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Janet Tavakoli On The "Biggest Fraud In The History Of Capital Markets"
In the following interview with the WaPo's Ezra Klein, Janet Tavakoli shares some more information on why every bank is about to shut down all foreclosures, in what she calls the "biggest fraud in the history of capital markets." Not very surprisingly, we are, so far, spot on in our 29th September projected timeline at this point: "We predict that within a week, all banks will halt every foreclosure currently in process. Within a month, all foreclosures executed within the past 2-3 years will be retried, and millions of existing home sales will be put in jeopardy."
Ezra Klein: What’s happening here? Why are we suddenly faced with a crisis that wasn’t apparent two weeks ago?
Janet Tavakoli: This is the biggest fraud in the history of the
capital markets. And it’s not something that happened last week. It
happened when these loans were originated, in some cases years ago.
Loans have representations and warranties that have to be met. In the
past, you had a certain period of time, 60 to 90 days, where you sort
through these loans and, if they’re bad, you kick them back. If the
documentation wasn’t correct, you’d kick it back. If you found the
incomes of the buyers had been overstated, or the houses had been
appraised at twice their worth, you’d kick it back. But that didn’t
happen here. And it turned out there were loan files that were missing
required documentation. Part of putting the deal together is that the
securitization professional, and in this case that’s banks like Goldman
Sachs and JP Morgan, has to watch for this stuff. It’s called perfecting
the security interest, and it’s not optional.
EK: And how much danger are the banks themselves in?
JT: When we had the financial crisis, the first thing the banks did
was run to Congress and ask for accounting relief. They asked to be able
to avoid pricing this stuff at the price where people would buy them.
So no one can tell you the size of the hole in these balance sheets.
We’ve thrown a lot of money at it. TARP was just the tip of the iceberg.
We’ve given them guarantees on debts, low-cost funding from the Fed.
But a lot of these mortgages just cannot be saved. Had we acknowledged
this problem in 2005, we could’ve cleaned it up for a few hundred
billion dollars. But we didn’t. Banks were lying and committing fraud,
and our regulators were covering them and so a bad problem has become a
hellacious one.
EK: My understanding is that this now pits the banks against
the investors they sold these products too. The investors are going to
court to argue that the products were flawed and the banks need to take
them back.
JT: Many investors now are waking up to the fact that they were
defrauded. Even sophisticated investors. If you did your due diligence
but material information was withheld, you can recover. It’ll be a
case-by-by-case basis.
EK: Given that our financial system is still fragile, isn’t that a disaster for the economy? Will credit freeze again?
JT: I disagree. In order to make the financial system healthy, we
need to recognize the extent of our losses and begin facing the fraud.
Then the market will be trustworthy again and people will start to
participate.
EK: It sounds almost like you’re saying we still need to go through the end of our financial crisis.
JT: Yes, but I wouldn’t say crisis. This can be done with a
resolution trust corporation, the way we cleaned up the S&Ls. The
system got back on its feet faster because we grappled with the
problems. The shareholders would be wiped out and the debt holders would
have to take a discount on their debt and they’d get a debt-for-equity
swap. Instead we poured TARP money into a pit and meanwhile the banks
are paying huge bonuses to some people who should be made accountable
for fraud. The financial crisis was a product of our irrational
reaction, which protected crony capitalism rather than capitalism. In
capitalism, the shareholders who took the risk would be wiped out and
the debt holders would take a discount but banking would go on.
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If you decide not to pay your mortgage, buy physical gold and silver instead. Do not trust any bank to hold it for you. And keep your head low.
Banks, with the encouragement of government policy and government money, lent to purchase homes. The other side of the bargain is that the borrowers are supposed to honor their contracts regardless of whether the asset is in the money or out of the money. The American Republic is over when the majority walk from their obligations. Perhaps it does it matter anyway given that vast swaths of the population is covered with tattoos, weighs 350 pounds, thinks nothing of body piercing, etc.
Citibank
Slogans: Your Citi never sleeps
Because the Citi never sleeps
Citi. Live Richly
The whole world in one bank.
Where money lives
Remarks by Janet Tavakoli, March 2010, on Huffington Post :
The economy is in trouble because banks borrowed massively, and they borrowed many multiples more than they could afford. CNBC acts as if over-borrowing by U.S. consumers created a global financial crisis. This myth protects Wall Street banks.
…Wall Street supplied the funds to predatory lenders. Then it packaged up those loans into phony securitizations.
… Instead of cracking down, regulators removed the brakes. America suffered an epidemic of predatory lending after that.
By the time of Wall Street's 2008 bailout, delinquencies on subprime mortgage loans made in 2005 and 2006 exceeded 37 percent and were climbing. The brand new (at the time) 2007 loans had a default rate of almost 26 percent and climbing. The loans made in 2007 defaulted almost immediately, a classic situation for fraud…… Most of the CDOs that came to market in 2007 defaulted very rapidly.
…Wall Street banks disguised the risk on their own books, passed the problem to investors, or bet against their own trash to make even more money.
… Wall Street got bonuses, taxpayers paid the bill, America got a deep recession, and the world got the worst financial crisis in history.
http://www.huffingtonpost.com/janet-tavakoli/cnbc-protects-bad-guys-wh_b_485312.html
so they found the key to stealing social security and pensions
and physical assets and the government and the supreme court
and the armed forces and the entire media, present and future,
foreign and domestic! and the markets
ah ... men!
God Bless and peace be with you JT!!!!
But, i think the mystery accounting being done by the "sacred" banks with the blessing of our government and sanctioned by the SEC will keep the fraud and graft going as long as the private federal reserve corp can get 0.25% on more and more reserves and the old 6% on 1% of all excess reserves--it is actually boom time bonanza for these banks and their godfatherlike parent-- the scam will not end because the income from the excess reserves is too good while the biggest stake holders figure out the next heist--all the foreclosures about to happen..alot of new real estate for the cartel?...our counrty truly is a banana republic as long as we have the federal reserve in charge...how very sa for all of us, and for our currency as a nation, and as a method of exchange.
Ya and World of Warcraft can keep going as long as people pay 14.99 a month. People are going to rage quit.
Ah, fuck it, so much chatter over matters of such little importance.
Just float a new currency already and be done with it.
