Financial Crisis

[flying]

If there is no deed on your property, how can you sell it? Paid for or not.

Title at least here.... is recorded with any legitimate liens when the 1st mortgage is made.

At time of sale during escrow title is searched & verified.

Liens are satisfied & tile changes hand.

That is different than a foreclosure. In many cases today there is a mix up because while the original lender may have been recorded as 1st lien holder that 1st lien holder sells the note for less but during the boom did not move through proper channels of recording the transaction. There in lies the rub. During the frantic boom bundles were being sold/traded without proper channels being followed. Instead they were using Mortgage Electronic Registration Systems.

Now homeowners being foreclosed on have a couple of options.

1) the claim of predatory lending

2) They can claim a violation of the truth in lending laws.

They can use the TIL laws to say they were never informed of the sale of their mortgage.

Then of course challenge the fact the new lien holder does not in fact even show up as the lien holder of record in the land court records.

Edited October 16, 2009 by flying

[BEENTHEREDONETHAT]

Thanks for that Flying, very informative.

[teletiger]

Not too big a blow to the banks though, as many of them are, for now, shying away from early foreclosure: 1: to keep the losses off their books 2: avoid flooding the market, which might send prices down even faster.

Regards.

[flying]

Not too big a blow to the banks though, as many of them are, for now, shying away from early foreclosure: 1: to keep the losses off their books 2: avoid flooding the market, which might send prices down even faster.

Regards.

There are pages of foreclosures these days here.

For the most part they are not commercial banks though also I dont see credit unions posting....They are mainly agencies that bought the mortgages for who knows what prices.

MERS currently holds 50 to 60 million loans so this is no small matter. And, just because they have lost repeatedly doesn’t mean they will give up. They will keep right on foreclosing in hopes that the homeowner won’t fight back and, in most cases, they won’t be stopped.

Read more:http://rismedia.com/2009-09-28/op-ed-60-million-mortgages-may-have-fatal-flaws ://http://rismedia.com/2009-09-28/op-e...ve-fatal-flaws ://http://rismedia.com/2009-09-28/op-e...ve-fatal-flaws

Edited October 17, 2009 by flying

[teletiger]

How far back does this housing, easy money, fiasco go back? Here's something from the Carter era.

"A manual issued by the Federal Reserve Bank of Boston advised mortgage lenders to disregard financial common sense. "Lack of credit history should not be seen as a negative factor," the Fed's guidelines instructed. Lenders were directed to accept welfare payments and unemployment benefits as "valid income sources" to qualify for a mortgage. Failure to comply could mean a lawsuit."

http://www.zerohedge.com/article/barney-franks-bad-loans

This dictat was issued in response to complaints of the ratio of black Americans being refused loans in relation to their white counterparts.

The rest of the report is very revealing too. IMHO.

Regards.

[flying]

Bank of America is toast but the gov seems reluctant to remove it from the toaster.... I think the FDIC may nee that loan soon

$1 billion third-quarter loss

Bank of America said net write-offs of uncollectible loans rose 11 percent from the second quarter to $9.62 billion. The bank wrote off $3.2 billion of home loans, including home equity loans, during the quarter, up 10 percent from the second quarter. Charge-offs on credit cards increased 5 percent to $2.17 billion.

http://www.bloomberg.com/apps/news?pid=206...id=ad6T0bPMHFT0

[midas]

Bank of America is toast but the gov seems reluctant to remove it from the toaster.... I think the FDIC may nee that loan soon

$1 billion third-quarter loss

Bank of America said net write-offs of uncollectible loans rose 11 percent from the second quarter to $9.62 billion. The bank wrote off $3.2 billion of home loans, including home equity loans, during the quarter, up 10 percent from the second quarter. Charge-offs on credit cards increased 5 percent to $2.17 billion.

http://www.bloomberg.com/apps/news?pid=206...id=ad6T0bPMHFT0

more coverage of this kind of information would be better in the MSM and a just little

less about kids supposedly flying across America in a balloon and Rush Limbaugh's

attempt to buy a football team

Edited October 18, 2009 by midas

[Abrak]

How far back does this housing, easy money, fiasco go back? Here's something from the Carter era.

"A manual issued by the Federal Reserve Bank of Boston advised mortgage lenders to disregard financial common sense. "Lack of credit history should not be seen as a negative factor," the Fed's guidelines instructed. Lenders were directed to accept welfare payments and unemployment benefits as "valid income sources" to qualify for a mortgage. Failure to comply could mean a lawsuit."

http://www.zerohedge.com/article/barney-franks-bad-loans

This dictat was issued in response to complaints of the ratio of black Americans being refused loans in relation to their white counterparts.

The rest of the report is very revealing too. IMHO.

Regards.

Well the classic chart on real house price data comes from Shiller (2006).

Difficult to tell here but it just about looks like a minute boom, pre Volker under Carter, but it certainly paled into what actually happened.

I guess most people have see this but Bernanke obviously hadnt....apparently....

July 05

INTERVIEWER: Tell me, what is the worst-case scenario? Sir, we have so many economists coming on our air and saying, "Oh, this is a bubble, and it's going to burst, and this is going to be a real issue for the economy." Some say it could even cause a recession at some point. What is the worst-case scenario, if in fact we were to see prices come down substantially across the country?

