Tuesday, September 02, 2014
   
Text Size

Search our Site or Google

Who OWNS Foreclosed U.S. Properties?, Part I: Scam in the making

Articles & Blogs - US Commentary

User Rating: / 25
PoorBest 

A thanks to Edward Harrison who publishes the blog Creditwritedowns.com” for his superb explanation of foreclosure and title issues dealing with “foreclosed” properties – in his commentary What are the legal rights of lenders and homeowners in foreclosure?” It was that article which inspired me to write about some of the legal ramifications, based upon his research and analysis.


There is a lot of material in Mr. Harrison's commentary, so for those interested in this issue, I recommend going to the source to read it in full. I intend to focus on two of the extremely important issues in that piece: the question of who holds title to a securitized mortgage, and (just as important) who has “standing” to initiate and prosecute a foreclosure.


For people with no familiarity with legal jargon, who has “standing” in a legal proceeding is a question of “proximity” to the case before the court. The test for this issue generally being some direct proprietary interest.


The problem for the Wall Street oligarchs, as they began to hatch their schemes to create the U.S. housing bubble (and their own, concurrent Ponzi-scheme) centered on the importance of their new “invention”: mortgage “securitization”. It is this “securitization” which was the key to creating the U.S. housing-bubble from the supply side – rather than most asset-bubbles which are (at least initially) fueled by demand.


Through this process, banks initiate a mortgage – and then immediately sell it to a 3rd-party. If Wall Street didn't initiate the mortgage themselves, then they became the first buyer in the chain. Once holding this mortgage, these “financial wizards” sliced-and-diced these mortgages, mixed them together, and packaged and sold them in such a convoluted manner that even with the resources of the U.S. legal system at their disposal, courts have been unable to determine who holds clear, legal title to these mortgages.


However, the Wizards of Wall Street anticipated this legal dilemma. In 1995, they created a shadowy entity called Mortgage Electronic Registration Systems (MERS). Wikipedia defines MERS in this manner:


Mortgage Electronic Registration Systems is claimed to be a privately held company that controls a confidential [emphasis mine] electronic registry designed to track mortgages and the changes of servicing rights and ownership of mortgage loans in the United States.


Before I explain the role being played by MERS, and the importance of that role, let me get back to securitization. The reasons why it was absolutely essential in creating a housing-bubble, and Wall Street's subsequent scams are relatively straightforward, when laid out step-by-step.


Wall Street pretended they were “reducing risk” by securitizing these mortgages and more or less moving them off of their own balance sheets. At first, this was probably true: by taking a fixed amount of debt, and dividing it amongst more people, the risk to the system as a whole (and the individuals) is reduced.


As a simple, numerical example, if I take $100 dollars of debt and initially divide that amongst 10 people, there is a given level of risk for each of these individuals and for the system as a whole (if too many parties should default). If I then split that same $100 dollars of debt and divide it evenly among 100 people, then that reduces both the individual risk and the systemic risk – since the smaller the individual debt, the lower the probability of default. The problem was that Wall Street (and the other players in this market) never intended for the amount of debt to remain fixed.


If you then take the same numerical example, but repeat that process nine more times you now have $1000 worth of debt (ten times the original amount) – but split amongst a group which is ten times larger. Thus, not only do the risks of each party revert to the original ratios (and risks of default) but the systemic risk is ten times greater because ten times more money and ten times more players are now identically leveraged.


It was through these debt “daisy-chains” that the Wall Street oligarchs were allowed to move from the reckless-but-standard 10:1 average leverage for this sector to an insane average of 30:1.


The problem was that both ratings agencies and regulators still pretended that there had been neither an increase in individual risk nor in systemic risk. To persuade these accomplices to “look the other way” with respect to risk required adding one, more ingredient: “credit default swaps” (CDS).


These were bogus “insurance policies” created by Wall Street to “insure” its entire Ponzi-scheme. This provided the pretext for credit-rating agencies to continue rubber-stamping “AAA” on these toxic securities, and allowed regulators Ben Bernanke and Tim Geithner (head of the New York Fed, at the time) to pretend that “systemic risk” was being “controlled”.


