The latest in housing is $650,000 houses in So Cal are going for $200,000.
The FHA, which is finaly taking notice says 1.2% of new mortages are not making a single payment, and three time that are making only one payment, and all of the loan fees are financed.
They suspect fraud, and it's about time. A lot of no doc were the same, finance the fees, points, then default.
As FHA takes two years tax returns, I suspect identity theft.
FHA works through local lenders, realtors, who also handle the foreclosure.
Voteing the graveyard, local dead people who have their info on file are buying houses.
Just the FHA looks like 5% fraud.
Before they default they are packagd as a security, sold, and the security insured with a credit default swap, knowing it is fraud and will default.
So a serial fraud coming from Realtors, Mortgage Brokers, Banks, Brokers, working together, to defraud insurance companies.
When four people conspire to commit a crime, none are guilty of the whole crime. It is called Organized Crime.
Fannie and Freddy went under because they were sold bad paper. They were told it was good.
AIG went under because it insured bad paper, it was told it was good.
Realtors and Mortgage Brokers were the feeder funds for Banks, who with Brokers, stuck other people with AAA rated worthless paper.
So like Ponzis being discovered durning a down turn, Banks have been selling bad paper. It is up to the Bank to verify that the property is worth the sale price, and the buyer meets qualifications to purchase.
Realtors got a sales commission, Mortgage Brokers a fee, but it was the Bank who collected Points, and a lot more. It was Banks who sent these economic bombs into the system.
It was Banks who sold securities based on these loans, then insured them. So they got the Security money, then the Insurance money, and only had to continue Bond payments.
This was the reason behind the Glass Segal Act of 1933, deregulated out in 1999. Banks were not allowed to sell Securities, for they will sell sixty times the value of the mortgages, insure them, and claim they had nothing to do with the default.
It only took a decade to crash the system, just like 1929.
They inflated and destroyed the housing market, destroyed bank capital, broke the insurers, the Pension Funds, University Endowments, Charities, froze the Credit Market for real AAA Corporations, and collapsed the World Economy. Now they are loan sharking on credit cards.
Besides other losses, perhaps 1500 banks will become worthless, and those who did it will walk away with billions.
In May we reach the milestone of longest downturn since the Great Depression.
We are still in free fall.
Since they have a strong interest in our economy, and are good people, we should sub contract the investigation and resolution to the Chinese Police. The Bankers acts have directly impacted the Chinese economy, and under Globalism, we must keep an open and transparent rule of international law.
The Chinese hold a Trillion in government bonds, and ten trillion in cash. That equals our National Debt. We owe them an accounting, and the ability to charge the criminals under Chinese Law.
As the Dollar is the International Reserve Currency, we owe the world an explanation.
Only a truely Independent Investigation can get to the bottom of this mess, and make sure it does not happen again.
I have several Motorcycle Club connections in China, all Red Army. They can put forth 10,000 accountants to trace every dime.
So far we have cost China at least a Trillion Dollars. We do have an Extradition Treaty that covers Theft through Fraud.
The United States is broke, and does not have the staff to regulate or investigate.
We need Outside Accountants.
To restore the World Economy, we must restore faith in the World Reserve Currency.
China is the third largest economy, and the largest holder of our Bonds and cash.
It is time to do the right thing.
05 Apr 2009, 8:01 pm
