COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

Americans can politicize anything including as it turns out, restricting the funding of feeding of an underweight newborn by the same people who are against abortion. So it should come as no surprise that we are so easily manipulated and distracted by the people who are acting against our interests or as Matt likes to say “screwing us.” Last night on REALTIME TAIBBI said the obvious — we are not connecting the dots — The public service pension funds were fully funded with no money required from taxpayers until Wall Street sold toxic mortgage backed securities to them that were worthless.

Somehow the uprising in Wisconsin has turned into a referendum on unions and even whether public workers should be allowed to unionize. But the evidence is in beyond a reasonable doubt:

The pensions were fully funded and now they are not. The pension funds lost money because of the fraudulent, criminal enterprise Wall Street started by selling pure toxin as AAA safe investments, knowing full well that the rating and the word of big investment houses would be enough to get pension managers to jump on board.

Now the money is lost — not through bad investment decisions and not through overpayment of public workers and not for over-funding benefits for public workers — the money was lost to Wall Street because it was stolen and people should go to jail like the good old days when at least some of them went to jail for a while. The problem is not overpayment of teachers (who don’t make enough to live) — the real problem is that the private sector workers are underpaid as badly or worse than public employees. 400 people in this country make more money than 50% (100 million) of the country’s workers. Does that make sense?

The thing that makes me crazy is how obvious this is, that the media doesn’t report it, that people don’t get it, and that the pension funds of the very people who are being incited against these “public workers” are ALSO going to about to get hit IN MULTIPLE STATES for the exact same reason that Wisconsin teachers, firemen, and policemen are getting hit — the money was lost to scam on Wall Street and the States are already broke, have no credit and can’t float a loan or bond to pay those pensions or other benefits.

  • So at what point will we NOT be surprised when OTHER STATE pensions are canceled or reduced or bankrupt?

  • At what point will we NOT be surprised that the State and County governments are broke?

  • How many states will the people be required to assemble in the streets for the rest of us to get that this financial crisis has only just begun?

  • Do you really think Wisconsin is the first and last state in this crisis?

  • Chaos is coming faster than we are willing to look.

  • When will these states strike back at Wall Street and collect the money back — just like they do everyday in their criminal court systems when someone floats checks on closed accounts?

By the way, I’ve never been a public employee and I get just as annoyed at their red tape as everyone else.

29 Responses

  1. Mike H,

    Stagflation — but this time- without any available government tools to fix.

  2. E. Tolle

    I understand – and I love the teachers, policemen, firefighters – too. But, our US economy has drastically changed direction – for the worse.

    The government workers salaries have far exceeded private workers income. This is not a stable economic environment. If private workers are losing their jobs and homes, they cannot support the state/local/government workers increasing incomes and benefits. It will not work.

    However, believe that the Wall Street enterprises, and Congressman/Senators – are responsible for dire unproductive shift of our economy. They gave away private employment to the rest of the world – and, therefore, government services can no longer be supported at the current level.

    This is a very serious situation. Believe that if the government had handled the mortgage fraud properly from the onset — we would have more time to fix the US economy. But, of course, lobbyists – and Mr. Henry Paulson, prevented this. Now, we are stuck with a horrible situation — that will get far worse before it can ever get better. Maybe — not fixed in our lifetime.

  3. Anonymous, I understand your thoughts. The point of my post was not concerning hedge fund managers and the Blackrocks of the world, I was referring to policemen, teachers, fireman and so on. These people invested their futures in this crap, albeit through other entities and vehicles for sure. But they are the ones who got screwed along with the people whose mortgages were doomed from inception.

    We just need to keep pressing against TPTB until they understand that we know what they’re up to, and that we’re not going to allow it to take place any longer. It may take a little while, but they will get it in the end…..and I hope they get that in federal prison if you catch my meaning.

  4. Massive deflation caused by massive fraud.The
    same thing that happened in the 1920″s leading
    to “29” and the 30’s and the wars of the 40’s.
    Back then it was “watered stock”, now it is ‘watered bonds”. We can already see the signs
    of the deflation. It will take sacrifices and common
    sense to get through this. At least many people
    will own their homes free and clear. That should help when they realize their pensions and 401k’s
    are virtually worthless.
    I hope we can avoid a repeat of the 40’s violence.
    We will need leaders with a sense of History to avoid a repeat of what happened back then. As the
    old saying goes, “there is nothing funny about money, especially “funny money” created out of nothing and loaned at interest to gullible borrowers!

  5. cubed2k

    If you had credit card debt — banks targeted your home.

  6. E. Tolle

    Agree with EVERYTHING else you say. And, this country will struggle for any significant economic growth — we have given that away.