As I say, this was clearly and obviously fake “insurance”. Because everyone was pretending that systemic risk was only a tiny fraction of what it actually was, the same regulators allowed Wall Street to only list a tiny fraction of the necessary collateral/assets to write such “insurance policies”. It was through the willful participation of the ratings agencies and the Federal Reserve that Wall Street oligarchs supposedly “insured” over $50 trillion of credit default swaps – obviously an impossibility.


We need look at only one recent example of a credit default swap which “blew up” to make it clear that most of this market was a complete sham. In “Bankster Sues Bankster – AGAIN”, I referred to a lawsuit between Citigroup and Morgan Stanley.


In this example, it was Morgan Stanley which wrote the phony “insurance”, and Citigroup which was the beneficiary. Even after Morgan Stanley liquidated the collateral which “backed” this “insurance”, it is facing a 300:1 pay-out on this “policy”. With the entire U.S. mortgage market still sitting with a 10% delinquency level in this $50 trillion insurance scheme, and with each and every pay-out at astronomical odds (due to the grossly insufficient “collateral” for this insurance), a large number of pay-outs in this market must bankrupt Wall Street – as a matter of simple arithmetic.


This is yet another reason why Wall Street is hiding millions of already-foreclosed properties on their books – and refusing to sell them. The moment that the foreclosure sale takes place, the loss on the mortgage is “crystallized” and the credit default swaps are triggered. In my commentary on Friday, I explained how/why I estimated that Wall Street is currently hiding at least 5 million foreclosed properties in this manner. Meanwhile, the next big wave of foreclosures is just to about to begin (also covered in Friday's commentary).


Returning to the housing bubble, the conspiracy by U.S. regulators and U.S. ratings agencies to allow Wall Street to leverage the entire U.S. financial system by 30:1 (from 10:1) meant roughly three times as much financing available for the same size of housing market. To accommodate the most rapid and extreme flow of “easy money” in the history of human commerce, many if not most U.S. banks simply erased their “lending standards”. Two years before the U.S. housing bubble officially burst “liars loans” had already become a common term of usage within the financial sector. Again, U.S. regulators were silent accomplices in allowing the eradication of lending standards.


Even without the use of such colourful terms to describe this fraudulently-created housing bubble, it would be obvious to any responsible regulator, rating agency, or banker that if you suddenly lend-out three times as much money to a population whose real incomes are steadily falling that their must be a huge increase in defaults. Thus, not only was this housing bubble a massive fraud on the individual level (through liars loans and other derelictions of duty), but collectively it was also a massive fraud, as it had to be obvious to the U.S. government (and specifically the relevant regulators) that there was an unsustainable “bubble” in the sector, as a whole.


This means that day after day, when Ben Bernanke got in front of the microphone to call the U.S. markets, the U.S. housing sector, and the economy as a whole a “Goldilocks economy” (where everything would keep going up in value) he could not possibly have believed his own words. They were uttered solely to enable the multi-trillion dollar Wall Street Ponzi-scheme to ensnare more victims.


It was thus apparent before the Wall Street-created U.S. housing bubble began that it would end in an unprecedented wave of foreclosures and defaults. In Part II, I will discuss Wall Street's premeditated plan for dealing with these foreclosures, through its new “front man”, MERS.

Trackback(0)
Comments (0)Add Comment

Write comment
You must be logged in to post a comment. Please register if you do not have an account yet.

busy

Latest Commentary

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12

Latest Comments

Disclaimer:

BullionBullsCanada.com is not a registered investment advisor - Stock information is for educational purposes ONLY. Bullion Bulls Canada does not make "buy" or "sell" recommendations for any company. Rather, we seek to find and identify Canadian companies who we see as having good growth potential. It is up to individual investors to do their own "due diligence" or to consult with their financial advisor - to determine whether any particular company is a suitable investment for themselves.

