Throwing trillions of dollars at the financial giants seems to have guaranteed some of their huge losses but has not done anything to alleviate the cause of the crisis directly.
As I see it, the main problem is using the home mortgage industry to prop up a dwindling economy. We were told that these mortgages were bundled and then sliced up and sold as securities and that is why we don't even know who owns those mortgages I didn't believe it. How could we have a mortgage and not know who holds the papers. I said to myself, let's stop making payments and then we will see who comes to collect and that will sort itself out. Unfortunately, it appears that they were right. Trillions of dollars worth of loans are out there with less than adequate paperwork.
To see how this is playing out watch the following video:
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2 comments:
A couple of callers to Lar's shows today stated that they called the bank letting the know that whey are getting a little behind on their mortgage and tried to do the right thing.
they were each told that the bank can't do anything until they are 3 months late on their payments.
after that they bank refused to take any more payments which sent them in to foreclosure.
With Fannie and Freddie backing most loans just imagine how serious the government will try to do the right thing.
The banks are currently doing things that would normally be considered fraud and racketeering but you can bet no one will go to jail.
In order to speed up the repo process they are hiring totally unqualified stooges to falsify their incomplete documentation. They are falsely representing these documents in court and that is a crime.
This mess is just starting to unwind. Stay tuned, it's going to be a bumpy ride.
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