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There Goes Wells Fargo: California AG Calls On Banks To Halt All Foreclosures In California

Tyler Durden's picture




 

Sorry Warren Buffet and Charlie Munger: the lie was fun while it lasted. Suck it up.

BN  *CALIFORNIA AG CALLS ON BANKS TO HALT FORECLOSURES IN CALIFORNIA

and there's more:

BN  *AG BROWN SAYS IN TALKS WITH BOFA, ALLY, JPMORGAN, WELLS FARGO

and yes, it's now airborne:

BN  *NEW MEXICO AG CALLS FOR SUSPENSION OF MORTGAGE FORECLOSURE

 

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Fri, 10/08/2010 - 15:19 | 636159 Ivanovich
Ivanovich's picture

The lie is still fun.  Stocks at new daily highs.

Fri, 10/08/2010 - 15:48 | 636298 schoolsout
schoolsout's picture

anyone see this yet from 4closurefraud?

 

http://4closurefraud.org/2010/10/08/action-alert-is-pres-obamas-pocket-v...

 

snip...

The word is out that Pres. Obama’s pocket veto of the Digital Robo-Signing Act was actually a trick.  Sen. Harry Reid didn’t actually adjourn the U.S. Senate.  The Senate has been kept in session by a little understood ruse and the bill will become law tonight at midnight without the President’s signature.

The big banks will file suit after the election to have this bill declared to be law.

Article I, Section 7 of the U.S. Constitution seems to support this view.

Some drunken bankers were already bragging about this an some major news outlets, including Fox News have reported on this.

Fri, 10/08/2010 - 15:55 | 636336 schoolsout
schoolsout's picture

Denninger talking about it now

Fri, 10/08/2010 - 16:10 | 636394 knukles
knukles's picture

Is there not a single fucking thing that is not broken anymore?

Fri, 10/08/2010 - 18:15 | 636722 JLee2027
JLee2027's picture
I'm hearing O's golf game is heating up nicely.
Sat, 10/09/2010 - 16:44 | 638330 Precious
Precious's picture

He can talk all the fuck he wants. 

Fri, 10/08/2010 - 16:09 | 636388 LostWages
LostWages's picture

Saw this on White House twitter: 

 

For Immediate Release

It is necessary to have further deliberations about the possible unintended impact of H.R. 3808, the "Interstate Recognition of Notarizations Act of 2010," on consumer protections, including those for mortgages, before the bill can be finalized. Accordingly, I am withholding my approval of this bill. (The Pocket Veto Case, 279 U.S. 655 (1929)).

The authors of this bill no doubt had the best intentions in mind when trying to remove impediments to interstate commerce. My Administration will work with them and other leaders in Congress to explore the best ways to achieve this goal going forward.

To leave no doubt that the bill is being vetoed, in addition to withholding my signature, I am returning H.R. 3808 to the Clerk of the House of Representatives, along with this Memorandum of Disapproval.

BARACK OBAMA

THE WHITE HOUSE,
October 8, 2010.

Is this just bullshit?

Fri, 10/08/2010 - 16:12 | 636403 knukles
knukles's picture

What else hasn't been?  No truth spoken, no promises kept.  Friday action to be reported in Saturday newspapers, if not wholly ignored by the MSM. 

Fri, 10/08/2010 - 16:15 | 636413 schoolsout
schoolsout's picture

Sounds like it to me.

Fucked up world we live in.  I wish the people of this country had balls...everyone I talk to about this don't know...and when I tell them about it, it rolls off their back.  Fuck me.

Fri, 10/08/2010 - 17:24 | 636595 andybev01
andybev01's picture

Hope someone has archived that just in case it's called into question later.

Sat, 10/09/2010 - 14:40 | 638131 snowball777
snowball777's picture

Nope. Barry knows what kind of backlash he'd get from this. Look for an end-run elsewhere...probably ensconced in some emergency appropriations "for the troops" or somesuch.

Fri, 10/08/2010 - 16:44 | 636532 Wynn
Wynn's picture

Did you see they are now claiming this bill was just a shout out to Calvin Coolidge, who was a notary in New Hampshire?

You can't make this shit up

Fri, 10/08/2010 - 20:44 | 636991 Buck Johnson
Buck Johnson's picture

If this is the case, it's horrible truly horrible.  They know how bad this really is and they can't get the banks out of this by an legal means.  Because they have not only broke federal laws, they broke state laws as well and essentially lied to the court on every instance they did this.

Sat, 10/09/2010 - 14:43 | 638133 snowball777
snowball777's picture

Not to mention enough back taxes to choke a whole Wells Fargo wagon train worth of horsies.

Sat, 10/09/2010 - 20:01 | 638553 pamriallc
pamriallc's picture

the AG doesn't have a choice here.  the AG is responsible for banking documentation re: consumer protection.  that means they MUST halt foreclosures.  they probably dont want to.  it only delays the INEVITABLE and people who don't pay will LOSE THEIR HOMES.  this isn't a new idea, of course, people have been losing their homes, boats, cars, mansions, and yes---  THEIR CAVES  if they somehow didn't make good on whatever debts were in those days of dragging women around by the hair.

