2011 | FORECLOSURE FRAUD | by DinSFLA

Tag Archive | "2011"

FORECLOSURE JUSTICE ADVOCATES ARE THANKFUL IN 2011

FORECLOSURE JUSTICE ADVOCATES ARE THANKFUL IN 2011


Lynn E. Szymoniak, Esq., Fraud Digest,
Thanksgiving
2011

….for Nevada Attorney General Catherine Cortez Masto and Chief Deputy Attorney General John Kelleher for filing criminal charges against two employees at Lender Processing Services, alleging that these employees filed thousands of falsified documents relating to foreclosures in Nevada. Attorney General Masto never said “I wish someone would do something about all of this mortgage fraud by servicers and document companies.”

…for Congressman Elijah E. Cummings, representing Maryland’s 7th
District, for his recognition of the importance of keeping families in
their homes, for his battle against fraudulent banking practices and for
being a constant, strong voice against fraudulent foreclosures in
America.

…for Delaware Attorney General Beau Biden for filing a lawsuit
against MERS for unfair and deceptive trade practices that plainly sets
out the fraudulent activities done in the name of MERS, including
obscuring important mortgage ownership information, acting as an
agent of the true owners of mortgage loans without authority, and
failing to properly oversee the MERS registry or enforce its own rules
in foreclosure proceedings. (State of Delaware v. MERSCORP,
Wilmington Division, Delaware Chancery Court). Attorney General
Biden also intervened in the $8.5 billion settlement proposed by Bank
of America to resolve claims by investors in mortgage-backed
securities put together by Countrywide Financial Corporation.

…for New York Attorney General Eric Schneiderman for his
determination to investigate whether securities laws were broken when
mortgage loans were bundled into securities, for intervening in the
Bank of America settlement, and for refusing any deal that would give
immunity for criminal acts to banks or securities companies.

…for New York Judge Arthur Schack, for his intolerance of lies by
banks, for exposing the massive problem of fraudulent documents
used in foreclosures, and for writing the following in response to a
sworn affidavit from a bank lawyer, Margaret Carucci, that an officer
from Downey Savings & Loan could vouch for the accuracy of the
documents: “Ms. Carucci affirmed under the penalties of perjury that
she communicated on Christmas Eve with the officer of a defunct
financial institution. This is a deceptive trick and fraud upon the court.
It cannot be tolerated. This Christmas Eve conduct, in the words of
Ebenezer Scrooge, ins‘Bah, humbug!’” (Downey Savings and Loan
Association, F.A. v. Trujillo, 2011 NY Slip Op 51517 (U)). Judge
Schack has led the way to honesty in courtrooms.

…for New York Times OpEd columnist Joe Nocera for bringing the
photographs of the Steven Baum Halloween party, where firm
employees mocked homeowners in foreclosure, to the attention of the
world.

…for Massachusetts Attorney General Martha Coakley for
focusing attention on Mortgage Electronic Registration Systems, Inc.
and whether MERS impaired the integrity of the state’s recording
system. Attorney General Coakley also made it clear that she would
do an in-depth investigation of MERS, stating, “We want to be clear we
are not prepared to give a release of liability on any broad scope of
MERS issues.”

…for Oscar-winning director Curtis Hanson and his HBO Film, Too
Big To Fail. Can anyone ever look at Treasury Secretary Henry
Paulson again without remembering William Hurt’s portrayal? When
we hear the name Ben Bernake, doesn’t Paul Giamatti come
immediately to mind? But James Woods, as Richard Fuld, Chariman
and CEO of Lehman Brothers, will always epitomize the clueless
corporate executive.

…for Florida attorneys Theresa Edwards and June Clarkson who
were fired from the Economic Crimes Division of the Attorney
General’s Office after targets of their foreclosure fraud investigations
complained that these Assistant Attorneys General were too
aggressive. Edwards and Clarkson had gone after some of the most
notorious foreclosure mills in the state, including the law offices of
David Stern and Marshall Watson. They were also conducting an
extensive investigation of Docx and Lender Processing Services at the
time they were forced to resign. Florida Representative Darren
Soto of Orlando called for an investigation of the firings by the U.S.
Department of Justice and by the Inspector General in the Attorney
General’s office.

