure to mention the strength of support we received from the 100,000 of you that signed our petition.

Here are a few highlights from the bill:

1) It prevents corporations who received bailouts from spending money to influence elections, and toughens laws that ban government contractors from making political contributions.

2) It prevents foreign corporate influence over our elections.

3) And it strengthens reporting requirements for political expenditures and contributions.

The DISCLOSE Act is a good start, but, it should be even stronger. That's why I'm proposing amendments that:

1) Ban corporations who receive money from the Federal Reserve from spending that money on politics.

2) Ban corporations who hire lobbyists from spending money in politics.

Make sure there's a vote on these amendments. Email Speaker Pelosi's office at ask her to bring these Grayson Save Our Democracy amendments to a vote!


Alan Grayson


Thu, 10/07/2010 - 18:43 | 633885 Bob
Bob's picture

Damn, that's not stock democratic crapola--I know, I'm still on most of their mailing lists and, believe me, they're not emphasizing these issues.  To say the least. 

Why is he behind in the polls--or is that a stupid question, given the interests he threatens??

Thu, 10/07/2010 - 19:06 | 633934 11b40
11b40's picture

Right...what politicians of any party are making this kind of noise?  He is the only one I am aware of.  This blast just came in from him & I find it rather amusing.  You gotta' admire his spunk:

Dear ,

Apparently, Newt Gingrich loves a good stoning. Because he has joined in the stoning of our campaign. When he saw Sarah Palin, Glenn Beck and Mike Huckabee casting stones, Gingrich just couldn’t resist.

Huckabee called me a “nutcase.” Gingrich reached for a couple of heavier stones to hurl, calling me “a disgrace,” and “fundamentally dishonorable.”

Please contribute to our “Newt Gingrich, Mind Your Own Business” Fund.

Let’s say that you write a bad check to the IRS for almost $10,000. That seems dishonorable.

I didn’t do that. Newt Gingrich did.

Let’s say that you have an affair while your wife is suffering from cancer, and that you visit your wife in the hospital, while she is recovering from surgery, to discuss a divorce. That seems dishonorable.

I didn’t do that. Newt Gingrich did.

Let’s say that the House of Representatives votes 395 to 28 to reprimand you, and fines you $300,000 for an ethics violation. Now, that’s a disgrace – a public disgrace.

That didn’t happen to me. It happened to Newt Gingrich.

Let’s show Newt Gingrich that every time he opens his mouth, that’s another $20, or $40, or $50 for whomever it is that he attacks.

I don’t know about you, but I am sick and tired of listening to the likes of Newt Gingrich, sitting in judgment of me, telling me and telling us how we should live our lives. If we ever carve a Mt. Rushmore of hypocrites, you’ll see Newt Gingrich’s pasty face chiseled in stone there.

Let he who is without sin cast the first stone. Everyone else on the right wing, MYOB.

Please contribute to our campaign today, the “Newt Gingrich MYOB Fund”. Because actions speak louder than Newt Gingrich’s sanctimony.


Alan Grayson


Thu, 10/07/2010 - 19:13 | 633947 Bob
Bob's picture

Now that is just hillarious!

Thu, 10/07/2010 - 21:39 | 634185 Ned Zeppelin
Ned Zeppelin's picture

Grayson speaks the truth and calls out the scam meisters.  I have yet to see one of his shoutouts that I find inaccurate, but I'll keep an open mind for those who think he is a jerk. Methinks those who makes such statements work for the Clampdown. 

Thu, 10/07/2010 - 20:00 | 634024 Breaker
Breaker's picture

Grayson's power is dwindling. He's probably going to lose his election next month. I see this as a desperate ploy to get some anti-bank bona-fides by a guy who has voted wrong on almost every issue he's encountered, including bank issues. By posing it as an "evil banks" issue, he makes the problem worse and harder to fix because the evil little class warfare devil that lives in every progressive's heart. I suspect 99% of the problem is an "incompetent-banks-trying-to-get-thru-ten-times-more-foreclosures-than-they-ever-thought-possible" issue. This one has to be fixed (fixed in the sense of allowing banks to do legitimate foreclosures at a reasonable cost) or the whole house of cards will come tumbling down. Grayson demagoguing the issue make the fix harder.

Thu, 10/07/2010 - 20:54 | 634108 calltoaccount
calltoaccount's picture


that too, but enablers and coconspirators all along the line.  mens rea to spare. 




 "The top subprime lenders whose loans are largely blamed for triggering the global economic meltdown were owned or bankrolled by banks now collecting billions of dollars in bailout money — including several that have paid huge fines to settle predatory lending charges.

These big institutions were not only unwitting victims of an unforeseen financial collapse, as they have sometimes portrayed themselves, but enablers that bankrolled the type of lending that has threatened the financial system.

These are among the findings of a Center for Public Integrity analysis of government data on nearly 7.2 million “high-interest” or subprime loans made from 2005 through 2007, a period that marks the peak and collapse of the subprime boom. The computer-assisted analysis also reveals the top 25 originators of high-interest loans, accounting for nearly $1 trillion, or about 72 percent of such loans made during that period.

The Center found that U.S. and European investment banks invested enormous sums in subprime lending due to unceasing demand for high-yield, high-risk bonds backed by home mortgages. The banks made huge profits while their executives collected handsome bonuses until the bottom fell out of the real estate market.  

Investment banks Lehman Brothers, Merrill Lynch, JPMorgan & Co., and Citigroup Inc. both owned and financed subprime lenders. Others, like RBS Greenwich Capital Investments Corp. (part of the Royal Bank of Scotland), Swiss bank Credit Suisse First Boston, and Goldman Sachs & Co., were major financial backers of subprime lenders."


Thu, 10/07/2010 - 21:43 | 634188 Ned Zeppelin
Ned Zeppelin's picture

You need to get informed on what the real problem is. Please check back through the last few days posts on this subject and read the posts. It's all in there. 

Junk Grayson all day, he is still right. Demagogue? Thank god someone has the political courage to call this stuff for the horse manure that it is. 

Thu, 10/07/2010 - 23:12 | 634344 11b40
11b40's picture

Sounds like you are a banker.  Banker or not, however, we both agree this has to be fixed, but part of my solution involves a lot of perp walks by bankers.  From the tone of your post, I doubt if that is part of your "fix".

...and regarding "the evil little class warfare devil that lives in every progressive's heart" statement, economic warfare has been diligently waged against the middle and lower classes for over 30 years.  Pretty successfully, too.

Thu, 10/07/2010 - 17:22 | 633727 shushup
shushup's picture

So why hasn't the DOW crashed yet? Obviously Mr. Market doesn't see the problem the rest of us do.

Thu, 10/07/2010 - 17:26 | 633738 atomicwasted
atomicwasted's picture

So where exactly are all the notes and all the deeds?  Any idea?  Out in a dumpster behind a failed bank?  Buried deep inside Mount Weather or Raven Rock?  In the desk drawer of some guy who got laid off?

Thu, 10/07/2010 - 18:45 | 633888 Bob
Bob's picture

Yeah, right next to the red Swingline stapler.  He's waiting for directions. 

Thu, 10/07/2010 - 17:51 | 633778 rapier
rapier's picture

Grayson is a lame duck and he is going down. Loose cannons on the right are no problem but one not of the right is verbotten.  There is no way in the world he wins his election. Zero, nada, zilch. A traitor to his class. By everything that is sacred in Debold voting machines and Florida state election machinery  he is going down. He is hated by the Democratic leadership more than the Tea Party.  If you can short Grayson somehow do it. Don't get in a car or plane with him and avoid the same room.

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