The deeper you look, the worse this is getting:
By now, everyone should be faintly aware (ahem, sarcasm added) that we are in massive meltdown across the entire financial spectrum. Our banks are proven to be fraudulent to the very core. A stupendously large Ponzi scheme is now unraveling before our very eyes.
Some people will tell you to buy gold to ‘protect your investments now’, but I still won’t. This is another manipulated market just like everything else and has a very limited usefulness.
From “Bankers Lash Out“:
The foreclosure fraud is merely the last link in this chain, the final fraud that the banks hoped could get these toxic assets (we didn’t know how toxic) off the books. They got caught.
And yet, the banksters who committed these atrocities, who crashed the economy once and now maybe twice, who brought untold suffering upon millions if not tens of millions, think you punks are to blame.
Wall Street’s reaction to the allegations that some banks cut corners while foreclosing on 3 million homes since 2007: Pay your mortgage in the first place […]If you didn’t pay your mortgage, you shouldn’t be in your house. Period. People are getting upset about something that’s just procedural, said Walter Todd, portfolio manager at Greenwood Capital Associates.Some said the issue is one of personal responsibility for one’s own debts.
Everyone’s responsible for following the law. If we all don’t have to pay our mortgage, should we just stop paying taxes, too? said Anton Schutz, president of Mendon Capital Advisers. Your mortgage didn’t get to a robo-signer by accident, it’s because you’re not paying.
That could be the most arrogant article I’ve ever seen in an American newspaper. These ingrates think they shouldn’t dare be challenged. And the line everyone’s responsible for following the law in the context of making excuses for not following the law is pretty rich.
Set aside the fact that mass unemployment (caused by the financial crisis), mass recasting of loans (caused by fraudulent and predatory origination) and crashing home prices (caused by poor lending standards and a predatory bubble popping) are the chief causes of foreclosures. The pay your mortgage argument has even less resonance when you realize that the servicers routinely broke the law that demands they work with the borrower to avoid foreclosures. This is hard-wired into every servicing agreement, and they simply ignore it, preferring to collect fees on the foreclosure. There’s not one step in the process where the servicers weren’t criminally negligent, from predatory lending to document fraud and robo-signing, and every single step in between. Spare me the moralizing.
The banksters may try to lash out their customers, but the investors know the score. The banks ruined the housing market, to sum it up. In addition to bank stocks falling rapidly yesterday, credit default swaps for banks are skyrocketing. Nobody wants to insure them.
It is not yet clear what the consequences will be if large quantities of mortgage-backed securities turn out to be flawed “ or how the problem could be solved.If the basic principles of property law have been violated here . . . it may be extremely difficult to fix, said a source involved in government oversight of financial institutions who spoke on the condition of anonymity because of the uncertainties involved. There is a chain of questions that no one seems to know the answer to.