…for Locke Barkley, the standing Chapter 13 Trustee for the
Northern District of Mississippi, and her attorneys, Nick Wooten
and D.W. Grimsley, for filing a class action complaint in federal court
against Lender Processing Services alleging a kick-back scheme and
unlawful fee splitting between LPS and the attorneys in its network.

…for New York Bankruptcy Court Judge Robert E. Grossman for
issuing the first federal court ruling that MERS cannot transfer and
assign mortgage through its electronic registry system. Judge
Grossman rejected the argument that the banks had the authority to
arbitrarily change state property laws, stating, “This Court does not
accept the argument that because MERS may be involved with 50% of
all residential mortgages in the country, that is reason enough for this
Court to turn a blind eye to the fact that this process does not comply
with the law.” (In re Agard, 10-77338, U.S. Bankruptcy Court, Eastern
District of New york (Central Islip).

…for Louisiana Bankruptcy Judge Elizabeth W. Magner for
imposing sanctions against Lender Processing Services, stating: “The
fraud perpetrated on the Court, Debtors and trustee would be shocking
if this Court had less experience concerning the conduct of mortgage
servicers. One too many times, this Court has been witness to the
shoddy practices and sloppy accounting of the mortgage service
industry. (In re Wilson, U.S. Bankruptcy Court, Eastern District of
Louisiana.)

…for Guilford County Recorder Jeff Thigpen for showing in
painstaking and incontrovertible detail how foreclosure fraud has
permeated county recording offices, for standing up for the rights of
homeowners, and for explaining how foreclosure fraud affects ALL
homeowners, not just those in foreclosure.

…for Massachusetts Register of Deeds John O’Brien and Marie
McDonnell who studied the records of the Southern Essex County
Registry of Deeds and found massive fraud. O’Brien released findings
that 75% of the mortgage assignments in the registry are fraudulent.
“My registry is a crime scene…” said O’Brien, who also has assisted
other country recorders throughout the United States in understanding
mortgage fraud issues and identifying robo-signers.

…for Illinois Attorney General Lisa Madigan and Michigan
Attorney General Bill Schuette for issuing subpoenas to mortgage
servicers Lender Processing Services and Nationwide Title Clearing as
part of criminal investigations into the practices of mortgage servicing
companies. Just when the mortgage servicing companies thought they
had worked out a wonderful settlement with the OCC where they were
free to investigate themselves and report back, along came these
serious criminal law enforcement efforts.

…for Ingham County, Michigan Register of Deeds Curtis Hertel,
Jr. for investigating foreclosure fraud and robo-signing and reporting
his findings. Hertel found that banks were continuing to produce
foreclosure paperwork without proper reviews and signatures, despite
promises of reform.

…for Dallas County, Texas, District Attorney Craig Watkins and
Duval County, Florida, Clerk of the Court Jim Fuller for bringing
class action lawsuits against MERS. The lawsuits allege that MERS acts
as a “shadow recording system” for buying and selling mortgages in
the United States. The lawsuits attack the system that lists MERS as
the mortgagee on millions of loans throughout the country when MERS
did not originate the loans, lend any money or own or hold any
promissory notes.

…for Massachusetts Supreme Court Justice Ralph Gants who
upheld a lower court ruling that two foreclosures were invalid because
the banks did not prove they owned the mortgages which had been
transferred into residential mortgage-backed trusts. The case was
expected to affect all foreclosures done without proper documents.
Judge Gants wrote, “the mortgages securing these notes are still legal
title to someone’s home or farm and must be treated as such.” The
case was seen as a significant warning to all purchasers of foreclosed
properties to be certain that an unbroken chain-of-title could be
established prior to making any purchase of residential real estate.

