Archive for the ‘Subprime Woes’ Category

The Great Recovery Ripoff

Sunday, October 18th, 2009

Full story here.

“…just recently — on a Thursday in early August 2009 — agents for the Fed stepped into one of their own bond auctions and snapped up $7 billion of their own 7-year Treasury notes. That’s after buying more than $7 billion worth the day before… over $14 billion in all… and they paid the tab the way the Fed always does, with freshly printed cash.

That’s like whipping out your Visa card to pay your American Express bill!”

“It works almost like a money laundering scam. We write the foreign government for big chunks of bad “agency debt” — like bonds sold by failed agencies Fannie Mae and Freddie Mac — then they write us a check, using the cash we just gave them, to buy more of the Treasury’s bonds. Just so long as our government can pretend the buyers still show up” (more…)

Mass. land court ruling on foreclosure sales

Thursday, October 15th, 2009

Full story here from boston.com. More in the foreclosure saga…

Full text of the ruling by Justice Keith C. Long, which affirmed his own March decision that invalidated foreclosure proceedings involving two Springfield homes because the lenders did not hold clear titles to the properties at the time of sale.
[you'll have to click on the link to get the full text]

Russian hedge fund theft blown wide open on Youtube

Thursday, October 15th, 2009

Full story here from The International Forecaster.

The Guardian web site is reporting that London based investment company Hermitage Capital has turned to the web to expose a massive fraud involving the highest levels of government. Hermitage CEO William Browder has released his story on the web. It details corrupt and criminal acts that have resulted in a theft of 230 Million dollars. Names are named. Its a great insight into the corrupt workings of government and police. In an even more bizarre twist, Bowder is now wanted for questioning in relation to the acts of fraud. A russian language version of the video has now gone viral in Russia and promises to tear the lid off all efforts to cover up criminal activity by the state and police around the case.

The stunning comment that ends the article is that this activity is commonplace in Russia. “The story sounds like a thriller but isn’t and it’s being repeated every day” (source).


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Mortgage fraud indictments

Friday, October 9th, 2009

Full story here from the good ol’ FBI. If you think that this was the only group of people committing mortgage fraud, we have a CDO/SIV on a bridge to sell you. This is why we didn’t “Trickle Up” and bail out the mortgages directly to the homeowners, and not the banks, because then we’d find out that there were thousands of strawman loans that were as crooked as a dog’s hind leg. Oops. Hat tip to the Feds today. The wheels of justice grind slow, but they grind exceedingly fine.

“Manhattan U.S. Attorney Charges 12 in Massive Mortgage Fraud Scheme
Corrupt Mortgage Brokers, Loan Officers, and Attorneys Fraudulently Obtained $9 Million Worth of Residential Mortgages (more…)

Systemic failure approaches

Monday, October 5th, 2009

Full story here from The Golden Jackass.

“Debate stirs on whether the financial structure of the USEconomy is broken irreparably. Debate stirs on whether actions taken in the last year or two have put the nation on a path that can even achieve stability, let alone recovery. Debate stirs on whether a pernicious and not so secret syndicate has taken control of the USGovt financial ministries, let alone be removed. Debate stirs on whether lack of US Federal Reserve audits and disclosure of their accounting is integral to sustaining the syndicate control as well as its probable egregious fraud. Debate stirs whether the nationalizations have actually enabled adoption of wrecked assets, have concealed executive ransacking, and have buried massive counterfeit of bonds. Debate stirs whether the mountainous federal deficits, the nationalizations of essentially Black Holes, and the endless war spending make deficit reduction a distant dream. Debate stirs on whether the gargantuan accumulation of USFed reserves will spill over to produce widespread price inflation. Debate stirs on why after causing the foundation failure of the US financial structure from Wall Street and the USFed offices, these institutions not only remain in power but demand greater power.  (more…)

Antidote!

