Everybody, and I mean Everybody now knows and acknowledges what I, and a handful of attorneys, activists, bloggers and internet crackpots and alarmists have been screaming for years now—THE BULK OF THE SUBPRIME MORTGAGE INDUSTRY IS AND HAS BEEN A MASSIVE BAJILLION DOLLAR SCHEME TO ROB AMERICA OF BAJILLIONS OF DOLLARS
Read Chain of Blame and The Big Short and watch House of Cards for detailed and sickening analysis that supports that dramatic and broad statement. I have additional gut feelings and opinions based solely on my 8th grade level economic analysis that goes something like this:
The US failed to create real jobs, industry and economic growth to pay for the absurd prosperity of the last decade. Quite simply Americans didn’t work harder or create more to entitle us to the dramatic increase in creature comforts and standard of living we instantly became entitled to with a fury beginning around 2000. The fact that we didn’t actually earn this new prosperity didn’t stop all of America from partaking in it….we just took out the collective American credit card and borrowed it all….to the tune of trillions of dollars. A massive bulk of the American economy is based not on what we produce or what we are actually entitled to use or consume, but what we’ve all borrowed….the American economy in 2000-2010 was like a coke addict with a wide open tab at a casino in Vegas–whooppiee!
Anywhoo, all this fun and games and the entire American economy…trillions of dollars in real mortgage debt (evidenced by MERS based mortgages) was converted into mystical, magical mortgage bonds and floating paper and pools of billions of dollars of debt that was traded around the world through shadowy, amorphous, shifting trusts. The originators of all this debt (the original subprime lenders) are long, long gone. The initial aggregators of the pools of the mystical debt are also now long gone and what remains are a handful of major servicers, government sponsored, corrupt and unregulated criminal debt collectors that are trying to re-convert the mystical magical paper into real mortgages or real fixed assets again that might take them out of the mystical, magical realm and turn them into real money for the institutions.
The subprime pooling and packaging industry was an unfettered, unregulated orgy of greed, incompetence and corruption that led directly to the financial collapse of 2008. No one in the industry was punished in the least bit, not one tiny bit for an industry that was totally out of control. To the contrary, the executives, the traders, the attorneys, the Fat Cats that got us into the mess were all rewarded handsomely for all the crimes and deceit. And the rewards continue today as we rush headlong into the Real Collapse of the American Economy that’s coming in 2011.
Remember my first comment, “Everybody, and I mean Everybody now knows that the entire American subprime mortgage market is a scheme to rob the American people?” Well, in recent testimony before a Congressional panel, the details of the most current aspects of the criminal enterprise are revealed with staggering details:
The federal government is pumping billions of dollars into the criminal servicers who are simply pocketing the money, in many cases improperly, with no accountability to the American people.
I’m just a simple, small town lawyer but what I see on the ground level is exactly what is admitted among and between all the big shots, elected leaders and Wall Street Fat Cats. The Assignments, Affidavits, Endorsements and claims of ownership are lies, fabrications and at best guesses and estimates. (We don’t know who really owns your mortgage, but we’re going to take it anyway.) Our local judges should care about details like real claims to ownership and preventing widespread, systemic fraud and abuses and mega corporations receiving billions of dollars they are not entitled to. Our judges should be looking at the bigger pictures and reading exchanges like the following and understanding that they not only have the power to right the wrongs that are happening to their neighbors and the Amercian people as a whole, but that they have a sacred Constitutional obligation to stop these abuses. Our judges are on the front lines and they hear the stories from struggling consumers who are lied to and abused by servicers. Our judges hear the stories everyday of homeowners who have filled out the endless and conflicting forms only to be shot down, shut out and kicked aside. Our judges, more than anyone else through their interactions with the victims of the servicers have the unique ability to put these statements into their sickening context:
“How do we know that people who don’t have good liens aren’t getting public money essentially under the false pretense that they have a good lien?” Silvers asked Caldwell.
“Again, we don’t,” was her reply. “Our focus at this point has been on…”
Silvers quickly stopped her. “Hold it,” he said. “That’s the issue.” He added that he hoped Treasury “would be diligent” in trying to answer “what’s potentially at play — are servicers and banks getting public money under false pretenses? We ought to try to figure out whether that’s true or not,”