It's the only way to be sure.
[It's the only way to be sure.]
That was so funny. That's a classic line from so many movies. I'm still laughing. Love it. Thanks
It's real simple how this is going to go:
1) Servicers & banks won't be able to establish legit chain of note / deed / mortgage / etc, assignments weren't recorded as required, end of story, occupants get their home free.
2) Servicers go bankrupt overnight, banks write off debt 100%, MBS holders screwed, stockholders screwed, many banks go bankrupt, FDIC comes in and liquidates them.
Story should end there, but ..
3) Fed prints trillions, bails out banks (again), takes newly issued preferred stock, restores losses, MBS holders rescued, bond market saved (again), taxpayers screwed (again).
4) Congress passes legislation giving Fed defacto deed to homes, courts in every state recognize it, occupants evicted, problem solved, Fed gets defacto ownership of banks and homes.
Perhaps, but there's just this little matter: The USA is NOT the entire World! This crash is gonna take out the ENTIRE WORLD ECONOMY!
Can't wait to see the feds manage millions of scattered residential properties. That should create value.
That's where feudalism comes in. Let's not go there.
http://www.youtube.com/watch?v=njG7p6CSbCU
This battle has been going on hundreds of years.
Even better -
http://www.youtube.com/watch?v=VrZ4sMRYimw
Total non story TD. T3 will protect his boys. After all he needs to get paid. Like last time, the music will keep playing until the zombie banks (or is it nations this time?) start turning on each other. Then and only then will s*** get real.
My suggestion is to establish a loan guarantee program for homeowners with underwater mortgages who are current in their payments which allows them to default. For example suppose someone owes $150K on a home which is currently worth $100K and they are current in their payments. The homeowner defaults and issues a quitclaim deed for the home to whoever the mortgage servicer directs. In exchange the homeowner becomes eligible for a federal loan guarantee on 80% of the home value when purchasing a home worth up to $100K.
This would mean that the homeowner could default on the underwater mortgage, save up a $20K down payment and then go out and purchase another $100K home with a federal guarantee for the $80K loan. The new mortgage payment would be much lower than before. The loan guarantee would probably cost the government very little because the homeowner had previously shown him/herself able to meet the higher payments on the old mortgage, and because the $20K down payment creates a comfortable cushion in case the value of the home goes down further.
The quitclaim deed would eliminate and questions about title for the old home. And the $50K loss would be eaten by the whoever owned the mortgage on the old house (hopefully a bankster).
Some people might argue that the homeowner should really bear some of the $50K loss, but remember these are just retail customers. Perhaps they were a bit greedy, but aren't we all? All my life, the standard wisdom has been that a home is a good solid financial investment. And for most of my life, that has been true. I feel that the people who are now caught in the mortgage trap were mostly just unlucky because they bought at a time when the standard wisdom failed. I think the banks and financial professionals who created this MBS mess are much more responsible for the housing bubble than the retail consumers, and so they should be forced to carry the losses.
Agreed. Completely free endless credit to no credit availability whatsoever. Of course, a crash is the result. Bankster 101
"but this story will break."
What story, or which story? After reading most of the comments here, I think the big story is that there are a lot of people, including zh readers, that don't understand fractional reserve banking. Fortunately for the banking elite, most Americans don't understand banking 101. And even if they did understand, they don't care. In Caleeeefornia, we are about to legalize Marijuwana. Yea, can't wait, JLo, Stevie Tyler, some nice herbs and the final 12, now that's good stuff. How many episodes left in this season's Jersey Shore?
entertainment and corruption have been traveling companions for a long time
r
yes yes ok, everything is shit and the world is about to end....so go long equities right? Seems to work so far, happy happy joy joy.
1694 would be enron #24 (the first steam enron)
http://www.enterprisecorruption.com/?page_id=36
;-)
r
fascinatin'
There is nothing complicated about this. We have entered into a debt backed currency world. The hardest currency of all.
It only gets screwed up when we don't realize the Law that must be enforced ruthlessly when you use a debt backed currency.
Now we are going to pay the price of a good education. We are now realizing we have been suckerf----d, that is because most of us as citizens have been suckers, so it is a richly deserved lesson.
The Law is very simple. Its premise: We encourage anyone or any organization to lend money to anyone they like on any non usurous terms they like with just one little understanding. When the borrower does not make the pictures of dead presidents show up, we, the people, under no circumstances will help you collect the debt except through normal legal collection channels. No bail outs under any circumstances.
We have violated this principle and we are going to pay.
Mako, no tanks in the streets, we are just going to be busted and disgusted and not to be trusted.
The solution as always is simple, liquidate the bad debts asap and prosecute the fraudsters and take everything they own. Thats called equal enforcement of the Law which our foul corrupt Congress has not done and they do need to be replaced by elections. Ballots not bullets.
And as most of you know, there is no greater spectator sport than watching a sucker earn what they deserve. The enjoyment of course comes from realizing that you too have been a sucker before. We all can't help ourselves, we love a free lunch.
Liberty and justice for all is not free, so lets all grow up, bite the bullet, see to it as citizens our politicians enforce our laws, and get on with life.
It's popular to condemn congress for not enforcing the law, but that doesn't seem to be their responsiblity. The SEC, yes, but we can understand their compromising union with the bankerboyz on the other side of The Street.
What about the FBI? Why won't that fucking dog hunt? They are not meaningfully beholden to Wall Street and sure as hell don't need any external agent's permission to investigate. From where I sit, it would appear that the fucking LAW ENFORCEMENT MACHINERY of this nation has literally become as corrupt as the KGB.
Likewise for the Justice Department.
every tool is just one limb of the same corrupt decaying animal
There is no way to prosecute all the fraudsters, virtually everyone is a fraudster in the system you have today. You wouldn't have anyone left to lock the door.
The Tapeworm Economics
Freitag, 8. Oktober 2010 21:23
von Catherine Austin Fitts
Let's return once again to the question: How did we actually entered the financial crisis?, and get the perspective of Catherine Austin Fitts in the United States, who has worked both on Wall Street and in the U.S. Government. In her view, a large portion of our problems is the result of “the strategy used by a tapeworm to prosper.”