 

the CA-AG has to see where in the system the problems are occurring, they will take the "LLC" that banks have for doing this kind of mass paperwork that begets mass problems, and the banks will be forced to redo all of the crappy documentation, attornies will be paid, tons of drag on an already overburdened and overregulated system spun into a frenzy again, abd I fully expect Al Sharpton to try and make a statement somewhere, maybe a book tour with respect to the insanity of these HUGE PROFITABLE BUSINESSES THAT MUST BE FINED TAXED AND REGULATED UNTIL THEY DON'T EXIST.

SUCK IT UP? --- I actually agree with Munger in this case.  at some point, you have to blame the person who took the risk.  it wasn't anyone but me and my wife who decided to buy our house, and clients who acquired golf residences, etc...  had the economy kept chugging along, no one would have cared.  no one cares until they lose.

 

then people RATIONALIZE and that means they find people to blame--- since no one likes to admit being wrong.  it was the system, it was the other guy driving, it was my parents, it was SOCIETY, my priest, etc...

 

truth be told, the faster we get this stuff FORECLOSED THE AUCTIONED TO STRONGER HANDS the faster the system recovers.  and contrary to popular belief---   BANKS WOULD RATHER NOT FORECLOSE---- IT'S FRIGGING EXPENSIVE TO DO THAT AND TAKE BALANCE SHEET HITS!--- so they're speeding the process out of expediency (wrong idea) to try and get the process behind them, not for any monetary benefit.

yes the AG's job description says he MUST halt the foreclosures.  puts another few billion in dead weight cost into the system which will show up as fines to the bankers.... but it won't change the end result at all.  you don't pay your bills, stuff gets taken away.  truth is, most people are relieved when it's all done because then they can begin living more within their means.

Fri, 10/08/2010 - 15:20 | 636168 Cognitive Dissonance
Cognitive Dissonance's picture

Tyler

Isn't being correct with your prediction such a sweet taste in the mouth? The only bitter part is that you're discussing the end of the world as we know it.

Try some Listerine. It helps.

Fri, 10/08/2010 - 16:02 | 636362 knukles
knukles's picture

How now, brown Dow?

If the Senate has not been adjourned, then there may legally be no recess appointments.

Watch that space!

Fri, 10/08/2010 - 15:21 | 636169 Wynn
Wynn's picture

fire one up cali, your stash is safe for now

Fri, 10/08/2010 - 15:21 | 636170 Ragnarok
Ragnarok's picture

This just seemed fitting:

 

Robert the Bruce: [after William is betrayed] Father! You. Rotting. Bastard. Why? Why?
Robert Bruce, Sr.: Longshanks required Wallace. So did our nobles. That was the price of your crown.
Robert the Bruce: Die! I want you to die.
Robert Bruce, Sr.: Soon enough I'll be dead. And you'll be king.
Robert the Bruce: I don't want anything from you. You're not a man, and you're not my father.
Robert Bruce, Sr.: You are my son, and you have always known my mind.
Robert the Bruce: You deceived me.
Robert Bruce, Sr.: You let yourself be deceived. In your heart, you always knew what had to happen here. At last, you know what it means to hate. Now you're ready to be a king.
Robert the Bruce: My hate will die ... with you.
Fri, 10/08/2010 - 19:05 | 636828 Gromit
Gromit's picture

Methinks the Bruce doth protest too much!

Fri, 10/08/2010 - 15:21 | 636171 molecool
molecool's picture

Is it wrong to feel a bit of 'Schadenfreude' about this?

Well, no matter what happens - equities will ramp. Bad/horrible news - market up due to expectations of QE2. Good news - market up since it's good news!

I wonder if a small tactical nuke launched at the center of a populated U.S. city could propel the Dow to 13,000?

Fri, 10/08/2010 - 15:25 | 636187 centerline
centerline's picture

It would clear out a decent % of those nasty distressed properties and therefore be positive for the economy.  As an added bonus, unemployment figures would suddenly improve!

Fri, 10/08/2010 - 15:27 | 636196 Cojones
Cojones's picture

Beat me to it.

Fri, 10/08/2010 - 15:29 | 636206 centerline
centerline's picture

I hit refresh and saw your comment pop up at the same time as mine.  Twisted crowd here at ZH to have the same demented comments pop up like that!  lol.

Fri, 10/08/2010 - 15:26 | 636191 Cojones
Cojones's picture

Of course it would . Unemployment would drop, construction would surge, etc. The best thing that could happen to the Dow is the big one stirring up Cali.

Fri, 10/08/2010 - 15:37 | 636241 cossack55
cossack55's picture

As long as it is not the Hamptons.

Fri, 10/08/2010 - 15:54 | 636334 tmosley
tmosley's picture

Nothing wrong with schadenfreude.  Here's an instructional video by Gary Coleman, who knows all about being on the other side of the equation: http://www.youtube.com/watch?v=4XmZIcmRKkc

Sat, 10/09/2010 - 14:44 | 638138 snowball777
snowball777's picture

I wonder if a small tactical nuke launched at the center of a populated U.S. city could propel the Dow to 13,000?

 

Broken Arrow fallacy?

Fri, 10/08/2010 - 15:21 | 636172 centerline
centerline's picture

Doesn't Wells hold the lionshare of mortgages?

Sat, 10/09/2010 - 02:21 | 637384 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

I think they have the lionshare of HELOCs -- perhaps more than 1T? 

