Government Accounting Office (GAO): Bailout was $16 TRILLION

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EDITOR’S ANALYSIS: Let’s do the Math.

The total of ALL Mortgages in the mortgage mess was $13 Trillion.

That includes all the mortgages that went into default AND all the mortgages that didn’t go into default (assuming we accept the word “default” as simply meaning that the borrower didn’t pay and we forget about the fact that the creditor was probably paid anyway). The Bailout was $16 Trillion, which means that the bailout was $3 Trillion more (just as I predicted by the way) MORE than the amount loaned.

So here are some simple questions:

  1. Assuming a “default” rate of 30%, that would mean that around $4 trillion of mortgage loans went unpaid, but the Banks grabbed the property.
  2. If the property was worth 50% of the loan, then the “loss” on the “defaults” was $2 trillion.
  3. WHY DID THE BAILOUT COST EIGHT (8) TIMES THE LOSS?
  4. WHEN ARE WE GOING TO REALIZE THAT SOMEBODY MADE A KILLING HERE CLAIMING A NON-EXISTENT LOSS: THE TAXPAYERS PAID $14 TRILLION MORE THAN THE ALLEGED LOSS, WHICH IS A PROFIT, RIGHT?
  5. IF THERE WAS A KILLING, WHO WAS THE VICTIM (ALL OF US?)
  6. WHERE IS THAT MONEY NOW?
  7. WHEN DO WE GET THAT MONEY BACK?
  8. IF THE BANKS RECEIVED AND KEPT $16 TRILLION OR SOME SUBSTANTIAL PART OF THAT, THEN WHY ARE ANY OF THE MORTGAGES IN DEFAULT?
  9. IF THE BANKS RECEIVED AND KEPT $16 TRILLION OR SOME SUBSTANTIAL PART OF THAT WHY DOES ANYONE WHO RECEIVED A MORTGAGE DURING THAT PERIOD OWE ANYTHING TO THE SAME BANKS?
  10. DIDN’T WE ALREADY PAY THEM IN OUR ROLE AS TAXPAYERS?
  11. WHY SHOULD WE PAY THEM AGAIN?

24 Responses

  1. Please Please Please provide a reviewable ciation/site that I can look at and Post?????

  2. Page 137 of the GAO report shows that the “loan” balances were all paid back. But…..paid back with what?? Just how many toxic assets were allowed to satisfy these relief loans to the banks? How many toxic assets sit on the balance sheet of the federal reserve??

  3. Cubed2k ,

    Einstein stated “The most powerful force in the universe is compound interest” , I don’t think that was an endorsement of the banks, I believe it was the opposite of that.

  4. A. Related party disclosure requirements for government related entities

    “Where a government related’ entity will benefit from the more relaxed disclosure requirements”

    Where government ownership, direct or indirect, extend to many commercial areas of the economy, complying with related party disclosures under the current FRS 24 (2004) can be difficult. It also can result in a significant amount of information needing to be disclosed for transactions which were not impacted by the related party relationship.

    Under the revised FRS 24 (2010), government related entities can now opt to follow the “modified” disclosure requirements under paragraph 26 of FRS 24 (2010) and be relieved from the full disclosure requirements under paragraph 18 of FRS 24 (2010) in respect of certain related party transactions.

    The changes should result in government related entities focusing their disclosures on those transactions in which the relationship with the government may have played a role in either the occurrence of the transaction or its terms and conditions.

    A reporting entity that is a ‘government related’ entity will benefit from the more relaxed disclosure requirements. A government related entity is an entity that is controlled, jointly controlled or significantly influenced by a government.

    expert.witness@live.com
    M.Soliman

  5. Foreclosure continues on as a Fed subrogation claims effort brought for the liquidation of Toxic Assets held (IF ANY ARE LEFT) by the Statutory Business Trust.

    The assets are equities reclaimed by the FDIC for its member banks or by Investors who have successfully CASH Bid and purchased the possessory and non possessory principal debtors obligations and assets.Get it ? Please say you do !

    It is a difficult and time consuming effort done under a clandestine and opaque manipulative procedure. The anticipated outcome is restoration of the US Banking system which many view as a Federalized System of Banking under the Department of Treasury – the first in US history.

    This effort is highly oppressive by European views and the IASB where brought under a willful and overbearing Government mandate to settle these claims in the private sector . This is what caused the governments preemptive strike against Safe Harbor to fail “See frank Dodd” (As we saw in October of last year).

    The Fed continues to interfere and violate GAAP having implored FASB for every concession under the moon.

