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The Foreclosure Fraud Fantasy

Articles & Blogs - US Commentary

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As pressure mounts on hold-out states in the U.S. to ratify a shameful deal on Wall Street mortgage-fraud, the mainstream propaganda machine continues to circulate a Big Lie as justification for this despicable sham: that a deal would help to “fix” the U.S. housing market. Not only is this wrong, but it is entirely opposite to the truth.

What the media continues to deliberately obscure is what is actually being negotiated here. You can’t ‘negotiate away’ 10’s of millions of fraud-infected mortgage documents. All that is currently being done with this “deal” is to absolve the Wall Street fraud-factories of responsibility for the this massive, deliberate, systemic fraud – which will permanently cripple the U.S. housing market.

Once a deal is done, all of the fraud will still be sitting in those mortgage documents: 10’s of millions of infected land titles, which can only be purged of their fraud through being litigated one at a time, through a U.S. court system which is already hopelessly clogged with Wall Street fraud.

By simply “sweeping under the carpet” these countless millions of acts of systemic fraud, rather than helping to fix the U.S. housing market, it guarantees decades of massive uncertainty and insecurity regarding land titles in U.S. residential real estate. Put another way, it makes title security in the U.S. grossly inferior to any/every other reputable land title system on the planet.

Until these 10’s of millions of acts of fraud are (eventually) purged from the U.S. land title registry – one by one – U.S. real estate will trade at a permanent discount in relation to all of those other real estate markets. What person in their right mind would pay full price for a piece of real estate where there is always a lingering doubt about actual, legal ownership of that piece of land?

In fact, there has always been only one rational approach to the made-in-Wall Street mortgage fraud nightmare. First of all, all time/effort/expense that has been wasted (solely for the financial benefit of the Wall Street fraud-factories) in these negotiations should have been invested into a national audit of the entire U.S. land title system – to systematically (and efficiently) purge all of this fraud from the U.S. real estate market once and for all. Only after that had been done, and the actual damages were finally visible/apparent should there be any talk of “making a deal” with Wall Street.

Indeed, there is no more damning indictment of the illegitimacy of these current negotiations than the fact that the parties seeking to sign-away their rights to sue the Wall Street fraud-factories can only guess at the total amount of fraud involved. Understand that in the real world where an individual was in negotiations to “settle” some fraud which had been committed against them that no competent lawyer would ever allow his/her client to sign-away their right to compensation before the scope of the damages was clearly apparent.

Yet what do we see here? According to Bloomberg “more than 40 states” have already agreed to a deal. Are we to believe that more than 40 U.S. state governments were unable to find a competent lawyer to represent them? Or, are we to believe this is yet another corrupt betrayal of the American people, solely for the benefit of the Wall Street crime syndicate?

Not only does this deal permanently entrench 10’s of millions of acts of (systemic) Wall Street fraud in the U.S. land title registry (causing permanent damage to the U.S. housing market); not only does this sign away the legal rights of U.S. states for compensation at pennies on the dollar; but it doesn’t even rescue the Wall Street fraud-factories themselves. It is entirely an exercise in futility.

It does not address the endless/infinite lawsuits involving the banksters’ principal mechanism of mortgage fraud: MERS, and the fraud-filled database it concocted. Even the propagandists expect those lawsuits to total in the $billions. Much more importantly, it does nothing to negate the still-looming mountain of liability which these fraud-factories face from the swindled chumps who purchased their “mortgage-backed securities”. Liability there will almost certainly end up in the $trillions – particularly given the penchant in the U.S. civil system for large “punitive damage” awards.

More generally, the private, bankster casino known as “the derivatives market” continues to lurk in the shadows: a $1+ quadrillion collection of insanely leveraged bets. The only reason that this financial abomination has not already imploded (and vaporized most of the Western financial system) is because the corrupt operators of this rigged casino are now openly refusing to honour some of those bets – i.e. the binding, legal contracts known as credit default swaps.

The government of Greece has defaulted on its massive debts. All that remains to be decided is the degree of the default: whether it will result in 50%, 70%, or 100% write-offs. Credit default swaps are (supposedly) “insurance” which protects the holders of Greek debt (and that of other nations) from the risk of default. Yet here Greece has clearly defaulted, but the corrupt administrators of the credit default swap market have refused to honour those contracts.

Understand that the credit default swap Ponzi-scheme is so inherently unstable that even an implosion of a tiny debt market like that of Greece could cause the domino-like collapse of not only the entire credit default swap market, but the instant implosion of the entire derivatives market – along with the Wall Street fraud-factories who operate it.

Let me briefly reiterate how flawed this process is, to illustrate the magnitude of this folly. A deal does not fix the housing market; it only makes things worse by permanently entrenching all this systemic fraud into the U.S. legal system. It throws away the states’ right to compensation at a time when they still don’t have the slightest idea of the total extent of Wall Street fraud, and the total extent of the resultant damages. It doesn’t even save the fraud-factories themselves, since their reckless gambling and previous acts of fraud already guarantee their ultimate financial oblivion.

This entire exercise has been a colossal waste of time, in addition to being yet another complete betrayal of the American people by their so-called leaders. As usual, the media propaganda machine is especially worthy of condemnation for hiding the issues, coddling the criminals, and presenting the absurd overall fantasy that a deal here would somehow put an end to the nightmare of Wall Street mortgage fraud.


Comments (2)Add Comment
Jeff Nielson
written by Jeff Nielson, February 10, 2012
Yes Dylan, the CDS market is fraudulent at every stage of its miserable existence. However, usually the people RUNNING the 'con' don't ALSO claim the right to walk away from their own contracts. smilies/cheesy.gif
written by Dylan, February 10, 2012
Are the "legally binding" CDS contracts not totally fraudulent themselves?

GSachs unloaded their toxic MBS at face value and then made the real moolah when the bombs imploded and they claimed on the CDS contracts for which they didn`t require ownership of the underlying assets.

Isn`t something like this going on here with the bond parasites deciding to crash the system by unloading and THEN, when they are good and ready, to funnel the proceeds of the CDS contracts into their unregulated accounts. The major bond owners and CDS counterparties being one and the same. The only party having to "make good" on all this being Joe Public.

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