“INCURABLE RECESSION”: BEAR MARKET AGAIN UNTIL HOUSING CRISIS FIXED

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“The same bankers are feeding the legal system with fraudulent and futile fabrications of documents for transactions that never existed, as loans were “securitized” but somehow never moved from their originators. Promissory notes failed to reveal the true terms of the deal just as bogus mortgage bonds failed to reveal the truth to investors. Even combining the promissory notes and the mortgage bonds, the documentation is insufficient to describe the real transactions in which money exchanged hands. Investors are left thinking they are owed money when their agents have already collected it. Borrowers are left thinking they owe money when the debt has already been paid several times over.” Neil F Garfield www.livinglies.wordpress.com

EDITOR’S NOTE: Eventually the general consensus will be that the Banks did this to us and the banks will bear the brunt of the fix — without that, the $2 trillion they are officially holding and not investing and lending to the national and world economy will continue to sit as a hammer over our lives. Add to that what I estimate is another $2.6 trillion that these management of the mega banks control in off-shore hidden “reserves” and it is easy to see why the death grip, valued at $4.6 trillion (over 1.3 of our GDP and more than 100% of all profits) is causing a bear market. The recession never ended and for many the uneven distribution of apparent wealth has made the situation more like the great depression.

Blaming homeowners or borrowers simply won’t cut it. Even if the 100 million defective mortgage transactions were caused by consumers or prospective borrowers all awakening one morning with the singular idea of bringing the world economy to a standstill, it was within the power of the banks and government to prevent it. This current condition that has persisted for 4 years arose because of deadbeat bankers not irresponsible borrowers.

The bankers, playing with OPM (other people’s money) turned themselves into marketing machines and sold money from investors (what was left of it after Wall Street grabbed its hidden share) to borrowers in completely unworkable deals based upon fraudulent and futile fabrication of property values, borrower income, and the true effects of loans that were certain to go under water for decades, and certain to reset to payments that exceeded the actual annual income of the borrower. They knew it and they did it anyway because they were able to without regulators taking an interest in what was actually happening out there in the banking world. They wanted to do it because with the foreknowledge of voluntary and involuntary defaults, they were able to bet on the system going bankrupt.

The same bankers are feeding the legal system with fraudulent and futile fabrications of documents for transactions that never existed, as loans were “securitized” but somehow never moved from their originators. Promissory notes failed to reveal the true terms of the deal just as bogus mortgage bonds failed to reveal the truth to investors. Even combining the promissory notes and the mortgage bonds, the documentation is insufficient to describe the real transactions in which money exchanged hands. Investors are left thinking they are owed money when their agents have already collected it. Borrowers are left thinking they owe money when the debt has already been paid several times over.

The truth is revealed. And the tide has turned. The economy and prospects of the world depend upon the United States fixing its housing problem regardless of what it takes. Housing drives the consumer markets. The consumers’ collective spending drives 70% of the economy. Either fix housing or write off 2/3 of our GDP and resign ourselves to third world status.

S&P 500 enters bear market territory

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NEW YORK | Tue Oct 4, 2011 9:52am EDT

(Reuters) – The S&P 500 entered bear market territory after the open on Tuesday, down over 20 percent from its 2011 high, as European officials considered making banks take bigger losses on Greek debt and fears of contagion in the world’s financial system grew.

COMMENTS:

WILLIAM LARKIN, FIXED INCOME PORTFOLIO MANAGER, CABOT MONEY MANAGEMENT, SALEM, MASSACHUSETTS:

“My take on it is that Europe, from a leadership standpoint, is looking a little more unstable, so you’ve got that feeding in, and we are also coming into earnings season. There are a lot of excuses to disappoint, and guidance going forward is going to be very challenging, which means that a lot of the valuations are likely to get dinged in here. From that standpoint, why not raise some cash, be more defensive going into that. It is too much of a headwind.

We are going to see lower (Treasuries) yields if it is possible. If you had asked me a year ago that yields would get this low I would say that you are crazy. 2.72 percent on the 30-year? That is beyond my comprehension.

Cash looks great. Right now you have to be very careful.”

