- Trillions of dollars of MBS, CDOs …. toxic derivatives without collateral have been fraudulently sold throughout the world. The originators are Wall Street banksters. If found guilty, they are legally obliged to provide compensation ie take back all the toxic crap they have sold. They will be bankrupted. Another global banking crisis is brewing!
Foreclosure Fraud: It’s Worse Than You Think
There has been plenty of pontificating over the ramifications of foreclosure freezes on troubled borrowers, foreclosure buyers and the larger housing market… There has been precious little talk of what the real legal issues are behind the robosigning scandal. ..The real issue is ownership of these loans and who has the right to foreclose. …
A source of mine pointed me to a recent conference call Citigroup had …. It featured Adam Levitin, a Georgetown University Law professor who specializes in, among many other financial regulatory issues, mortgage finance. Levitin says the documentation problems involved in the mortgage mess have the potential “to cloud title on not just foreclosed mortgages but on performing mortgages.”
The issues are securitization, modernization and a whole lot of cut corners. Real estate law requires real paper transfer of documents and titles, and a lot of the system went electronic without much regard to that persnickety rule.
Mortgages and property titles are transferred several times in the process of a home purchase from originators to securitization sponsors to depositors to trusts. Trustees hold the note (which is the IOU on the mortgage), the mortgage (the security that says the house is collateral) and the assignment of the note and security instrument.
The issue is in that final stage getting to the trust. The law demands that when the papers get moved around they are “wet ink,” that is, real signatures on real paper. But Prof. Levin tells me that’s not the worst of it. Affidavits assigned to the notes and security instruments are supposed to be endorsed over to the trust at the time of sale, but in many foreclosure scenarios the affidavits have been backdated illegally. So with the chain of documentation now in question, and trustee ownership in question, here is one legal scenario, according to Prof. Levitin:
The mortgage is still owed, but there’s going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you’re stealing my money. You’re going to then have trusts that don’t have any assets that have been issuing securities that say they’re backed by a whole bunch of assets, and you’re going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they’re going to do, and you’re going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.
Josh Rosner, of Graham-Fisher, put the following out in a note today, claiming violations of pooling and servicing agreements on mortgages could dwarf the Lehman weekend:
Nearly all Pooling and Servicing Agreements require that “On the Closing Date, the Purchaser will assign to the Trustee pursuant to the Pooling and Servicing Agreement all of its right, title and interest in and to the Mortgage Loans and its rights under this Agreement (to the extent set forth in Section 15), and the Trustee shall succeed to such right, title and interest in and to the Mortgage Loans and the Purchaser’s rights under this Agreement (to the extent set forth in Section 15)”. Also, an Assignment of Mortgage must accompany each note and this almost never happens.
We believe nearly every single loan transferred was transferred to the Trust in “blank” name. That is to say the actual loans were apparently not, as of either the cut-off or closing dates, assigned to the Trust as required by the PSA. Rather than continue to fight for the “put-back” of individual loans the investors may be able to sue for and argue that the “true sale” was never achieved.
Quite the can of worms. Anyone who says that the banks will fix all this in a few months is seriously delusional.
“Let me control a peoples currency and I care not who makes their laws.”
Meyer Nathaniel Rothschild in a speech to a gathering of world bankers February 12, 1912. The following year, the USA subscribed to the ‘services’ of the newly incorporated Federal Reserve, headed by Mr. Rothschild.
“No one will enter the New World Order unless he or she will make a pledge to worship Lucifer. No one will enter the New Age unless he will take a Luciferian Initiation.” David Spangler, Director of Planetary Initiative, United Nations
- The title of this post seems a little misleading. Let me explain. The intention of the Illuminist western Anglo-American hegemony is to trigger a global currency meltdown. The Illuminati plans to destroy all fiat currencies and lead the world into their One World Currency, Global Central Bank and Luciferian World Government.
- The Illuminists are using their FedRes to create massive amounts of funny money out of thin air via QE 2.0. These monies will flood the market to buy up hard assets globally. It will cause commodities, precious metals, stocks and shares and other hard assets to inflate higher. Obviously, when all prices go up, it means the debasement of fiat currencies ie currency debauchery, dramatic loss of purchasing power. The sheeple will soon realize that their fiat currencies are worthless pieces of ‘Monopoly’ money backed by nothing. They will exchange it for hard assets. The global monetary crisis arrives! Got Gold yet?
- In the end, the USD and all fiat currencies go down the toilet bowl together. It is not so much that the Americans will win, they will not. But it is the Anglo-American Illuminist ruling elites who win. Their One World Currency will be introduced. When the world uses one currency, currency wars are a thing of the past. Of course, the Luciferian World Government global enslavement begins.
“In the next century, nations as we know it will be obsolete; all states will recognize a single, global authority. National sovereignty wasn’t such a great idea after all.” Strobe Talbot, President Clinton’s Deputy Secretary of State, as quoted in Time, July 20th, l992.
