Another Blow For America's Banks (And Bank Of America) After California Kills Robosigning Settlement
Anyone exiting the third quarter with a Bank of America (or Wells, or JPMorgan, or Citi) short on their books will be delighted to learn that the "other" mortgage fraud scandal, not the putback litigation which is sure to cost Bank of America billions in incremental legal fees now that that particular settlement appears to be challenged and banks even across the Atlantic are joining in the legal free for all, but the "Linda Green" robosigning affair, which various conflicted attorneys general had held a tenuous grasp over with a settlement in process, has just blown out wide into the open once again, after California joined New York AG Schneiderman in pulling out of the talks, and leaving Iowa Atty. Gen. Tom Miller with a completely lost cause. We expect all other states to promptly follow New York and California's examples. The net impact is quite adverse for all mortgage lenders, as this development will merely snarl the traditional foreclosure process for even longer, and while beneficial to borrowers, it will put even less cash into the depleted coffers of the banks that so desperately need it. Since few if any will actively pursue distressed, or any, housing sales, it will not only hinder further balance sheet repair of the banking sector, but will keep a lid on any potential housing market improvement, which as BCG confirmed a few days ago, is the most critical missing link to any economic recovery. Without it the hands of the Fed chairman are tied even more, and leave him (and the middle class) with just one, nuclear as it may be, option.
The Los Angeles Times reports:
California Atty. Gen. Kamala Harris will no longer take part in a national foreclosure probe of some of the nation's biggest banks, which are accused of pervasive misconduct in dealing with troubled homeowners.
Harris removed herself from talks by a coalition of state attorneys general and federal agencies investigating abusive foreclosure practices because the nation's five largest mortgage servicers were not offering California homeowners relief commensurate to what people in the state had suffered, Harris told The Times on Friday.
The big banks were also demanding to be granted overly broad immunity from legal claims that could potentially derail further investigations into Wall Street's role in the mortgage meltdown, Harris said.
“It has been a process of negotiating and sitting at a table in good faith, but ultimately I have decided that we have to go our own course and take an independent path. And that decision is because we need to bring relief to Californians that is equal to the pain California experienced, and what is being negotiated now is insufficient," Harris told The Times in an interview.
Harris delivered the news in a letter sent Friday to Iowa Atty. Gen. Tom Miller, who has been leading the 50-state coalition.
What is left open to interpretation is whether this is an open attack by the very much insolvent state of California against the Obama administration which has actively been pushing for precisely this settlement, which would be highly beneficial to banks, and quite damaging to the legal system, and specifically the perception of how easily it can be trampled if one is a TBTF bank.
The removal of California from the discussions is a major blow to fraying efforts by the coalition, which has been trying to strike a settlement deal with the big banks for months. The move by Harris to reject the settlement talks is also a key departure from efforts by the Obama administration, which has been pushing for a fast resolution to the so-called robo-signing scandal that erupted last year.
Chris Whalen chimes in:
“This whole concept of a settlement on foreclosure abuse is probably dead,” said Christopher Whalen, the founder of Institutional Risk Analytics. “Nobody in their right mind is going to opt into a settlement right now.”
And with California no longer on the side of Miller, the state is sure to enjoin the active pursuit of a far more comprehensive resolution to the robosigning fiasco, which will inevitably result in far greater pain for the banks.
New York Atty. Gen. Eric Schneiderman, who was originally part of the 50-state negotiations, has launched a wide-ranging investigation into Wall Street's role in the mortgage meltdown -– focusing on the efforts to bundle low-quality mortgages into sophisticated bonds.
Schneiderman has been highly critical of the proposed 50-state settlement and expressed concern that his counterparts in other states may let the banks off too lightly and provide immunity from other efforts to bring them to account for misdeeds. Schneiderman has also won support from attorneys general in Delaware, Nevada, Massachusetts, Kentucky and Minnesota, some of whom have launched their own investigations.
A spokesman for Schneiderman, Danny Kanner, welcomed Harris's move.
“Attorney General Schneiderman looks forward to his continued work with Attorney General Harris and his other state and federal counterparts to ensure those responsible for the mortgage crisis are held accountable and homeowners who are suffering receive meaningful relief,” said Kanner.
Bottom line: America's TBTF banks, which increasingly are looking like they just may be NTBTF, had a horrendous Q3. It appears that Q4 will not be any better. And as Bullard indicated yesterday, all it takes for the Fed to "act" is for "further economic weakness to develop - read another step down in the stock market." California's decision just made it certain that further "weakness" will develop. And on the day that the New York Fed first published its Operation Twist POMO schedule, it is already time to start thinking about what form the next new and improved form of quantitative easing will take...
