DEATH WATCH: BOA PLUNGES 20% IN ONE DAY

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MARKET INDEXES DOWN 15% OVER THE LAST 2 WEEKS

BANK OF AMERICA DRAGGING ECONOMY AND MARKETS DOWN: The experts and pundits are rushing to tell everyone that the plunging stock market is irrational irritation with Washington politics. In fact, the average person on the street seems more in tune with what is happening than the policy makers and pundits.

Investors lost one trillion dollars in the last day of trading, and around $3 trillion in the last 2 weeks. The reason is that investors are realizing more each day, just like Judges presiding over foreclosure litigation, that we are running on smoke and mirrors. Those assets on the books of Bank of America, JP Morgan, Citi, Wells et al, are largely fictitious and the rest are largely overvalued. Earnings projections for companies depending upon American consumer demand keep getting cut with each passing quarter.

It wasn’t just the credit rating of the United states government that got cut last Friday. The whole economy has been revealed as sagging with huge gaps in the capacity to produce and consume. Before this mortgage mess economists were always quick to point to the housing market as a harbinger of what we can expect. Now, mysteriously, they are unwilling to talk about the reality of the housing market and see themselves as appointed messengers of confidence and good news.

Here is the real news: Housing prices are now down to levels not seen in ten years or more. Mortgage obligations stay the same. So most people with homes or real estate investments of any kind are experiencing a shock that is real and very rational. The pundits ignore people who are being foreclosed out of their homes, bury their heads in sand to avoid talking about people whose mortgage debt is so far above the asset values that they will not, in a single lifetime, ever get out from under, and pretend that the next generation is going to get more than the generation before. It isn’t reality they are looking at, but the average person IS living reality.

The average person and the average investor knows that the government and Wall Street is lying to them and won’t stop. The average person knows several people who are unemployed or so far underemployed that their lives have been destroyed. The average person is hurting and their government is not concerned about their pain. Their government is concerned about supporting a myth and spin from the Wall Street oligopoly — with complete disdain for homeowners, consumers, workers, or anyone else who makes less than $10 million per year.

Investors are average people. Their reaction to this reality is entirely rational, predictable and appropriate. Neither our prospects nor the markets will ever actually improve unless we deal in reality. Bank of America prospects are bleak — a penny stock at best when this is all done. Yet the reality of 7,000 other banks, S&L, credit unions etc. who could service the needs of corporate and personal America is ignored. Profits would be made and taxes would be paid if the Megabanks were resolved. Still we continue to march to the beat of THEIR drum instead of our own.

The stock market is overpriced even after the current shock. Sure it will correct upward for a while, but earnings reports and assets on balance sheets can only be fudged so long before analysts cry foul. The market is headed down. It has been that way for several years. People forget that once upon a time the market even went to 14,000 in the DJIA.  Inflated dollars can hide the problem for a while, but anyone coming in from another country and steps onto the platform of one our rail stations or airports knows in an instant that something went very wrong with America.

There is a solution, but it would take a reversal of accepted ways of thinking. If we recognize the losses to the banks and recognize the gains to homeowners who are legally deleveraged already but don’t know it, then we would have some sort of equilibrium to work from as a base for what is now an unworkable, disgraceful economy.

Consumers ability to pay for things would increase and they would respond by buying, if there was something to buy. But that is only a start. Jobs need to be created — at least 30 million more than the number necessary to maintain the current “equilibrium.” That can happen — if we decide to get back in the game with our rotting highways, decaying rail system, and unreachable education. We’ve been here before and we did the right thing. It turned out pretty well although, like now, first people had to go through a lot of pain before they discarded ideology and went for the solution.

Putting 30 million people to work can be done with tax incentives (for hiring, also known as priming the pump) to small business and with massive government programs to rebuild our infrastructure which is about to fail us at any minute. 30 million people working decent jobs that challenge their minds and bodies will generate at least $200 billion per year in direct revenues to the government. Cutting back the tax gift to wealthy people who were just fine under Clinton’s administration, combined with closing loopholes and gifts to oil companies and farms and such would produce another $200 billion per year in direct revenue (or saved expenditures) to the government. Do the Math.