The following essay by Catherine Austin Fitts was published under the headline “A Tapeworm’s Triumph” in April 2003 on her website "Solari“ (www.solari.com). Despite the fact that this essay is quite old, we present it because:
a) none of the problems addressed here are solved,
and
b) it's never wrong to take a step back – just like a painter, who distances himself from the picture, on which he works, in order to recognize some of the things on the canvas a bit better.
In addition, we recommend to read also her article “Financial Coup d'Etat,” which can be found here:
http://www.chaostheorien.de/artikel/-/asset_publisher/haR1/content/finan...,
and the interview “Behind the Wheel,” that chaostheorien.de published under this link:
http://www.chaostheorien.de/interviews/-/asset_publisher/rAD9/content/be...
The Tapeworm Economics
“And the serpent's food shall be earth.”
- Isaiah 65:25 -
The other day, a natural healing practitioner explained the strategy used by a tapeworm to prosper. A tapeworm, she said, injected a chemical into its host that triggered a craving by the host for what the tapeworm wished for its dinner. By managing it’s hosts desire, a tapeworm manipulated its host to set aside self-interest and please its parasite. And so the tapeworm proceeded to consume its host’s energy and health, with the host doing most of the work.
The story of how a tapeworm parasitically eats away at its ecosystem came at a moment when the math lover in me was having an adverse reaction to the description of America as the new Roman Empire that seems to be inspired by the recent occupation of Iraq. The investment economics of American imperial conquest work more along the lines of the tapeworm than of the Romans.
If my rudimentary understanding of the rise and fall of ancient empires is useful, the Roman Empire brought an advancement of science, infrastructure, technology and material progress to many of the poorer lands that it conquered. In essence, Rome’s territory grew in part from its ability to increase the ‘return on investment” of many of the places it conquered.
While those who believe in self-determination may not approve of the Romans right to do so, or their methods, those of us who appreciate roads, bridges and infrastructure understand the positive investment yields that the introduction of intellectual capital to a place can generate. From one point of view, Rome financed its conquests not just by ransacking them --- but by making places smarter in the material sense.
The tapeworm -- a parasite that over time eats its host ---can more accurately describe the demonic patterns of stripping places of intellectual capital that come with American imperial conquest. The “dumbing down” so often complained about within America’s borders is a phenomenon that our military appears to be implementing globally. We seem intent on removing spiritual power and intellectual IQ as we depopulate globally, moving out the honest and competent and putting the corrupt and bureaucratic in charge.
One of the things that is most disturbing about the American tapeworm is that it has organized its leadership around private banks and defense contractors and its governance and intellectual air cover around think tanks and private universities and their tax-exempt endowments.
In so doing it has done a marvelous job of getting the intellectual resources of the nation disengaged from dealing with what is happening and engaged –if not financially dependent on--- producing chemicals for injection into the body politic through a highly centralized corporate media that will feed the tapeworm's desire.
The Harvard Watch reports description of Harvard academics creating the public policy justifications for Enron's frauds while the Harvard endowment fed at the trough illuminated a perfect example of how the tapeworm gets the host to act against its own self-interest.
The “Break It-Fix It” Subsidy of a Negative Return on Investment Economy
For several years, I have been studying and writing on the corporate and banking economic warfare model of globalization. Just from a case study of one private investor, Pug Winokur, and his investments in and with DynCorp, Enron and Harvard, examples abound.
- US neighborhoods are overrun with narcotics trafficking and HUD financial fraud while systematically worked by enforcement, seizure and War on Drugs teams supported by DynCorp and generating profits for the Harvard Endowment;
- Latin American pipelines, water and other assets are sold for significant discounts to market value to Enron and other multinational investors while DynCorp helps War on Drugs military teams move peasants off the lands;
- Russian banks and pension funds are emptied out by organized crime and laundered through NY Fed member banks while Harvard as financial advisor helps privatize Russian oil companies over to their endowment investment network;
- DynCorp personnel supplying police and aircraft maintenance are active with local mafia in Eastern Europe and practice buying and selling children as slaves which they use for sex;
- $3.3 trillion is missing from the Department of Defense and the Department of Housing Development where Lockheed, DynCorp & AMS are active managing computer systems and Harvard supplies appointees and contract services.
- Manipulation of the gold markets by the US Treasury and NY Fed member banks are led by Larry Summers, Secretary of the Treasury, and now President of Harvard and his predecessor Robert Rubin, Secretary of Treasury, and now member of the Harvard Corporation Board.
These shenanigans are well documented by a series of courageous reporters and market commentators, including Anne Williamson, Greg Palast, Kelly O’Meara, William Murphy and Chris Sanders.
This tapeworm operates globally. It has been winning at economic warfare because those opposed to it cannot see it clearly and are not yet networked globally to move people, places and capital out of its reach. My pastor, Bishop Alfred Owens, says, “If we can face it, God can fix it.” Indeed, divine authority is hamstrung-- waiting for the necessary global networks to align around a common map of the real deal about global consolidation of economic and political power --- and the resulting liquidation of wealth.
This tapeworm is managed tightly by the cartels that syndicate around central banking and warfare and it has four phases:
- Phase One--Break It: Private syndicates make money destroying a place through organized crime, covert operations, warfare or a variety of both;
- Phase Two- Buy It: The profit generated from breaking it is used to buy or seize “legal control” at a discount;
- Phase Three- Fix It: Government funding, credit and subsidies are then used to “fix it” while harvesting remaining assets, including with narcotics trafficking, sex slavery and any other form of liquidating the human, intellectual, environmental and physical capital in a place:
- Phase Four—Declare Victory: Victory is then declared and a flow of foundation and academic grants funded by the “break it-fix it” profits generate awards, photo opportunities and official archives and documentation for the perpetrators to be admired for their bringing of advanced civilization to the natives.
What emerges from an investment banker’s analysis of billions of transactions involved in situation after situation, in place after place, in year after year, is surprisingly simple.
We are watching a global first world economy that has a negative return on investment.
For example, in 1997 I lead an analysis of US federal expenditures and credit activities in the Philadelphia area for a group of US pension fund leaders. After analysis of the detailed data resulting from $10 billion of government reengineering and $400 billion of federal credit portfolio strategy managed by my company, the evidence was overwhelming ---the federal investment in Philadelphia had a negative return on investment. In short, government budgets were rigging profits and income for companies and people in the area. After each year of government investment, Philadelphia spent more time doing things that were fundamentally not productive and so had been paid to grow “stupider.”