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This smells a lot like California angling for federal money to bail out its economy. Expect a Cal bailout deal in the next month or two - one you'll never hear about in the MSM.
The whole banking system is based on fraud. If you want to save the country then you must reestablish the rule of law. Some people need to go to jail.
Here in Florida, the banks sit on the judical nominating committees. They own the courts.
There is no justice. There is just us.
All you Chris Christie sycophants should rememeber he is a member of the bankster harem of whores.. I supose for those Banksters that like them big.. after all, to each his own. How much bankster nut licking is his appointed AG doing I wonder ?
Christie is a dirty , fat , lying scumbag......i triple dare him to run for president.......the people will get their (100 pounds) of fat
Christie is cool!
Christie is a shill!
ZHers let your views be known!
I thought Christie is trying to fire people swilling at the government cheese.
How can this be bad?
On the other hand, he's a politician. How can this be good?
yeah his taking on the public leeches of the teachers union was fun to watch and made for good entertainment , watching the teachers get their heads bashed in, but he hasnt touched a state employee.....its all been squeezed to the local level......so all he accomplished was to have services cut and highest property taxes in country continue their rise, all while patting himself on his fat back, that HE didnt raise taxes .........dont get me started on how he hasnt done a thing about double dipping scumbag politicians (although i will admit he cant do it himself) but lets not give this guy any credit for be a conservative.....he is anything but !!
squeeze the school teachers and fellate the felon bankers; that seems about right.
Politicians and diapers need to be changed often and for the same reason!
Nice 12 minute interview to remind us of the magnaitude of this fraud and a perspective rarely, if ever reported on in the MSM.
http://www.youtube.com/watch?v=_txiRtAbeaI
Excelent video. Bill Black nails it yet again! Thanks for posting it.
G-R-U-N-T - Thanks for link.
1st and best option - Relace Holder with William Black as Attorney General.
2nd option - Appoint William Black as Special Prosecutor.
Agree, Christie will not "fix" anything serious. He will create the kinds of problems that righties like (e.g., more corporatism, more private plutocracy) at the expense of the kinds of problems that lefties like (more welfare statism, more public plutocracy.)
I don't care that he's fat. I'd almost rather that, than the made-for-TV stuffshirts that we have to look at most of the time. But I do care that he's just "more of the same."
I like the fact that Christie has the sand to do what he says he will do. But, he is a Johnny come lately compared to Ron Paul.
Totally awesome! the banks need to lose all those houses - they committed the fraud and now they have to pay up for the fraud! Let the people win for once!
i for one enjoy watching the banks burn... but long term wonder what the implications of a widespread banking collapse will be... freedom for the people? or one mega bank "to rule them all" which only furthers the centralization of power and control in the hands of the elites? a related question, is the collapse now a controlled demolition? impossible you say...
It may help kill the Fed, which underwrote the whole thing. More people, after they lose their savings, will wake up to the inherent evils of fractional banking and fiat currency, and demand a return to something more honest.
sunnydays,
dude the people that are fortunate enough to still be in those LINDA GREEN homes, are winners.
The only problem(and one I would love to have on a $350-500k home for free, is there will NEVER be a way to get a clear title.
So, if you want,you cannot sell it, it's yours for life.
Taxes and all.
Of course there is. Called an action to quiet title. If no one shows up to defend the action, it's a slam dunk.
You could always listed on Ebay stating the title is unclear via Linda Green. I would buy one marked down 70% or so.. life is about chances... anyway live in it mortgage free for 30 years and then dump it on Ebay kinda thing.. or stay until you die. Let your peeps flip it on Ebay or move in for another life time of no payments.
I'm in Florida too. Just got word that Bank of America restarted ALL of their foreclosure cases yesterday or Thursday. A large portion had been on hold for robosigning, loss mitigation, etc. review. I don't know what this means, but it is an abrupt change in the company policy. They were doing this review to protecte themselves from future litigation. Now they seem to be saying "F*** it."
Desperate?
Squatting has become big in my area.
I am seeing serial squatters. One group moves out. The next group moves in. The For Sale sign remains.
What I smell is this. Insurance. Banks can't insure vacant properties. Insurers wont' insure vacant properties.
Also, there is the need to keep the heat on so pipes don't freeze. Or fix a piece of trim if a raccoon rips it off. And then there is lawn mowing if there's a town ordinance about appearance.