The economic multiplier effect of re-engineering our transportation, communication and education infrastructure would be nearly infinite and could re-ignite the American dream and the American spirit. The surplus of revenues would make debt ceilings and spending issues fade as we revel in our own success.

But first we have to start telling the truth. At least $15 trillion was stolen from U.S. taxpayers, consumers and World investors by certain banks whose arrogance was only exceeded by their greed. Much of that money was taxable when taken and should be recovered to the extent possible. Consumers who were tricked into transactions by fraudulent appraisals and representations should get restitution. World investors must be told that the assets they bought were overvalued from the start, first by mark-up by the investment banks (yield spread premiums on steroids) and second by the same fraudulent appraisals of value of real property that deceived the borrowers. we can’t keep pretending that those assets are real when we know they are not.

There will be no confidence in US financial markets until world investors believe that we are trustworthy. They know we are lying to them and so they are playing along only as far as necessary, waiting for their opportunity to abandon US financial markets in favor of anything that looks better. The reaction of investors to the down grading of the US government credit instruments is a very rational understanding that the United states has not stepped up to the plate and admitted guilt by association with the banks. They will stop reacting when they have reason to react to something more favorable — like the truth.

 

39 Responses

  1. I know this is a couple of years old,but if Congresswoman Marcy Kaptur gets it, why can’t the rest of her colleagues get it? That’s a rhetorical question btw…. THIS IS A MUST SEE

  2. @johngault,

    “We really got hustled on this last one. Many of us naively thought the market would head north after the ‘deal’ was signed. Admit it!
    Yeah, they got us good on this one and at least I won’t forget.”

    —————-

    you’re not supposed to buy or sell in anticipation of news or outcomes. And you never trade on the news. You trade on what the market is saying.

    But anyways, there are no public investors in stocks. They say you are an investor, but you are not. The only difference between a trader and an investor is time. They say you are an investor if you buy and hold. But when you look it over difference is time, whether that be now a days for hedge funds in milliseconds, to minutes, to hours, to days, to weeks, to months, to years.

    All stocks bought and sold on the secondary market called Wall St have nothing to do with the company in that they never see a penny of the money you used to buy a stock, a share or a bunch of them.

    It’s not like I gave you JohnGault Public Company $1000 to continue running your business, and thus you give me in return one share out of lets say 10 shares. Thus at the end of the year you managed to turn that $1000 into $10,000 all profits and thus I get 1/10 of the profits or $1000 so I made an investment and it paid back my initial investment and years thereafter I make pure profit, sharing in the profit of 1/10. Only thing close is dividends, which don’t pay much, but those are still calculated out to include stock price so it takes a long time to get your money back.

    Wall St is one big illusion trading pieces of paper that everybody agrees will be worth more in the future based on P/E’s, ROI’s, etc all based on agreement that stocks should be “trading” at so and so P/E ratio and discounted for future cash flows and blah, blah, blah.

    100 years ago we had bucket shops and today you do as well, called on-line trading accounts. Or On-line gambling accounts. I guess what the hey if you got some spare cash. But what about your IRA’s, 401K’s, Pension funds, all tied up in the grand illusion.

    And now they got all loans tied up in the grand illusion via ABS and MBS.

  3. venu: I agree but remember that once the private investors make up their mind to start buying again because the feds have backed up the title issues with the banksters, the private investors will take the rest of the inventory for pennies on the dollar and the homeowner will be out. What a shame.

  4. People must not buy foreclosed property if the government is not doing anything to stop it. People help people during these trying times. There is no one man show on earth.

  5. John – Thanks

    Something strange here – how is it possible we have all of the investor settlements going on right now. because of the argements dealing with the quality of the loans submitted. This would mean they are in the pool. So no taxes would be due. But if they are not in the pool, would taxes not be due to be paid?

