DEATH WATCH: Canadian Banks Dumping U.S. Assets

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calling in and foreclosing business loans that are current

EDITOR’S NOTE: Ok, I don’t like the sound of that either. But if you look at the larger picture it all becomes clear. With our government and courts bogged down in mythological presumptions about mortgages, housing and the economy, the real world is still chugging along. And in the real world, America is in a self-imposed decline.
The Canadian move is nothing new. Everyone is dumping U.S. Assets including U.S. banks who created the demise of the strongest economy in history. U.S. banks are lending most of the three trillion dollars they siphoned out of America to foreign ventures and mega corporations, ruthlessly depriving their own country of the last air available. In the East, the first moves have become official for direct trading of currencies — rather than using the U.S. Dollar as the intermediary or “real” currency in their transactions — meaning that the Chinese juan is coming out to play despite numerous economic problems.
These doors are open and the horses are escaping because the Obama administration has stuck its head in the sand and refuses to see we are fast losing our position as the printer of the world’s reserve currency. This will only add to our debt woes, since for every dollar out there we may well need to make good on it in other countries’ currency.
And all that is because after 5 years of this crap, nobody has peeked under the hood to see what is going on. Nobody has looked at the money trail. And so everyone is foreclosing their own options by lack of curiosity. It is still assumed that the borrowers are in default. It is still assumed that these hapless borrowers owe what the Bank says they owe. It is still allowed for Banks to declare by fiat what they were previously required to prove in court. And the narrative is still about preventing the borrower from getting a ” free house” while the Banks are getting exactly that — a free house. 
We should remember also that the Canadian Banks — the object of the same contempt and derision reserved for hapless homeowners who were sucked into the Wall Street wind tunnel — were the ones who DIDN’T play securitization roulette. They were the ones who called it suicide, absurd and reckless.
Now they are looking at their sick friend to the South and seeing that assets that have value now, may well be worthless later. So they are dumping them. In this case they are backing out of commercial loans to small businesses, calling them in when the businesses have no were to go to replace the borrowing because they don’t have access to that open FED window and they can’t get in the door of the mega banks that stole the money. So you end up with 52 businesses in Reedsburg, Wisconsin that are current on their payments but are going to be foreclosed — put out of business — by economic currents that our government refuses to acknowledge even exist.
The effect on American small business is catastrophic and it is American small business that employs most of the our population of workers. The conclusion is obvious — joblessness, under employment and psychological depression is going to keep Americans out of work and American business in decline until SOMEBODY says “let’s look under the hood and see what actually happened with the money.” The dominoes are falling and nobody seems to notice.

SEE ARTICLE AND VIDEO

Up To 52 Businesses Face Foreclosure In Reedsburg
http://www.channel3000.com/money/30042354/detail.html

11 Responses

  1. …and FATCA will be the last nail in the US economy’s coffin.

  2. Jan van Eck, that penny auction strategy has been used successfully for generations in the mid-west to keep farmers who worked the land on the farm, after the banks had their way, at least until the last few years. The hedge fund billionaires have discovered what Jim Rogers has been saying about the future being in farmland, and they’re bidding ten times the price for commodity farms. It’s happening all over the world. Australia passed a law against it, possibly too late. Historically, a sure sign of impending collapse is the removal of farmers from the soil.

    The same thing happened in Ancient Rome, and caused the degradation of the soils which embellished the collapse that was already underway due to overreach. It’s a perfect view of the Monsanto destruction occurring today as it’s coupled with the financial mayhem. If only we could learn from history, instead of re-writing the same chapters over and over again.

  3. Enraged, that Reuters piece….the argument that there’s a moral hazard to a debt jubilee….that’s down right comical. I got to that pdf by way of L. Randall Wray’s site where he discusses his student’s calculations that it’s $29 trillion that was loaned overall to the banks. To hear them arguing the moral hazard card is way too funny, kind of like trying to rationalize poisonous paint on kid’s toys, it a very hard sell.

    You can take to the bank that the elite behind the scenes are not only allowing, but are very much behind the self-imploding GOP idiots….there’s no other logical rationale behind that group of morons. And why screw with the perfect shoe-shiner Obama? He does whatever is asked of him, with mucho gusto. It’s going to take a revolution, which will come, unfortunately, post-collapse. There’s simply too much money to be made by the puppet-masters until then.

    I’m reminded of a satirist’s cartoon I saw a few years ago that showed a bankster talking to a crowded luncheon hall…. he said something like, “Although the end of the world will be filled with unimaginable horrors and endless sufferings, we believe that there will be ample opportunities for great profits on the way down!” Too real….

  4. This particular event, closing current loans to smallish borrowers in Nowheresville, USA, is classic for bank of Montreal. BofM has always had serious problems attracting quality managers within its corporate structure; when somebody talented comes on board, typically he leaves within two years to go to another of the big Canadian Banks. the result: BofM is congenitally burdened with ranks of incompetence, right down to the branch manager level.

    It becomes apparent that BofM has imported “managers” from Montreal to direct the Chicago operations of State Street/Harris Bank; what you are seeing in Reedsburg is the inevitable result. BofM is a bit like Bank of America; it survives because of gigantism.

    There is a tried-and-true populist resolution for BofM’s hubris: the penny auction. What happens is that the dairy farm is foreclosed, and when it goes up for sale, the locals all show up and bid only pennies. The buyers, all local farmers and townspeople, then re-gift the assets of the farm back to the owner. In effect, that clears the mortgage and the title. This tactic was done successfully during the great Depression (1930’s version), but it does require the concerted and unanimous efforts of the locals to stand fast and see the practice through. Were this to be done, I predict BofM would fold their tent and leave; their managers are not smart enough to construct a counter-strategy.

  5. That Reuters article goes along the lines of the one I read over the weekend about the need to act now or there won’t be a second half to 2012 (Darn it! I can’t even find it anymore!)

    Except that it doesn’t convey the same sense of urgency… but the idea is the same: write off pretty much everything, combined with a complete dismantlement of the TBTF and serious investing into infrastructures and public agencies. Starting anew, re-regulating, prosecuting, etc. The part I wasn’t all excited about has to do with martial law but, either way, it will get to that for a while.

    There was even a suggestion that the reason the GOP is allowing all those clowns to run for president is that… it really doesn’t want to win and end up in charge of fixing the mess. That would make sense.

    It’s gona get worse before it gets better…

  6. So, all those hot potatoes are coming back to us…

  7. […] Read More: DEATH WATCH: Canadian Banks Dumping U.S. Assets […]

  8. And here’s the proof that even children understand exactly what’s gone down:

    http://www.southparkstudios.com/full-episodes/s13e03-margaritaville

  9. Everyone knows what needs to happen. It’s just that the path that leads from Wall Street to D.C. is paved with gold, and our leaders fear being cut off from the financier’s benevolence (read: GRAFT). Here’s the prescription for what ails us:

    http://www.scribd.com/fullscreen/67643134

  10. Everyone knows what needs to happen. It’s just that the path that leads from Wall Street to D.C. is paved with gold, and our leaders fear being cut off from the financier’s benevolence (read: GRAFT). Here’s the prescription for what ails us:

    http://www.scribd.com/fullscreen/67643134

    And here’s the proof that even children understand exactly what’s gone down:

    http://www.southparkstudios.com/full-episodes/s13e03-margaritaville

  11. “I got the world on a string….sittin’ on a rainbow……got the string around my..finger….WHAT A WORLD!”

    That’s about the size of it.

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