Well, it's 1T when you're using mark-2-WTF...

Sat, 10/09/2010 - 14:45 | 638142 snowball777
snowball777's picture

Perhaps not by sheer number, but definitely by value...CA is a pricy RE market and that's where their loans and MBS are cluster(fuck)ed.

Fri, 10/08/2010 - 15:21 | 636174 Millennial
Millennial's picture

I'm gonna MMMBop my way to my foreclosure.

http://www.youtube.com/watch?v=NHozn0YXAeE

 

 

Fri, 10/08/2010 - 15:40 | 636253 cossack55
cossack55's picture

I know this puts me in a new section of the "kind of out there" camp, but I always rather liked that song.  I wish I would not have watched the video, though. 

Fri, 10/08/2010 - 15:42 | 636270 aheady
aheady's picture

Gross.

Fri, 10/08/2010 - 15:47 | 636296 MsCreant
MsCreant's picture

Those girls are just tomboys. Why so negative?

Fri, 10/08/2010 - 16:01 | 636358 Millennial
Millennial's picture

I think Pianist in the group is hot. 

 

Actually I just like saying pianist.

Fri, 10/08/2010 - 16:23 | 636441 aheady
aheady's picture

lolol

Fri, 10/08/2010 - 15:23 | 636177 Cursive
Cursive's picture

We will have full nationalization of the the banks.  What other end game is there?

Fri, 10/08/2010 - 15:28 | 636201 Ragnarok
Ragnarok's picture

Hmmmm........... could this be a short-term dollar positive? Bank-runs anyone?

Fri, 10/08/2010 - 15:37 | 636240 SheepDog-One
SheepDog-One's picture

Right, full fascistic socialism of america should be great for the equity indexes! And if people dont like it, off with your heads!

Fri, 10/08/2010 - 15:42 | 636259 Leo Kolivakis
Leo Kolivakis's picture

Full nationalization of US banks would be a disaster, but given the way these assholes are running them, they're virtually asking the gvt to step in and do it!

Fri, 10/08/2010 - 15:48 | 636302 MsCreant
MsCreant's picture

Leo, 

You doomer. 

Fri, 10/08/2010 - 17:42 | 636635 Arkadaba
Arkadaba's picture

lol

Fri, 10/08/2010 - 16:23 | 636442 Bob
Bob's picture

I think a possible disaster in exchange for a proven one is a sane risk. 

Fri, 10/08/2010 - 16:43 | 636529 tmosley
tmosley's picture

So, rather than taking a broken arm, you would take a pull of Russian Roulette?

Magnitudes need to be taken into account in such scenarios.

Fri, 10/08/2010 - 18:04 | 636692 Bob
Bob's picture

I've heard that intelligent people can disagree about things.  Including their assessments of risk.  Allowing a bankster cartel (that could make the Mafia cower) to continue on its present--and unchanging--course strikes me as fatal.  Russian roulette would indeed be preferable, if you like that analogy. 

Sat, 10/09/2010 - 10:21 | 637701 pvzh
pvzh's picture

Besides, in original russian roulette there is a way to never lose.

Fri, 10/08/2010 - 16:54 | 636582 Rasna
Rasna's picture

We should have nationalized the banks back in 08/09 instead of TARP and created a Bad Bank for all of the bad assets... That would have allowed them to get all of this bad crap off of their books and allowed for a fresh start... Obama and company (Tim and Summers) advised against this and we are where we are becaus of the incompetent inaction... At some point nationalization HAS to come into play... It will be painful short term but will be good long term.

Fri, 10/08/2010 - 15:35 | 636232 nwskii
nwskii's picture

This is like a snowball, the more it moves the bigger it gets 

Fri, 10/08/2010 - 15:37 | 636235 centerline
centerline's picture

Desperately lacking thier own printing press and seemingly hung out to dry - could it be the failing state governments / munis / pension funds / etc. that turn to eat the banks and federal government along with fed?

Fri, 10/08/2010 - 15:37 | 636236 LostWages
LostWages's picture

Add Nevada to the list:

Nevada attorney general asks lenders to termporarily halt foreclosures

Nevada Attorney General Catherine Cortez Masto sent letters to all residential mortgage lenders in Nevada, asking them to temporarily halt foreclosures, evictions and sales of foreclosed properties, spokeswoman Edie Cartwright said this morning in an e-mail.

Fri, 10/08/2010 - 15:36 | 636237 RobotTrader
RobotTrader's picture

Wow..

News for the banks keep getting worse.

Those stocks should be crashing by 3% today.

Instead, they are down pennies.

Fri, 10/08/2010 - 15:38 | 636246 HarryWanger
HarryWanger's picture

Yes, every time ZH reports one of these mortgage stories the market spikes. Pretty funny really.

Fri, 10/08/2010 - 15:42 | 636265 Cleanclog
Cleanclog's picture

Probably the Fed buying US bank shares since all assets can be purchased all the time anytime now by the Fed.  How large will that balance sheet grow?  Sigh

Sat, 10/09/2010 - 05:31 | 637459 A Man without Q...
A Man without Qualities's picture

I wonder what John Paulson is thinking?  Not only is his fund massively long US banks, but he's also got the potential risk that his "greatest ever trade", synthetic CDO may turn sour if the reference assets get bid up in the expectation of legal risks around the mortgage assets.  I don't know if these positions were actually ever closed out...