Login Form

canadian online pharmacy for aciphex increasing dosage of celexa can you buy arjuna online is atrovent available over the counter safe place order famvir where to buy procardia in canada safely aussie shampoo buy online india gyne-lotrimin daily use reviews cialis online express delivery prozac vs luvox for ocd acheter acai berry en france viagra legal dubai phenergan 100mg buy order sominex canada como comprar ginseng costco pharmacy atorlip-5 price non persciption celexa rosuvastatin from usa pharmacy what is the ionic compound formula for calcium carbonate where to buy alli with visa cefixime 400 mg during pregnancy Purchase vermox 100mg how long does it take for the side effects of citalopram to go away zyvox 600 mg 400 ml nolvadex-d tamoxifen tablets b.p. 20 mg how to take cymbalta abilify medication autism child order dramamine cheap roxithromycin not generic what doses does periactin come inside lipothin woldwide shipping norvasc amlodipine besylate price best price for real citalopram florida fluoxetine online pharmacies uk viagra buy lipitor online mexico no prescription Purchase revatio 20 mg buy estrace 100mg online iui success rates with injectables vs clomid how much does furosemide cost starlix costco nymphomax brands india can you buy lopressor online aciclovir farma delivery can you buy lanoxin how to use chloromycetin eye ointment what is levlen ed used for what does tegretol treat is it safe to use viagra with high blood pressure ciplox usa sale how to take augmentin duo hyzaar for men in usa amaryl maximum dosage drug market order grifulvin v cyklokapron daily use reviews free coupon for brahmi what is nitrofurantoin mono mac 100mg caps used for terramycin 100 vasotec online over the counter norvasc grifulvin v on the internet zyloprim without a script avapro 300/25 kamagra oral jelly brand order generic drug pulmicort respules lov cost albendazole lexapro cheap online how to get off abilify list of best canadian pharmacies duphalac to buy from europe how to take furosemide mg is generic shuddha guggulu available in usa hong kong buy dilantin mgo online what is diclofenac sodium enteric coated tablets glyciphage from franco indian metformin is viagra jelly available over the counter generic for torsemide lozol uses medication lamisil to buy in england naprosyn pharmacy nike air max 95 neon uk buying amantadine from canada no prescription prilosec tablets in india tretinoin 0,025 limited india trazodone without prescription miami ralista legal us starlix drug schedule lowest priced tofranil buy zoloft boots pharmacy how to use flonase in children nitrofurantoin mono/mac 100mg side effects gabapentin side effects in women over counter serpina why is there a shortage of albenza nexium 100 where can i get levaquin promethazine theoclate sleep cabergoline sex side effects desyrel over counter uk buy aricept online thru paypals best site get diclofenac nolvadex medicine astrazeneca nexium coupons buy synthroid levothyroxine sodium generic synthroid 0.125 mg tablet what is abilify used for how to take benicar lipitor generic price walmart levitra vs cialis vs viagra questions mircette online order lamisil ringworm oral zetia shop net nolvadex from usa buying plavix in canada reviews on generic cialis recommended daily dosage of metformin amoxil 250 mg uses imitrex medication assistance buying ginseng in korea mail order generic motrin is there a generic for estrace lithium side effects mnemonic prophylactic acyclovir dose Purchase minocycline 100mg tetracycline shortage mexican pharmacy no prescription diflucan best generic prozac side effects of ciplox-d what is actonel for where to get actonel rogaine side effects sperm side effects of anastrozole tablets nach baliye 5 2nd march 2013 desi tashan abilify no prescription canada what are side effects of effexor xr amoxil generic brand name bactroban genuine canadian canadian pharmacy over the counter medicine cialis sublingual where to buy cardura ointment cicloferon crema es para nin~os rosuvastatin new zealand augmentin 50mg tablets prevacid side effects uk american nimotop doxazosin usa what is the difference between motrin and motrin ib withdrawal symptoms of seroxat paroxetine buy trental 400mg cheap ranitidine 40 mg buy flomax low cheap price artane uk next day delivery blopress 8 plus praziquantel for cats dosage cheapest energizer lithium batteries tadapox dosage too high citalopram medication anxiety jagged alliance crossfire pre order where to buy uroxatral ointment how much is aciphex tablets cheap keppra diclofenac sodium 75 mg tablet canadian alliance of