Why America is going to win the global currency battle
Currencies dominated this year’s annual meetings of the International Monetary Fund. More precisely, two currencies did: the dollar and the renminbi, the former because it was deemed too weak and the latter because it was deemed too inflexible. But, behind the squabbles, lies a huge challenge: how best to manage the global economic adjustment.
The first is internal rebalancing — a return to reliance on private demand in advanced countries and retrenchment of the fiscal deficits that opened in the crisis. The second is external rebalancing — greater reliance on net exports by the US and some other advanced countries and on domestic demand by some emerging countries, notably China. Unfortunately, concludes, Professor Blanchard, “these two rebalancing acts are taking place too slowly”.
We can consider this rebalancing on two dimensions. First, the erstwhile high-spending, high-deficit advanced countries need to de-leverage their private sectors … Second, the real exchange rates of economies with robust external positions, strong investment opportunities, or both, need to appreciate, while expansion of domestic demand offsets the consequent drag from net exports.
Aggressive monetary policy by reserve-issuing advanced countries, particularly the US, is an element in both processes. The cries of pain now heard around the world, as markets push currencies up against the dollar, partly reflect the uneven impact of US policy. Still more, they reflect the stubborn unwillingness to accept the needed changes, with each capital recipient trying to deflect the unwanted adjustment elsewhere.
To put it crudely, the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender: the needed changes in nominal exchange rates and domestic policies around the world.
If you wish to understand how aggressive US policy might become, read a recent speech by William Dudley, president of the Federal Reserve Bank of New York. He notes that “in recent quarters the pace of growth has been disappointing even relative to our modest expectations at the start of the year”. Behind this lies deleveraging by US households, in particular. So what can monetary policy do about it? His answer is that “very low interest rates can help smooth the adjustment process by supporting asset valuations, including making housing more affordable and by allowing some borrowers to reduce debt interest payments. Beyond this . . . . it can help encourage those households and businesses with money to spend to do so”.
Above all, today’s low and falling inflation is potentially calamitous. At worst, the economy might succumb to debt-deflation. US yields and inflation are already following the path of Japan’s in the 1990s. The Fed wants to stop this trend. That is why another round of quantitative easing seems imminent.
In short, US policymakers will do whatever is required to avoid deflation. Indeed, the Fed will keep going until the US is satisfactorily reflated. What that effort does to the rest of the world is not its concern.
The global consequences are evident: the policy will raise prices of long-term assets and encourage capital to flow into countries with less expansionary monetary policies (such as Switzerland) or higher returns (such as emerging economies). This is what is happening. The Washington-based Institute for International Finance forecasts net inflows of capital from abroad into emerging economies of more than $800bn in 2010 and 2011. It also forecasts massive intervention by recipients of this capital, albeit at a falling rate.
Recipients of the capital inflow, be they advanced or emerging countries, face uncomfortable choices: let the exchange rate appreciate, so impairing external competitiveness; intervene in currency markets, so accumulating unwanted dollars, threatening domestic monetary stability and impairing external competitiveness; or curb the capital inflow, via taxes and controls. Historically, governments have chosen combinations of all three. That will be the case this time, too.
Naturally, one could imagine an opposite course. Indeed, China objects to the huge US fiscal deficits and unconventional monetary policies. China is also determined to keep inflation down at home and limit the appreciation of its currency. The implication of this policy is clear: adjustments in real exchange rates should occur via falling US domestic prices. China wants to impose a deflationary adjustment on the US, just as Germany is doing to Greece. This is not going to happen. Nor would it be in China’s interest if it did. As a creditor, it would enjoy an increase in the real value of its claims on the US. But US deflation would threaten a world slump.
Prof Blanchard is clearly right: the adjustments ahead are going to be very difficult; and they have also hardly begun. Instead of co-operation on adjustment of exchange rates and the external account, the US is seeking to impose its will, via the printing press. The US is going to win this war, one way or the other: it will either inflate the rest of the world or force their nominal exchange rates up against the dollar. Unfortunately, the impact will also be higgledy piggledy, with the less protected economies (such as Brazil or South Africa) forced to adjust and others, protected by exchange controls (such as China), able to manage the adjustment better.
It would be far better for everybody to seek a co-operative outcome. Maybe the leaders of the group of 20 will even be able to use their “mutual assessment process” to achieve just that. Their November summit in Seoul is the opportunity. Of the need there can be no doubt. Of the will, the doubts are many. In the worst of the crisis, leaders hung together. Now, the Fed is about to hang them all separately.
- The world is in a financial currency war. Massive amounts of money are being created out of thin air. The PTB are manipulating the stock markets to give the impression of recovery and everything is A OK. This is a lie. Things are getting worse by the day and they know it. When QE 2.0 is activated by the FedRes, markets around the world will be swamped by floods of funny money. Commodity and precious metal prices are going to the moon.