    How can they pay a settlement on loans that did not make it into the pool?. That is not the investor’s claim. They say the loans were of poor quality that were put into the pool. Are these settlements tied one way or another to the IRS decision to tax or not tax. If the IRS is not paying attention to the settlements, that is a question in itself.. Why? We do have a tax code right? Either it waa aceptable or it wasn’t? On settlement money received, perhaps investors don’t have to pay taxes? A way out perhaps of not having to pay taxes and moving the intent (tax saving shelter) by investing into MBS to settlements whereby taxes are not due to be paid either. Just wondering?

  6. @senior author – last I heard, about 3 weeks ago, the IRS was
    “undecided” about hitting the investors for the preferential tax treatment which didn’t exist. Read it online is all in a bit piece. But you make a point. Why is there a decision to make? Looks like bench law
    is everywhere.

  7. @cubed2 – it’s better imo to dump scottrade and ameritrade and their ilk in favor of a broker who can actually do something for you. Yeah, people can do their own stop limits, for example, and the trade will appear to cost only 7.00, but it could be costing 70k if you had a flat that day or felt like hitting the tee’s.Or even go to work! I don’t know any good hands-on investment brokers, but there must be some still out there. Better to pay 107.00 than lose 70k. Better if one must pay 1070.00. It’s that kind of market.
    We really got hustled on this last one. Many of us naively thought the market would head north after the ‘deal’ was signed. Admit it!
    Yeah, they got us good on this one and at least I won’t forget.

  8. @MS- so you can read rationally when you want – you trickster you.
    Thought your material was fascinating, albeit over my head mostly.

    But speaking of Cheney, AIG’s paltry sum of 10b against BOA and the recent downgrade by Bush, I mean S & P, seem indicative more of a stock play for a certain few who could capitalize royally than anything else…well, except to embarrass Obama and leave this as his loudest legacy. Them Texans hold one mean grudge.

  9. It’s a giant casino run by the mob…that’s what America has become.

  10. carie,

    a few things I have now learned and realized since our world is now Wall Street manages everything, including Congress and the President Ben Bernacki has spoken today to keep interest rates ZIRP for another extended period of time.Thereby screwing Savers who wish to save money in a non-risk, yes non-risk savings account earning .25% interest or whatever the figure is. Oh, the headline is you earn nothing on your money saved and inflation will actually make it less than zero so you must INVEST the money in Wall Street/stocks/bonds to earn a better return. But since markets go up and down, and over the long haul they go up, you will earn a better ROI. Oh, did I forget to mention that the reason why markets go up and down is so traders, that would be now banks and investment Wall St firms make money, if there is price stability we, Wall St/Banks, don’t make money. We must create panick so you will sell at a lose. Oh, did I forget to mention, that we banks and Wall St firms can short at will and make money, stealing yours, on the way down. Hey, did I forget to mention that we, Wall St/Banks, make money up and down. And did I mention that you the public can not sell short so easily as we can. You, the public, cannot ride the roller coaster that we create up and down to make money. Sorry, this is a one way game, we make the rules and speak with forked tongue all in the name of help and fairness.

    So,,,,,,,,,,,, what did I learn,,,,,,,,,,,,,Don’t ever pay retail for anything. And if you pay retail and use credit, why you are the biggest sucker of all. Not only did you pay a high price, you have to pay interest on it as well if you carry a balance or take out a car loan even at 0% interest rate. Even if you get free miles on your AIrline of choice. We, Wall St and banks, must keep prices up, and up, deflation is bad for us. Deflation is totally good for you consumers and bad for us, so take out a loan and yes interest rate is very low,,,,,,,good deal for you, don’t you think?

    Oh, but of course your wages will go up so you can afford higher prices for paying retail.

  11. M. Soliman: Thanks

    The internal Revenue cannot allow a deduction for an illegitimate claim by the investor (certificate holder) if indeed the securities were not mortgage backed and were not part of the REMIC trust? That is what the intent was of Wall Street was it not? Was that not the sales pitch? Perhaps I am confused. I really expected to hear from more people about this, but since it is an issue concerning the IRS, it appears no one wants to chime in.