The deterioration in environment, culture, infrastructure and quality of life in Philadelphia that was obvious from walking around the city matched the numbers rather than the spin in the corporate news that the economy was doing well. Equity yields were falling steadily and only cooked government and corporate books could make it look otherwise. The primary thing on the rise was the smugness of the leaders of Philadelphia institutions as their success at covert management and personal “personnel benefits” grew ever stronger.
The Giant Sucking Sound as the Tapeworm Consumes Global Capital
Another way of saying this is that the banking and corporate model as currently constituted does not work. Banks and corporations are entirely dependent on rigged government budgets, government contracts, federal credit arbitrage and corrupt regulation in way that generates a negative return on investment for taxpayers. In addition, as corporations and banks become dependent on such government intervention they become progressively less able to function in a free market. Their culture becomes progressively soviet.
The combination of negative returns to taxpayers and increasingly non-market worthy private organizations is steadily lowering productivity. Add to this the increasingly power of organized crime as a % of GNP and a determinant of who sits in power on Wall Street and Washington, and fundamental productivity does not have a chance.
This state of affairs can go on as long as it can be financed. Hence, as long as America can continue to export dollars, export Treasury bills and mortgage backed and other federally supported credit, and lead in global organized crime and warfare, a negative return economy can continue.
Another way to say this is that rather than let markets adjust in a manner that would hold banks and corporations accountable, the central banks and military and enforcement machinery will guarantee markets by offsetting ever less productivity with ever greater amounts of debt and the liquidation of planetary assets – people, places, and all living things.
Which leads us to Iraq.
The Tapeworm Ransacking of Iraq
The economic desperation that lead up to the invasion of Iraq has been eloquently described by Chris Sanders of Sanders Research Associates and fits the patterns that SRA colleague, John Laughland and his colleagues at the British Helskinki Human Rights Group, have documented in Eastern Europe. Assuming the patterns that we have seen throughout the world apply, that tapeworm’s economic desperation will feed on Iraq as follows:
- The first meal to be harvested on Iraq is the profits of invasion -- from government contracts and arms trafficking to media coverage.
- The second meal to be harvested on Iraq is the resulting control of assets, including gold, oil, bank accounts and antiquities. Iraq will be stripped, shipped, or otherwise switched to new ownership. Occupiers will use Iraqi assets to leverage more debt that generates more contracts and business for the inside companies. The antiquities in Iraq and this area of the world have a special meaning and attraction for the American and British leadership networks so don't underestimate the value of these. The gold bugs at LeMetropole Café reported that the Americans have captured $1 billion of gold which was quite relevant as the NY Fed Banks particularly JP Morgan, Goldman, Citibank, are running significant short positions to suppress the gold price. Such a replenishment of their stocks (or the US Treasury who they may be trading on the account of -- they usually simply move the shorts over to the taxpayers on all these types of situations) will be quite refreshing.
- The third meal on Iraq to be harvested will be occupation management. If Eastern Europe is representative, America will partner with local and global organized crime and other intelligence agencies to significantly increase organized crime profits from the place. Attractive children will be culled from the population for shipment to Europe and other areas for sex slavery and pedophilia. Narcotics trafficking will increase as it has in Afghanistan. The award to CSC DynCorp of a $500 million sole source contract to run police, courts and judiciary in Iraq is an important signal. My question after years of research is whether CSC DynCorp’s core competencies relates to enforcement infrastructure designed for places with growing financial fraud, narcotics trafficking, sex slavery and control of leadership through "control files.” These are the talents that America needs to strip mine the assets to feed its economic desperation.
- The fourth meal to be harvested on Iraq will be fixing it and declaring victory. This will involve significant government contracts to bring Western Civilization as defined by building those things that ensure the assets that the private corporations and investors have now acquired have the largest increase in value at no expense to themselves. A careful analysis will show expenditure rations in the soviet style—that is we will spend much more than necessary to get anything done. The banks will acquire an entirely new market. Critical to the fixing it phase is the financing of the occupation with the requirement that Iraq use the US dollar. We will print dollars and the Iraqi’s will use them. This is free financing for us. Next will come the payback for the not for profit groups. Because Christianity is an essential political support base for legitimizing the de-population of the Moslem territories, a flow of resources to the right church groups to support an expansion of their missionary ministries is likely. Progressive groups will bid for contracts to bring the rule of law and economic development and things like “the rights of women.” There will be a flow of money from foundations and universities to study how to help Iraq and to justify what we are doing.
As the corporations and banks are digesting Iraq, the American tapeworm will be setting its sights for the next meal. The money will be flowing to the right think tanks, academia and media apparatus for the preparation of the next injection into the body politic.
The lethal combination of a debt based financial system, falling productivity and the absence of meaningful feedback systems means that the magic of compound interest will dictate that the American tapeworm’s hunger for more capital is accelerating.
Where is the Tapeworm’s Brain?
The great mystery in all of this is who is really in charge. On one hand, we are watching an official action of the American governmental apparatus. On the other hand, that governmental apparatus is now run by the private companies and banks that operate the apparatus accounts and systems and finance its ever-growing debts. The investors behind these entities are global, not American. This is not a picture of a sovereign government or leaders loyal to the American people. A review of global insurance risk positions, debt and capital markets would show more about who is managing what than American politics. Indeed, Greg Palast of the BBC has proved beyond a shadow of a doubt that Bush lost the election – something of no practical consequence thanks to the Supreme Court and the corporate media.
The tapeworm is in control and eating into the people of America as it is eating into the people of Iraq. Federal accounts are missing $3.3 trillion, pension funds have been stripped by pump and dump stock fraud and neighborhoods are overrun with narcotics trafficking. There are increasingly numbers of American citizens who have more in common with the people of Iraq than with the leadership of Wall Street and Washington.
With the takeover of American digital data by defense contractors and banks managing governmental functions, economic warfare takes on a whole new meaning. What is supposed to be private is not as those in the know have total access. What is supposed to be transparent is private, except for those in the know who are free to use it to advantage. With total defense contractor information awareness, people can be adjusted to ensure that markets do not have to adjust.