MICHAEL WOOLFOLK, SENIOR CURRENCY STRATEGIST, BNY MELLON, NEW YORK

“There are two separate issues here. Are financial markets pricing in more risk and uncertainty? Yes, no question. Will things get worse before they get better? Yes. The same pattern we’ve been seeing of people allocating away from stocks and toward cash and bonds should continue until a Greek resolution is in place. That’s the most important issue. But this does not imply a double-dip recession in the United States. There is stimulus in the pipeline here that should help maintain growth in the future despite all these ongoing debt difficulties. A double-dip scenario in Europe is also unlikely given continued export-led growth in Germany.”

SAID JOSEPH TREVISANI, CHIEF MARKET ANALYST, FX SOLUTIONS, SADDLE RIVER, NEW JERSEY

“The dollar gets stronger, there are more safe haven flows. Nobody is going to dollar assets for return, just for safety.”

LINDSAY PIEGZA, ECONOMIST, FTN FINANCIAL, NEW YORK

“We saw a lot of back and forth between the U.S. and China about this impending trade war. Just the fact that we’re going back and forth over raising further barriers to growth is causing anxiety.

“Another factor is Dexia — the Belgian bank coming under structural problems and needing to get bailed out. The European banking community is continuing to hold this unsavory debt on their balance sheets and they continue to try to work through that.

“More and more analysts in the U.S. are suggesting that there is no solution to the European problem and they’re just pushing the problem down the road.

“If we do see a European recession that would be very very bad for the equity markets. That will dampen global growth prospects.”

ERIC GREEN, SENIOR PORTFOLIO MANAGER AND DIRECTOR OF RESEARCH AT PENN CAPITAL MANAGEMENT IN PHILADELPHIA, WHICH OVERSEES $6.5 BILLION

“The bear market is just a number that the media likes to use; I don’t see people changing strategies because of it. It feels like we’re getting oversold, but the weakness has persisted a lot longer than people were anticipating.”

10 Responses

  1. By the way….. we have the evidence, so any throwing the ball above our heads is not going to be tolerated. You all think your so cute, taking the whole state over with no atty’s to assist. well that will also be addressed. This will be heard in a state far from here and in a Federal court with a criminal atty.you cant pocket everyone.

  2. It’s over guys and gals, really….please do not try to pick this back up, we really are not stupid here. We know all the real perpetrators in this and there is no putting this back in any box. We owe you nothing, and you owe us millions. I can not belive you contnue with this even though all is known. Unless any of you can show us where you really own anything please take our ciese and disist to heart, so far you have not, even though some very greedy family members were found within you. see this is over the top……and when you find your real perpetrators the game stops. You all need Neil lessons 101.

  3. What so many of you fail to see is that this whole “mortgage fraud” fiasco was never about someone “tinkering with” our monetary regulations or creating “well meaning policies” that may have “accidently” created the morass of debt and foreclosures that we find ourselves currently in. This entire system of fraud was a calculated and brilliantly planned way to destroy the dollar by advanced Yale and Harvard scholars PAID TO CREATE THESE WMD’s (because thats what these financial hybrid bombs are, weapons of mass destruction) and in doing so, destroy whole and entire economies that base their currencies against the dollar. This was never just about greed. This was ALWAYS about power and control over every living being and every commodity.

    So while you sit around reading the latest blurb from Wall Street News or CNN or Newsweek, and ponder what the analyst are saying is the problem, please try to remember that they are the same ones (for the most part) that convinced us these products were AAA rated investments ~ and they (the largest percentage of the mainstream media) are OWNED by the exact same entities that would see all of us as renters and chattel, slaves that can never ever actually own any
    real property EVER.

    If you look at the history of property taxes here in the United States, you will see that it was declared in the Constitution that our own land was not to be subject to taxation. You will also see that there was to be NO TAX on our own sweat, meaning from our own labor. Yet we have the “Income Tax” , which does exactly that same thing.

    We are edging closer and closer to becoming a communistic country everyday and it boggles my mind that people are still sleeping and thinking that ANY of this was by “accident”. I can assure you, it was not. And the endgame is right around the corner…. and we are powerless to stop it if we are all still asleep.

    So for G-ds sake everyone, wake up. Stop believing anything you hear from the mainstream media. In fact, whatever they are screeching at you ~ believe the opposite. And stop letting them confuse you with all their psycho babble. Stick to the basic premises of what you KNOW to be true.