    Remember great litigators, internet commentators and RESPA Audit mischief makers . . . the FDIC is manned by more accountants than attorneys . When you get up high enough to converse . . . you think I talk Greek (its okay – keep the insults coming) . The FASB Board and its merger into the IASB, cause the Fed to step carefully into the role of Grand Foreclosure Sultan hiding behind Mers Corp. The repeal of safe harbor challenges and off balance sheet hijinks with directives for banks to restate earnings should tell some one – anyone out there this is a accounting matter that must be argued and that both diversity and jurisdiction is found in Fed Bankruptcy Courts.

    Charges taken on QSPC’s valuation and capitation of each series held “Not for Profit” capitalized entities continues. Now, the Philly newspaper BK stalking horse Bids give way the 3rd Circuit “Remand” (check that ) for Gov Sponsored to Loss Risk share programs like those extended to JP Moaner – Chase Bunk and One Worse Bunker. Its the alternative to a down side of the markets and losses sold to America as the means to mitigate risk by capitation of assets –Loss Risk is the Capitation I am speaking of here.

    There is not much here in precedent and vanilla procedural claims and Real Property title arguments or evidence supported by applicable case law…its just not there. Its just not there.

    M.Soliman
    expert.witness@live.com

  6. And there is the essential disconnect: an ordinary citizen can’t get a miniscule amount of money that has already been paid, but the banks can get $16 trillion with no accountability and no actual need for it. And no questions asked. The system couldn’t be MORE rigged…

  7. Here’s the problem in a nutshell: my wife received two $35 moneh orders from a co-worker after we moved to another state. We haven’t opened a bank account in our new state.

    She wanted to cash the money orders–they’re from Western Union. No Western Union outlet will cash them. Wells Fargo, the bank that is named on the money orders, won’t cash them. A check cashing place wouldn’t cash them because the name on the money orders is Betty and her driver’s license says Beatrice.
    The banks say she could deposit the money orders if she opens an account with them, but they still won’t cash them.

  8. Have you signed yet?

    http://www.getmoneyout.com

    DRAFT of Constitutional Amendment for public debate this fall:

    “No person, corporation or business entity of any type, domestic or foreign, shall be allowed to contribute money, directly or indirectly, to any candidate for Federal office or to contribute money on behalf of or opposed to any type of campaign for Federal office. Notwithstanding any other provision of law, campaign contributions to candidates for Federal office shall not constitute speech of any kind as guaranteed by the U.S. Constitution or any amendment to the U. S. Constitution. Congress shall set forth a federal holiday for the purposes of voting for candidates for Federal office.”

    Don’t let the banksters win anymore…

    172,573 signatures and counting in less than 2 weeks…we will reach more than a million by 2012 election…please tell everyone you know…and keep the wave going!!! Thank you!!!

    check it out:

    http://www.msnbc.msn.com/id/31510813/#44849778

  9. A credit score is just an “I love debt” score.

    NEVER AGAIN.

  10. change the color of the money. and emboss it. VIOLA! Force everybody to trade in the “greenbacks” for “redbacks”. Instantly take all of the illicit, underground, foreign-held, ill-gotten, undeclared, untaxed, paper money.

    Just a thought……..

  11. Homeownership Decline Outpaces All But Great Depression
    The national homeownership rate fell by 1.1 percentage points between 2000 and 2010. The U.S. Census Bureau says it’s the steepest drop since the period from 1930 to 1940. Housing woes are, without question, taking a bite out of the American Dream. Unprecedented levels of foreclosures have forced more than 3 million homeowners out of their homes over the past four years. And with $7 trillion in home equity wiped out since 2005, many are leery of putting their hard-earned dollars toward an investment that is still depreciating. ….from DSNews.

    and this…….

    This comes from the “Speaking out of the other side of his mouth” department:

    Speaking on behalf of the Financial Oversight Council, Treasury Secretary Timothy Geithner made recommendations before the Senate Banking Committee on reforming the housing finance system. Specifically, Geithner called for establishing national standards for mortgage servicers, which the committee believes will “realign incentives and help reestablish confidence in the integrity of the housing market.” Geithner also stressed the importance of reducing the government’s role in the housing market.

    why stop now? they’ve done everything but set the houses on fire with the people in them?

  12. oh, and add in compound interest. Who invented that?

    And Einstein said it was the greatest invention of the world?

    But for who, you fuc’in idiot? Only banks can use it?

    Another hack, paid shill.

    You decide.

  13. If the 99% stopped using credit and only used cash, that would end the game for the 1%. Their books would not balance. It would come to end end. And life would start again. Why, because the leverage would go away. And this might be harmful to some people, because they would actually have to earn a living. This would be a different viewpoint from those that earn a living by using numbers as opposed to actually producing a product that is exchangeable with another. Whole new viewpoint.

    It is only when you take out loans and use your credit cards that the game continues.