The American tapeworm is a symptom that the central banking-warfare model that has created the supremacy of the English-speaking people since the time of Queen Elizabeth I is dying. It is dying not because it is wrong but because it is weak. It is dying because --- like a tapeworm – it has begun to create a rapidly weaker system. Hence it is incumbent upon the English-speaking people to reinvent themselves by engaging globally to invent a new model.
Yet, the opportunity to move to a new model requires the ability to see where we are and to outline a vision to those in the system that there is hope. Doing so becomes progressively more important as who is in charge is less important than how many of us are dependent for our bread and butter on a negative return on investment economy as it tapeworms its way towards planetary extinction --- and all of us with it.
In short, the primary problem is not that the folks in charge are centralizing wealth in a destructive way or that some have too much money. That’s a problem – but a secondary one. The problem is that from the point of view of the dolphins, the plants and the trees, the planet is worse off for the presence of humans.
All solutions are found when we realize that this is something you and I can correct without wasting more time trying to find someone in charge of the tapeworm to persuade them to change its ways. It can’t change --- its too busy finding food to feed all of us.
That lady really knows her stuff! ... both from the inside and from reasoned thinking.
And this sentence shows that she really knows who the top players are:
I came across her recent "Behind the Wheel" essay about a month ago and it is also excellent.
Wow, thanks for that little nugget, nice.
The horror.
DEFAULT BITCHES!!!
I was sued for foreclosure based on fraudulent documents. The Uniform Commercial Code is very specific about what is required to be a "Holder in Due Course". When the securitization took place and banks did not follow proper procedures, they had to then go back and "jimmy up", i.e., forge, the documents. The banksters will stoop to anything to cover their asses.
I know what this is like!! Thousands of dollars in legal fees later, I feel a little justified in my actions, because now the banks are knucking under. The Florida Attorney General, Bill McCollum, has taken this on and the bast^rds are now running for cover.
Obama and the states will side with the deadbeats until after xmas shopping season. The next couple years after that, when the property taxes go unpaid long enough, it won't matter who owns or doesn't own what lien, the states get first crack at it and they don't need clean bank paperwork. Eventually it will be the same states that are stalling foreclosures that are pushing them through. Pay me now or pay me later, preferably later after penalties and interest accrue. The smart squatters and bankstas will keep paying the taxes.
Securitization is illegal under US Law for a miriad of reasons. The below comments from Worldreports.org are just scratching the surface:
"SUMMARY FORENSIC ANALYSIS PROVING THE ILLEGALITY OF SECURITISATION
From whichever angle securitisation is considered, it is ILLEGAL. For example, the contracts are themselves VOID. This is because the process of securitisation involves several contracts that are either signed simultaneously, or within a short timeframe – many of which are rendered void inter alia because there is no consideration in contracts used in effecting the securitisations.
Many such contracts involve unilateral executory undertakings containing illusory promises. A unilateral executory promise is not a consideration. Such promises typically include a promise made by the Special Purpose Vehicle to pay out periodic interest, whether contingent or non-contingent on whether the collateral pays cash interest.
Collateral-substitution agreements contain a promise whereby the sponsor agrees to substitute impaired collateral. An assignment agreement of future (not yet existing) collateral may well be deemed a unilateral executory promise by the sponsor.
Illusory promises are not valid consideration for a contract. Such promises may be found in the Subscription/Purchase Agreement, whereby an existing asset is being exchanged for a future asset that does not exist as of the date of the subscription/purchase agreement. To make matters worse, none of the agreements typically signed by the investor as part of his/her purchase of the Special Purpose Vehicle’s Asset-Backed Securities expressly incorporates the (typically illusory) promises embodied in the offering prospectus.
OR: The Special Purpose Vehicle’s promise to pay interest and/or dividends on Asset-Backed Securities ‘Interest-Onlys’, Preferreds and ‘Pincipal-Onlys’ are essentially illusory promises because the underlying collateral may not produce any cash flows at all: so there won’t be any interest/dividend payments.
Moreover the lack of mutuality characterising such contracts renders them null and void, by definition. In any such contract, each party must have firm control of the subject matter of the contract and the underlying assets (consideration), and there MUST be a direct contractual relationship between the parties concerned.
But this is not the case, especially as the Special Purpose Vehicle’s corporate documents (trust indentures or bylaws or articles of incorporation) may typically limit the right of each Asset-Back Security investor; while there is typically no mutuality at all between the Special Purpose Vehicle and the sponsor/originator, because both entities are essentially the same, and are controlled by the sponsor before and after the securitisation takes place."
SP 500 futures are showing backwardation, this is a very strong signal that buyers are paying up for the current contract. This my friend is very bullish.
If there is a near-term shortage, the price comparison breaks down and contango may be reduced or perhaps even reverse altogether into a state called backwardation. In that state, near prices become higher than far (i.e., future) prices because consumers prefer to have the product sooner rather than later (see convenience yield), and because there are few holders who can make an arbitrage profit by selling the spot and buying back the future. A market that is steeply backwardated — i.e., one where there is a very steep premium for material available for immediate delivery — often indicates a perception of a current shortage in the underlying commodity. By the same token, a market that is deeply in contango may indicate a perception of a current supply surplus in the commodity.
Herr Hitler is angry again... "Foreclosure fraud parody" - http://www.youtube.com/watch?v=9kPCYcBm-C8&feature=player_embedded
OMG! That is GREAT!
Thanks.
Is there an etf to short the human race, I'm going 2x short
Ok since I'm new to this and this comment is WAY down the page this question might not be answered. If money is created at the time the "loan" is made on the promise that you will pay it back, in order to keep the system from failing wouldn't they have to suspend foreclosure? Even if the money is not being paid back for whatever reason on the books it still exisits as a promise/debt ie money. If the banks forclose then that money that was created by the mortage ceases to exist until they can re-loan based on someone elses ability to pay.
I guess my point is halting all foreclosures then forstalls the contration of the money supply, because what we are really talking about is keeping the scheme going not the fraud in the government/banking system. If the money supply were to contract there wouldn't be enough to go around and then in my estimation that's when the fun starts.