  7. E. Tolle

    Okay — you write —“were “told they could bank on””. Due diligence means you cannot be told anything.

    FIrst – not all tranches were rated Triple AAA. Second — investors have a responsibility under “due diligence” to READ the prospectus and what it states. Clearly, if one read the prospectus — the investments were outlined as RISKY. And, the only reason some tranches were rated AAA is because the lower tranches provided credit enhancement to the upper tranches. There is no doubt — that investments in subprime mortgages were clearly divulged as “RISKY” in prospectus.
    This does not exonerate the security underwriters (Wall Street purchasers) hand in the fraud – they are culprits. It just means — investors KNEW the investments were NOT traditional — and subject to warning.

    Nevertheless, the security “investors” invested. Why?? They wanted a high yield. Part of the reason the stock market is elevated now is because investors are chasing a higher yield – that which cannot be found in less risky investments. Standards, however, are – due diligence applies to investments.

    Further, the triple AAA ratings were also manufactured by combining multiple tranches from multiple pools — from which CDOs were born. CDOs are derivatives — they are derived from the securities (Trust) that claimed securitization of the receivable assets (but NOT part of the trust). CDOs were rated AAA because of the diversification of multiple tranches and multiple pools. This is also outlined in CDO investments. What did OHIO invest in — CDOs?? – or the original trust. They did not invest in the highest senior tranches of the so-called trusts — these tranches were reserved for Fannie/Freddie.

    Do not even believe CDOs should have qualified for pension investments. But, then again, WHO KNOWS – how they were approved???

    Under any scenario — security investors have been paid back principal in full. Their major beef is that they did not earn the interest rate they were promised. My complaint is — those investors did not read the prospectus — the so-called trusts were labeled as non-traditional investments. To try to siphon high interest rate payments from people who were victimized, many minorities and seniors – among the rest of us, in order to fund their state pensions, is just unconscionable. These investors BANKED on default — if victims could not pay high interest rates – they wanted your home.. And, no one was watching the action. No one was regulating. No one was holding any parties to the fraud accountable.

    But, above all, those “security investors” — are NOT the Creditor and are not the parties foreclosing upon anyone. Security investors – as named plaintiff (trustee to trust) are fraudulently being used in courts. There are “investors” — but it is not the security investors to the original trust –THEY have long bailed ship.


  8. nice post E. Tolle. Pretty amazing, and as such, why nobody believes it. They wouldn’t do that, would they?

  9. Anonymous, very succinct explanation, well said. You wrote:

    “The pension money was lost because the state/municipal governments thought they could “bank” on high interest rate returns funded by borrower victims who innocently thought all was on the up and up.”

    I would change the “thought they could bank on” to were “told they could bank on”. These crooks, armed with their AAA ratings out in plain view deliberately conned everyone from townships to global interests into buying their toxic crap. But how could a countystate/globe fall for this? By their own admission, these instruments are so complex, no one knew what to expect, in good times or bad. But if times do go bad, Katie bar the door, which we all now know is exactly what happened.

    From the way back machine (2008 paper) comes this observation from a white paper released by the NY Fed Reserve on understanding securitization:

    In a recent Fortune article by Benner and Lachinsky (5 July 2007), Ohio Attorney General
    Marc Dann claims that the Ohio state pension funds have been defrauded by the rating
    agencies. “The ratings agencies cashed a check every time one of these subprime pools was
    created and an offering was made. [They] continued to rate these things AAA. [So they are]
    among the people who aided and abetted this continuing fraud.” The authors note that Ohio
    has the third-largest group of public pensions in the United States, and that The Ohio Police &
    Fire Pension Fund has nearly 7 percent of its portfolio in mortgage- and asset-backed

    Dann and a growing legion of critics contend that the agencies dropped the ball by issuing investment-grade
    ratings on securities backed by subprime mortgages they should have known were shaky. To his mind, the
    seemingly cozy relationship between ratings agencies and investment banks like Bear Stearns only heightens the
    appearance of impropriety.

    And now we have 70,000 in the street (only the beginning), just as the handlers/creators of these exotic/toxic products would hope. The .01% behind the curtains LOVE it when we blame ourselves for their fraud. They’ve turned the citizens against one another, because of the perceived necessity of extreme austerity measures, because of labor union’s or teacher’s pay, but due to the elite’s ill-gotten gains and criminality. Notice how none of the protestor’s placards call out the true crimes here? The signs should read….”Lynch Moodys”, or “Death to Fitch!”.

    Instead, the workers of the world will need to do with less, with growling stomachs, thanks to the ill-informed belief that the workers of the world are paid too much, not due to the fact that we’ve been equity stripped and raped in broad daylight.

