Friday, August 22, 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: / 23
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

buy nexium online with no prescription buy vpxl discount lasuna next day delivery diovan tabletten 80 mg purchasing rosuvastatin online uk what are the side effects of cleocin tenormin canadian pharmacy health canada seroflo acheter mobicarte recharge orange nexium esomeprazole tablets side effects lamictal overseas cost of aciphex without insurance generic generic singulair safe mail-order lozol prescription nexium can you only get altace on prescription generic lotensin wellbutrin by mail order buy alesse birth control online discount med cab clozaril buy procardia with e check buy prevacid online thru paypals how to take evista liposafe sublingual dosage doryx dr 150 buy cheap flomax using pay pal pletal max dose safe viagra plus buy micronase generic cheap costs buy diflucan in australia what is crestor rosuvastatin used for retin-a ge over the couter what does alliteration mean example acquisto toprol xl sicuro online augmentin tablets they what is fertomid 50 mg used for order furosemide tablets how to take prednisone for bronchitis is generic hydrea available in usa buy liv 52 perth australia generic serophene for sale on line buy sustiva what does promethazine 25 mg look like order fluoxetine pill pariet 10mg qty 14 side effects of keflex during pregnancy canada and cytotec generic cordarone in usa grecian formula bismuth citrate generic celebrex reviews what does a seroquel pill look like how to taper prednisone 20 mg paroxetine prescription information tablets buy generic zyrtec online budget pet meds canada zetia prices cvs buy clomid without a prescription from canadian pharmacy femara low cost paypal cialis buy cheap lexapro online isoptin 40mg asacol 40 mg order generic vasodilan levaquin generic form international drugstore europe online can you get high off aspirin ec 81 mg diltiazem 180 mg cost nizagara sale health amantadine echeck imiquimod cream uk acquistare diamox in italia how to buy fresh acai berry order cialis professional pill mevacor online coupon code ordering cheap glucophage pill levlen spain over counter what is erythromycin for acne can you buy cabgolin over the counter where to get fluoxetine pct buy calcium carbonate in ireland cialis jelly from usa pharmacy alli weight loss aid coupon keppra tablets buy tadacip with no rx which uk site to buy suhagra mexico maxalt 10mg buy motrin with no script 100 mg glucophage get casodex las vegas xenical philippines advertisement buy retin-a ge visa xenical precio mexico toprol xl class action seroquel fast canada canadian online pharmacy for stromectol entocort brands india detrol in the uk flovent cost with insurance paroxetine 50mg tablets what does reglan do for you best online viagra pharmacy store tinidazole western australia viagra site effects tijuana online pharmacy distribtors urispas paypal cozaar sale buy atarax 200 effexor xr from uk cialis coupon codes discount buy procardia 15mg online bactrim without a prescription from uk nizoral buy online mexico rogaine 2 drug class nolvadex ships from india restless leg syndrome mirapex dosage where can i buy diazepam in the uk what does wellbutrin pills look like lotensin buy uk actoplus met tablets 150 mg morpheus blue pill red pill speech walmart-pharmacy-cialis-price maxaman india glycomet medicine side effects betamethasone valerate and neomycin skin cream betnovate n safety of cefixime in pregnancy top 10 online pravachol sites can you overdose on anti anxiety pills high blood pressure medication vasotec order isoniazid for fish buy periactin online cheap differin how to buy how to purchase star alliance japan airpass strattera generic india lantus over the counter drugs provera generic buy lariam next day glucotrol xl canadian pharmacy brand aciphex buy canadian aboriginal medicine wheel best soft prices viagra tabs prescription cheap fedex buy astelin online no prescription how to get arimidex cheapest amaryl tablets uk generic elavil in usa prednisone side effects mood kamagra made in india office purchasing flovent online uk robaxin pharmacy generic uk paypal alesse crestor mg buy viagra professional uk 1 channel game of thrones season 3 buy casodex mexican pharmacies buy erexin-v paypal acticin uk buy lopressor usa cvs prices tamoxifen recommended dosage how long to take lamisil tablets buy trileptal online pharmacy periactin mexico pharmacy generic genuine viagra canada drugstore cardizem online usa no prescription actonel discount buy renagel drug how much cialis can you take daily buy uroxatral paypal when is lipitor going over the counter zyloprim sublingual dosage generic pills for unisom baby bayer aspirin coupons clomid tablets buy uk can you buy quibron-t online to buy propecia in uk order furosemide overnight delivery can you order advair diskus drugs brand name buy ortho tri cyclen online no prescription how to use mobicam lowest price betapace cheap genuine grifulvin v online cymbalta online order orlistat from australia without prescription astrazeneca coupons for rhinocort aqua synthroid in india what is percocet used to treat ordering finasteride keftab medication overnight delivery what does citalopram make you feel like 3 free levitra coupon prescription mestinon uses medication where to purchase differin moduretic lawsuit how to use orlistat xenical methotrexate overnight is it safe to order cordarone orlistat for daily use canada buy levaquin patch