It's a fucking disaster and there is zero progress working out of it.
I live in a rural area of the sw US. The house next to me has been vacant for 2 years. I've been irrigating the trees (canal fed) to keep them from dying and occasionally mowing the yard. The other day the BofA dicks showed up to assess what they needed to fix to sell it. I had an upleasant conversation with them where one made the comment that they're "tired of getting bent over by the public" on all the housing defaults. As I walked away I told him to buy some KY because the banks getting bent over is only starting. I then proceeded to by some more FAZ on a pop.
I know it was good risk managment to sell my FAZ position near the close on Fri. but I still feel regret for being too chicken to hold it and try and extract more out of the fuckers.
Rolled the dice and stayed. ERY/FAZ/feeling good about next week. Thanks ZH.
Good luck!
The squatter problem here in AZ has a couple of interesting twists due to the illegals.
First, the bulk of them took their money and went home. This leaves a BIG bunch of empty houses, so there aren't enough people to fill all the empty houses.
The flip side is the illegals that remain are the hard core, make money, gangsters. When they are found squating there are usually assault weapons and tons of dope or hundreds of people jammed in there.
So I'll take the vacant houses. I call the cops if I see anybody I don't recognise at a house with a for sale sign. Better vacant than caught in the crossfire.
I've heard the same thing here in CA. Just anecdotal at this point, but an acquaintence with over 24 months of BAC negotiations just popped to the foreclosure card overnight.
Not asking for a free house, looking for some of the relief provided to the banks to be used to asisst an honest person whose mortgage was destroyed by these bifurcating fools.
I'm afraid justice will be displaced by retribution as the rule of law is removed from the judiciary and finds it's way into the hands of the people directly.
Yep. I see homeowners standing on their porches with shotguns, in a molon labe pose... sherrifs refusing to evict, because they're elected, not appointed or annointed like our Washington politicians. Could get interesting.
18000 viewers watching live feed of cops arresting NYC protestors against corporate and bankster crim greed. they are there for us.
http://www.livestream.com/globalrevolution
THis has more to do with that fact that Kamala Harris is a moron. Truly reached her Peter Principle several jobs back. She is a bonafide socialist whack job.
http://articles.latimes.com/2009/jun/22/local/me-harris22
Kamala Harris program "trained illegal immigrants for jobs they couldn't legally hold"
San Francisco District Attorney Kamala Harris is a contender for California state Attorney General. She's bad enough that some liberals in her city think she's incompetent and soft on crime. Not only that, but even the Los Angeles Times offers "San Francisco D.A.'s program trained illegal immigrants for jobs they couldn't legally hold/As she runs for state attorney general, prosecutor Kamala Harris faces questions over a program that trained illegal immigrant drug felons for jobs, kept them out of jail and expunged their records" (by Michael Finnegan, link).
Sunday, May 1, 2011May Day! — Democrat-Socialists Rally Around Unions Of course.
It's May Day, the "International Day of the Worker."
And right on cue, at Los Angeles Times, "California Democrats rally around unions":
"They are intent on dismantling the very economic ladder that lifted our middle class and made California the richest and greatest state in the greatest nation in the world," Atty. Gen. Kamala Harris told thousands of delegates and supporters gathered at the Democrats' annual convention in Sacramento.
Too bad CA couldn't get together with NV and reopen the Au/Ag mines that were used to finance our little family spat in the 1860s. NY financial interests sure played that one well, didn't they?
CA / NV still has the remnents of our sound currency days in that US mints and coinage capacities exist to strike constitutionally correct money for our own populace. Trust needs to be restored and for better or worse, we're re-entering the trust and verify stage of commercial activity.
Script may be useful again in the future, but the fed's feeble attempt at continuing to pass their's off as USD is rapidly coming to an end. imo again.
Bifurcate the fed from the USD.
"... how much can we soak US taxpayers..."
Thread FYI: Bank of America's website is still down, now for about 1 day. This is a great way to frighten customers. http://www.bankofamerica.com
Hmm. Maybe the Fed showed up on Friday afternoon, to take them under "stewardship."
Off with their heads !
im still waiting for a perp walk....
all this banking b.s. would immediately stop.....if they would put one, ONE ceo from a bank in a butt pounding prison....not club fed.
oh well, justice to the best lawyer in this system...
im still waiting for a perp walk....
If there are no actions by the "leagle" system i fear that vigilant justice will make a come back
It may start with a large number (I'm not even sure it has to be a majority) of people with a TBTF servicing their mortgage to simply stop making payments. It would overwhelm even the fraudclosure system and kill the TBTFs dead.
who put boiling water in the bathtub?