    We are Free Men & Women and the only way we can become slaves is if we subject ourselves to the slave masters. It is time for us to rise up and by majority REFUSE to participate in their “rigged” games anymore. By refusing to participate we are peacably taking back what is already ours to begin with. Our own sweat and labors and our own homes and lands.

    And NO MORE CENTRAL BANKING SYSTEM. NO FEDERAL RESERVE SYSTEM AND A MONETARY SYSTEM BACKED BY
    GOLD AND SILVER.

    Until we all get this, we really are just useless sheeple being led
    to the slaughter.

  4. The planet is bankrupt financially and spiritually—we need to start over…with truth, justice and compassion…or annihilation and extinction is our only future…

  5. It all comes back to the same banking bottom line. Restructuring any debt requires a default first.

    Be it HAMP, a credit card debt, or a student loan, these debts cannot be restructured unless the debtor is in default. Until this banking rule of law changes, the world’s economy will not only not recover, but the rich elite will continue to siphon main street’s wealth.

  6. UN FU

    CK IT

    ALL

    99/1

  7. here is a nice comment from the article I posted below:

    “Free market capitalism is supposed to be about risk/reward in following the . In many of the previous comments, it was pointed out that the banks lend based on a repayment risk. People borrow based on repayment risk too. If a bank cannot collect on a loan, this is a risk they took when they did the lending. If allowed the bank will make an ROI decision on the value of deficiency judgment proceedings. If the bank prevails in that action, the individual who defaulted can protect themselves by utilizing bankruptcy proceedings, which will keep them out of jail and will pay back some fraction of the debts to their creditors.

    If the banks make too many poor decisions around risk, and lose money on loans, they too should lose credit ratings or go bankrupt if they made ridiculous risk decisions such as highly leveraged credit default swaps, etc.

    In either case there is nothing illegal about making a poor decision.

    What has thrown a monkey wrench into the system is that the system has been imbalanced, certain banks have been protected against bankruptcy, whilst the individuals have not. The ‘bailouts’ have allowed the banks to unfairly mitigate their risks and not fail the way they should have. This would have weeded out the bad banks letting only the smart banks in the market who didnt make high risk loans or trade in credit default swaps (there were lots of those banks – and credit unions – and mutual companies – who remained healthy all through this because they didnt make high risk decisions).

    My point is, we are likely to have an inordinate number of deficiency judgment proceeding because accidentally the bank bailouts are funding them. We’ve effectively paid the banks with taxpayer funds to not only foreclose on ourselves but then sue ourselves afterwards while funding and protecting the banks all along. I question the foresight, judgement, and motivation of the politicians who made this happen.

    Please note, this system”

    ———————————

    We have been TOOK:

    “We’ve effectively paid the banks with taxpayer funds to not only foreclose on ourselves but then sue ourselves afterwards while funding and protecting the banks all along. I question the foresight, judgement, and motivation of the politicians who made this happen.”

  8. “Deadbeat Banksters” certainly took advantage of the situation, but who created the environment and the perverse incentives in the market for them to do so? Hint: the same party that took the risk (lenders used to face) out of the market. Fannie, Freddie, and the big Uncle Sam. To add insult to injury, the government also got bought by the banks and bailed them out.

    America really gives capitalism a bad name by tinkering with the market through obtuse regulations and policies that mean well but create perverse incentives and other unintended consequences.

  9. Here you go, the GREAT Securization of Debt—————-

    “He says deficiency judgments will eventually be bundled into packages that resemble mortgage-backed securities.”

    http://finance.yahoo.com/loans/article/113605/house-gone-debt-lives-on-wsj;_ylt=Aj87L_BgTduE0GmaA06efTK7YWsA;_ylu=X3oDMTFhNWgxYzQ2BHBvcwMyBHNlYwNwZXJzb25hbEZpbmFuY2UEc2xrA2hvdXNlaXNnb25lYg–?mod=loans-home

    ———————————–

    They got yah going into it, now they got yah getting out of it.

    —————————

    You have been took. Welcome to Planet Earth – Earthlings.

  10. Mr Gardield

    Re the demand to ” fix the housing market…….”, remember the old saying, “be careful what you wish for.” I’m unhappily certain the fix will not favor those who’ve lost their homes. Having helped create the mess, government cannot fix it except by inflicting more misery.

    What makes you imagine that having tolerated this debacle for four years, that the government will intervene appropriately and equitably on behalf if the millions who have already lost their homes.

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