    You are right though, I think it is probably burning the IRS up because it could not possibly be legal for them to give out tax credits to people who do not qualify for them. They have to uphold the tax code that is in place, otherwise, I would like to know how they are going to explain that to the American people. I have more faith in the IRS than to think they would do something like that. I am not the first to mention this as it has been brought up many times – a simple yes or no by the IRS would go along way in the Court.

  12. Neil,

    Check out this story in the DenverPost.com. Who can a guy press for an investigation other than the State’s Attorney General. The Feds?

    Our Attorney General won’t go after these guys, he’s one of the AG’s voting to let the big 5 off the hook with impunity for their crimes so it’s obvious he won’t go after one of his fellow attorney’s back home.

  13. This is the same firm that has attempted to foreclose on my property 4 different times since 2006. They just filed for foreclosure again and the holder of note has changed again. while not one recording has taken place since 2003.

    The trustees don’t take teir positions seriously and never verify the existing documents recorded in the system when they accept filings from this law firm but why should they. The software system that is used almost exclusively in Colorado comes from this Lawyer.

  14. Breaking news in Colorado.

    As written in the Denver Post: Colorado’s most prolific foreclosure attorney has for years given thousands of dollars to a group representing the public officials charged with impartially overseeing his industry.
    Shortly after the money started flowing to the Public Trustees’ Association of Colorado, trustees began awarding lucrative no-bid contracts to a computer software company in which the attorney, Lawrence Ca…

  15. http://www.msnbc.msn.com/id/37560195/

    cubed2k—not a toll booth—an EXTRACTION…OVER AND OVER AND OVER…just like Dylan Ratigan says…I hope our President plays that video rant in front of all of the members of Congress…

  16. I hope it is the death of all the big ganster banksters. Crime should not pay, and it does not make sense to allow it to pay. Greed does not make money. It has to come to a stop somewhere and crash when they kill the economy, kill jobs, kill the tax payers abiltiy to make money and pay taxes and to make purchases. The greedy elite have loaded up their pockets. The rest of us are fighting to survive, There is enough to go around. It is a sick sinister greed that has taken place. They are all sickos with greed and no conscions..

  17. IRS is not enegaged in any close scrutiny to these workouts. The rules are all changed . Where they sit is taking the figures as they are submitted by the banks. These trusts were delisted in 2007 for reporting purposes so ….My intuition says they are steaming but hands are tied. They do not like MERS that is for sure.

    For IRS reproriting purposes there is little there to suport belief for claims.

  18. Kickboxer – The man the BK courts will not let fade! My hero!

    Call me

    MSoliman
    213-880-6288

  19. Sorry about that Post Neil, I meant, do you or anyone else know the answer? I misused the word “does” Just got in a hurry as usual. Thanks.

  20. Neil:

    Does you or anyone know whether or not the Internal Revenue Service has decided that yes, the loans were taken into the trust. In otherwords, have tax returns been filed whereby the benefit of being in the REMIC was applied. I was just wondering because so many have decided based on their knowledge and support that the loans never made it into the trust and then there are those that are skeptical because the issue is so complex when it should have been quite simple. In otherwords, would a decision by the IRS, either way, make a difference to anyone going into Court to prove the notes were not transferred after all.

    Thanks to anyone who might have some knowledge about how the IRS is handling the situation.

  21. Excellent Neil. And it is the truth. The Investors were taken for a ride. I spend a couple of days on the SEC website and I was so sick when I saw the lists of thousand and thousands of supposed securitzied loans. Each one listed so carefully..I thought, how nice, look here we have the value of the home and the loan amount…look at all that equity just waiting to be grabbed. I realize the value has been decreased by at least half…but oh, what wonderful pickings for the unscrupulous.