Bathtub?
The Orthodontist of Omaha will not be a happy camper this weekend!
Maybe he'll change his mind and say there is very little chance of a recession instead of very, very little chance.
I'm starting to believe we're in for an interesting monday European opening session.
If this was a normal market I would think that too...but nothing seems to move it the way it should move...Greece defaults...it will go up I bet...my Econ 101 fell apart after the first bailout....nothing seems to be working to economic plan after that for me at least....
True, but the DXY has just left the launching pad and its' fuel will probably be paid for by the equity/commodity complex.
Combined with financials nose-diving on Monday in light of this robo-signing turmoil and general weakness and a failed EOM stick save I believe it's about time to put on our DOW 10.000 hats on the way down.
the dxy leaving the launch pad is the last thing ben wants. currency wars this is.leads me to ponder when it will be time to focus on americas issues instead of europe. as bullard hinted at, fed just needs a reason, any reason. insert blank here and they will do more easing, more monetization, more dilluting of the dxy. of course there are many ways to trade this, including picking an american bank thats #winning, shorting dollar by buying gold. been reading reggie middleton? heard hes going hunting for squid.
Even Reg can't swim deep enuff, in such murky waters to locate those slimmy squid.
If more news from the MSM, like the news linked below, keeps coming out yes monday will be
a panic.
No Rise in Home Prices Until 2020: Bankers
Published: Saturday, 1 Oct 2011 | 8:49 AM ET Text Size By: Karina Frayter, CNBC Markets ProducerHome prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a survey of bank risk managers out Friday.
The survey conducted by the Professional Risk Managers’ International Association for FICO, found that 49 percent of respondents do not expect housing prices to rise back to 2007 levels for another nine years. Only 21 percent of respondents said they would.
Biden's son is AG in Delaware. Interesting to see him named alongside Schneiderman.
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/23/AR200808...
http://brontecapital.blogspot.com/2009/04/economics-of-paradigm-global-a...
http://brontecapital.blogspot.com/2009/05/question-about-appropriate-eth...
Joe Biden's other son, Robert Hunter Biden, and Joe Biden's brother, James Biden, outright stole over $100MM through a ponzi investment scheme across international jurisidictions and walked away scot free because Obama and Holder refused to investigate, let alone prosecute the crimes. Now Beau Biden sits in judgement of other investment bankers in Delaware, jurisdiciton of convenience of many of the other investment banker fraud fronts in the country, and rakes in campaign cash and peddles influence with his father from inside his government offices on the DElaware state government dime, and he does so daily, every single day.
This is an Obama jobs program...for Lawyers....the broke states see a back door bailout available...win a 50 billion dollar award...and the Fed backstops the banks...easy money..politically correct...no State bailout....no nothing there...but saving the banking system from total collapse and with it the Western world.....yeah a Politician can run on that....
What the hell does Miller want to settle with these bitches for?
For the money, and future considerations.
Maybe they have photos of that incident with <insert embarrassing/criminal/immoral event here> and he has to play along.
You mean the photos of Barney Frank bifurcating Freddie's fanny?
How does glossing over fraudulent robosigned conveyances "keep a lid on any potential housing market improvement"? The chains of title are fucked.
chunga
That,my friend is as you know the issue in a nutshell.
There are no LEGAL titles.
Robo Signing basically has GIVEN all homeowners with the nads to do so, the ability, and legal right to keep their homes, and not pay for them.
The Banks are in a word,screwed.
Good summary.
"Robo Signing basically has GIVEN all homeowners with the nads to do so, the ability, and legal right to keep their homes, and not pay for them"
And this situation can be changed by inserting two paragraphs into some legislative bill sometime. IMHO all this political posturing is based on finding an acceptable way to insert those two paragraphs and get away with it.
And guess what...the robosigning deal is not some benign gimmick paper technicality where "corners were cut" employed by deadbeats. Let's use an analogy that will be popular on ZH. Suppose all the holders of paper PMs called in to collect their physical. Would there be enough? Ha ha
There are more holders of paper on physical houses than there are physical houses. They are all insured against default, hence the reluctance (refusal) by these "lenders" to comply with discovery requests. Talk about "unjust enrichment"...lol.
JP Morgan Chase/WAMU just got bitch-slapped pretty heavy in the state of Rhode Island on Friday. I'll throw the details on Foreclosure Hamlet Monday and link it up here on whatever "fraud of the day" post seems most appropriate. Today is all about cold beer.
