Poverty, Uninsured Americans at all-time high

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EDITOR’S COMMENT: Whether or not Obama’s Jobs plan works or is even passed, the drag on the economy is still going to be there until we address the cause. Despite decisions from trial and appellate courts across the land, the media, the government and even the people of our nation continue to look the other way on the issue of housing.

It isn’t a matter of shoulds and coulds. It is simply a matter of practicality. Some method must be launched restoring wealth to the great majority of Americans who lost most or all of what they had in the last few years. The method that is most immediately available is to recognize the securitization scam for what it was and realize that we are running on smoke and mirrors if we continue to pretend that housing prices are going to improve.

In case after case, we see that when the documents are scrutinized, the defects are fatal to the perfection of the liens and the attempted transfer of property and liens in defiance of the requirements of law and all to the detriment of investors, homeowners and taxpayers. The Banks caused this mess and yet we shy away from letting them suffer the consequences. We insist on throwing the burden onto those who can least afford it, and the very people who could re-start our ailing economy.

Even members of the bankruptcy bar who once scoffed at these defects are ready to accept that the liens are defective. Main steam players in the judicial system understand that the real creditor is absent from claims, foreclosures, sales, and seizures. The idea that is being spun now is that the payments or proceeds due from sale of homes should be escrowed while the issue of the real party in interest is sorted out. That begs the question of whether the real creditor wants anything to do with these foreclosures or any attempt to collect on them. They know, like we know, that the foreclosures and the sales are bogus. They know, like we know that the securitization of housing debt was faked.

The investors want a seat at the table, to be sure, but they want no part of the securitization scam in which they were victims, not players. The answer is not to let the foreclosures continue contrary to the requirements of law, but to resolve the issue through vehicles like the Resolution Trust that was used in the S&L crisis. As it stands now everyone except the banks are getting hurt by the faked foreclosures, the slump in the housing market and the sliding economy. Add them to the mix, and you create the escape valve for millions of people who are trapped beneath debt that is both noncollectable and unfair.

The vacuum created by investors abandonment of foreclosure claims should not fall as a collateral benefit on the banks that created the mess.

News Alert: U.S. poverty rate rises to 15.1 percent, number of uninsured Americans hits record high (corrected)
September 13, 2011 11:34:58 AM
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The Census Bureau reports the number of Americans in poverty jumped to 15.1 percent in 2010, a 17-year high. About 46.2 million people, or nearly 1 in 6, were in poverty. That’s up from 43.6 million, or 14.3 percent, in 2009. It was the highest level since 1993.

The number of people lacking health insurance increased to 49.9 million, a new high after revisions were made to 2009 figures. Losses were due mostly to working-age Americans who lost employer-provided insurance in the weak economy.

13 Responses

  1. Tnharry,

    I supported Obama because he seemed to be the better alternative at the time to a very old man in bad health and some weirdo who had no clue Africa is a continent and dinosaurs didn’t live at the same time at humans… Also, call me naive but he seemed to have some pretty good ideas.

    Didn’t know then that he was spineless.

  2. I may have a bad memory, but i really thought this started out with subprime REFIs, and really just those that had GSE involvement. i know you’re trying to get the word out, but some getting the word may not get the distinction

  3. Subprime refi’s AND purchases–that covers a lot…I think all the other “exotic loans” were nefarious in some way, too.

  4. @carie – i don’t think anyone is arguing with you so far on that point, but you and Anon both state it only applies to subprime refi’s. don’t you think that’s a relatively small section of the pie that people are dealing with?

  5. ANONYMOUS, on September 13, 2011 at 5:55 pm said:

    Does not matter whether mortgage or DOT — claims are based upon securitization — and THAT is the problem.
    As to subprime — nothing more than collection rights were securitized. Remember, securitization is simply a method of pass-through of CURRENT cash flows. Anything with a cash flow can be securitized. The problem is — that securitization is meaningless as to the creditor. Security investors — and trustees — in any capacity — are NEVER the lender/creditor.
    The fraud lies in the securitization fraud “process” — and the means by which the “loan” was procured. The “loan” — in subprime — was never a “loan” at all — at least NOT a secured loan — by mortgage or DOT. .Thus, dischargeable by BK.
    That is the issue.

  6. @enraged – i’ve seen the following email circulating:

    If you voted for Obama to prove you weren’t a racist, vote for someone else in 2012 to prove you’re not stupid

  7. […] Continue reading here: Poverty, Uninsured Americans at all-time high […]

  8. Dear Mr. Obama,

    In 2008, after eight dreadful years of President Cheney, I supported you. You seemed to understand “The American People”, you came from very little, you had a story to sell and, I must admit, I bought it all, hook, line and sinker.

    Your opponents claimed that you were “inexperienced”. I brushed it off as a non-issue. You had a vision, you cared for The People, you had opposed the unsane wars President Cheney and Bush, his mouth piece, had thrown us into without so much as a poll to find out what We The People really thought about it. You appeared to be in tune with the needs of our already-shrinking middle-class. You realized that health care had become a thing of the past, jobs kept being shipped overseas, something terrible had just happened in the financial sector (and I give you credit for not having known the extent of the disaster anymore than we did. You did inherit that debacle, no question about it). You were one of us. I trusted you.