    The duping of towns, counties, pensions, states, and even countries and continents is absolutely no different from the duping of borrowers on loans that could only perform under ideal circumstances, which is not on any definition list of sane or legal underwriting.

    Let’s face it, we’ve all been had, and so far we’re standing around, all of us, holding the bag, looking at only each other to blame. Because that’s the story line being disseminated from on high to the 100% controlled MSM, who then feed it downstream to the populace. Our gaze is deflected from them, while we fight each other.

    An example of the breakdown of prudent lending and underwriting comes from the same white paper from the NY Fed:

    Without significant income growth
    over the first two years of the loan, it seems reasonable to expect that borrowers will struggle to
    make these higher payments. It begs the question why such a loan was made in the first place (DUH!). The likely answer is that lenders expected that the borrower would be able to refinance before
    payment reset.

    I contend that that line should actually read: “The likely answer is that lenders expected that the LENDER would be able to refinance the poor shmucks before payment reset.

    What in the hell kind of business model is that? If things go well, things will go well? And if they don’t, we all lose everything and the world comes to an end? Almost childlike in it’s wishfull approach to a multi-trillion dollar affair, wouldn’t you say? Then there’s this concerning risky ARMs:

    Higher than expect default could be the result
    of either a bad draw (bad luck) or an indicator that the rating is wrong, and it is very hard to
    distinguish between the two, especially for small probabilities

    That summation would be funny if we were talking about the likelyhood of one little league team winning over another, but we’re talking about the stability of the world here. Bad luck? What in the hell is that doing in technical analysis? This is simply unbelievable, there aren’t words to adequately describe this bullshit!

    These elite behind the scenes need to be stopped. Hunted down. They need to be called out for their crimes against humanity. It was a well orchestrated coup that has every appearance of being successful so far, as long as we let them shift the blame from the real perps to infighting amongst ourselves. If that happens, they win, we lose America.

  10. Yes, like the pyramid, debt is used capitalize on everything including power.

    Usury, although mostly used to describe the charging of excessive interest rates, is more properly used to describe the charging of interest on any money or credit borrowed period. Because in a techninal sense it’s not being merely “borrowed”, “loaned” or “lent”. The condition of the annual interest charged on what is borrowed is what makes it usurious. Because borrowing would only involve the requirement returning what was loaned. For if someone or something is well-off enough and willing to “lend” money or credit, they would not be at any kind of a major risk of loss, for they would have not have willingly “loaned” what they themselves “need” for sustainability.

    And money is not a human “need” but is commonly used and accepted as a medium for the practice of trade. The pyramid symbolizes they work product for that which is gained through the process of lending money (worthless paper property of fictional value) at interest secured by real property (tangible property of real value), and the “money” is used as an inverse pyramid to build the real pyramid but is not shown, because it does not exist in reality, but it does exist by and in design they just do not show it (though it should be shown as such)..

    The more money they loan at interest, the more money they gain. The more money they gain the more money they have to lend. Do you see the cycle and design? It starts out like the shape of a small hourglass, only the upper half isn’t real, but exists only by design. And yet still it mirrors the lower half, the wider and taller it gets, the same as equal to the real lower half. Actually kinda more like a six pointed star, I think I saw something like that on a video about the back of the one dollar bill.

  11. Anon,

    in your question to Neil. I think it is about Ponzi, you need new money or credit used by public coming in to keep it going (the actual money supply is credit or debt since that is how money is created). For example tax credit for buying a new home but actually new debt or money creation, cash for clunkers – get a credit on buying a new car but you finance which means credit which means money created which increase money supply.

