Posts Tagged ‘mortgage disaster’

Another Nobel Economist Says We Have to Prosecute Fraud Or Else the Economy Won’t Recover

Thursday, November 4th, 2010

Full story here from ZeroHedge.

Washington’s Blog

As economists such as William Black and James Galbraith have repeatedly said, we cannot solve the economic crisis unless we throw the criminals who committed fraud in jail.

And Nobel prize winning economist George Akerlof has demonstrated that failure to punish white collar criminals – and instead bailing them out- creates incentives for more economic crimes and further destruction of the economy in the future. See this, this and this. (more…)

Debt collector fraud

Thursday, November 4th, 2010

Full story here.

A northwestern Pennsylvania debt collector has agreed to cease collection tactics the state says included a sham courtroom where customers would be summoned.

Unicredit America Inc. agreed Tuesday to stop sending letters to consumers threatening them with arrest if they failed to respond. Erie County Judge Michael Dunlavey also ordered the mock courtroom torn down within 30 days.

The state attorney general’s office says Unicredit used people appearing to be sheriff’s deputies to deliver hearing notices to consumers and used fake court proceedings to get money from them. Authorities say a person dressed in black would preside from behind a raised bench at the front of the room.

The state has also filed a civil suit against Unicredit alleging unfair trade practices. That suit seeks civil penalties for hundreds of affected consumers.

The Fed bought mortgage fraud

Monday, November 1st, 2010

Full story here.

In the wake of the financial meltdown of 2008, the Federal Reserve announced it would buy mortgage-backed securities, or MBS.  The January announcement by the Fed said it would buy MBS from failed mortgage giants Fannie Mae and Freddie Mac in the amount of $1.25 trillion.  At the time, the Fed said in a press release, “The goal of the program was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.” (Click here for the full Fed statement.)It did provide “support” to the mortgage market, but did it also buy fraud and cover the banks that sold it?  The evidence shows, at the very least, it bought massive amounts of fraud. (more…)

The robo-signing mess is just the tip of the iceberg

Tuesday, October 12th, 2010

Full story here from ZeroHedge.

Now that the Robo-Signing scandals have achieved full notoriety through the media, it is time to address the real issues facing investors in bank stocks. I also believe that the media is staring at the wrong target. Each major media outlet is copying what is popular or what the next outlet broke as a story versus where the true economic risks actually lie – which is essentially the real story and where the meat actually is. Here’s what’s truly at stake – the United States is now at risk of losing its hegemony as the financial capital of the world! Why? Because when we had the chance to put the injured banks to sleep and redirect resources to into new productivity, we instead allowed politics to shovel 100’s of billions in tax payer capital into zombie institutions as they turned around and paid much of it right back out as bonuses. As a result, significant capital has been destroyed, the original problem has metastized, and the banks are still in zombie status, but with share prices that are multiples of the actual values of the entities that they allegedly represent – a perfect storm for a market crash that will make 2008 look like a bull rally! For those who feel I am being sensationalist, I refer you to my track record in making such claims. (more…)

The Athenian real estate panic & banking crisis

Monday, October 11th, 2010

Full story here from Martin Armstrong. History repeats itself. Shirley Bassey agrees with me.

Bonus: another article on gold by Martin.

Foreclose This!

Monday, October 11th, 2010

Full story here from Global Research. And while I’m writing this, another bombshell hits.  I know, it’s a lot of foreclosure/mortgage stuff lately. Don’t worry, we didn’t forget how to trade. But…this issue keeps teasing me, like a splinter in my mind. If the charade were able to go along full speed, we wouldn’t be seeing banks halting foreclosures, or title companies afraid to insure. SOMETHING is coming down the pipe– whether that’s a Quantitative Easing about 10x bigger than before, a total Federal takeover of existing mortgages, a debt jubilee, or something else. The main thing is that this will never be the same again. More fun here.

The other day, during an interview on Al Jazeera, I was asked if I was frustrated because my warnings and worries about the financial meltdown and foreclosure crisis, first aired in 2006, have been ignored so long.

Duh!

The excruciating lesson I learned is that it takes time for a problem to turn into an issue and, then, an issue to get attention, to move from the business section to the news section, from the back of the paper to page one. (more…)

Is MERS Commercial about to break the CMBS market?

Monday, October 11th, 2010

Full story here from ZeroHedge. The MBS-types gotta be jonesing for some of this.

The irresponsible actions by MERS are rapidly becoming the stuff of folklore: from their direct and indirect involvement in every fraudclosure, to the president himself falling for what appears to be a MERS agent with a split signature personality, to MERS just-released refutation of it ever having done something wrong, the hammer on MERS seems to be preparing to fall with a resounding thud. Yet with everyone focusing on MERS’ involvement in the residential mortgage space, pundits have ignored that “other” space where MERS made the possibility of outright robosigning fraud a distinct possibility – commercial real estate. (more…)

Janet Tavakoli: the biggest fraud in the history of capital markets

Friday, October 8th, 2010

Full story here from ZeroHedge.

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.” (more…)

B of A halts foreclosures in all 50 states

Friday, October 8th, 2010

Is this the sign of the Apocalypse or the Debt Jubilee? What a fun week in mortgage backed securities town. Momentary diversions here, here and here (yes, I’m on a theme here).

Thoreau, Rico & Mortgage Fraud

Thursday, October 7th, 2010

Full story here from Jim Willie. Meanwhile mortgage companies are probably screaming like this or this.

Some significant events are in progress, extremely important developments in the grand pathogenesis that reflects the deep decay and deterioration in the US financial structure. The most recent events pertaining to mortgage loans, home foreclosures, and disclosed fraud carry great potential to open wide cracks in the American social order. Revealed fraud is slowly coming into the open by the big banks. Civil disobedience has already taking form in popular protest. However, the recent events surrounding illegal home foreclosure seizure of properties elevates the exposed fraud to a new level. This is a boil ready to break open upon the society. The cases where people have been removed from their homes, even when no bank loan exists (as in owned free & clear), by means of fraudulent and forged documents, has finally provoked RICO law provisions. Witness the prima facie case of organized crime extended from Wall Street, whose roots lie most likely in Fannie Mae itself. The legal industry has finally joined the fray in class action lawsuits. Defense citing errors made have been met with accusations of fraud, quite a different game. (more…)