    I clearly remember when you vouched to give The American People a health insurance comparable of that of Congress. I also remember when you declared that no lobbyist would be part of your government. You seemed like the right guy for the job. I applauded. Finally a strong man, capable of redressing this country! Definitely one of us.

    I remember when you stated that America would be out of Iraq within 11 months. Which became 16 months. Which became… well, we’re still there, aren’t we?

    Within a few days of your taking offcie, the lobbysts scandal broke out. You immediately changed your tune: no one having been a lobbyist within the previous year would belong to your government. It didn’t take long for you to cave in to pressure, did it?

    You health insurance program never, ever came remotely close to offering anyone coverage similar to what Congress is afforded. It is a pathetic attempt at bilking and taxing The American People for health insurance that either will cover peanuts or will be so outrageously expensive that they won’t be able to eat. Great idea to make it compulsory too. Thank God for courts and for realizing that you really can’t do that. Mitt Romney got away with it in Massachusetts but, guess what? Massachusetts can’t enfore it! Massachusetts still harbors thousands of non-insured. Know why? They don’t have a pot to piss in. Let alone money to throw away in “compulsory” either-you-eat-or-you-pay-a-premium dictatorial laws.

    Your Hamp program served no purpose other than facilitate foreclosures by giving banks all the latitude they needed to fabricate defaults and… keep foreclosing! Banks had all the justification to show that homeowners were not paying their full mortgage, therefore they were breaching their contract. And you made sure to make it “optional” for banks to participate, with financial incentive to boot. What you didn’t calculate is that your incentive would never amount to what banks were actually making for foreclosing.

    The raising of the debt ceiling was probably the last drop needed for me to realize that I might have made a very big mistake. We might have made a very big mistake.

    Mr. Obama, your oponents were absolutely correct. You were inexperienced. You were unprepared. You hadn’t done any of your homework. Three years later, we are worse off than if you had never taken office. Not slightly better, not even. No. We are objectively worse off. And that, Mr. Obama, we owe it to a certain number of things, not the least of which being that… well, you are shiftless. You have done everything in your power to prove to The American People to which extent. Well-intentioned, probably. But also desperately shiftless. Do you know what happens to well-intentioned and shiftless policies? They proverbially lead to hell.
    And hell is where we are right now. With very little hope that you will undo any of the damage caused by President Cheney and, afterwards, by your own government and a Congress that has showed time and time that it doesn’t respect you.

    So, Mr. Obama, please stop sending me e-mails and text messages. I will not support your campaign this year. In fact, I so much don’t see any candidate capable to fix this mess that I will send the money I would have sent to your campaign, had you kept your promises, to someone who needs support much more than you do: Eric Schneiderman, a true leader, the man who might very well clean up this entire mess after all. A man who doesn’t compromise. A man who isn’t backing down and isn’t caving to the banks. So, until I am proven wrong, My support goes to him.

  9. Unfortunately, it looks like crime pays. Our entire country is being fleeced on many levels, not just the illegally-created debt on mortgages.

  10. Thank you for the information and the comments are great as well.

  11. “Every single American has paid a very heavy price for the behavior of the financial industry. Ordinary people have lost homes, jobs, income, and financial security because of the actions of this industry,” Swanson said in a statement emailed to The Huffington Post by a spokesman. “I welcome and embrace all efforts to investigate the banks and their executives and to hold them accountable for unlawful activity.”

  12. THANK GOD—ANOTHER INTELLIGENT ATTORNEY GENERAL COMING ON BOARD:

    http://www.huffingtonpost.com/2011/09/13/minnesota-attorney-general-lori-swanson_n_960139.html

    NEW YORK — As government officials work to settle claims that the nation’s biggest banks illegally foreclosed on American homeowners, Minnesota Attorney General Lori Swanson has joined a group of law enforcers pushing for a narrow deal that would leave banks exposed to potential legal action in the future.

    In a letter obtained by The Huffington Post, Swanson said any settlement with the group of banks over mortgage practices should exclude a release from claims over the creation of mortgage-linked securities. Swanson’s support for a narrow settlement unites her with New York Attorney General Eric Schneiderman and attorneys general from three other states, who have said the banks’ alleged wrongdoing hasn’t been investigated thoroughly enough to merit a broader release from legal liability.

    “[T]he banks should not be released from liability for conduct that has not been investigated and is not appropriately remedied in any settlement,” she said in a Friday letter addressed to Schneiderman, Iowa Attorney General Tom Miller and United States Attorney General Thomas Perrelli. “For example, a settlement that focuses on mortgage servicing standards should not release the banks or their officers from liability for securities claims or conduct arising out of the securitization of mortgages.”

    “[A]ny settlement between government regulators and the mortgage industry should have ‘teeth’ — holding the banks accountable for their wrongful conduct, enjoining future unlawful activity, and helping injured homeowners,” she continued.

  13. From Neil’s comment:

    “…millions of people who are trapped beneath debt that is both noncollectable and unfair…”

    You forgot to say “debt that is FRAUDULENT”. “noncollectable and unfair” implys some legal validity to the “debt” being illegally forced upon homeowners.

    Don’t pay fraudulently obtained debt. If you do you are rewarding criminals.

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