    You don’t believe me. The Federal Reserve Power is interest rates. That means borrowing? Right. Or money creation via banks loans or IOU’s or Promise to Pay. Right.

    If the 99% stopped borrowing, that would end the game of leverage. And what is the game, ABS, MBS, deriatives, bonds,……………all borrowing.

    What if the world went all cash? No borrowing. What a minute? Time. Time payments. Giving up your future earnings to time payments. What if you could afford in present time? Or saved for an item you desire?

    Why would you give up your future earnings to pay for something you bought in the past? So you could have it now. But if nobody had to give up their future earnings, why you could have it now because prices would not be artificially higher. Think about it.

  14. it’s always the math, the accounting rules.

    Who sets the god damn math, the rules. THE Accounting.

    FU

    BANKS

    CONGRESS, paid shills, hacks.

    WHO SETS THE RULES. THE NUMBERS.

    WALL STREET. IMF,

    FU.

    DEBTS. LOANS,

    DO Not do from a bank. THROW away credit cards.

    Pay all Cash.

    Deflation will occur. Good for consumers. Bad for banks.

    You decide.

    By second hand and help a friend, fellow american in need. Garage sales, estate sales. help those in need. Do not use credit cards, keep prices down.

    It will reset to true market values and screw the 1% and help the 99%.

    Do not use credit and you help the 99%. Use credit and you help the 1%. You decide???????????????

    Which are you?

  15. Just in case anyone missed it:

    JP Morgan Chase Donates $4.6 Million To NYPD On Eve Of Protests:

    “Wondering how much it costs to buy off the police department? JP Morgan Chase just gave the New York City Police Foundation the largest donation in its history…”

    http://www.disinfo.com/2011/10/jp-morgan-chase-donates-4-6-million-to-nypd-on-eve-of-protests/

  16. This GAO report is found here: http://www.gao.gov/new.items/d11696.pdf

    Page 134 shows the total loans to institutions. Page 137 shoes a graph where supposedly everything is paid in full.

  17. […] Livinglies’s Weblog Filed Under: Foreclosure Law News, Foreclosure News Tagged With: crisis, foreclosure, […]

  18. I think the answer, Neil, is the $16 Trillion GAO number is a loan. So, all those banks owe the federal treasury. Now, the bigger question is:
    — How much has been paid back?

  19. BTW , I never ran from a fight in my life , and I have taken a few and dealt out even more , so I am with ya Alan

  20. Leapfrog,

    You must have missed that 3-days old post.

    We kinda knew OCC was useless and, actually, counterproductive for what We The People are concerned…

    http://www.nakedcapitalism.com/2011/10/more-proof-of-federal-coverup-of-mortgage-fraud-robosigner-equivalents-hired-to-review-foreclosure-files-in-required-audits.html

    I wonder if Obama will have the gall to toot that his government has created “thousands of jobs” under that auditing program

  21. Game over folks , we have slim ,slim chance but not unless we all start protesting and demand real change. If not then it’s the FEMA camps for the few that do protest & fight back. Low paying take it or leave it jobs for rest of us , mass poverty , homelessness & foreclosure for the rest.

    Welcome to GItmo Nation USA !

    ” They’ve Got the Guns, We’ve Got the Numbers ”

    Jim Morrison

  22. OT from the 16 T bailout, but here’s how robo-signing “issues” (fraud) have been “resolved” (swept under rug):

    “Do you have what it takes to be a Mortgage Foreclosure File Reviewer Level 2? An intrepid researcher forwarded to me a job ad for a mortgage foreclosure reviewer who will be reviewing bank foreclosures per the OCC/Fed servicing fraud consent orders. I have seldom seen a document that says more about the bullshit (malarkey) that the OCC and Fed are trying to pass off to cover for the banks than this job ad. I think it demolishes even the thin fiction that the OCC/Fed servicing consent orders are anything more than Potemkin villages. Instead, what we have here is nothing less than a federally-blessed Robosigning 2.0.”

    http://www.creditslips.org/creditslips/2011/10/robosigning2.html

  23. That has been my position all along: we all paid forward the minute the banks received the bailouts. What they did with that money is their problem, as long as they walk away from all the mortgages they allege to be in default. If giving their officers insanely obscene bonuses was what they planned all along, so be it. But they shouldn’t look surprised to go down and they certainly shouldn’t look surprised that we want them out of the picture once and for all, with or without government’s help.

    Trying to collect from both ends from the same individuals is despicable, illegal, fraudulent and much, much more.

    As far as I am concerned, i refuse to pay one cent to any banks/mortgage servicer. i refuse to give them my money to manage. As much as i can, I will avoid any relation with any large bank. I hope everyone realizes that we already paid enough and we stopped owing anything the day the bailouts were handed out. It will take a while but all the culprits will get what’s coming to them.

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