…for Scott Pelley, Robert G. Anderson and Daniel Ruetenik of 60
Minutes for their segments “The Hard Time Generation” and “The Next
Housing Shock.” Americans needed to see school buses stopping at
cheap motels in Orlando for children who have lost their homes and to
hear that the poverty rate for children in America would soon hit 25%.
For tens of thousands of people with mortgage documents signed by
Linda Green, the image of Chris Pendley forging Green’s name to
mortgage documents was the best possible confirmation that
something is rotten in the state of Denmark. This segment provided
the impetus for country recorders with conscience to take action
against mortgage fraud.

…for California Attorney General Kamala Harris for her
determination to investigate and expose the root causes of California’s
mortgage crisis by issuing subpoenas to Fannie Mae and Freddie Mac.

…for U.S. District Judge William Pauley in Manhattan for
recognizing the significance of the Bank of America settlement when
he wrote, “This action concerns far more than the financial interests of
a few sophisticated investors,” and when he decided, “The intervention
of the state AGs in this action will protect the interests of absent
investors.” (Bank of New York Mellon v. Walnut Place, LLC, 11-cv-
05988, USDC, Southern District of New York (Manhattan).

…for Academy Award Winning Director Charles H. Ferguson for
the movie Inside Job which documents the 2008 financial meltdown
and why it was avoidable. Ferguson himself has said that the film is
about the systemic corruption of the United Sates by the financial
services industry. There is a reason this film won the Academy Award
for Best Documentary as well as many other film critic awards. It is
chilling to watch.

…for filmmaker and author Michael Moore and his advocacy on behalf
of a nationwide moratorium on home foreclosures and his work to
expose “liar liens.”

…for Florida Appellate Court Judge Juan Ramirez, Jr., who wrote
in his dissent, “I dissent because I cannot condone the unprofessional
and unethical means used by the bank’s counsel, with the trial court’s
complicity, to obtain an amended final judgment in this case…This case
is the quintessential denial of due process. Due process requires
notice and an opportunity to be heard. Here appellant was granted
neither. A final judgment was amended from $216,485.73 to
$529,630.64, and the appellant was only informed after the fact when
he received the conformed copy in the mail…In my view, to affirm
what happened here requires that we turn a blind eye to the Florida
Rules of Civil Procedure, the Florida Bar Rules of Professional Conduct,
and the Code of Judicial Conduct, to say nothing of the Constitutions of
the United States and the State of Florida.” (Phillips v. Centennial
Bank, No. 3D10-2910, (Fla. 3rd DCA 2011).

…for Dylan Ratigan for making the word “fraudclosure” part of the
American vocabulary and for telling the story of tens of thousands of
American families impacted by fraudulent foreclosures when much of
the rest of the country would only focus on investors’ losses.

…for Max, April and Nye – because when everyone in a movement
knows you by your first name, you have fought the longest and been
an inspiration to the most.

…for Jack Wright who gives us MSFraud.org.

…for Massachusetts Land Court Judge Keith C. Long for his
careful, thoughtful common-sense ruling in the case of Antonio Ibanez,
a case eventually upheld by the Massachusetts Supreme Court.

…for the Bankruptcy Trustees and Judges including Hon. Tracey
Hope Davis (Northern District of New York), Hon. Martin Glenn
(Southern District of New York), Hon. Harry C. Dees, Jr. (Northern
District of Indiana), Hon. Diane Sigmund Weiss (Eastern District of
Pennsylvania), Hon. Joel B. Rosenthal (Massachusetts), Hon. Joan
M. Feeney (Massachusetts), and, of course, Hon. Christopher Boyko
(Ohio) for carefully scrutinizing the evidence presented by the banks
regarding ownership claims of notes and mortgages.

…for Hon. William G. Young of Massachusetts who put the blame
squarely on the legal profession, stating:

After 43 years at the bar, the saddest thing about this case is
the conduct of the lawyers — all the lawyers. A careful reading
of the briefs in this case reveals only a single recognition that
counsel did anything amiss in their misrepresentations to the
Bankruptcy Court. There’s blame aplenty, of course, each one
blaming everyone else — including the hapless bankrupt
homeowner. … How is it that our profession, the legal
profession —which could have and should have strongly
counseled against the self interested excesses that set up the
collapse — instead has eagerly aided and abetted those very
excesses? How could we (all of us who profess to be lawyers)
have fallen so low?” (In re Nosek, 386 B.R. 374 (Bankr. D.
Mass. 2008)

…for Neil Garfield and his Livinglies weblog for his endless efforts to
educate consumers and their lawyers on “the largest economic fraud in
human history.” Neil is the source of so much valuable information –
he is a one-man Consumer Protection Bureau and THE SOURCE for
foreclosure defense.