Yep, that about sums it up. The "money" was created at the time the loan is signed. It is simultaneoulsly booked as a debit to assets (loans receivable) and a credit to liabilities (checking deposit).
IOW, inflation. Deflation is the contra procedure - the loan defaults and is (supposed) to be marked to value. If prices are falling, then losses are incurred and the money supply shrinks. IOW, deflation.
However, a problem for banks holding dead assets may be property taxes. I believe that the banks are responsible for the taxes.
Also, no one is putting any maintenance into these homes.
Mississippi Company
Law would become the architect of what would later be known as "The Mississippi Bubble"; an event that would begin with the consolidation of the trading companies of Louisiana into a single monopoly (The Mississippi Company), and ended with the collapse of the Banque Generale and subsequent devaluing of The Mississippi Company's shares.[8] The company's shares were ultimately rendered worthless, and initially inflated speculation about their worth led to widespread financial stress, which saw Law dismissed from his post as Chief Director of the Banque Generale. Law ultimately fled the country, and Paris disguised as a woman for his own safety.[8]
.
http://en.wikipedia.org/wiki/John_Law_(economist)
Well,
if they did not find a very tricky clue, this will be the end.
Most of all just think about the actual forclosures.
But the problem tracks back 10 years or more.
Everyone who bought an foreclosured House in the last 10 or more years is now in danger.
Will the original owner come back and ask for the ownership chain.
Are the documents still available ?
What will happen if the first one of those find a judge who give the House back to him.
Cause of the nonexistent documents of the real ownership situation ?
And even if this case will not happen. It is a huge damocles sword hanging over our heads.
We are not talking about those peanuts of 850 billions like that fantastic stimulus packet.
This is 3-4 numbers bigger and i mean BIGGER !!
Banks will not get any more payment for mortage credits if they can not track back who owns what part of wich credit.
No more forclosures, no more sellings of forclosured houses and maybe a lot of mess ahad with the already sold ones.
And no one can print them out of this mess.
From one fraud to another...
"US physics professor: 'Global warming is the greatest and most successful pseudoscientific fraud I have seen in my long life'" - http://blogs.telegraph.co.uk/news/jamesdelingpole/100058265/us-physics-professor-global-warming-is-the-greatest-and-most-successful-pseudoscientific-fraud-i-have-seen-in-my-long-life/
Next they will be telling us that the LBMA does not have all the gold that it claims to have.
Reply to :: N_Jones Post below----------------------------------------------------
I guess my point is halting all foreclosures then forstalls the contration of the money supply, because what we are really talking about is keeping the scheme going not the fraud in the government/banking system. If the money supply were to contract there wouldn't be enough to go around and then in my estimation that's when the fun starts.-----------------------------------------------------------------------
The fun is here now. Cash is short for small business, like the 1930s. A small retail steel vendor and steel building contractor West of Dallas has construction in process and is bidding on new business. He can deal with the steel price increase driven up by the shrinking dollar. The problem he faces is no cash from the banks. That is 2 areas. If a person owns the property and has a good credit score, money is still hard to borrow. If he can get the loan and contracts to have the building built, the contractor can not borrow money from the bank to cover the short term debt of purchase of material and labor costs to carry him to the time that he gets paid for the building. The supply companies will not carry 60 or 90 day payables like they did. There is a visible shortage of money and even the small spender is tight as a heartless greedy sob banker.
IF the idea is to destroy the economy, it is working.
I found some missing tranches:
http://www.delmarvarecycling.com/photo_gallery/images%20for%20photo%20gallery/bale%20of%20shredded%20paper.jpg
@"I guess my point is halting all foreclosures then forstalls the contration of the money supply.."
it stalls the entire economy, main st and wall st., finally recoupled, in a
death grip and at the top of the cyclone incline with only one direction
left. fasten seat belt and hold onto the bar. screaming is perfectly natural.
?
http://www.csper.org/economics-2.html
.
The Great Transformation America's Third World EconomyBy PAUL CRAIG ROBERTS
http://counterpunch.org/roberts10082010.html
.
http://www.sonyclassics.com/insidejob/
This is why gold and silver are precious, they eventually destroy the derivative. there is no schill, no charletan, no derivative, no mortgage, no contract when you pay for and take delivery of the physical.
You either have the money or you don't.
Now this will change as the elmer fudd's of the world scramble to get something real. But that's OK, the elmer's of this world are the cannon fodder which profit is made of.
As it was so it shall be. I will sell my precious to these knobs for insane profits becuase they refuse to educate and insulate themselves. Instead, they join their neighbout for the race to bottom by lveraging hteir sons and daughters to god of debt.
Peace bitchez
Buy George the third, I think you've got it!
Hinderberg Omen- Not!
Banana Republic- Another figment.
I begin to suspect that all the bleating of the ZH hardcore 'I'm a trader, I know finance, I'm one of the smart ones' is just a bunch of overstuffed momma's boys trying to be somebody.
You are all chasing this 'The Fed is really, really bad and things are about to get a whole lot worse, real fast, just wait' notion, failing to recognize that American economic supremacy is an historical fluke to begin with and that it's just time to get back to the historical mean.
I am no economist. Just a businessman who retired at 53 and runs a plantation for leisure, a long-haired overfed leaping gnome.
But I have been reading everything for thirty years and I have never seen such a sniveling self-assured mob of rabbits in my life.
Nothing's gonna happen! Get it? Nothing. We are the indispensible nation.
I know that rankles a lot of you youngsters brought up to hate your own homeland; and you pathetic ex-pats who make me sick to my stomach; and you foreigners that despise the hyperpower; and a few of you oldsters that never bothered to look past the end of your noses.
But some of you know exactly what I am talking about.
Change will happen, someof it ugly. But change will be gradual, we will adapt (see Tina Turner in Bartertown for details). After all why would all those conspirators mess up a good thing? They need drones to build 1200 foot yachts and serve them hand and foot and entertain them with wars and whatnot.
There are more houses than people in the US and FNMA owns half of'em.
Any stretch to say no one has to go homeless?
We export millions of tons of grain every year.
No one's going to go hungry.
But some of you fine folks are going to get what you deserve.
Nothing.