That's just silly. If there's no legal title, the person living there doesn't have a legal title either. The only thing is, no one has the authority to toss them out either. But they can't sell without a title.
But do counties have a vested interest in kicking out all the people supporting them in the way of property taxes? I'm curious if the counties are being paid property taxes by the banks for all the unoccupied houses they hold off the market?
As a practical matter, it seems the idea that posession is 9/10 of the law would apply, and so maybe legal title could be granted to the occupants by the county unless the banks can prove they own it. With all the MERS assignment problems and other recording problems, I think there is going to need to be a big do-over anyway.
Time to make restitution to the victim, that would be me.
Robosigning stole transfer fees from my school, county, and state funding.
I bailed them out, they continued to robosign, 100% bondholder haircut should be comming.
Nationalize these sobs, make a special tax catgory for banking execs, and throw their asses in jail with bubba.
This is the mesage that the 99's need to get out and learn themselves.
Goldman Sachs rules the world.
Nationalize?
That's not the focus. The focus is on declaring things to be fraud.
The word FRAUD triggers clawback provisions in the law. We don't need to shut down banks and have their executives retire to Barbados from their severance package. We need to have FRAUD be part of any declarations.
The NY state laws enable CLAWBACK if fraud is involved. Let's go out and clawback EVERY PENNY OF BANK EXECUTIVE COMPENSATION . . .NOT JUST FROM THIS YEAR, BUT FROM THEIR ENTIRE CAREERS.
Ron Paul believes in the RULE OF LAW.
I am Linda Green
that's funny.
And I'm Eric Schneiderman!
I am Spartacus.
Got 'chu beat.
ya, but I'm Batman
I'm Zaphod B. Belbrocks, and I have the ID to prove it!
But I am also Linda Green.
me too! What a coincidence.
The weekend douche Tyler strikes again! This article makes the California AG the bad guy. He states that the poor banks can't heal until the states relieve them of all legal liability for 10 years of fraud. Fuck the banks. I hope California AG and New York stay strong.
Wow, speaking of douche, have mirrors in your home?
Well, I am "the point" and I don't think we have ever met.
Maybe u should find another blog where the message or "point of the story" are. a little easier to follow.
The train has already left the station, the Fed is out of bullets.
Speaking of pomo, does anyone recall when the pomo launches would start during QE2? was it 10:30ish ? I forget. Would this smaller version be enough to cause a tiny blip up during that window? I ask because with my sinister mind I expect to see no effect this go round because they will shift to the late night globex market to get as much juice as possible out of it.. but my thought processes are tainted these days and I expect the most evil plotting by these thieves so I'm probably wrong.
Guess they played their shitty bluff too hard.
Make no mistake, the banks and Wall Street and their supporters in Congress and the WH really wanted this settlement.
When Elizabeth Warren and former OH AG Cordray now at the CFPB were trying to contact State AGs to discuss how bad this propped settlement would be for rule of law and for the states and investors defrauded by these lenders, the banks really pushed back.They had the Congress people they contribute the most to, make a big issue about Warren lying about her involvement in the settlement talks, and Treasury basically threw her under the bus. They so wanted her to back off and they so wanted the AGs all to agree to this settlement. One journalist discovered via Warrens published meeting schedules, that she was the one that pushed Obama veto the "nationalizing notaries" bill, another Wall Street loved piece of legislation that would have pre empted states rights and robo signign claims.
Issa's staff guy, who is a former GSacs VP(quite pay downgrade, gee I wonder why he took such a cut) who changed his name to avoid attention, Haller, was the key architect of a stupid little political theater acted out by Rep McHenry, another Congressman who gets huge funds from Wall Street, who used a scheduling mess up for Congressional hearings to call Warren a liar, smear her. The banks really, really didn't want her running amok.
There is still plenty of time for these rebel AGs to sell out in the future, so it's not a clear victory yet. But I know is the banks really, really wanted this settlement and were really leaning on their Treasury and other WH connections and their Congressional connections to get it.
I suspect the banks would have paid big money to avoid rule of law, but in this case, they may not have the money to meet NY and Cali's demands.
It's not as if these criminals didn't know at the time that what they were doing was illegal. But, hey, everyone was doing it, and they were making a ton of money. Of course, now that the jig is up, the banks are demanding immunity from prosecution, and the "Obama administration has been pushing for a fast resolution to the scandal." I submit that these are not the actions of people with a clear conscience.