  22. You mean the other 95% that refuse to wake up and support the 5%, plus the fact that they themselves are going to lose in the long run. They havve not done it yet, that is why we are where we are today.

  23. @M.Soliman

    “President Bernanke and VP Geithner and their press secretary Obama are not the men I would choose but wow.”

    “Obama did inherit a world of hurt from former President Cheney and I can’t believe he is taking the heat.”

    ————————————————————————————

    I am laughing my ass off at this revelation. How so true. It will be forever always about the money and making humans pass thru a toll booth on everything they want or do or are being.

  24. Louise we need town hall Hangings for these psychopaths.
    I dont want to feed and house these psychopaths who have commited economic genocide.

    NEVER AGAIN

  25. This is spot on! I am telling you…..ANYONE who has their monies in B of A or any of the other Mega’s needs to move it! In my town for instance, local banks are alive and well. They are carefull about their lending, and are staying profitable.

    I have not banked with any of the Mega’s for over 20 years. THEY LIE, CHEAT, AND STEAL!!

  26. I don’t give BofA six months before they go down. The question is: If BofA bites the dust, will all the other mega banks bite the dust?
    Now we need some orange jumpsuits for banksters at the top. All this will happen again if we do not punish those responsible.

  27. As for me and my family, we will never put our trust in banks or a government again.

  28. Their goes the peoples 401K’s (people wont be comfortable and will notice what Neil has been saying about their Mortgages) The wannabe Rich and people with pensions have been shielded from this mess thanks to their stocks, but no more. Maybe now America will finally Wake up.

    Long Live Neil Garfield.

    NEVER AGAIN

  29. translate: treason,tyranny…they have real lasting effects upon real people,flesh blood and soul…

    everything you thought was true likely shall prove to be false.

    but hey sarcasm towards the suffering has always been the way of the least courageous,welcome to man made hell on earth.

    Indifference, believe it’s known as.

    So few words are needed to speak the truth,but many many sophisticated deceits to uphold the lies of all man’kind’ for as long as recorded history..if that is to be trusted at face value…kinda like our FRN’s know you?

    Great that as yet we stall can disagree in America but give’em a little more rope we’ll all hang …uhmmmn..
    separately?
    Nope.Together.

    Majority of morons still are:morons.Expensively ill educated fools mostly.

    Evil, too, may don the mask of law.

    Consciousness streaming but why have that when we can argue about who is to blame.Shame.Game…repeat until we are all satisfied that we’ve got our man in the cross hairs.Yep I’m just as guilty…hard to be human when all around it is demanded that we abdicate to our reptilian rulers and their hired help.

    Off to walk the dog and BTW,anyone hear about the H.R. bill circulating-under Civil Rights…that the UNEMPLOYED shall not be discriminated against?

    I’ll get back with information later.
    Discriminated against?

    BLAMED.
    SHAMED.
    HATED.
    Soon…attacked.

    “GET A JOB!!!”

    You know,we hold these truths to be…

    oh who in hell cares about the truth,that would set free..eventually…

    we’re all created equal just those of us certainly not U.S.)!! with a J.O.B.-just over broke-are more “equal” than the rest of the…insert your own adjective here,please…

    Screw it.

    It’s one of those things,ya’ have to BE there…

    Have a nice day:( et al etcetera.

    Consider the IQ,yes.SQ too.Soul quotient…conscience… oh wait, need micro-chipping,must not THINK nor FEEL…

    Nail the colors to the mast,sailors…

  30. Running this whole thread thru Google translate…..

  31. Fighting the urge to end it all …but it’s only a sense of overwhelming powerlessness.a learned reaction to the district of CRIMINALS,to caving in to despair.Raw emotions that will not prevail against a reasoned mind…the question is how long can a mind live in a virtual POW situation?Again no pity party,that would suck…AND we do need to express these things,it’s about more than those crooks getting away with columns of cyber digit ‘money’/assets.
    It’s the REAL life EFFECTS of this satanic den of pit vipers and their minions.I HAVE to say these things now while we’re still”allowed” to!!I see no point in a rant either EXCEPT to RAISE HELL and thereby alert-alarm??? the lobotomized automations doing their ‘masters’ mind controlled bidding…but to be fair,even the strong are now BATTLE wearied unto NUMBNESS.