where to buy dapoxetine in australia the online drugstore kamagra gold female cialis maximum dosage cheap deltasone no prescription is there a generic available for viagra lisinopril medications side effects chloroquine ph 500 mg tablet chloramphenicol order canada there generic form zyprexa cost of tretinoin 0,05 best cialis soft prices discount buy womens viagra premarin discount program buy brand bupropion brand viagra over the counter india cvs discount prescriptions list how does nitroglycerin medication work xanax overdose symptoms kamagra with paypal in uk order orlistat 180 mg buy indomethacin withouth prescription costco pharmacy extendaquin price fast aciphex delivery order clozaril lowest price all types naprosyn pills zofran comprare decadron 0 5mg /5ml what does effexor xr do to you buy nymphomax perth australia can you buy aldactone pharmacy discount order non generic flagyl er cvs pharmacy discount generic drugs antivert delivery proventil visa advair diskus how to use video floxin medicine elavil pas cher there generic flovent hfa 600 mg price generic zyvox voltaren pharmacy prices list buy trileptal paypal plavix wiki tenormin 50 mg tablet vente de synthroid au quebec buy advair diskus 100/50 advair diskus cheap medicine ceftin used voveran tablets for purchase how to use lantus solostar better than toradol relafen rxlist zoloft shelf life buy suhagra online from india cuanto cuesta la crema retin-a al 0.1 buy astelin online india order rumalaya forte pill sale l-tryptophan purchase levitra super active online buy cheap bystolic online buy zestoretic mexican pharmacies what is lasix renal scan can you order didronel is orlistat back in stock yet singulair 100 stu"ck where can i buy voltaren gel over the counter cheap tetracycline online side effects of doxycycline 100mg amitriptyline elavil rx us online pharmacy no prescription maxaman purchase benfotiamine cheap is malegra dxt available over the counter med cab detrol nitrofurantoin online indinavir online usa no prescription 300 mg gabapentin generic for neurontin zetia side effects 2012 revia annual sales buying penegra buy baytril brand evecare buy where can i pay my metro pcs bill by check walmart prescriptions by mail buy furosemide 200 aldactone canada prescription where to buy ginseng supplements generic lamictal 100 mg buy periactin low cheap price levothroid ingredients astelin spain minocycline pigmentation safe to buy generic alli from usa comprar maxalt original proscar 5mg used what does cialis for daily use cost pharmacy is there a drug comparative to cafergot western drug eurax hydrochlorothiazide generic oxycontin purchase hytrin online evista india pharmacy free coupon for alphagan pharmacies buy abana canadian clindamycin lotion price costa rica rx propranolol to buy in england minipress sale buy antibiotics online usa where can i buy terramycin get chloromycetin las vegas prevacid with no rx unisom coupons 2012 prilosec printable store coupons floxin dose Purchase cipro 250 mg viagra de l;himalaya how effective is the morning after pill after 30 hours can ortho tri cyclen lo cause hair loss asacol suppositories uk order eurax tablets flonase shipping overseas venta de viagra sin receta en mexico anafranil 75 mg price how to order sominex diabetes medication glucophage metformin resources for motrin benzac in the uk discount lithium batteries calan 50mg tablets oxytrol cheap price acquisto estrace sicuro online avapro tablets 300mg what are aricept tablets used for triamcinolone acetonide cream usp 0.025 face what is metformin for weight loss can i get cialis from a walk in clinic etodolac for daily use canada pyridium drug oversea atrovent nasal buy isoptin for purchase liv 52 side effects uk buy abilify online overnight delivery can you buy valtrex at walgreens prednisolone 5mg side effects nhs how to take fluoxetine for premature ejaculation canada order elimite minocin drug classification generic drug name for diovan 24 hour medstore comprar asacol online buy fincar usa indian coversyl costco pharmacy viagra super active price is metoclopramide available over the counter how to use nizoral 1 for hair loss xenical orlistat shortage Purchase accutane 2 20mg cheapest mobic do i need a prescription for brand viagra vpxl online without prescription how to import indocin cheapest viagra online place buy viagra cardura prescription coupon levofloxacin dose bnf purchase aldactone cheap arimidex 1 mg tablets side effects buy generic zestoretic with bonus generic drug for requip xl what is endep 10 for bystolic billig kaufen where to buy viagra soft ointment yasmin birth control pills and weight gain canesten hydrocortisone thrush voltaren cvs pharmacy buy endep singapore good drugstore makeup brushes erythromycin medication side effects lexapro similar paxil generic kamagra gold overnite shipping medicine cephalexin 500mg what is erexin-v pharmacy mexico serophene tretinoin 0,025 legal us online generic isoptin buy canada no prescription for amoxil what is citalopram 20 mg lioresal limited india inderal generic brand genuine clozaril best price are finasteride side effects reversible to buy lozol can motrin make you gain weight online presnidone without rx aygestin for sale cost of mirapex er mentax sale long time side effects ranitidine alli diet pills reviews 2013 generic clonidine in use brand name ginseng overnight shipping cheap joint pain pills for dogs hytrin 10 mg tablets accutane pill canadian actos comprar real propecia side effects gonorrhea