State of the Union: Securitization is Running Amok and Taking Us All down With It

  1. The United States is experiencing the worst man-made economic disaster in all of human history — the misuse, abuse and overuse of financial products that are sold to consumers as debt.
  2. Since 2000, more than 20 million people have been wrongfully displaced from their homes by parties invoking foreclosure laws, millions more lost jobs, and millions more suffered loss of economic opportunity, status and income as investment banks now masquerading as commercial banks continue to rake in huge amounts of revenue — sharing none of it with the investors who put up all the money or the borrowers who put up then lives, their signature, their credit reputation and their homes.
  3. On any given day, more than 1,000 families lose their homesteads to a revenue scheme that is falsely presented as restitution of unpaid debt. Starting in 2008 the figure was triple that number. The amount of revenue is close to one quadrillion dollars or about 15 times all the government sponsored money in the world. In 1983 the shadow banking market was zero. It didn’t exist. Now it is estimated by most economists to be in excess of $1,000,000,000,000,000.00.
  4. The loss of homes and jobs and income has caused a long-term surge in stress-related illnesses and death and unwanted lifestyle changes.
  5. Through artful persuasion and advertising Americans have become addicted to debt and led to believe that it is an adequate substitute for wages, as long as the cash is available. The result has been skyrocketing debt that is not viable — i.e., there is no way it can be repaid. But the investment banks that spawned this era found a way to make money from originating and acquiring loans that will fail. They labelled this process “securitization.” Their labels like the rest of their statements and advertising and lobbying on the subject were all false. Borrowers were consistently lulled into a false sense fo security as offers of refinancing their debt came fast and furious.
  6. While the U.S. Congress has enacted many laws to encourage and require responsibility of lenders to comply with clear and concise disclosures of the terms of the loan, and to require lenders to assume responsibility for viability of the loan and appraisals of collateral, the banks have used “securitization” to avoid liability for breaches of statutory duty that were intended and known to the banks who actually used complex financial instruments to bet against the same loans that they are originating and acquiring. The havoc caused by bank practices starting in the 1990’s was not only completely foreseeable, it was foreseen — and the banks profited from it every step of the way.
  7. On average, at a minimum, investment banks took in more than $12 for every dollar of principal loaned under the banner or claims of “securitization” or “sales into the secondary market.”
  8. While most banks offered traditional loans with traditional risks, the investment banks created an environment where they could underbid literally any other offer to loan money because they were producing enough revenue from every loan originated or acquired to even offer compensation to borrowers for executing loan documents.
  9. Hence various types of loans that were “too good to be true” emerged and from a base of 5 variables in institutional loans came a plethoras of loan products peeking at over 450 different types of loans, most of which were not understood even by the PhD analysts employed by the federal reserve.
  10. Consumers who sought to borrow never stood a chance.
  11. And consumers who were not seeking to borrow also never stood a chance. They were enticed to borrow by long strings of broken promises all of which were kept to oral communication and never reduced to writing.
  12. This trend continues with currently secret plans to offer financial incentives to investors and borrowers that are counterintuitive — i.e., borrowers are paid to execute loan documents receiving money or credits against their loan account on a continual basis and investors get a higher rate of return than any loan in any portfolio. Still the banks will make money by converting investor money to investment bank assets. The investment by investors becomes profit to the investment bank. The loan to borrowers is merely a cost of doing business.
  13. Small banks don’t stand a chance either. They can’t pay borrowers to borrow.

11 Responses

  1. Sometimes good people do things they shouldn’t. All of the circumstances must be revealed. A man like Stoppa, didn’t take a fall easily, no dummy. I have to wonder, who was afraid of what he knew and how credible was the information? It is my opinion, the corruption of the courts is rampant. Far too many have tried to convince a laymen like me, it was my inadequate presentation that hindered my success. The more I read, absorb and listen intently to countless horror stories, I’m convinced otherwise. When did someone need to be an experienced litigator to present “the truth”, factual documents to the court to get justice? The facts speak for themselves. If everyone here has understood what is happening to them personally, legally…how is it experienced judges are feigning comprehension of legal concepts?

    I am personally beyond the baloney…I know a con when I see it. There is nothing in my case that is a verifiable debt. No contract breach, no money owed, no party entitled to anything, …the land in question belongs only to me…I don’t dare transfer the deed or fool with county records, they would have me in handcuffs, swiftly. Maybe at some point when I am resigned to possible jail time, which I am considering, I will go for it. It’s on the table..I have a couple words for these punks.

  2. Poppy – There are bright attorneys that helped some people and screwed even more for Money. The MO was to get people to a certain point, wait until the bank strikes again and write another $25K retainer, do nothing and keep the money. Working for the banks, maybe? Or CIA asset? They were slowly taking down America with a bluff.

  3. Also – may have been more involved in disbarment. Money escrow. Bottom line, however, is WIN OR LOSE. And, I have seen MORE than escrow as to “losing.” Much more. .

    Can’t blame for disgruntled homeowners who lose. I get it. But, that is not the issue here — the issue – what does he KNOW?????? We should ALL want to know.

  4. Mark Stoppa very interesting case. Several homeowners who hired him, and then lost went after him – wanted money back. Perhaps why many attorneys will not take these cases – they know they can’t win – and puts them in a bad position. I have paid and in same position. Yet I don’t ask for money back. I have issues with certain attorneys I have come by, but I would never pursue.

    I am sure attorneys get the “power.” The problem is, in my opinion, far more cases should be won and they are not. Few are won – at least not that we know about. In case after case bad precedent is set because clearly much is concealed.

    Think we should look at what Stoppa has to say. He is now in role of investigative journalism – much like other investigators here. Think will help at least to see what he has to say. Let us look at it. .


  5. Thank you Neil

  6. Interesting Neil blocked Stoppa’s letter I tried to post…Hmm

  7. Mark Stoppage has been all over FB the past few days. He should be easy for you to find and get a hold of.

  8. I read about Stopa being disbarred, the facts leading to his disbarment
    I found hard to follow.6

  9. I have a letter…blocked by Neil on here. Stoppa has been disbarred.

  10. I’m interested in hearing what Mark Stopa has to say … I also need to contact him , my current counsel needs to get a copy of my disco that was lost when he was disbarred…

  11. Been trying to post a letter from Mark Stoppa…something is blocking it.

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