Fri, 10/08/2010 - 15:46 | 636290 traderjoe
traderjoe's picture

Pretty clear the Fed wants a Dow 11k headline for today to mask this and the jobs news. 

Fri, 10/08/2010 - 15:39 | 636250 SheepDog-One
SheepDog-One's picture

Flip of the coin whether its good news or bad news? Seems mostly a political ploy right now, to get the insolent peasantry happy theyre not getting kicked out, for now. But lets see how its good news for the banks when every payment suddenly stops.

Fri, 10/08/2010 - 15:49 | 636307 traderjoe
traderjoe's picture

It's unfortunate that this is called foreclosure-gate, or foreclosures are invoked to discuss this. 

The original sin is that the banks did not appropriately handle, transfer, etc. the original note and mortgage file. In many cases, the note may no longer exist. 

Therefore, every note and mortgage securitized say between 2004 and 2008 now has a clouded title. No way that is positive. 

Fri, 10/08/2010 - 16:07 | 636378 Ned Zeppelin
Ned Zeppelin's picture

MORTGAGE-GATE

Fri, 10/08/2010 - 17:43 | 636643 Arkadaba
Arkadaba's picture

I agree. How about Paper-gate?

Fri, 10/08/2010 - 17:58 | 636681 blunderdog
blunderdog's picture

Isn't the real "original sin" that banks gave housing loans to anyone who could make an X on a sig line for 10 years?

 

Fri, 10/08/2010 - 21:32 | 637065 reading
reading's picture

title-gate

Fri, 10/08/2010 - 23:10 | 637213 Bay of Pigs
Bay of Pigs's picture

Full Retard Gate

Fri, 10/08/2010 - 15:41 | 636263 rubearish10
rubearish10's picture

This story means nothing,,,,,,just like that Sub Prime thing that happened not too long ago. <sarcasm>, ugh....

Fri, 10/08/2010 - 15:46 | 636269 Hephasteus
Hephasteus's picture

Ya keep everybody calm right before columbus weekend. Long weekend.

SOMETHING IS COOKING. They aren't defending 1300 on gold. They are going to go full retard this weekend is the only thing I can think of.

2 people leave the white house this week.

I can't figure out Rahm though. I would have thought he would be down with the plan. I guess we sit and wait and see if they are actually going to do it.

Fri, 10/08/2010 - 15:54 | 636332 HarryWanger
HarryWanger's picture

It's not really a long weekend. Markets are open on Monday.

Fri, 10/08/2010 - 16:03 | 636369 Hephasteus
Hephasteus's picture

But only markets. Banks are closed no bond auctions.

Fri, 10/08/2010 - 15:55 | 636339 SheepDog-One
SheepDog-One's picture

Figuring out Rahm is easy, they just opened the new NORAD bunker in Chicago, where hes headed to ride out armageddon. People dont realize it yet, but 'game over' is all complete except for the 'event' that unhinges it all.

Fri, 10/08/2010 - 23:20 | 637228 Oh regional Indian
Oh regional Indian's picture

Hey SheepDog one, you might find this funny/appropos:

http://aadivaahan.wordpress.com/2010/10/08/the-lighter-side/

 

;-)

ORI

Sat, 10/09/2010 - 02:51 | 637409 Hephasteus
Hephasteus's picture

LOL

Fri, 10/08/2010 - 15:47 | 636293 homersimpson
homersimpson's picture

Probably your best comment in the past month.. even without the hot chix..

Fri, 10/08/2010 - 16:13 | 636371 ChanceIs
ChanceIs's picture

See Chris Whalen, Roubini etc at Wednesday's conference at the American Enterprise Institute:

Living in the Post-Bubble World: What's Next?

http://www.aei.org/event/100297#doc

Full video replay not yet available but certainly by Monday if not sooner.  Presentation materials available now.  Lachman is the most bearish amongst them.  It was my pleasure to see it live in person.  Whalen understands -says banks will be forced to reorganize - what this whole panel recommended three years ago.  The panelists seem to be calling for more QE.  They are better analysts than synthesists - developing solutions.

Just remember how long it took for the "levitating lenders" to crash and burn.  About 18 months after a reasonable time.  I don't think the political class will have the stomach to bail out the banks again.  I have already called and bitched.

Just remember - if the government dos a bailout, the stockholders get hosed.

Recall how long it took DSL to crash and burn after Barrons pointd out that 70% of their earnings came from "imputed interest" off of option ARMS.

 

 

Fri, 10/08/2010 - 15:37 | 636242 Joeman34
Joeman34's picture

So does this mean we should stop making mortgage payments?  Even if foreclosures are halted, defaulting would still negatively impact credit scores right? [And yes, I'm aware credit scores won't matter once the majority are sh*&ty].  Just wondering about the practical implications of this news and if I should stop paying on underwater investment properties...

Fri, 10/08/2010 - 15:41 | 636255 SheepDog-One
SheepDog-One's picture

If I was making a mortgage payment Id definitely stop sending checks.

Fri, 10/08/2010 - 15:51 | 636320 traderjoe
traderjoe's picture

Personally, I'd wait a bit to see how it shakes out. And contact an attorney before you make any decisions. For instance, if your mortgage was kept in-house by a nice local bank, they will still be able to foreclose (and quickly) since the paperwork never left their file cabinets. 