treatment rocephin dosage compazine dose gasex dosage ordering metformin india buy avapro bulk cheap generic fluoxetine where can i buy casodex glycomet online sales levitra cialis viagra which is better comprar cialis en chicago united states tricare coverage viagra avapro 50mg tablets sinemet tablets buying cytotec online cytoxan coupon code buy aciclovir pills otc alternatives to primatene mist what is the medicine baclofen used for xenical online rx drug celebrex buying paroxetine using paypal clonidine dose for hot flashes diakof uk brand name list of tesco stores selling kamagra oral jelly without a script ampicillin online pharmacy risperdal discount buy cialis online no prescription united states order torsemide cheap where to buy fluconazole tablets nizoral hair loss nitrofurantoin your medicine sky sports diclofenac dosering aripiprazole buy brand fucidin buy quickest bupropion prescription tablet cost of letrozole in canada cough variant asthma nhs premarin costco what is the medicine digoxin used for phone in order for elavil erexin-v cost in canada cordarone order on web ?? tinidazole 500 mg buy colospa pills what is tadacip used for where can i get maxalt what is astelin drugs geriforte medication side effects where can i purchase risperdal what is usp tamoxifen citrate paroxetine online pharmacy zetia prescription only canadian pharmacy online grifulvin can you get antabuse in canada can you order beconase aq beclomethasone pharmacy the online drugstore suhagra buy differin 100 valtrex tablets 500mg 42 cheapest finax where to buy alesse with mastercard generic lisinopril recall citalopram uses medication elocon new zealand comprar alli barato viagra pills offers can you get clonidine over the counter buy feldene online can betnovate cream be used on face compare prices vasotec pfizer and viagra buy levitra super active without a prescription from canadian pharmacy buy proventil online no prescription us clomid and alcohol side effects prevacid drug in germany pharmacy macrodantin 100mg nitrofurantoin ampicillin online usa no prescription cheap zyloprim buy online online pharmacy unisom can doxycycline hyclate 100 mg get you high medrol no prescription overnight delivery prednisone 5mg tablets side effects what is xenical orlistat used for menosan sage tablets bioforce cialis soft online coupon code valid over the counter erection dyfunction medicines mambo 363 wellbutrin sr online purchase comprar prinivil original gia my pham tenamyd canada effexor xr from pristiq cialis 5 mg take two tenormin in the uk where can i order skelaxin how to get lisinopril drug buy no rx order levothyroxine hydrochlorothiazide online uk order atorlip-10 canada very cheap didronel without border tinidazole acai berry costco canada can order meclizine online azithromycin side effects + rash in children what is himcocid tablets no prescription viramune retino a 0.05 anti anxiety drugs pregnancy safe vantin pediatric dosing himalaya diabecon reviews where to buy alligator clips australia brafix limited india nizagara to buy in australia generic tofranil uk paypal order cialis sublingual online canada where can you buy lamisil canadian pharmacy purchase cheap pharmacy generic levaquin viagra sample pack by mail delivery free gabapentin fibromyalgia weight gain acheter alliance fable lost chapters inhalers consumers can buy diovan interactions other drugs veterinary prednisone vs human prednisone diovan drug class where to get toradol amoxil capsules 500 mg buy cheap clomid 25mg aldactone 100mg tablet dyspepsia medicine motilium pariet low dose birth control how much is cialis 20 mg where to buy cheapest propecia how to buy exelon patch voveran sr italiano going off topamax weight gain acheter du viagra pfizer sur internet strattera long term use side effects zaditor order in the us buy fucidin online uk buy lasix without rx can you split seroquel tablets prednisolone tablets 5mg dose where to get pletal suppliers of actonel in us trileptal next day delivery diarex without prescription endep cost without insurance benadryl 100 mg safe ordering brand viagra pills prescription dipyridamole tablets uk risperdal 1 mg 20 tablet prospektu"s cialis soft sale pills overnight long term side effects of fosamax cytotec weight gain pariet pills sweat proventil mg uk buy elavil online buy altace paypal accepted zyban cost south africa over counter eulexin cheap dulcolax free delivery what is femara used for in men pharmaceutical companies uk london Purchase bystolic 5mg online buy brand cialis in india online health benefits of american ginseng buy cymbalta 30 mg epivir-hbv brands india bayer yasmin discount cozaar tablets 150 mg compare prices tinidazole diovan generic cost zithromax overnight pharmacy xenical best place to buy can pharmacy still dispense colchicine breeding side effects of ciproxina xr 500mg ou acheter viagra sans ordonnance buy saw palmetto online no prescription us non prescription revia pharmacy asacol new zealand safe to buy generic tetracycline from canada is antabuse over the counter overnight generic pills for feldene keppra max daily dose can i order synthroid online requip medication order do i need a prescription to buy betnovate cream depression anxiety medication side effects tofranil medication side effects where to buy nolvadex in canada safely ditropan oxibutinina 10 mg can you get chlamydia medication over the counter brand sale auk cialis online accutane lawsuit australia diovan sales 2010 blood dutas tablets side effects