…for Michael Olenick of LegalPrise for building Findthefraud.com,
allowing citizen researchers the power to view documents quickly and
thoroughly, eliminating the impediments in the systems set up by
many county recorders.

…for the ACLU for fighting for the rights of homeowners and for
exposing courtroom injustices.

…for Floridians Lisa Epstein, Damian Figueroa, Michael Redman,
and Matt Weidner for speaking the truth on their blogs, at great
personal cost, assisting tens of thousands of citizens across the
country who educate themselves regarding foreclosure fraud and
injustice, and reporting what actually goes in in county courtrooms
every day.

…and finally, for JPM Chase’s CEO Jamie Dimon for his definition of
foreclosure as debt relief, for BOA’s CEO Brian “We have a right to
make a profit” Moynihan, for the partiers at the Steven Baum
Halloween party, to Cheryl (“David Stern buys me a new BMW every
year”) Samons, for Stern crony Miriam (“Let ME find the fraud”)
Mendieta and for screaming Representative Joe Walsh, for illustrating
this quotation from historian David C. McCullough:

History is not the story of heroes entirely. It is often the story
of cruelty and injustice and shortsightedness. There are
monsters, there is evil, there is betrayal. That’s why people
should read Shakespeare and Dickens as well as history – they
will find the best, the worst, the height of noble attainment and
the depths of depravity.

#

[ipaper docId=73576469 access_key=key-17v6txu3ss6n2vpgfima height=600 width=600 /]

 

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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S 967 BILL | `Regulation of Mortgage Servicing Act of 2011′

S 967 BILL | `Regulation of Mortgage Servicing Act of 2011′


To establish clear regulatory standards for mortgage servicers, and for other purposes.

IN THE SENATE OF THE UNITED STATES
May 12, 2011

Mr. MERKLEY (for himself, Ms. SNOWE, Mr. REED, Mr. DURBIN, Mr. BLUMENTHAL, Mr. INOUYE, Mrs. SHAHEEN, Mr. SANDERS, Mr. WHITEHOUSE, Mr. WYDEN, and Mr. AKAKA) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

[ipaper docId=58354921 access_key=key-1et614jx4hbq0yfnhql3 height=600 width=600 /]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Foreclosure Fraud and Homeowner Abuse Prevention Act of 2011

Foreclosure Fraud and Homeowner Abuse Prevention Act of 2011


U.S. Sen. Sherrod Brown (D-OH) introduced landmark legislation to prevent future servicer fraud and errors, improve foreclosure counseling and prevention, and reform oversight of mortgage-based investing. Brown, who chairs the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, introduced the Foreclosure Fraud and Homeowner Abuse Prevention Act of 2011 which would expand access to foreclosure prevention services, while increasing protections for homeowners and investors in mortgage-backed securities. Companion legislation was introduced in the U.S. House of Representatives by Rep. Brad Miller (D-NC).

The Foreclosure Fraud and Homeowner Abuse Prevention Act of 2011 would:

  • Protect homeowners from servicer errors, miscommunications, and abusive fees.
  • End the rush to foreclosure and require servicers to work with homeowners to find sustainable mortgages.
  • Improve standards for staffing and casework by mortgage servicers.
  • Protect the interests of investors who buy securities backed by residential mortgages.
  • Reform oversight of pools of securitized mortgages.

[ipaper docId=53051383 access_key=key-19zh6fcxbi9x1h6zdo1s height=600 width=600 /]

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Freddie Mac Extends Foreclosure Protection for Service Members Through 2011

Freddie Mac Extends Foreclosure Protection for Service Members Through 2011


For Immediate Release
December 17, 2010
Contact: corprel@freddiemac.com

or (703) 903-3933 (703) 903-3933

.