    If I understand ABS and MBS correctly, here is the deal. It’s all about reducing risk and statistics and probabilities. Past performance of loans is that a certain percentage will default. And it is a low number, low percentage. So you take a pool of credit cards and pool them and securitize them, based on a certain percentage will default. But if you are the one that created the security and promised a certain rate of interest earned to the buying investor, why you have to pay that to keep them happy. So if a few borrows default, why you replace them with new accounts to keep the cash flow. Hence constant marketing for credit cards and balance transfers and lower rate than competition, etc. The originator of the pool has to replace the defaulted accounts to keep the cash flowing to pay the interest rate promised to the investor. It’s a Ponzi. No doubt about it. Why do you think they came with balance transfers, to create new loans to continue to fund ABS or keep the cash flowing.
    I haven’t paid on my credit card debt in two years now. I do not respond to collection agencies as I have no debt with them. They are not original creditor and they bought debt for pennies on the dollar. I have no assets so I have nothing to loose. Why on earth should I pay for something they bought, and I have no contract with them nor have they been harmed by me since they did not loan me any money or credit. They bought the debt and they did not lend me money. But the original creditor lent me money which they created by getting others to buy their creation(ABS). It is all based on statistics, probabilities that only so many will default.
    Why on earth do we have a bankrupcty code, a chance for new start? Because the gov’t knows money is just created from loans, credit, thin air. If money was actually loaned from actual real things, and somebody defaulted, why the lender would be out and would be really pissed. When you lend money to a friend and he doesn’t pay you back, you get mad. That was your money, it was a one for one transaction, but banks lend on Leverage. Since banks create money out of your promise to pay back, they are not really out any money since it is fractional banking, leverage. ABS and MBS has complicated the laws and people are confused. But the whole money system is a Ponzi. It’s the pyramid on the dollar bill.
    But whatever, if the servicer or bank can take back the asset, then it can be counted on the books I presume. Because they are all tied in together one why or the other. Problem is it is not happening fast enough for the banks, servicers, creditors, etc. And we are gumming up the works because we do not want them to get something for nothing and we do not want to be debt slaves like they want us to be so they can keep their Ponzi going unfairly.

    Well said. All the while Government tries to pin blame on us, as if it was our responsibility to Govern. How ironic.

  13. Just listened to something in car on my way home from work…, you know that lil song that goes all for one and one for all it starts with one. And then another one and then begor you know it it’s a million… People are doing some wonderful things people are doing some powerful things let’s all do some powerful things because you know it,ll be a wonderful thing “…( I would like to think so). Can’t give up.

    Keep on keepin on. Peace to you all in the knowledge that you are all doing some powerful things.

  14. Neil

    The pension money was lost because the state/municipal governments thought they could “bank” on high interest rate returns funded by borrower victims who innocently thought all was on the up and up. But, of course, the victims were duped, and the assets were inflated — and, therefore, so were the loans — and so were the interest rates the state/local governments THOUGHT they could earn. These government investors were subject to due diligence — but who in their right mind could justify usury rates to victims — to fund their own pensions??

    And, why did the state/local governments need to earn such high interest rates (by whatever means)? Because the pension funding is an enormous liability. And, all while the income of the American worker has declined. .

    I did a study — over a decade ago- on corporation failures due to pension commitments that — could not actually be funded by the corporations. This was the cause of demise of many corporations — and possibly a catalyst for exit of corporations from the US.

    As a result, many surviving corporations restructured the way “retirement plans” are funded. But, state and local government did not listen – and, instead, continued the high pension process — and continued to assess high tax rates against homeowners — to fund the very high pensions. In some states — the tax assessments are astronomical.

    Did Wall Street initiate the fraudulent securities that falsely promised high interest rates? YES — of course. But, did local governments falsely fund huge pensions — to judges, to county clerks, court workers — police chiefs, school superintendents etc.etc. — based on false and fraudulent securities? YES. And, will those same government entities take away your home — if you refuse to pay for those false and inflated securities?? YES. Will that same government continue to assess high tax rates against you — to fund the high pensions of state and local employees??? YES.

    I am not quite a senior (who THE A MAN has dead and buried at 55) — but, in a society that is now highly pressured by an aging population — we cannot afford high taxes for state/local/government high pensions — based on falsely inflated properties — from which falsely inflated loans are derived — from which falsely inflated and fraudulently executed MBS were concocted.

    I was also (many years ago) a former local candidate who advocated school budgets — until I discovered the fraud. And, discovered that people were being forced out of their homes — due to high tax assessments — and THIS is way before the foreclosure fraud.

    Something not right here. And, it is not about local workers who make a barely minimum wage. IT is about high authority workers whose huge pensions are funded by taxpayers — those very same taxpayers being homeowners — whose homes are being stolen.

    And, it is about a conflict of interest by courts, whose very authoritative employees pensions are being funded by local/state taxpayers and, of course, by the process, causes bias to homeowner foreclosure victims..

  15. The “Great Uprising” has begun. Let it spread quickly to all 50 states and may it bring the Hope and Change we didn’t get from Obama.
    Instead of “looking forward” we must hold those responsible for ruining our country to the daylight of real justice; no bought and paid for judges, even SCOTUS. The first step is to take over the media outlets to ensure all Americans are informed of how we’ve been screwed.

  16. All money is a matter of belief. Credit derives from Latin, credere, “to believe.” Once the population loses faith in their currency, it will continue to spiral down into a big hole. The only way out is to issue a new form of money like they did in Germany back in 1923. They issued a currency that was only valid and distributed in their own country. The people were happy to have 1 bill to buy a piece of bread and that changed their psyche and made them believe. It also helped that the Bank would not issue the currency to create government debt and a tight control was placed on the print press.