dance artists quebec dove comprare alli in italia buy erexor inhaler canada evista medication overnight delivery astelin order what is benadryl used to treat best place to buy floxin online pharmacy no rx required american furosemide peut acheter alli pharmacie buy advair diskus 500 55 best site get ayurslim nolvadex pct 40 mg abilify reviews by users inhouse pharmacy does not ship to canada Purchase accutane 5mg where to alligators live buy dilantin in ireland erexin-v shopping triple leaf american ginseng tea revatio mg canadian rx isoniazid dosage tuberculosis buy zetia perth australia app store generic propecia in canada cheap uk pills buy actos vermox shoppers drug mart luvox reviews ocd the online drugstore wellbutrin sr accutane low dose long term side effects pfizer offer of discount lipitor prompts outcry watch 1 guy 1 jar video lipitor store drugs drugstore diarex doctors online get bactroban las vegas trental with no rx online wellbutrin sr purchase cleocin billig kaufen advair side effects wikipedia himcolin drugstore.com online pharmacy uk hydrochlorothiazide do you need a prescription for lamisil cream online pharmacy for pain medications acquisto cialis farmaci aonline legal buy fluoxetine online canada cost aciphex canada what does 10 mg propranolol look like buy atorlip 10 visa viagra overnight delivery diovan order viagra women pills buy levothyroxine uk pills lamisil generic for sale indian pharmacy cymbalta robaxin 100 review unisom next day shipping luvox cr discounts tesco pharmacy malarone cost what is the medication keflex used for donde puedo comprar metformina en mexico buy aceon australia overseas pharmacy no prescription bupron sr generic for wellbutrin sr 150 can u buy pain pills in mexico generic equivalent differin gel 45gm generic claritin no prescription pyridium dosage instructions buy fml forte without rx buy alligator gar meat clinic diclofenac sodium tablets voveran buy actos pioglitazone generic diclofenac potassium dosage forms chloramphenicol tablets used mail order singulair xeloda to buy from europe can you get cymbalta over the counter what is insulinoma online generic acticin lanoxin online from usa billig geriforte syrup online kaufen buying tricor online buy arimidex in australia discount prometrium 200mg purchase zenegra on line in canada onlain kino 2012 canadian college of naturopathic medicine online courses where can i purchase accutane where to buy viagra plus in canada safely brand sale auk generic cialis where can i buy codeine cough syrup online is voltaren gel good for muscle pain 40 viagra for 99 saw palmetto for sale best herbal alternative to viagra original cialis jelly online aristocort pill shortage buy claritin d uk voveran non perscription countries dosage instructions for children;s motrin side effects of crestor 40 mg what medication do men take for chlamydia voveran tablet price buy diclofenac mexican pharmacies cialis super active tablet sale content controls xbox 360 cialis tablets uses all types allegra pills cipro for uti can you buy pletal over the counter buy cialis soft with no rx avodart pills buy generic zyprexa launch date clomid without iui does prevacid cause weight gain cost of viagra in singapore buy synthroid in canada what is cialis sublingual for andkon 1000 free flash games breeder cymbalta drug store online lincocin canadian pharmacy levitra plus to buy can you buy female viagra online can you get high off snorting celexa skyrim statue to meridia 3v lithium battery shelf life low price accutane order maxalt cost without insurance cheapest acai in the uk chloroquine pharmacy alli diet pills not working is imitrex available over the counter is finpecia a prescription drug how to import gmail contacts to windows live messenger korean red ginseng prices can you buy cefixime chlamydia nhs direct cheap innopran xl buy online cheapest tamoxifen in the uk chloramphenicol purchase in canada no prescription where buy clomid zofran products when is plavix generic 2012 delivery drugs albenza albendazole amoxicillin generic for amoxil generic alesse birth control side effects zyvox iv to po conversion can you buy lioresal online generic 30 mg buy actos cipla products usa pill rx health order chloramphenicol products what does accutane do to your hair asthma inhalers no prescription where to buy serpina online canada o medicamento sertralina engorda prometrium order on web does alesse 28 make you gain weight motilium mist canada safe buy vpxl online levitra fast usa levlen order online do people buy zoloft can buy toprol xl online buy aricept cheapest overnight himplasia phone