A Plunge into a Monetary No Man’s Land
The question keeps swirling around regarding the Fed and just how much Treasury paper they can buy from the market under current rules. Our guess is about $1.7 trillion. … On the other hand they may increase the current limit, and buy everything in sight.
That probably means the 10-year T-note could fall from its current level of 2.50% yield to 1.5% yield and mortgages, as we stated before could fall to 3.38% on the 30-year fixed rate loan. … This kind of policy means major monetization, higher inflation and perhaps eventually into hyperinflation. Needless to say, this is a very dangerous game.
A plunge into a monetary no man’s land. The liquidity that will be set loose in the POMO market will be enormous and the avalanche will begin early next year and it will cause asset price inflation. These antics will also suppress the value of the dollar forcing a test of 71.18 and perhaps breaking that long-term support level.
Bank reserve liquidity will likely surge to $3 trillion. Will the banks aggressively lend or will borrowers balk due to such unusual conditions? That also means the Fed balance sheet could reach $4 trillion. Then the question arises, if this doesn’t kick start a recovery can QE3 be kicked up to $8 trillion? What will inflation be like under QE2? Will it be 14% or 34%? Will hyperinflation begin, or will that be left to the duration of QE3? We do not have all those answers, but we are entering very dangerous territory.
In reaction to this massive monetary onslaught the dollar will fall, the stock market will hold its own, the Treasury-Agency markets will remain relatively unchanged, commodities will rise and gold and silver will increase in value exponentially. All the funds created have to have someplace to go and it certainly won’t be into real estate with its massive inventory overhang in spite of historically low interest rates. Once in place, whether it is QE2 or QE3, the time frame will be squeezed probably into a 3-year window, or less. … They have no other choice other than what they are doing to extend the time line of collapse. These policies won ‘t work and all the elitists are aware of that. Within three years we should have a crunching deflationary collapse. Interest rates would rise and bonds fall, the stock market would collapse, commodities would hold their own or perhaps give up some gains and gold and silver being the only remaining real money would hold their own or move higher. We might add that the LBMA, Comex and GLD and SLV would have long before collapsed. Confidence in the system will have been crushed.
The Fed has become the country’s lifeline and we find that deeply disturbing inasmuch as it was the Fed that is responsible for the current position we are in. Our latest look shows the Fed now the second largest owner of US Treasuries. Last week they overtook Japan to place second behind China. Of course, this is madness, but if foreigners are unwilling to buy and the Fed has to buy to keep interest rates low, they have to be the buyers of last resort. This policy began in June unbeknownst to most and has precipitated the slide in the value of the dollar and has heightened the flight into gold, silver and commodities.
The question now is can the Fed do this indefinitely and how high will inflation go as a result of such a policy? Trillions of dollars of old debt is coming due with some $150 billion in new debt monthly. Each month that debt grows exponentially far into the future. Capsulating the debt spiral we can come to no other conclusion then there is going to eventually be a default, which will be preceded by hyperinflation. That is when the public no longer has confidence in the currency and abandons it by using it as soon as it comes into their possession. This is where we are eventually headed. The timing is difficult because we do not know when the major nations will finally capitulate. The past week we heard comments from Brazil regarding the possibility of a meeting similar to the Plaza Accord meetings of 1985, in order to address the growing currency war and the failure of the US dollar. We predicted such an event this past May and thought that this could come about by the end of the year or early next year. We thought it could be overridden by QE2 that could have been underway in June and July. That did happen via the repo market and some bank lending, but not nearly enough to keep the system moving parallel.
The result has been stagnation, higher inflation and unemployment and the Fed forcibly being thrust into the treasury and Agency markets, as buyers of last resort. What is really distasteful about all this is that the Fed continues to lie about what they are really up too. That in part is why it is easy for the Fed to elevate the stock market in anticipation of the November election. The reaction to that has been a very powerful gold, silver and commodities markets.
Little or nothing was done about derivatives and that is where the trouble also lies, as well as in structured assets based upon corporate and Treasury debt. These are being sold to retail clients based on higher yields, which also involves subprime debt and auction rate securities. …This follows the arrogance of the Fed and the SEC to listen to warnings from the financial communities that subprime mortgages; ABS, MBS and CDOs were toxic bombs about to explode. They as well refused to look into the legalistics of the mortgages, the packaging of the bonds and the obvious phony rating systems proffered by S&P, Fitch and Moody’s. Worse yet, they have for the past few years been guaranteeing the mortgages via Fannie Mae, Freddie Mac, Ginnie Mae and FHA that started the problems in the first place.
These results are not the result of stupidity, incompetence or arrogance. It was planned that way. This is your government and the privately owned Fed at work.