Remember the Paulson Plan? (http://www.nytimes.com/2008/09/21/business/21draftcnd.html) Even as Hank Paulson granted himself $700 billion in spending authority to bail out his friends and former co-workers, he made sure that the plan included language to cover his ass legally. Section 8 stated that "Decisions by the Secretary...may not be reviewed by any court of law or any administrative agency." How's that for pre-emptive, blanket self-immunity? Not exactly the kind of language someone acting in good faith would insist on.
BTW, another section in the plan raised the Statutory Limit on Public Debt to $11.35 trillion. The debt clock now reads $15.12 trillion.
At first when I clicked the link to the L.A. times I saw the timing of the news release at 1:51pm and thought, shit this bomb hit while the market was opened.. then I relized I had to add 3 hours time zone differential (4:51pm) putting it after the market closed. Now I feel all comfy cozy with my BAC puts.
Banks can't crash fast enough! BUT... POMO fear mongering: QEx, "it's the end of the world", "GOLD to the moon", hyperinflation!!! perhaps briefly...
To quote you Tyler in a previous article dated 9/26/2010: http://www.zerohedge.com/article/why-qe2-qe-lite-may-mean-fed-will-purch...
In summary, David Tepper may well be right that stocks will benefit from QE2, as will Bonds and as will commodities. In fact, every asset class will explode in a supernova of endless liquidity. To be sure, all of this will be very short lived. Very soon, all those assets denominated in fiat paper, will promptly collapse in the great black hole of reserve currency devaluation, as it becomes clear that the Fed will stop at nothing to win the race of global currency debasemenet. And of course, none of this is to be confused for an actual improvement in the economy, as QE2 will result in a dramatic and irreversible deterioration in the US, and thus global, economy, which, once the initial euphoria from QE2 recedes, will promptly progress to isolationism, protectionism, currency wars and exponentially accelerating monetization of each and every asset class, thereby rendering price discovery irrelevant, as central banks around the world stampede into irrelevant capital market, each buying up as much of everything as their printing presses will allow them, until the ink runs dry.
Nothing has changed from 9/26/2010 Tyler. History has proven you were 100% correct. The Titanic is sinking in a frenzy of competitive devaluation, transitory hyperinflation may spike stocks and comodities again As Osama Bin Bernanke announces the Bankster Dining Room will be moved to the upper deck of the Titanic. The end is the same, the Titanic sinks! And as the Titanic begins to list and confidence in central planning dies EVERYONE will exchange hyperinflated equities for dollars as they scramble to the lifeboats ( http://www.zerohedge.com/article/what-american-bank-run-would-look )just as they have post QE2 and will post-QEx or who knows during QE3. The fact is pre-wipeout hyperinflation is transitory and will collapse into a liquidity desert Inception style where Jack realizes he is Cobb and the Titanic is lying on its side in the Liquidity Desert surrounded by the skeletons of middle class investors. Massive Deflation is the only Endgame as confidence is lost in the inflated PONZI.
The dollar may morph into something else, Gold Backed or Greenbacked as the Fed is ran out of town on a rail, but the fact remains the world will run to the dollar as they have in a post-QE2 environment. And for those of you who think GOLD will go to the moon when everyone sells their stocks for dollars and in unison flock to physical cash, well you are on CRACK. Credit Evaporation will destroy the economic landscape as we see it as fractional reserve banking implodes in on itself and pennies actually buy something again. (GOLD BUGS FLAME AWAY I CAN TAKE IT;)
"Nothing has changed from 9/26/2010 Tyler"
Wrong! We are $1.5 trillion more in debt.
For now. In the end all sovereign debt will go through restructuring and creditors will take the ultimate haircut. Decapitation!
Gold goes to the moon during the banking holiday - when the great devaluation occurs and you end up with 1 "New Buck" for every 100 "FRNs"
That would put GOLD at $16.22/ounce if that happened today. I would buy GOLD at that price.
The last time the US did this, the price of gold went up 75%
I can see this happening after the dollar soars and Gold collapses due to massive deleveraging and margin calls. Then the 1 for 100 exchange... at that point one ounce of gold may be worth one dollar when all is said and done. The following run up would put the price of Gold at $1.75/ounce, a 75% run up.
Who knows for sure? One thing is for certain! The Global Monetary PONZI will collapse! How order will be restored remains to be seen.
When that happened the currency was backed by gold. They changed the system a while back!
Yeah, go ahead and buy gold. The FRN is backed by the US government, whereas gold is not backed by anything.
Don't you watch the news?