Fri, 10/08/2010 - 16:21 | 636430 NotApplicable
NotApplicable's picture

If you stop making your mortgage payment, instead of falling, you've went and jumped into the trap.

No one will be allowed to have a free house.

Fri, 10/08/2010 - 16:45 | 636540 faustian bargain
faustian bargain's picture

However, trading a worthless property for X ounces of gold might be a good deal.

Fri, 10/08/2010 - 18:26 | 636755 JLee2027
JLee2027's picture

No one will be allowed to have a free house.

We've paid for the house, it's not free. There are just no more payments because no one else has title.

Fri, 10/08/2010 - 15:40 | 636248 Greater Fool
Greater Fool's picture

Did the California AG's office add the legally mandated "I'm Jerry Brown, and I approve this message" tagline?

Fri, 10/08/2010 - 17:31 | 636603 andybev01
andybev01's picture

+10

 

I am getting soooooooo sick of political ads...

Fri, 10/08/2010 - 15:39 | 636249 rubearish10
rubearish10's picture

All this is Bonus Fuel for QEII. Why not "throw it in" for good measure. 

Fri, 10/08/2010 - 15:39 | 636251 HarryWanger
HarryWanger's picture

Another reason to add to your AAPL position. All that disposable money that won't be paid on mortgages will force everyone into the latest iPhone/iPad/iPod.

Fri, 10/08/2010 - 15:44 | 636276 SheepDog-One
SheepDog-One's picture

Assuming bankrupt unemployed americans are sitting on a vault of cash now freed up for some wild 2006 style spend till you drop shoppin sprees? I wouldnt bet on it.

Fri, 10/08/2010 - 15:48 | 636301 HarryWanger
HarryWanger's picture

Been working for Apple so far. When we were in a "depression" everyone said Apple would die since people had no money to buy gadgets. But guess what? They continued to grow. More people bought more gadgets regardless of unemployment rates or 401k's losing money. 

People will always want what they perceive to be cool regardless of what it does to them financially. When your entertainment is watching American Idol and playing video games, you don't really need to spend much.

Fri, 10/08/2010 - 18:08 | 636710 Arkadaba
Arkadaba's picture

I disagree with your comment about people "want what they perceive to be cool regardless...." I do agree that Apple may continue to do well but for different reasons.

One, the typical Mac user is educated, affluent and dedicated. Apple has a large base of hardcore fans that aren't going anywhere soon. (Believe me, I've met some of them - and there is no way they would switch to a PC even if it was half the price). I think the reason why may vary - first computer was a mac, visually oriented, work in graphics ....

Two, you might want to redefine gadgets. How many people do you know use their cell phone as ther primary number. I know I do. I use Skype at home for long distance and my cell as my primary number. I do not have a land line because I would be paying for something I would rarely use. If I were unemployed tomorrow I would hold onto my internet service first and my smart phone second (my phone is not a gadget). 

So I do agree with you that Apple might survive whatever is coming up but for different reasons.

Fri, 10/08/2010 - 19:54 | 636925 HarryWanger
HarryWanger's picture

Majority of people buy iPhones because they're very functional and many buy them because they perceive them as cool. These people never touched a Mac in their lives. But Jane down the street has one and Mrs. Doe also wants to be cool so she gets one. 

Don't confuse the iPhone user with the Mac user.

Yes, your phone is not a gadget but your iPad certainly is. You could argue that you need a phone but an iPad? Really? iTouch? Really? AppleTV? Really?

Eventually, they'll lose market share to competitors and something perceived as being "more cool" will come along. Until then, people will spend money they don't have on gadgets that they perceive as being cool. Always been that way, always will.

Fri, 10/08/2010 - 21:17 | 637042 Ned Zeppelin
Ned Zeppelin's picture

+++!

Fri, 10/08/2010 - 23:22 | 637231 StychoKiller
StychoKiller's picture

Eventually, they'll lose market share to competitors and something perceived as being "more cool" will come along.

Eating and keeping warm in the winter time is that "more cool" stuff of which you speak!

Sat, 10/09/2010 - 00:45 | 637278 Arkadaba
Arkadaba's picture

Very tired - Long weekend here - I know I am right and can find some data to support my position. Later. Have a good weekend

http://www.youtube.com/watch?v=K-G4onYzITc

Sat, 10/09/2010 - 04:09 | 637445 Troy Ounce
Troy Ounce's picture

 

...it is all about your fuckability index....

Fri, 10/08/2010 - 16:08 | 636384 reading
reading's picture

I'd have to agree here...we seem to be forgetting most of these ppl bought houses they couldn't afford and have added impact of job loss, etc...they didn't have the money to pay the mortgage in the first place so the mountain of cash they have to spend now seems wildly overrated.

Fri, 10/08/2010 - 22:24 | 637141 RichardP
RichardP's picture

Source please.

Fri, 10/08/2010 - 15:48 | 636297 plocequ1
plocequ1's picture

God bless you. I've been holding Apple since $ 205. I love Apple. Their products are great. It's also a great stock.

Fri, 10/08/2010 - 22:36 | 637157 Hephasteus
Hephasteus's picture

I've heard you say that before. twice.