Thursday, August 20th, 2009

Lest I be accused of being a “Dora Downer” for posting all of the economic poo poo, I am posting some links that should put you all in a better mood. If watching these doesn’t cheer you up, have a couple of mojitos and watch them all again.

http://www.youtube.com/watch?v=8m9JrBXi9ag

http://www.youtube.com/watch?v=hGjC0wbUXzk

http://www.youtube.com/watch?v=XhgVIbO83o4

http://www.youtube.com/watch?v=A5GryIDl0qY

http://www.youtube.com/watch?v=npjOSLCR2hE

If you think you have it hard in life, just watch this:

http://www.youtube.com/watch?v=t8Nf1MK7lts

5 companies hold the bulk of derivatives

Tuesday, July 28th, 2009

Full story here at ZeroHedge.com. Fitch ratings agency came out with this data. OMFG! No wonder they spout on about the “sanctity of contracts” whenever the “dump derivatives” argument comes up. Over $280 TRILLION worth!

“Fitch has released a comprehensive study on derivatives held by various corporations and has come out with some disturbing results: as Zero Hedge’s recent disclosure of data from the Office of the Comptroller of the Currency confirmed, the bulk of the derivative risk is concentrated not merely in the “financial company” category (99.7%) but in a subset of just five companies, which account for an “overwhelming majority” of derivative assets and liabilities.

The companies in question (Total Notional Derivatives: Assets & Liabilities, $ in Trillions)

  • JP Morgan:$81.7;
  • Bank of America:$80.0;
  • Citigroup:$31.5;
  • Morgan Stanley:$39.3, and of course
  • Goldman Sachs: $47.8 (this is an OCC estimate: Goldman has not disclosed notional amounts in their derivative book, only # of contracts);

If you want a preview of what the Basel III definition of “Too Big To Fail” will look like, the above five companies is a great place to start. (more…)

The biggest ripoff ever

Wednesday, June 10th, 2009

Full story here from Mike Whitney at Counterpunch.org.
Make some real money by ShadowTrading, since it appears that bankster scum are about to become an endangered species.

“Is it possible to make hundreds of billions of dollars in profits on securities that are backed by nothing more than cyber-entries into a loan book?

It’s not only possible; it’s been done. And now the scoundrels who cashed in on the swindle have lined up outside the Federal Reserve building to trade their garbage paper for billions of dollars of taxpayer-funded loans. Meanwhile, the credit bust has left the financial system in a shambles and driven the economy into the ground like a tent stake. The unemployment lines are growing longer and consumers are cutting back on everything from nights-on-the-town to trips to the grocery store. And it’s all due to a Ponzi-finance scam that was concocted on Wall Street and spread through the global system like an aggressive strain of flu. This isn’t a normal recession; the financial system was blown up by greedy bankers who used “financial innovation” game the system and inflate the biggest speculative bubble of all time. And they did it all legally, using a little-known process called securitization. (more…)

When the Chinese laugh, prepare to cry

Thursday, June 4th, 2009

Link here to this article from Agora Financial. A more obvious show of “No Confidence” was not possible in China, but Mr. Geithner was either too dense or sleazy to realize he was being offended. Perhaps a book on sepuku protocol and function would be an appropriate xmas gift.

“In the past couple of weeks, many fallen stock market heavyweights have gotten up off the mat. But for my money, most of the fighters in the ring ought to be subject to a “standing eight-count.” I just don’t trust this latest market rise. I don’t see where it’s coming from. Call it a bear-market rally. Call it a dead-cat bounce. Call it your chance to sell into strength. But don’t call it the end of the tough times. We’re in the early rounds of a long-term restructuring of the world’s economic system. (more…)

Bond market blowout

Thursday, June 4th, 2009

Full story here by Mike Whitney from Counterpunch.org.
Not getting fiscal stimulus checks from the gov’t? Make your own money ShadowTrading.

“Last week’s auctions in the bond market leave little doubt that the financial crisis has entered a new and more lethal phase. Of particular concern is the spike in long-term Treasuries which are used to set interest rates on mortgages and other loans. On Thursday, the average rate for a 30-year fixed loan jumped from 5.03 per cent to 5.44 per cent in just two days. The sudden move put the mortgage market in a panic and stopped the refinancing of billions of dollars in loans. The yields on Treasuries are going up because investors see hopeful signs of recovery in the economy and are moving into riskier investments. More money is moving into equities which is why the stock markets have been surging lately. (The Federal Reserve’s multi-trillion dollar monetary stimulus has played a large part, as well.) The bottom line is that investors are looking for better returns than the paltry yields on government debt. (more…)