orders online pharmacy buy tetracycline approved tadalafil 20mg for sale lilly cialis coupons generic olanzapine vs zyprexa benfotiamine dosage too high bupropion no prescription needed asacol side effects uk cheap albenza 100 mg where can you buy domperidone over the counter american pharmacies online and the affiliate websites there generic coreg lynoral without a prescription buy finax boots pharmacy what are inderal tablets used for plendil discounted buy live caterpillars california hair loss forum propecia side effects florida viramune what is lisinopril 10 mg for prednisone 40 mg dosage discount canadian pharmacy advair diskus how long does it take for sinemet to leave your system indocin online ordering doxazosin lawsuit settlements is there a generic plavix buy cymbalta in india online viagra forums online reviews what does the drug abilify treat how long does the effects of viagra last plendil without rx motrin uk next day delivery buy zantac syrup rosuvastatin cost in canada cheap alli diet pills purinethol tablets side effects generic pills for crestor januvia online in us prometrium 200 mg tablet orlistat canadian medications without prescription buy advair diskus online cheap doryx and alcohol paxil buy online ireland how to buy zyprexa in london rosuvastatin phone orders lisinopril pills side effects cheap generic skelaxin 1-800 number for viagra buy diamox lowest price actos now zenegra canadian medications without prescription buy hydrochlorothiazide pharmacy aciclovir online without prescriptions liv next day minocycline hcl reviews comprar eulexin online betnovate medicine what is ciplox tz used for best mascara for dramatic lashes drugstore cheapest place to buy eulexin best avodart prices buy shatavari singapore how to import lozol can i get high off diclofenac sodium trazodone tablets online buy septilin australia antabuse dose forms lopressor medication where to buy how to buy prednisolone in canada fincar mist canada buying cipro for dogs craigslist london tickets aciclovir crema dermica canesten hydrocortisone ringworm indocin online sales india lioresal price metronidazole cream uses do i need to increase my dose of citalopram buy pletal bulk order fucidin 120 mg search twitter pictures generic serophene no prescription ordering sublingual viagra cheap cialis Purchase actos 30mg pioglitazone long term side effects of retin-a ge sustiva cheap price tadacip 20 canada evista medication assistance astelin cost in canada where to buy citalopram hydrobromide seroquel pills uses brafix usa ordering buy aciphex force fed viagra bayer levitra preissenkung albendazole tablets over the counter dairy doxyhexal diarrhea levitra wiki pl relafen dosage information order buy crestor online cipla zepose buy sominex bulk ditropan woldwide shipping what is amlodipine prescribed for proventil generic india how long to take bactrim ds for mrsa tretinoin 0,025 cost in canada reglan without there thanks buy suprax 200 mg can you buy hydrochlorothiazide generic discount purchase aciclovir in uk acheter du zyban pas cher potassium sparing diuretics lasix coumadin toxicity emedicine purchase brand viagra mg buy dramamine cvs buy imuran perth australia how long does it take for azithromycin 500mg to work flagyl 500 mg iv rate proventil over the counter australia herbal slimming tablets china buy mycelex-g usa casodex reviews buy fluoxetine from mexico online shortage generic toprol xl the signs of chlamydia generic avalide walgreens tadalafil citrate forum what are keflex 500mg capsules used for allopurinol online usa no prescription pariet generic india list of canadian pharmacies lasix without prescription pills vermox generico online z pack alcohol consumption topamax dose for migraine prophylaxis oregon state football stadium buy cephalexin cheap wo kann ich gu"nstig viagra kaufen prevacid online dosage iv metoprolol half life order cordarone 120 mg lowest price antivert cheap purim no prescription acai tablets - triple strength nolvadex online usa over the counter keftab what is meclizine hcl 25mg cymbalta dosage depression dramamine ukulele lotensin next day delivery buy female viagra next day wisconsin union lawsuit viagra comprare alli in italia zebeta generic name toprol generic problem diltiazem er 120 mg capsules buy buspar tablets xenical overnight delivery brahmi 5mg tablets atacand tablets uk can order mentax online where to buy erection packs 3 with visa zyrtec cost can i get vpxl where can i get quibron-t best price for real seroflo best place to buy generic drugs cardura with no rx viagra jelly with paypal payment did bob dole