Fri, 10/08/2010 - 16:36 | 636496 tip e. canoe
tip e. canoe's picture

don't know about iShits, but after today's action, looks most certain much more of that income will be going to towards the grocery bill.

CORN ETV up 14.61% today.

Fri, 10/08/2010 - 15:43 | 636260 84Hog
84Hog's picture

I hate to throw cold water on the vibe here, but I don't see how this could not be sorted out in the bank's favor eventually.  Way too frickin' much capital at risk here, plus the whole "moral hazard" thing too.  By rights, the banks should have to eat these losses, but the courts will view this as a technical error that can be corrected.

Fri, 10/08/2010 - 15:49 | 636311 HarryWanger
HarryWanger's picture

I agree with this. No different than throwing out trades in a flash crash. Like they never happened.

Fri, 10/08/2010 - 15:54 | 636330 traderjoe
traderjoe's picture

Real estate law is local and very well established in terms of property rights. No original mortgage note, no mortgage. Where's the note?

I don't know how this will settle out, but it could be HUGE. 

No tickie, no laundry. 

Fri, 10/08/2010 - 16:12 | 636404 Idiot Savant
Idiot Savant's picture

True, but in the majority of cases, an original note will be produced. Besides, if the note isn't available, the bank will argue that the home was never sold and the residents are squatters. Regardless, I don't see anyone getting a free home out of this SNAFU.

Fri, 10/08/2010 - 18:12 | 636717 swmnguy
swmnguy's picture

I'm sure you're right about this, IS.  How, exactly, this will play out is anyone's guess.  But no free houses.

Fri, 10/08/2010 - 19:41 | 636902 reading
reading's picture

Your mortgage note is not your deed to property ownership.  It is a lien and the mortgage holder must ensure they are secured in the position they expect.  You are very naive if you believe the banks do not fully realize how significant this issue is.  Their processes for closing and processing these loans were very questionable in the hay day.  They didn't worry as much as they should about crossing the t's and dotting the i's as they never saw this foreclosure tsunami coming -- the wave just took them out.  The question is will they aspirate on the water before they can start treading it?

Sun, 10/10/2010 - 14:54 | 639574 Hephasteus
Hephasteus's picture

What do you mean they never saw the foreclosure tsunami coming. They plotted it's fucking course. The set up one wave that would spook the market of option arms that reset. Then they set up another wave of them crash the market. It still wasn't enough so they had to pump gas to 4 bucks a gallon to finally drain people's will to pay off debt.

This is as engineered as a gun.

Fri, 10/08/2010 - 21:49 | 637089 anonnn
anonnn's picture

re "prove" who holds the mortgage...IANAL, but demanding proof that the forecloser been assigned as note-holder is very viable in a legal proceding [e.g. in California]. Produce the assignment!

Demanding that a forecloser show or produce the note is not necessarily a recognized right.

There is a difference, in that the law recognizes that to become a note-holder, there must be an assignment as such [and perhaps a recorded assignment].

 

Sun, 10/10/2010 - 11:55 | 639316 Milestones
Milestones's picture

Affidavit's that are forged are the same thing as lying in open court. It is called perjury, and in these cases, would appear to be felonies.

This is not about a "little irregularity."  Milestones

Fri, 10/08/2010 - 16:09 | 636389 reading
reading's picture

Good luck getting fraud through as a technical error.  The error occurred when they did the note in the first place.  They've had every opportunity to fix their capital at risk and have chosen not to.  

Fri, 10/08/2010 - 15:41 | 636261 Midasfinancas
Midasfinancas's picture

So much SHIT going on in America and market keep pumping... It´s a total BULLSHIT OF A MARKET.

Fri, 10/08/2010 - 15:45 | 636288 Greater Fool
Greater Fool's picture

An alternative interpretation is that everyone knows this will all blow over pretty soon, and in the meantime it provides an easy thing to be against going into midterms.

Banks are stocked up on REO properties anyway, so waiting to add these new ones until the end of the year isn't a big deal; they most likely wouldn't be generating income either way.

Fri, 10/08/2010 - 15:50 | 636317 HarryWanger
HarryWanger's picture

I am in the "alternative interpretation" camp on this. I think you're spot on.

Fri, 10/08/2010 - 16:14 | 636407 reading
reading's picture

Definitely, I mean thank god subprime was contained.

Fri, 10/08/2010 - 21:22 | 637053 Ned Zeppelin
Ned Zeppelin's picture

Harry: reconsider and look at some of my posts on this. It will not blow over. It is fatal.  This MortgageGate is just starting and has potential to be a tsunami.  You can't fix "don't own it" that easily in this world, and the tax, property law and other state and federal laws applicable to these highly technical MBS/REMICs are not forgiving when it comes to mistakes. You will see. Think B of A suspended foreclosures in 50 states because of "foreclosure paperwork problems" alone?  There is no way they would do that.  They have a gun to their heads.

Fri, 10/08/2010 - 23:26 | 637236 StychoKiller
StychoKiller's picture

Go long title search companies, and short title insurance companies.

Fri, 10/08/2010 - 15:56 | 636344 traderjoe
traderjoe's picture

The RMBS market measures in the trillions. Many of them now might not have any collateral. If you were an RMBS buyer and never got any assignment of mortgages, what would you do?