Written like a true thief. Was it Harvard, Princeton or Yale where you were taught? No patriotism, no concern for fellow humans, or belief in God. Yes, little will change in that no one will go to jail or pay for the massive fraud of these past years. I fear you are correct. But I will keep making my guillotines in the hope of putting traitors heads in them someday, if the U.S. Government ever falls into the hands of patriots again.
Loonie
If you get hungry enough I will let you pull my plow. If you fall I will help you up with a whip. I will pay you fifty cents silver for a day's work. You can buy potatoes for what the market will bear. You can sleep in the ditches around the fields. If you are caught stealing you will be shot. If I catch a vagrant in the neighborhood he will be impressed for ninety days. If he resists he will be shot.
Get the picture now?
Was it Harvard, Princeton or Yale
You mean SwampNuts? More like Tel Aviv. ...
Did you see the video of the settler running into those kids with his car? I'm pretty sure that was SwampNuts behind the wheel.
http://www.youtube.com/watch?v=Rc9eh-cYJQw
Hmm, well I was wrong, you are certainly not Bravo!
You're one cheeky bastard francismarion
“Francis Marion was a man of his times: he owned slaves, and he fought in a brutal campaign against the Cherokee Indians...Marion's experience in the French and Indian War prepared him for more admirable service."
Francis relax & repent your sins, you are not a part of the Horned Hand crowd, right?
Buy yourself some gold, make your woman feeeeeeeeeeeeeel good, and follow me to your salvation.
http://www.youtube.com/watch?v=_x6inINzThw&feature=related
+10000000000000
LOL
Did you read it? More homes than homo sapiens in the US?
Bartertown as an example and "nothing will happen"?
Painful if the guy is sincere.
o.k., so what is your point? satire? rage? self satisfaction?
THAT should be obvious even to a- never mind.
I hope your gay lover gets eye cancer this year for kwanzaa.
lib sod
As much as I find your world view reprehensible, I had to laugh at that one.
he has a crazy poetic streak that screams
"i am". gotta love it.
yea, but i posted my q before you gave it up.
chicken!
So, I take it that you are not from the Austrian school of economics then?
These effete Misesian dilettantes are a hoot.
As with all false priests, they forget the big picture.
Time for a little dick in the dirt 101 for these airheads.
Initially I thought your moxy crude yet charming. Then you went and placed, oh, what, about 50 fucking separate replies of "Got something special for you, see 470" throughout both pages of the comment section.
Pure vandalism, like a fucked up 2 year old boy who is pissing on everything and everybody in sight.
You're an asshole. Congrats on the short run you enjoyed.
++ Well said Bob
The word 'effete' is disastrously underused in today's economic parlance. Congratulations.
Please seek some psychiatric help. To have this much anger is not normal.
I am curious though, how old are you, what is your occupation, have you always been this angry, does you family history have severe mental illness.
Uno
What is that? 'Un', a negation, plus 'o', a zero?
I recommend you see a professional to help you with that inferiority complex. I further recommend you institutionalization for a period of three to nine weeks. There is an excellent behavior modification program for someone with your symptoms. In the meantime take two of these every six hours with a little water.
Again with the anger, remember deep slow breaths. You can beat this condition you have.
Anger management is where you need to start.
Sorry, girls, I'm married and true blue.
Hey good job Tyler! You know when the minions on the big banking payroll like mr. francis here start coming out of the wood-work, you've definitely got them ticked.
I'm actually looking foward to the day when people start waiting for these bitch-ass banking execs to pull out of their garages, smash their car windows in and have some cold steel massage their temples before turning off the lights.
ROFLMAO!
Ya definitely got style, man. That's one thing we're hep to . . . bet you don't get junked, either.
EDIT: francismarion,initially I thought your moxy crude yet charming. Then you went and placed, oh, what, about 50 fucking separate replies of "Got something special for you, see 470" throughout both pages of the comment section.
Pure vandalism, like a fucked up 2 year old boy pissing on everything and everybody in sight.
You're an asshole. Congrats on the short run you enjoyed.
Postcript: It appears that the urine I refer to above has been discarded from the previous pages.
Ah francismarion, I understand now. Simply a member of the elite, my sh*t does not smell crowd. You are the kind I used to beat the **** out of in high school (and business) after they got in a backpack and ripped up the poor guys home work. I know the, "If I am not caught, there is no foul-the Country and Humanity be damned attitude." I know your type, and you are correct. Your kind does very well at the expense of any community you inhabit. The communities however are destroyed with time. Unless you make the mistake of trying to steal from someone like me. Then you are stopped in your tracks. If not, maybe our time as a nation has come. I am very old, and the last people like you I met used poison on a friend, similar to the words you wrote above. I hope you come around and open you eyes, or better yet you loose you inherited wealth and actually have to work for food for the first time in your life.
Joo-lover too.
Junk away but the joos are at the bottom of the dirt in this world:
http://www.youtube.com/watch?v=USGSOViaulc&feature=related
What an asshole!
Welcome to the fan club. Stomp once for soda and twice for juice.
I get it--you don't have anything worthwhile to say, so just piss on everyone.
I hope you're at peace, man.
(It doesn't sound like it.)
See my remark above--you were quite right.
Boob
In all candor, you got a handle on the basics rather quickly.
You can graduate from village idiot to court fool.
No silver per diem.
Daily wage: two (small) potatoes and a swig from the master's stein, followed with a swift kick in the tail.
But be warned: there is a long line of deserving candidates waiting for your position. Continue to blather impotently and remain inane or be gone.
You're one of the MANY I wrote my little e-pis-le to.
Stings, don't it?
The day the vitriol from some fella on teh 'netz starts getting under my skin is the day I sign off for a few months.
I think you're cute, kind of like the growling, yapping chihuahua that BEGS anyone to care what it thinks.
One big primal scream, friend. Come on, why not make it personal? It'd be a bit less cowardly, at least.
It's actually spelled epistle, ignorant scum.
I was an RTC Workout Adminstrator who opened commercial loan files at S&L's that had been closed. Many folders contained no chain of title, appraisal or even the note. I started from the recorded mortgage and had to forensically move to the title chain. In some cases, it took several lawsuits to determine that the S&L was indeed the owner of the propert, or I recommended to the RTC that the bank re-foreclosed to establish title. None of the fraudster owners (primarily developers) received any property free & clear (although it was obvious that some were involved in buying the property back). Based on my personal experience, I would state that NONE of the property owners, in the longer timeline, will end up with their property free & clear. Not going to happen.
soo.. party on??