    Believe it or not, the currency was supposedly backed by government land and factories which really was just a facade but the people believed it which was all that mattered.

  17. cubed2k,
    Actually kind of the opposite. Their trick is to get everyone ‘hooked’ on their “money” (paper debt) and collaterlize everything of real value in exchange to “borrow” some of this worthless paper debt (at interest) and seize everything once everyone succumbs to being drownded in debt. Depression is coming, Americans should start rapidly thinking about starting some new industry or any thing that produces something. Soon banks won’t matter the safest way to deal will be bartering with everything.

  18. dyingtruth,

    What is bad idea. State banks? If that is what you mean, you have to research this part more. It is not saying States emit money, but state has it own bank under the Fed reserve, but difference is interest charged by state bank goes back to the state coffers to fund the state projects, like no state tax would be needed. Realize North Dakota is the population size of LA County.

    I do understand the part about War and funding for it and it’s purpose is to load up on debt. Believe me I know about that. I have done a lot of research into Money. It always boils down to money, always follow the money. Money is the weenie in Society, it is the game component that everybody is after. But money can be manipulated a thousand different ways and that is what Wall St does, to there benefit and we are made to believe it is for our benefit.

  19. cubed2k,
    Bad idea. We should never ever act upon any such suggestion. That was the same very ill-intentioned scheme that was implemented which persuaded the south to attempt in suceding and violating the prohibitions from the explicit words of >

    US Const. Art. I, sec. 10. “No State shall enter into any Treaty, Alliance, or Confederation … coin Money; emit Bills of Credit;” Id. at cl. 1.
    and “No State shall … enter into any Agreement or Compact with another State”. Id. at cl. 3.

    The confederation they made “the Confederate States of America” was specifically against the Constitution. But that choice wasn’t necessarily completely of their own uninfluenced free will. Wealthy bankers had people setup in certain areas to cast political influence and sway public opinion by creating conflict between the north and the south from spreding rumors and instigating agitation back and forth. All this was done (and is being done again) specifically for ONE reason (well 2 if you consider the 1 behind that), WAR for the purpose of getting America to take on LOADS of DEBT, because Wars need to be financed and Bankers are always looking for solid investments.

    People should really start listening to me, because this is not small talk, this is SERIOUS stuff.

  20. you can say that the pensions were fully funded but you might want to actually prove that, I doubt you can. Secondly, the people who run these pensions get paid regardless of how they do (union bosses). thirdly the problem is not the funding but the amount that the state has to contribute on top of their pay (check the percentage that public sector employees contribute versus private sector and hold that up against “I work for the government and they will never go out of business and so I will always have a job” cubed, I do not think that 1) I have ever heard that the prez wanted to take over a bank, or 2) that Levin or Hannity ever said he did, but he has by definition socialized the auto industry, ( government involvement in a business whilst regulating the same industry to the detriment of its competitors) although I do not argue that the state ( not the feds) should be running the banks with no private competition

  21. I can argue with that, in my State of California overpayment is actually a very LARGE part of the problem. Don’t forget Bell California, Robert Rizzo? That was not an isolated incident, that disease has been show to have been spread all over California.

  22. Well, per the constitution the gov’t should be running the banks, they are supposed to coin money and set the value thereof. But we gave the power over to a private institution called the Federal Reserve. And there mandate is full employment and stable prices. that ain’t happening:

    It’s because of the real definition of capitalism which is making money off money – speculators – and not contributing in return. the exchange is out.

    But you have idiots like Mark Levin and Hannity saying Obama is trying to socalize the banks, private business’s. These two don’t get it and yet Levin is a lawyer and a conservative and an expert in the Constitution. Wake up you two clowns, there I said it.

    And I ain’t no Obama supporter either. I’m a supporter of the Constitution and nobody in Congress seem to be. Lets not even start talking about the local level gov’t. – Judges please.

  23. Call Bill Black to investigate Arizona Builders, Appraisal, Mortgage, & Securities Fraud.
    There are a few Builders, Attornies, Judges and a Senator who belong in jail. Not to mentiones several C.E.Os from within Wells Fargo, BofA and US Bank.

  24. The A Man

    You said it, I agree.

  25. One solution is to set-up a state bank like North Dakota.

    But nobody talks about North Dakota. Jerry Brown said he would support a state bank in california while he was running for Governor. Laura Wells was running on the grounds of setting up a state bank but the other two parties got her booted.

    Well Jerry, where’s the bank?




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