    A friend paid the minimum ammount so my elec/gas didn’t get turned off.We finally caved in& applied for”food stamps”.the net”income” here is less than $400. per month for 2 adults and one dog.Well it’s been over the ‘official’ time for a response,no the s.n.a.p. application has not been reviewed,contrary to the gubmint’s own requirements.I called the ’emergency’# and was told that they (D.S.S-department of social-ist services)are overwhelmed with 100’s of new applicants per week..this is Albany NY area.
    My car insurance was due last week I have nada $$ for it.Never had a problem before until last winter,2 days late with payment and now it has been raised over $200 per year for that…7 years with same firm. …

    The dog was OUT of her kibble,I have had to change her off the brand that has kept her lean and strong,healthy-Blue Buffalo-for years.Took her from the high protein wilderness blend as she is an athletic GSPointer,down to their basic brand.Couldn’t do that anymore,no gas to go to Petsmart…so a’similar’ blend at the nearby grocery store.

    Were it not for my Brother&his wife who brought us food and also a bag of dry kibblwe from BJ’S,similar blend but she has had lower intestinal issues ever since now…we’d be literally going hungry,
    I will be 60 in December and I do NOT”expect” anything to improve,nor do I -sorry all-CARE anymore if I ever have the”good fortune” to get a slave wage PT j.o.b again!! Like millions my FT”job” was a stay-at home Mother and I was close to restarting another leg of my Life’s journey-needed to decide which way to take the energy,school?return to health/fitness?what to choose…meanwhile the irs took so much…lost that…Big Louie WILL get whatever-whatEVER they demand,illegally amorally no regard to any law,period…

    what has it to do with anything…

    irs IS the collection arm of the entire FED.

    I don’t care if I get locked up I’m locked down already.Like millions.

    Real bad attitude today,I know.
    Usually I will to push through.

    It’s going down…

    many already cried out their last
    MAYDAY!!
    but the souless
    never

    did
    hear
    nor
    see
    and it is hard to
    go
    on.

    Well thanks for ‘listening’
    I don’t have anywhere to take myself today
    and it’s between myself and Creator now,better SNAP to.

    Ranger up time.

    Cass Sunstein,appointed by the Obungler to position of head of White House Information and regulatory Affairs… states that she thinks that the bloggers have been “rampaging out of control” and that “new laws need to be written to contain them.”

    her opinion on the Constitution:
    “Why should we be governed by people long dead?I…..in any case,the group that ratified the Constitution included just a small subset of the society;it excluded all women,the vast majority of African Americans,many of those without property,and numerous others who were not permitted to vote.”
    and
    “a legislative (!!!!!!!!! WTF*CK???!!) effort to REGULATE BROADCASTING in the interests of democratic principles should not be seen as an abridgment of the free speech guarantee…”

    I WONDER,does this jerk even KNOW the definitions of the words she is tossing around while in her power drunk????
    What part of treason for instance does she not grasp?
    “It is past time for a large scale reassessment of the appropriate(!!!) role of the First Ammendment in the democratic process.”

    APPROPRIATE ROLE OF WHAT??The corrupted politicians to TELL us all what they will ALLOW/PERMIT us to SAY? to THINK BECOME??

    COME AND TAKE IT THEN!!!

    The ONLY goal that they have is to DESTROY our country one ABRIDGMENT at a time.Starting with getting all our kids brainwashed into THEIR Agendas.Robots instead of thinking breathing human beings with NATURAL RIGHTS given by Nature’s God,not government.Period.Free thinkers are NOT their desired dutiful little wage slaves!

    They can NOT stop an idea whose time has come,hence the turbulence they CREATED to dissuade us….maybe i will hang on long enough to observe their incarceration?

    Or is it really too late?