Will there be an RMBS market until they sort this out?

Fri, 10/08/2010 - 16:13 | 636405 reading
reading's picture

Imagine the political fallout if one were to remind the american tax payer how many shitty MBS's we already own that we might not have clear chain of title to?  

Fri, 10/08/2010 - 21:55 | 637100 anonnn
anonnn's picture

Assignment may be key: There must exist an assignment as note-holder in order to establish the note-holder. Thus the proof of assignment can be demanded. IANAL

Sat, 10/09/2010 - 02:04 | 637368 The Navigator
The Navigator's picture

Something like 93% (or 97% - sorry for the dyslectic numbers jumble - it's 3-something in the nineties- 100-3 or 90+3) of all newly written mortgages are going to the broken Fannie Mae or Freddie Mac; amazing.

Fri, 10/08/2010 - 16:11 | 636397 reading
reading's picture

It means they can't sell the ones they have now...they have not only issues with those in foreclosure but those they already foreclosed. The risk to banks is how it is perceived to damage their capital not the full on sustained losses that they recognize immediately -- remember the money isn't packed away in a vault...perception is reality

Fri, 10/08/2010 - 18:35 | 636768 NumberNone
NumberNone's picture

+1  You are exactly correct.  Everyone's happy here....banks don't have to take on any more inventory, government gets to bash the evil banks just in times for elections, homeowners get a few more months to buy iPads,and local governments don't have to factor any more foreclosed homes into the tax base.  What's not to love???

Why so gloomy everyone?  Get your rose colored glasses on and you'll know why the market is so enthusiastic!!

Fri, 10/08/2010 - 15:43 | 636274 Miss Expectations
Miss Expectations's picture

I've got my protest sign:

YOU SUCK

it up

Fri, 10/08/2010 - 15:43 | 636275 MrTrader
MrTrader's picture

Professional banksters deserve a place with Mr. Madoff. Bernie, warm up your cell chair for your soon to be cell mates !

Fri, 10/08/2010 - 15:45 | 636280 Dr. No
Dr. No's picture

This was predicted a couple of weeks ago...yawn.  The CA AG is Brown.  He is in a tight race for governor.  This will push him into a decisive lead.  Look for nothing to happen.

Fri, 10/08/2010 - 15:48 | 636306 Dr. No
Dr. No's picture

This is bullish:  No one paying mortgage = higher taxable income (no mortgage deduction) = less california red ink.

Fri, 10/08/2010 - 15:44 | 636282 Dr. Engali
Dr. Engali's picture

And the market continues to go higher.

Fri, 10/08/2010 - 15:44 | 636283 centerline
centerline's picture

Tyler...

 

Have you seen KD's post

 

http://market-ticker.org/akcs-www?singlepost=2203988

 

about HR3808 potentially passing due to congressional session being left open?

Fri, 10/08/2010 - 15:50 | 636314 SheepDog-One
SheepDog-One's picture

I just heard that story myself, apparently Obunghole the communist lied directly to the american people and HR 3808 has passed, some giddy banker was just spewing that they really pulled the woll over the sheeples eyes this time! Oh man, is this gonna get ugly. I dont care about some BS pops in stocks like Robo is obsessed with all the time, things are about to get real bad quick.

Fri, 10/08/2010 - 15:55 | 636335 centerline
centerline's picture

I am hearing that it does not pass until midnight assuming the Senate session remains open.  The US Senate website says session was opened for pro forma session - which reeks of a sneaky move.

Fri, 10/08/2010 - 15:55 | 636337 Dr. No
Dr. No's picture

Even more comedy:  A bill regarding signatures, passes by voice vote, only to be vetoed by not signing, only to become law because Harry Reid forgot to turn out the lights when he left.

Fri, 10/08/2010 - 16:26 | 636454 reading
reading's picture

Send comments...Call him an asshole, whatever but if nothing else inundate the server.

 

http://www.whitehouse.gov/webform/comment-legislation?billname=H.R.%2038...

Fri, 10/08/2010 - 16:28 | 636462 Greater Fool
Greater Fool's picture

My understanding is that the veto has to be delivered to the House, since that's the chamber the bill came out of. House is adjuourned until November.

Fri, 10/08/2010 - 16:36 | 636498 centerline
centerline's picture

That's my take on it too. Guess we will find out soon enough!

Fri, 10/08/2010 - 18:21 | 636740 blunderdog
blunderdog's picture

I think the way a pocket veto works is the bill just never gets enacted because the POTUS drops it behind the radiator.  He's still supposed to sign laws into effect, and if he doesn't, they never go into effect, even if passed by Congress.

Fri, 10/08/2010 - 22:34 | 637153 RichardP
RichardP's picture

If Congresss is in session and passes a bill, it becomes law ten days after they submit it to the President for his signature - assuming Congress is still in session on the tenth day.  This assumes he simply has not signed the bill and has not actively vetoed it.  If Congress is not in session on the tenth day, and the President has not signed the bill, it dies.  The difference lies in whether Congress is in session ten days after they send a bill to the President that he does not sign.

Fri, 10/08/2010 - 16:38 | 636506 Arkadaba
Arkadaba's picture

If this is true, I think I will need to come up with a new term that means flabbergasted, gobsmacked or astounded by the audacity of America's corpolitical ruling class!