Life is about events and responses. To the average citizen, alot of negative 'events' have come about recently.
And now for the response...
http://www.zeitgeistmovingforward.com/
Oh yeah, it's on like Donkey Kong.
Holy shit, simultaneous release in 60 countries in 20 languages. Hope we can keep the house from falling until January 2011.
Boob
Til Jan 2011?
Then what?
You are definitely buffoon material.
See the overseer for a job description.
Man, you got a big mouth. i truly wish I could meet you in person so I could kick the living feces outta you.
Nice Parody of Hitler as a banker pissed over this
http://www.youtube.com/watch?v=9kPCYcBm-C8&feature=player_embedded
I was just watching Goldfinger & 007's line struck me. "They (Chinese) get what they want, economic chaos in the west. And your gold goes up..."
"I am for the first time grateful to our President for making one right decision on behalf of the American people."
Yes-that was a spineful fillibuster on his part. And a pleasant surprise. It will be fascinatng to watch this unfold- that is- to watch how the media alows it to unfold.
OK fellow ZH-ers. Will this news prick the top-heavy market's helium balloon and allow a true correction (or uncontroled landslide) back to more reasonable level(s)?
This is option expiration week, so those rules may apply. POMO mania rules are also in effect, once that stops than the fun starts.
Looking at the agriculture commodities, with yesterday's limit up for many, does that continue?
I personally believe the POMO takes center stage, I would never short until that stops.
Also if you look at the Libor, Ted and Junk bonds there is plenty of liquidity.
Nope.
A correction will require a run to safety (risk off) so the USD reverses course.
That means either europe or asia must have a severe problem. Not likely in asia just yet. So a debt crisis in europe is the only likely trigger IMHO.
Even a disastrous earnings season in the US might now be taken as good news, since it will ensure ever more QE.
My short-the-market finger is quavering in anticipation of the day the USD takes a 45 degree angle north.
http://vodpod.com/watch/3744507-damon-vrabel-psychonomy-banks-own-nations-understanding-nwo-economics-series
.Damon Vrabel, Psychonomy - Banks Own Nations (UNDERSTANDING NWO ECONOMICS SERIES)
The guy has a real gift for illuminating the simple reality behind all the complexity of money, which in our system is only created via debt that pretends to be money (which previously never existed) that comes to life via loans passed onto/taken out by others.
It sounds insane, but it covers the facts. And the implications for power & control of society are profound.
agreed.
and it is painful to learn that which you do not want to know
with the insight that it is so simple and it is hidden in plain
sight, ignored, from dawn till dusk and causes misery everywhere.
Ellen Brown has an excellent piece on Mortgagegate in Counterpunch
http://counterpunch.com/brown10082010.html
If the banks lose trillions because of this, won't the FED just print the trillions and exchange them for the garbage securities like they did in 08?
FED balance sheet to 20 trillion?
Somewhere, in 2006, there was an American with a 4.548% Flat Fixed.
After getting off the phone with a Hindu Tech. support operator named Bob, got in his Brazilian made Ford pick up, nodded while passing the new unemployed neighbor whose company moved to China a year ago, paid the Pakistani store clerk on a work visa for a six-pack, got home and tuned on his Japanese TV to hear excerpts of the Feds meeting that day:
He thought to himself: “Things are slowing down at the plant. Better look into if they have a five year teaser rate I can refinance into. Who the fuck do they think they're kidding – this won't hold long.”
He was a great man.
Anyone paying anything considered good a value consideration to these entities is not operating on good "business" principles. "They" made the rules that are going to "kill" them but we all don't have to be included in such "you know". I still think RTC time has long past - we will all collectively have to figure something else out. There are pending RICO actions that are driving the politics. It is as they say "game over" but some want to choose how to die.
The Debt will not be payed.
http://www.youtube.com/watch?v=WK6SS4ETHWQ
hey, I have my new login...just testing it.
A resolution trust corp won't be able to sort the title insurance fraud claims that will spring from this!
The title insurance industry is already layered in fraud and kick-backs, and the title insurances are in bed with the lenders. That bed is going to get pretty cold when title companies have to start writing checks to over title fraud claims because of the mortgage and foreclosure fraud commited by the banks.
Holy smokes, this is a diaster.
http://www.nytimes.com/2010/10/09/your-money/mortgages/09money.html
I took all my funds out of the large ATM-based banks many years ago when I experienced their impersonal customer service and realized these empty suits were:
TOO BIG TO SUCCEED
Just have the Quants incorporate this Algo http://en.wikipedia.org/wiki/Forward-backward_algorithm
Then go back in time and shift the SIV's, Repo 105's, and All CDS, to that parallel universe.
Top Men are working on it, as we speak, using ReverseEnron Principles.
This message was posted at 10/10/10 10:00am, as directed.
Oh, They Said add CDO's to that too, sorry.
Especially the synthetics and the squareds.
If there were any cubed, those too.
Wait, they are arguing again about maybe using more Markov learning algorithms.
Now they say try the forward-backward first.
Will get back to you.
ok, the Caymens will do for now, too much counterparty risk with the parallel universe, evidently....
BTW, a black hole was created in the parallel universe, but that's their problem! Shouldn't affect us .
If you enjoyed this "science fiction" story, but still don't get it, I will summarize.
Algorithms cannot predict human behavior (Black Swans need fat tails).
Putting toxic waste into offshore SIV's doesn't make it go away.
Five Surviving Banks have 200 Trillion in infinite Black Hole CDS.
Parallel Universe = The Parallel Shadow Economy.
I know that this is so 2008, but it is still there.
Now the CDS margin call cascade will again be triggered with foreclosuregate.
Oh, happy ending time...The fed just got done buying all the toxic waste at par, for 1.8 Trillion. So nat debt is now only 13.8 Trillion, and it will never be paid back anyway so WGAS?
Max Keiser on Moscow Radio: "Hank Paulson is wanted for crimes against capital. For crimes against capital there should be capital punishment!" LOL
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