McLean, VA – Freddie Mac (OTC: FMCC) today instructed its servicers to delay initiating foreclosure for at least nine months for financially troubled service members who are released from active duty through the end of 2011 and have Freddie Mac-owned mortgages. Freddie Mac is one of the nation’s largest investors in conforming, conventional mortgages.

News Facts

  • Freddie Mac’s decision to extend the nine-month foreclosure stay will give lenders more time to work with service members that are having difficulty paying their mortgage.
  • Freddie Mac is making this protection a requirement for servicing our mortgages although its original authorization in the Housing and Economic Recovery Act of 2008 (HERA) expires on December 31, 2010.
  • The nine-month stay was originally authorized for service members under amendments to the Service members Civil Relief Act (SCRA) included in HERA.

News Quotes

“Our military make sacrifices every day to protect our homes and families,” said Anthony Renzi, Executive Vice President of Single Family Portfolio Management at Freddie Mac. “This small act will protect financially troubled service members when they return from active duty by giving them more time to work with their lender to stay in their home.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

###

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DJSP, Ent. Receives NASDAQ Letters, Regain Compliance or De-Listed By 5/2011

DJSP, Ent. Receives NASDAQ Letters, Regain Compliance or De-Listed By 5/2011


EXCERPT of FORM 6K FILING:

On November 26, 2010, the Company received a letter from NASDAQ notifying it that for the prior 30 consecutive business days, the Company’s listed securities failed to maintain a minimum market value of  $50 million, consequently, a deficiency exists with regard to this requirement for continued listing pursuant to NASDAQ Listing Rule 5450(b)(2)(A) (the “MVLS Rule”).  NASDAQ further stated that in accordance with NASDAQ Listing Rule 5810(c)(3)(C), the Company will be provided 180 calendar days, or until May 25, 2011, to regain compliance with the MVLS Rule.  NASDAQ will deem the Company to have regained compliance if at any time before May 25, 2011 the market value of the Company’s listed securities closes at $15,000,000 or more for a minimum of ten consecutive business days .

These notifications do not impact the listing and trading of the Company’s securities at this time. However, the NASDAQ letters also state that, if the Company does not regain compliance with the MVPHS Rule by May 23, 2011 or the MVLS Rule by May 25, 2011, the Company will receive written notification from NASDAQ that the Company’s securities are subject to delisting. The Company is reviewing its options for regaining compliance with the MVLS Rule and MVPHS Rule and for remedying other future potential non-compliances with Nasdaq continued listing requirements, including the requirement to maintain a minimum bid price of at least $1.00 per share.  There can be no assurance that the Company will be able to regain compliance with the MVLS Rule, MVPHS Rule or other Nasdaq continued listing requirements in a timely fashion, in which case its securities would be delisted from Nasdaq.
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WALLSTREET, BEWARE “MEGALEAKS” HEADING FOR YOU

WALLSTREET, BEWARE “MEGALEAKS” HEADING FOR YOU


WikiLeaks plans to release a U.S. bank’s documents

Mon Nov 29, 6:52 pm ET

WASHINGTON (Reuters) – The founder of whistle-blower website WikiLeaks plans to release tens of thousands of internal documents from a major U.S. bank early next year, Forbes Magazine reported on Monday.

Julian Assange declined in an interview with Forbes to identify the bank, but he said that he expected that the disclosures, which follow his group’s release of U.S. military and diplomatic documents, would lead to investigations.

“We have one related to a bank coming up, that’s a megaleak. It’s not as big a scale as the Iraq material, but it’s either tens or hundreds of thousands of documents depending on how you define it,” Assange said in the interview posted on the Forbes website.

He declined to identify the bank, describing it only as a major U.S. bank that is still in existence.

Asked what he wanted to be the result of the disclosure, he replied: “I’m not sure. It will give a true and representative insight into how banks behave at the executive level in a way that will stimulate investigations and reforms, I presume.”

He compared this release to emails that were unveiled as a result of the collapse of disgraced energy company Enron Corp.

