There is a news story, despite the efforts of the nation’s Financial Titians and the Elites of National and State governments, that is going to sweep over this land like it is 1929. Major, “Too Big to Fail” Banks and Financial Houses, who all profited in 2008 and 2009 from massive bailouts concocted in the Halls of Power of DC and Wall Street, are now faced with a situation that, in order for them to survive, means smashing the bedrock of American civilization. They literally have to not just undermine the rule of Law in this Republic, but sweep the actual concept of it off the American table in order to survive.
This is a story not easily told and nor adaptable to political sound bites, but it is a story that all Americans must be made aware of and then must cry “STOP” at their top of their collective voice. The people of the American Republic must be willing to collectively take on the major Banks and Financial Houses and metaphorically “Go Dillinger” on them. They must stand up and rise in anger over what is unfolding to be one of the largest frauds ever perpetuated on the American Public.
Many of the major banks involved are household names. Bank of America, Wells Fargo, GMAC just to name a few. Their accomplices are the Frankenstein monsters of the Federal Government, Freddie Mac and Fannie Mae. The creation by Banks of Mortgage Backed Securities (MBS) coupled with intense political pressure from politicians Like Barney Frank and Chris Dodd to loosen restrictions on the lending of money to unqualified buyers of homes took our once stable and secure Home Mortgage System (Where a home was not an investment, but merely a place to live in and call your own) and turned it into a high stakes gambling venture that propagated the myth that property prices would always go up, regardless of the circumstances.
Banks packaged MBSs and hid the shaky subprime mortgages with the thin veneer of “Triple A” rated mortgages and turned them in economic “Baseball cards” to be sold and bought by the highest bidder and claimed the pieces of paper that backed them were worth an ever expanding pool of Money. Bankers and Politicians made millions as the pyramid of lies grew.
But, when the bubble burst in 2007 and 2008 (just like the dot. com bubble of 1999…It was all an illusion of wealth then too) it didn’t just threaten the high tech industry this time. It threatened the huge Banks and Financial houses of Wall Street who had made billions by using others people’s money (pension funds, Hedge funds, 401(k) funds) to invest in the myth of ever increasing home prices. The Goldman Sach’s and Wells Fargo’s of the world were facing collapsing funds of all types across the board as people lost jobs and defaulted on loans and to make matters worse, the Banks had for years been gaming the Mortgage system to avoid local taxes and fees by creating Mortgage Electronic Registration System (MERS) in which the titles and paper work that the borrower were digitized and the original “ink to paper” documents were then destroyed. By a complicated series of maneuvers, the Banks who were responsible for maintaining the paperwork, avoided the pesky little issue of legally registering properties in the counties and thereby avoided all those pesky fees and taxes that cut into the their bottom line. Unfortunately, it was also against the law, but the law was ignored for decades….
When the “bubble burst” and all these holders of MBSs starting insisting on foreclosing on Owners who failed to make payments on their home, the Banks, purposely and with malice opened up Foreclosure Mills that issued of HUNDREDS OF THOUSANDS fraudulent affidavits to the courts saying that they had the necessary, legal documents to lay claim on homes they wanted to foreclose upon. It was one big lie and now, finally, after all these years, people began to question the affidavits and the banks (and their executives in charge) were caught red-handed committing fraud upon the court.
They no longer held the Legal paperwork required to institute a foreclosure. They had purposely destroyed them.
Result: Attorney Generals in ALL Fifty states are launching inquiries into fraudulent practices of America’s leading banks and our Mortgage market is frozen. We are talking about Bank executives (like Democratic Candidate for Florida Governor Alex Sink) who knowingly set up and operated criminal enterprises in a vain attempt to cover up the fraud they had committed. Pension funds, hedge funds and major brokerage firms are shamelessly throwing the victim card out and are going to sue the Banks for a full restitution by claiming that they were defrauded by their cohorts in crime, the banks. (h/t Market Ticker) To make matters worse, many of these banks have sold these corrupted MBSs to Freddie Mac and Fannie Mae, putting us, the taxpayer on the hook.
We are once again, after spending almost two trillion dollars in the last two years, about to have another credit crisis, or better said, a continuation of the one started in 2008 and that was papered over for two years. The only way these major Banks and Brokerage firms can survive is if our politicians let them get away from having to obey the law.
America needs to kick out of office the politicians who allowed this to happen. We need to prosecute the executives of the banks who committed this fraud, including freezing their personal assets, just like we do drug dealers. We need to go back and determine which officials in Freddie Mac and Fannie Mae made millions and go after them like common street thugs. We should allow these two federally built monstrosities to go up in smoke and let the whole thing come crashing down and start rebuilding from scratch. And, we still need to make sure those that bought more house than they can afford, or quit making payments when they went underwater…eventually lose their homes (legally). Stupidity or irresponsible behavior no longer gets a pass in American society.
Above all, we need to ENFORCE THE RULE OF LAW and NO MORE BAILOUTS, regardless of what banks or brokers go belly up. We have got to make it clear to the people we will or have voted into office that they had better start prosecuting the white collar criminals of the Banking and Political world and start throwing them into jail. That is the only way to REALLY start to solve the financial mismanagement of our Nation’s economy. If our elected elites fail to do it, we throw them out and find ones that will.
Time to “Go Dillinger”, America….