do viagra commercial what is clomiphene citrate used for buy brand betapace can i buy diamox over the counter low cost birth control pills online no prescription extendaquin sale new mexico alliance for school-based health care suppliers of ginette-35 in us yasmin mg order efectos secundarios del lisinopril 10 mg como comprar cytotec en argentina diovan sales 08 lipitor from china order voveran sr online uk fertomid pill canadian cheapest viagra buy cheap viagra mobic 40 mg dose buy zestoretic in usa cheap generic toradol protonix generic for buy mobic for daily use buy prozac online without prescription erection packs 2 discount code pravachol order online ginseng prices in wv 2012 where to buy cheap alli online propecia online no prescription; canada where to buy flonase per buyers of pilex canada flexeril side effects elderly cialis real life stories advair side effects in kids hydrochlorothiazide buy canada buy cardizem online at canada pharmacy nitroglycerin medication error nootropil dog dose over the counter vytorin online pharmacy cipro where to buy cheap generic zofran azithromycin z pack breastfeeding yagara echeck where can i order domperidone from how much does differin lotion cost cialis jelly by mail levlen mg canada online pharmacy uk motilium how to buy bentyl in london prescription drugs online indian pharmacy altace buy tenormin with e check how to pay by check or money order do side effects of anafranil go away cleocin gel 100mg cheep can your buy cialis professional in ireland tadalafil geriforte syrup price india buy avandamet capsules all types septilin pills cost of ponstel without insurance ginseng from canada cytoxan no prescription reviews carafate online in us original blue pill does it work can i get addicted to unisom wellbutrin non prescription buy cheap vermox pills nootropil mist canada very cheap atorlip-5 can i use betnovate on my face kroger pharmacy hyde park ohio atorlip-20 drug class how to use ortho tri-cyclen as morning after pill imiquimod side effects molluscum zyprexa costco to buy evista side effects taking chlamydia pills where i can buy viagra in london zoot z-pack triathlon transition bag d4t zerit side effects next day delivery buy cymbalta order cephalexin dogs orlistat over the counter alli side effects of sudden withdrawal from cymbalta nature;s plus acai liquid reviews cheap ortho tri cyclen online cvs pharmacy cialis price can you buy compazine over the counter in germany zofran generic dissolvable order prevacid cheap how to take 36 hour cialis online pharmacy seroflo zanaflex canada sale lexapro generic form buy cytoxan with visa rosuvastatin 20mg tab prescription drug fluoxetine lamisil no prescription overnight delivery januvia without script canada and revatio brafix where to get vipps certified pharmacies which uk site to buy diflucan where can i get my orlistat prescription discount flagyl otc buy fosamax pills plavix no prescription needed comprar elocon en argentina top 10 online ashwagandha sites propecia shop net bupropion cost with insurance casodex discount is vpxl a prescription drug tamoxifen pills uk how to by diclofenac gel online cialis professional sale pill buy pantoprazole uk herbal viagra alternative progreso mexico pharmacy periactin drug classification prednisone 20 mg tablet image uk drugs classification novartis cafergot tablets allegra hicks wallpaper buy ayurslim capsules how to buy synthroid online midamor 5mg tablets what does deltasone treat drug viagra from canada is safe herbal products suppliers india diltiazem medication tofranil reviews for men clomid online from india how to use saw palmetto berry buy didronel online pharmacy celebrex medication half life how much is flagyl without insurance buy low cost birth control pills online no prescription malegra fxt results forum tadalafil citrate prednisone cost no insurance purchase cheap generic famvir canadian buy zyloprim with e check purchase crestor 10mg online buy without order aldactone where can i order lopid why has prograf been discontinued cymbalta commercial music nexium non-prescription alternative indocin generic cost what is insulin intolerance diflucan online australia discount emsam medication online can you buy viagra jelly lotrisone online click here next day what is colospa drugs what can i do if viagra does not work low price benfotiamine uk lidocaine cream 5 percent online pharmacy no prescription needed proscar all types bactroban pills azulfidine 500 mg vigra tablet use bayer levitra coupon procardia non perscription countries overnight generic diclofenac discount lamisil pharmacy nail