“This will be like that. Yes, there will be some flagrant violations, unethical practices that will be revealed, but it will also be all the supporting decision-making structures and the internal executive ethos … and that’s tremendously valuable,” Assange said.

“You could call it the ecosystem of corruption. But it’s also all the regular decision making that turns a blind eye to and supports unethical practices: the oversight that’s not done, the priorities of executives, how they think they’re fulfilling their own self-interest,” he said.

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Global Collapse of the Fiat Money System: Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011

Global Collapse of the Fiat Money System: Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011


When Quantitative Easing Has Run Its Course and Fails

By Matthias Chang

Global Research, August 31, 2010

Readers of my articles will recall that I have warned as far back as December 2006, that the global banks will collapse when the Financial Tsunami hits the global economy in 2007. And as they say, the rest is history.

Quantitative Easing (QE I) spearheaded by the Chairman of  delayed the inevitable demise of the fiat shadow money banking system slightly over 18 months.

That is why in November of 2009, I was so confident to warn my readers that by the end of the first quarter of 2010 at the earliest or by the second quarter of 2010 at the latest, the global economy will go into a tailspin. The recent alarm that the US economy has slowed down and in the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.

Obviously, Bernanke’s words do not reveal the full extent of the fear that has gripped central bankers and the financial elites that assembled at the annual gathering at Jackson Hole, Wyoming. But, you can take it from me that they are very afraid.

Why?

Let me be plain and blunt. The “unexpected developments” Bernanke referred to is the collapse of the global banks. This is FED speak and to those in the loop, this is the dire warning.

So many renowned economists have misdiagnosed the objective and consequences of quantitative easing. Central bankers’ scribes and the global mass media hoodwinked the people by saying that QE will enable the banks to lend monies to cash-starved companies and jump start the economy. The low interest rate regime would encourage all and sundry to borrow, consume and invest.

This was the fairy tale.

Then, there were some economists who were worried that as a result of the FED’s printing press (electronic or otherwise) working overtime, hyper-inflation would set in soon after.

But nothing happened. The multiplier effect of fractional reserve banking did not take off. Bank lending in fact stalled.

Why?

What happened?

Let me explain in simple terms step by step.

1) All the global banks were up to their eye-balls in toxic assets. All the AAA mortgage-backed securities etc. were in fact JUNK. But in the balance sheets of the banks and their special purpose vehicles (SPVs), they were stated to be worth US$ TRILLIONS.

2) The collapse of Lehman Bros and AIG exposed this ugly truth. All the global banks had liabilities in the US$ Trillions. They were all INSOLVENT. The central banks the world over conspired and agreed not to reveal the total liabilities of the global banks as that would cause a run on these banks, as happened in the case of Northern Rock in the U.K.

3) A devious scheme was devised by the FED, led by Bernanke to assist the global banks to unload systematically and in tranches the toxic assets so as to allow the banks to comply with RESERVE REQUIREMENTS under the fractional reserve banking system, and to continue their banking business. This is the essence of the bailout of the global banks by central bankers.

4) This devious scheme was effected by the FED’s quantitative easing (QE) – the purchase of toxic assets from the banks. The FED created “money out of thin air” and used that “money” to buy the toxic assets at face or book value from the banks, notwithstanding they were all junks and at the most, worth maybe ten cents to the dollar. Now, the FED is “loaded” with toxic assets once owned by the global banks. But these banks cannot declare and or admit to this state of affairs. Hence, this financial charade.

5) If we are to follow simple logic, the exercise would result in the global banks flushed with cash to enable them to lend to desperate consumers and cash-starved businesses. But the money did not go out as loans. Where did the money go?

6) It went back to the FED as reserves, and since the FED bought US$ trillions worth of toxic wastes, the “money” (it was merely book entries in the Fed’s books) that these global banks had were treated as “Excess Reserves”. This is a misnomer because it gave the ILLUSION that the banks are cash-rich and under the fractional reserve system would be able to lend out trillions worth of loans. But they did not. Why?