The net short position in the Commitment of Traders report of commercials hit a new high this past week, that is over 308,000 contracts, all of which we believe are in a losing position. The situation in the gold and silver shares is similar. In times past such a large net short position has been intimidating and often led to a breakdown in gold prices. Not this time. We saw a one-day correction and that we believe is it. Money and credit are expanding at a furious clip, economic policy is dreadful and we just saw ¾’s of the administrations financial complement abandon ship. The lone important survivor is Tim Geithner, who is incompetent and cannot properly file his income tax. The dollar remains under pressure versus other major currencies, and all currencies are lower versus gold. The euro is under terrible pressure as is the entire EU. All nations to various degrees are increasing money supply at a rate of plus 10%. As we have stated so often production of gold and silver have been declining for years with no new large projects in sight. We have strong gold and silver markets for the next almost five months. We now have China as a major buying factor in the market along with Russia and traditional India.
The last two option expirations were non-events and that may continue. It is everything that shouldn’t be. Lo and behold, central banks have become gold buyers not sellers and the European control banks have sold virtually nothing for two years. We might ask the US where is Germany’s gold. Zero interest rates have made it much less expensive for players to be long gold and silver. Inflation has been cranked up and should reach 14% by the end of 2011. Commodities are again going through the roof. Inflation, real inflation, is already at 7%, not the 1.6% the government feeds us. The dollar’s reverse head and shoulders pattern is looking ominous. The government has lost control of their gold price suppression and they are losing control of the economy. Within the next two years it will be a disaster for the world economy.
One of the very important aspects as a result of the strength of gold is the geopolitical implications. We have Russia, China and the rest of the BRIC nations lined up on one side and the US, and Europe lined up on the other. Not only are they accumulating gold in a big way but they seem to be telling us that there is no US gold in Fort Knox, under the Fed in NYC or in West Point, and what gold is there belongs to other parties. We’ll find out in time, but is that really good enough. As Ron Paul says let’s finally audit the Fed. It has been 56 years since an audit has been done. As a result there are going to be economic, financial, and political ramifications from the stockpiling and price of gold, if in fact the US doesn’t have any or has very little left. Government and those who control it have lied for years, so what makes one think it will be any different this time. If these BRIC nations continue to accumulate gold and the West doesn’t we are in for some ferocious problems, if we have little or no gold. The official holdings of these BRIC nations is declared at about 10% of what the US, UK and Europe has, but because of past experiences we believe it is closer to 15%.
No one really knows what western central bank gold holdings are, because they have been shrouded in secrecy, leased and held on the books as still existing and the lies about what they have are legend. The central bankers only think that they have a need to know. Even the Fed has used millions of taxpayer dollars buying off Congress, so that the gold hoard will not be audited. As a result for the past dozen years we have had an evolving financial, currency and free trade war on our hands. They all are part of the same problem and strategic planners do not know how to solve the dilemma. The options opened to the West are no longer there because they are broke and all have a financial Ponzi scheme going via their central banks. The opposing players know that. Each day that passes sees less US dollar denominated paper being purchased. This is why it has been important for Western central banks to control gold prices. They stupidly have allowed buyers, such as the BRIC nations, to buy gold for 30% of what it should be selling for. At the same time their suppression program has had very limited success over the past 15 years. Gold moved from $252 to $1,350 over that period. Over the last nine years it has risen almost 20% annually on a compound basis.
Russia has been a persistent gold buyer both of domestic production and in world markets. China has bought domestic production, but has not been aggressive as Russia in world markets, choosing a subtle market approach. We believe China will have to become much more progressive in the markets as their dollar holding rise, unless of course, there is a third world war. It is not difficult for China to use intermediaries to buy, as they have done in the past. China strongly markets both gold and silver to its citizens particularly in exchange for dollars. As a result of this Chinese approach, the overall BRIC approach and buying by the rest of the world, control of gold trading will soon be at an end. You might say how do we know this? It is a good question. Markets are not scientific they are an art form and we have been deeply involved in this gold and silver venue for over 50 years. As time passed you know what to look for and what to expect. That is how we project what should happen. The long study of finance, monetary policy and the desire for total world control have allowed us to back into what we believe will happen. For the past 21 years we have done that and have been right 98% of the time. Consequently we have an excellent opportunity of continuing to be correct.
The bankers, Wall Street and the City of London have lost and they know it. Talk radio and the Internet have exposed what they are up to worldwide and there is no way for them to stop it short of a revolution or WWIII. The time has passed for them to successfully pull off such a diversion and get away with or survive. They have craftily interconnected just about everything. Gold has again become the ultimate currency and anything to disrupt gold’s position would now bring down the entire financial system worldwide. The bottom line is if you do not own gold and silver coins, bullion and shares you are a fool. Both metals are headed considerably higher and there is no changing that.