President Obama: Please Learn faster

Obama on who owns the mortgage: Watch

Marcy Kaptur D- Ohio on who owns the mortgage: Watch

Geithner’s plan of buying up toxic assets assumes there is a value. There isn’t. The paper is all bad from one end to the other. The Certificates of Asset Backed Securities are bad, the mortgages are bad, the notes are bad, and the obligations are bad. The investors bought smoke and mirrors.

The valuations placed on the MBS and the homes could not and did not withstand the test of time. The investors cannot step up and claim the status of holder in due course because they would be assuming the liability of of every player down the securitization chain down to the borrower for all the deeds and misdeeds that were committed in procuring the borrower’s signature. The liabilities for damage claims, treble damages, refunds, rebates and interest along with attorney fees exceeds the par value of the mortgage funding.

That doesn’t legally allow intermediaries to collect money and property instead of the investors. Only the investors lost money on those mortgages and notes. Only the investors lost money on those credit card student loan, auto loan and other debts. Only the investors could make a claim as holder in due course and they won’t because the liabilities exceed the potential reward.

And in the meanwhile, the middlemen who were so handsomely paid during the run-up of the mortgage meltdown 2001-2008, are going to court and claiming that they are the lender. They are not the lender. They are not out any money. They never put up a dime to finance any of this debt and yet the courts are allowing them to collect property and money because the consumers are uninformed about their rights and defenses. These “pretender lenders” are faking it and succeeding, not only in the courts but in the court of public opinion. They have the public convinced that the blame lies with borrowers who signed deals knowing they were too good to be true. That is a lie. But it is a set of good lies for them because on top of getting all that profit they made they are getting taxpayer money in bailouts.

There is no value to the toxic assets. Belly up to the bar and admit it. And by the way, if the recession is all about the absence of wealth and spending power in the middle class, it is already cured without investing a penny. If there is nobody legally entitled to collect the money then there are no legal foreclosures and no legal collections on any debts that were securitized. The wealth is there — it just takes a courageous President to admit it and overrule the policies of failed players on Wall Street. Let the titans fall. There are 6,000+ financial insitutions who can easily pick up the pieces and start credit flowing again. It was just a small percentage of banks that securitized a lot of debt. The rest of the banks are healthy.

10 Responses

  1. On 9/11 world trade center 7 collapsed in an apparent terrorist attack… the SEC had apparently been using it to store three to four thousand files related to numerous “Wall Street Investigations”.

  2. Thanks for the links. I also sent a copy of Mr. Garfield’s letter. Hope they listen.

  3. James Thanks for the White House web info, I sent my copy of Mr. Garfield”s letter to President Obama. CAn we all do the same and send a copy to all congress people and senators, and your state legislature and governors.

  4. Great idea ! I just did it as well and hope other write the white house and speak up .

  5. I just sent this article to the white house contact page they want feed back simply copy and paste maybe they will read it

  6. If we could only get you to be in the cabinet , I am very doubtful that President Obama will do anything that bold or even admit the truth to the public. I pray I am wrong. I know it’s still very early to judge him , sadly I am not feeling very hopeful. To everyone don’ t give up the fight . Never give up !
    Neil you are wind under all our wings.
    Thank you for your tireless effort.

    ” Here is the new Boss , same as the old boss “

  7. Please see this:

    Photo contest was won with a picture of a sheriff going through a foreclosure home with gun drawn. Hopefully this gets around so more people understand that foreclosure and eviction is a violent act of sorts, not a peaceful “business” transaction.

  8. I seriously believe that at this point it is a “see no evil, hear no evil, speak no evil” situation.

    How long did Enron go on before anything was done? and this is many Enron’s rolled into one!

  9. This pains me deeply, because I know he’s right. It equally pains me that they’re getting away with it left and right. I fought long and hard for my house, only to have some corrupt court take it away from me. And I’ve seen this happen to many, many others along the way. And it will continue to happen to many, many more.

    As I write this, I’m in the process of packing, moving my stuff into storage, and looking for a new place to live. My family and my life will be forever disbanded, my house will sit here empty for many months, while I end up renting a 10×12 room in someone else’s house.

    It’s a horribly emotional trauma to have to go thru, one which has caused me to lose all faith in the system. Our country is crumbling around us. People are losing their jobs, their homes, their health insurance, their retirtements. You name it, it’s being stolen out from under us. And the one nagging question remains … WHY ???????

    Steve Cisko
    San Diego, CA

  10. I have been promoting the site now and then on forums for online articles and one of the things I think has been missing from your front page is a summary, and this fits the bill perfectly. Please sticky it to keep it up at the top!

    Thank you for all your efforts!

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