7) Because the global banks still have US$ trillions worth of toxic wastes in their balance sheets. They are still insolvent under the fractional reserve banking laws. The public must not be aware of this as otherwise, it would trigger a massive run on all the global banks!

8) Bernanke, the US Treasury and the global central bankers were all praying and hoping that given time (their estimation was 12 to 18 months) the housing market would recover and asset prices would resume to the levels before the crisis. .

Let me explain: A House was sold for say US$500,000. Borrower has a mortgage of US$450,000 or more. The house is now worth US$200,000 or less. Multiply this by the millions of houses sold between 2000 and 2008 and you will appreciate the extent of the financial black-hole. There is no way that any of the global banks can get out of this gigantic mess. And there is also no way that the FED and the global central bankers through QE can continue to buy such toxic wastes without showing their hands and exposing the lie that these banks are solvent.

It is my estimation that they have to QE up to US$20 trillion at the minimum. The FED and no central banker would dare “create such an amount of money out of thin air” without arousing the suspicions and or panic of sovereign creditors, investors and depositors. It is as good as declaring officially that all the banks are BANKRUPT.

9) But there is no other solution in the short and middle term except another bout of quantitative easing, QE II. Given the above caveat, QE II cannot exceed the amount of the previous QE without opening the proverbial Pandora Box.

10) But it is also a given that the FED will embark on QE II, as under the fractional reserve banking system, if the FED does not purchase additional toxic wastes, the global banks (faced with mounting foreclosures, etc.) will fall short of their reserve requirements.

11) You will also recall that the FED at the height of the crisis announced that interest will be paid on the so-called “excess reserves” of the global banks, thus enabling these banks to “earn” interest. So what we have is a merry-go-round of monies moving from the right pocket to the left pocket at the click of the computer mouse. The FED creates money, uses it to buy toxic assets, and the same money is then returned to the FED by the global banks to earn interest. By this fiction of QE, banks are flushed with cash which enable them to earn interest. Is it any wonder that these banks have declared record profits?

12) The global banks get rid of some of their toxic wastes at full value and at no costs, and get paid for unloading the toxic wastes via interest payments. Additionally, some of the “monies” are used by these banks to purchase US Treasuries (which also pay interests) which in turn allows the US Treasury to continue its deficit spending. THIS IS THE BAILOUT RIP OFF of the century.

Now that you fully understand this SCAM, it is left to be seen how the FED will get away with the next round of quantitative easing – QE II.

Obviously, the FED and the other central banks are hoping that in time, asset prices will recover and resume their previous values before the crisis. This is a fantasy. QE II will fail just as QE I failed to save the banks.

The patient is in intensive care and is for all intent and purposes brain dead, although the heart is still pumping albeit faintly. The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated. It will be painful, but it is necessary before there is recovery. This is a given.

Warning:

When the ball hits the ceiling fan, sometime early 2011 at the earliest, there will be massive bank runs.

I expect that the FED and other central banks will pre-empt such a run and will do the following:

1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day; 2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions; 3) Transactions (investments) for metals (gold and silver) will be restricted; 4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II. 5) Imposition of capital controls etc.; 6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards; 7) Legislations to make it a criminal offence for any contraventions of the above.

Solution:

Maintain a bank balance sufficient to enable you to comply with the above potential impositions.

Start diversifying your assets away from dollar assets. Have foreign currencies in sufficient quantities in those jurisdictions where the above anticipated impositions are least likely to be implemented.

CONCLUSION

There will be a financial tsunami (round two) the likes of which the world has never seen.

Global banks will collapse!

Be ready.

© Copyright Matthias Chang, Future Fast Forward, 2010

The url address of this article is: www.globalresearch.ca/index.php?context=va&aid=20853

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Posted in bernanke, cdo, chain in title, conflict of interest, CONTROL FRAUD, corruption, FED FRAUD, federal reserve board, foreclosure, foreclosure fraud, foreclosures, geithner, securitization, STOP FORECLOSURE FRAUD, sub-prime, trade secrets, Wall StreetComments (2)


GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Chip Parker, www.jaxlawcenter.com
Kenneth Eric Trent, www.ForeclosureDestroyer.com
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