    Fatigue overtakes I must rally.
    We’re falling like over ripe fruit into the hands of the Obama administration,our executioners.Thugs who will kill whatever and whoever gets in the way of what THEY intend.

    I have to take a walk…

    We allowed our children to attend the schools of the Emperor of modern Imperial Rome so they behave accordingly…but then,maybe some white armbands… are in order?

    MOLON LABE you traitors!!!!

  32. Right on! But Greed was widespread all around the world. The world needs to stop lying and return to the Way, the Truth and the Light.

  33. M soliman:

    In answer to your question – where are the feds? On the side of the bank.

  34. Hey , also let go of the “QWR” . Its a sick “debt collectors” sucker play (for a brilliant reason! ) Its not what it seems. The scheme is to get you to do exactly what you’re doing while giving up your rights .

    Remember, everything in securitization is reversed. It’s hard to stomach but I tell people to embrace MERS and avoid the QWR . . . .trust me on this .

    You think the trust is really holding your loan ? Everything is backwards in MBS so where is your payment going ?

    Hint Hint “Subordinated debt”, “ZERO Coupon”
    (c) Copyright – now behave here “Luminaq” and respect others work.
    Time will tell!

    M.Soliman
    expert.witness@live.com

  35. With regards to the average person and the average investor know that the government and Wall Street are lying to them and won’t stop. I’m not sure where the lies rest. Burying trillions in bank debt and putting out press releases Bof A and Wells is profitable is like winning a dog race after feeding the rest of the greyhound’s meatballs, clipping their nails while using a lure that looks like ….anyway!.

    President Bernanke and VP Geithner and their press secretary Obama are not the men I would choose but . . .wow. Obama did inherit a world of hurt from former President Cheney and I can’t believe he is taking the heat. Lie, steal and when in doubt cheat. Nothing new here in politics. What shocks me is the fact that every President has followed Keynesian economics since Roosevelt. BIG TICKET ITEMS AND HIGH COST OF GOVERNEMENT FUDNS ! Governments need to encourage housing sales while it tries to create the highest cost of funds possible assuming it is not a debtor nation. It never has and never will work .

    Crank out money to the world at big rates is profitable. But high rates are not good for housing. . .or a debtor nation. So here comes the subprime gig and Cheney administration’s efforts to rid itself of Fannie and Freddie and the overlap in housing bureaucracy come in . You offer greedy homeowner more than they can afford and charge the excess as the cost of doing business while attracting “AAA” credit. Turn the over the counter borrowing for housing funds to a major player like , hmmm , say BofA and make them a quasi FED Funds dealer. And you take another big player like Wells and make them the master servicing agent on everything. Originate it with BofA’s text book model of Antitrust , the red headed step child Country write Home Liens and Securitize it with another target to buy Merrill the investment banker.
    Now tell Lehman and small fry IndyMac to behave or else.

    Lehman and Indy have egos and don’t listen (it is a free economy) and then the rest jump in with their own private labels. It’s a great idea gone mad. Fed funds costs are an important consideration in the budgetary analysis but it also ties up funds for a very longtime. Fannie Mae and Freddie Mertz had to go you see. Lowest rate possible for long term housing those consumers may never let go of if the market cost of funds suddenly escalate. These 80- 20 programs are GREAT ! They put out a lot of money at huge rates and it stimulates the market with unaffordable payments causing everyone to do it again every 36 months. Once the initial outlay of capital is DONE in 2005, it recycles itself and takes pressure of the FED to feed the Fannie Freddie Give away. The Gov needed the money anyway to invest in better things like…..killing Talabanian’s who live in mountains and use caves for housing according to a 12th century lifestyle.
    Another 30 dead American overseas in fighting and this war is a sink hole. I’m neither liberal nor conservative and love the country . But you see what I mean when I say “WTF”.
    Where’s the Fed!