As I recall from my years in the States, Friday night is a popular time to pass unpopular legislation.

Fri, 10/08/2010 - 16:37 | 636507 NorthenSoul
NorthenSoul's picture

As much as I'm not particularily fond of Obama, I can't imagine the Democrats (ie. Reid and Obama) pulling such a dirty trick, a month before the election.

 

It'd be pure political suicide.

Fri, 10/08/2010 - 15:45 | 636286 RobotTrader
RobotTrader's picture

Not just iPads.

All those newly unemployeds that get to live "rent free" for another 6 months are going nuts buying $150 workout outfits.

Fri, 10/08/2010 - 15:47 | 636294 Greater Fool
Greater Fool's picture

Nice composition on that photo.

Fri, 10/08/2010 - 15:52 | 636324 HarryWanger
HarryWanger's picture

Fancy workout duds and cool gadgets go hand in hand. Imagine showing up at your yoga class in a t-shirt and shorts with and Android phone. OMG! How horrifying!

Fri, 10/08/2010 - 17:37 | 636618 Arkadaba
Arkadaba's picture

I've done it! I'm sorry but there are so many better uses of a few hundred of my dollars than on a pair of yoga pants. And yes an android phone is one of them. I'll stick to my raggedy gym shorts and t-shirts and invest the savings on yoga pants somewhere else.

Fri, 10/08/2010 - 16:22 | 636435 MountainMan
MountainMan's picture

Ahhhh...the Bow River passing by Banff, Alberta....the chick is great too...

Fri, 10/08/2010 - 15:52 | 636322 SparkySC
SparkySC's picture

I hate those 2 old liars.

Buffetttttttfake is the faud of the Century.

Fri, 10/08/2010 - 15:52 | 636323 SheepDog-One
SheepDog-One's picture

Reported HR 3808 has been slithered thru as passed law, contrary to the Liar in Chiefs assertion he 'pocket vetoed' it, senate was kept in session and the bankster fraud protection act will pass tonite at midnite.

Fri, 10/08/2010 - 16:42 | 636520 reading
reading's picture

Is there a reason he couldn't just actually "VETO" the damn thing?  

Fri, 10/08/2010 - 15:58 | 636352 VeryDumbMoney
VeryDumbMoney's picture

Is this considered a black swan now?

Fri, 10/08/2010 - 16:39 | 636513 HarryWanger
HarryWanger's picture

No. If it causes major harm to the economy, then yes. But right now, no, it's not a black swan.

Fri, 10/08/2010 - 15:59 | 636354 SparkySC
SparkySC's picture

shouldn't she have laid out a towel/mat on that deck? Doing yoga on that old wooden pier will leave her Workouts duds torn up and her backside full of splinters. LOL

 

 

Fri, 10/08/2010 - 16:34 | 636486 Bob
Bob's picture

I trust that backside is hard enough to hold up to some wood.  Did I say that?

Fri, 10/08/2010 - 17:42 | 636638 andybev01
andybev01's picture

HA! Loved it.

Fri, 10/08/2010 - 16:00 | 636357 OutLookingIn
OutLookingIn's picture

Don't forget this little known player in the background - ground zero for all OTC CDS MBS - for when the unwinding starts. The Depository Trust and Clearing Corporation, who's subsidiary the Trade Information Warehouse, through the Warehouse Trust Company, which is under the Federal Reserve Banking System and is therefore backed by the taxpayer, will be the killing zone for these toxic mortgages with bailouts by the public purse! 

Fri, 10/08/2010 - 16:36 | 636501 NotApplicable
NotApplicable's picture

Don't they own all of the stocks too?

Fri, 10/08/2010 - 16:02 | 636360 bankonzhongguo
bankonzhongguo's picture

I said it before, I have been in court verses Wells Fargo for two years in California on a case with clearly forged and manipulated loan app and closing docs, but the courts are going the way of: "if you got the money you owe it back."  They do not care about MBS, fraud underwriting to Fannie or Freddie and other issues.  This press is about pretending to hit the banks before the elections.  Thats it.  There is so many foreclosures in the pipeline and OREO that the banks WANT a hiatus on foreclosures.  Don't worry.  After the November election, they will be back in the swing of things.  Just you watch. NODs nailed to the front of your house on Christmas Eve.  Happy Birthday Jesus.

PS.  Did you guys hear about that CPS taking the baby away from that New Hampshire couple for being Tea Party members?  Google Stephanie Janvrin and get the word out pronto!

Fri, 10/08/2010 - 16:22 | 636436 Idiot Savant
Idiot Savant's picture

Perhaps we should wait for the facts. I'll be first in line to help if there isn't cause.

UPDATE : 10/07/2010 10.53PM PST — We have confirmed that the affidavit in support of the order to take the child from her parents  states ,along with a long list of other assertions  against both parents, that “The Division became aware and confirmed that Mr. Irish associated with a militia known as the Oath Keepers.”     Yes, there are other, very serious allegations.  Out of respect for the privacy of the parents, we will not publish the affidavit.  We will leave that to Mr. Irish.   But please do remember that allegations do not equal facts — they are merely allegations (and in my  experience as a criminal defense lawyer in small town Montana I saw many allegations that proved to be false).

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