    MSoliman
    expert.witness@live.com

  36. And so it goes, a little something we talked about in 2007 with a lot of vim and vigor only to find that no one with any power could make it happen. We could have prevented this fiasco for the first 200,000 homes that started defaulting in 2006 by going against what the principals of making a loan and having it repaid was the goal. At no time, could a homeowner’s payment be subsidized by a mortgage banker that put a bad loan on the books nor its servicing entity. It just was not done. However, instead of throwing the money away on the useless recovery mortgage programs in 2007 and Obama’s enhancement of that 2007 program in 2009, they could have used the homeowner-bankster assistance plan which would have allowed the loans to remaining performing until we could have worked out of the oncoming housing demise just on the horizon if we did not. But it was not to be and we had several options for subsidizing the homeowners who could not make their payments for legitimate reasons or those whose loan was fraudulent from day one. Making a subsidy for a fraudulent loan, boy we have come a long way if that had to be done to save our housing market.

    The jobs would have remained, the retail would have been a go and there would not have been the trickle down effect as as result of running foreclosures to the degree that they did. We did not have to bring down the whole housing market to determine what was going on. But believe it or not, we are now bringing down the health care of so many just to do something about the 35 million uninsured. That group should have been isolated with an entirely differnent health program. Now we understand that the loans were not really loans, well, that is where we would have purchased the time without destroying the housing market and personal wealth tied to the housing market because we would have been able to start working on that four to five years ago while the housing was still in relatively good shape.

    Even now, with all of the fraud, it would seem to me that this program could be worked out. It ony took about 40B between 6 banks or thereabouts, to set up the subsidy plan while we look into those appraisal issues, etc., just like we did in the 80’s. Took us 10 years with prices melting down to 30 and 40 cents on the dollar. There is nothing new here. It could have been prevented, but it would have meant a subsidy of the homeowner’s loan for no less than 5 years to determine all of the wrong doing and find a solution to resolve. The title issues now are monumental. We need a separate bill to require every title company that guaranteed title after foreclosure to go back in and clean it up. They said they did this when I interviewed a couple before they issued because they could tell when assignments and power of attorneys were not filed before the foreclosure sale, so they just ordered up from the servicer or the foreclosure mill attorneys. This most surely went on for years so let th em clean up the titles. The lender must be dealt with in such a way that the American people do not suffer the result of another victimization.

    Oh well, there will be comments about this and it is not written to confuse anyone or just to be making comments, but there was a way, it is just that the lenders and Wall Street, along with the feds that had their own way of doing things for a reason – ummm.

    Did this in the 80’s. That is why we needed to buy time, isolate the trickle down effect by taking action early on and that was not allowed this go round. Fannie learned this in the 80’s when the name of their game was foreclose, foreclose and foreclose. We begged them not to do it then and now again in 2007, but because of the MBS and Wall Street boys, they could never not do what the final plan called them to do. My understanding the feds purchased the securities for 1 trillion and I still have not verified that but that explains why they insist on these worthless modifications that do not work in tandem with PSA and MLPA. There was a definite disconnect between the homeower’s mortgage and what the lenders sold to Wall Street for investment purposes – nothing more than a plan and they pulled it off, at least until now. We will wait to see what our enforcement does about all this – almost surely they will get a pass.

  37. Mr. Soliman, I agree BOA c/o Nationsbanc acqusitions the ‘holder’ of receivables of Federal Reserve.

    No matter where I turn find 1992/1993 ‘acquistions’ of the non-conforming financial products ‘servicers’ acquired by BOA.

    I’ve learned so very much from your ‘expertise’, Thank you.

  38. thank you neil awesome article what can we all do to help we need to get someone to listen. write ny ag schneiderman he seems to get it

  39. So true, I agree with this article 100%..the greedy rich, banks and corporate America lack of social conscious to give back to America and the American people…since they didn’t want to pay through taxes or close loop holes.. are now losing millions through the stock markets! Their, for some, underserved and over valued, riches are being wiped out before their eyes!….we are all intricately intertwined with one another..when the balance is upset all suffer..even the rich!!

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