BERNANKE: Well, I guess I don't buy your premise. It's a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. So what I think is more likely is that house prices will slow, maybe stabilize: might slow consumption spending a bit. I don't think it's going to drive the economy too far from its full employment path, though.

Updated chart is here.... (reason the rise doesnt look so steep is simply the x-axis points)

[flying]

BERNANKE: Well, I guess I don't buy your premise. It's a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. So what I think is more likely is that house prices will slow, maybe stabilize: might slow consumption spending a bit. I don't think it's going to drive the economy too far from its full employment path, though.

Does it come as any surprise that the same man Ben Shalom Bernanke aka: BS Bernanke said back in Nov 12 2002........

Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

As Ron Paul say's in his new book End The FED ( btw...excellent book )

I'm not sure that the FED Governor has ever been so frank about the FED's power

[Abrak]

I'm not sure that the FED Governor has ever been so frank about the FED's power

The rather remarkable thing given his determination to create inflation and devalue the dollar, is that he was appointed Fed Chairman at all. Given his frank, dedicated and very clear policies, he, would under normal circumstances have not even been considered for the post (in my view)

In 2002 he wasnt even Fed Governor, so it really is much more a call of why someone appointed him, not what he is doing. Almost by definition his views virtually disqualified from the role of Fed Governor. I doubt there has ever been someone whose opinions on monetary policy are so irresponsible, that he has been appointed to the role.

[flying]

The rather remarkable thing given his determination to create inflation and devalue the dollar, is that he was appointed Fed Chairman at all. Given his frank, dedicated and very clear policies, he, would under normal circumstances have not even been considered for the post (in my view)

In 2002 he wasnt even Fed Governor, so it really is much more a call of why someone appointed him, not what he is doing. Almost by definition his views virtually disqualified from the role of Fed Governor. I doubt there has ever been someone whose opinions on monetary policy are so irresponsible, that he has been appointed to the role.

Agreed but .....

Dr. Bernanke served as a member of the Board of Governors of the Federal Reserve System from 2002 to 2005,

http://en.wikipedia.org/wiki/Ben_Bernanke

Edited October 18, 2009 by flying

[midas]

WOW look at this….I certainly would not like my activities to be monitored like this

Announcing the Goldman Sachs Project

" To facilitate Blankfein's call for transparency, we're launching the Goldman Project, an ongoing attempt to track and publicize the multi-million second homes, $50,000 cars, $500 bottles of wine, and ostentatious living that we are subsidizing "

http://gawker.com/5382490/announcing-the-g...ne=true&s=x

[Abrak]

The rather remarkable thing given his determination to create inflation and devalue the dollar, is that he was appointed Fed Chairman at all. Given his frank, dedicated and very clear policies, he, would under normal circumstances have not even been considered for the post (in my view)

In 2002 he wasnt even Fed Governor, so it really is much more a call of why someone appointed him, not what he is doing. Almost by definition his views virtually disqualified from the role of Fed Governor. I doubt there has ever been someone whose opinions on monetary policy are so irresponsible, that he has been appointed to the role.

Agreed but .....

Dr. Bernanke served as a member of the Board of Governors of the Federal Reserve System from 2002 to 2005,

http://en.wikipedia.org/wiki/Ben_Bernanke

Yes corrected.

In fact I think that was his first speech to the Fed Board.

Getting elected Chairman given his views was quite something. I would like to think he got re-elected for his 'good' monetary policy rather than his total inability to reregulate the banks while supplying them unlimited subsidies.

So how is he doing?

bernanke quantative easing - 307,000 results

bernanke helicopter - 184,000 results

bernanke bank regulation - 1,290,000 results (missed all those)

bernanke interest rates - 1,800,000 results

bernanke weak dollar - 952,000 results

bernanke strong dollar - 948,000 results (hmmm)

bernanke strong house prices - 171,000 results

bernanke weak house prices - 140,000 results (doubt that will go on the CV)

A special by google....

[midas]

The Extinction of Ethics in Finance – The Fallout

http://realityarbiter.com/2009/10/the-exti...ce-the-fallout/

[flying]

Matt Taibbi: "Wall Street's Naked Swindle"

[Naam]

Crisis? What Crisis?

read all about in:

http://www.naams_bullshit-blogspot.com

[flying]

Crisis? What Crisis?

read all about in:

http://www.naams_bullshit-blogspot.com

Your link was broken.

All fixed now

I will hope to see some good content soon

Click here......

http://naams-bullshit.blogspot.com/

Edited October 19, 2009 by flying

[Naam]

Crisis? What Crisis?

read all about in:

http://www.naams_bullshit-blogspot.com

Your link was broken.

All fixed now

I will hope to see some good content soon

Click here......

http://naams-bullshit.blogspot.com/

<deleted> beautiful Flying! i wonder whether it is functional?

[lannarebirth]

Three part interview with Elizabeth Warren. Nice, honest, direct speaking lady. Good intentions and zero power.

http://finance.yahoo.com/tech-ticker/artic...,XLP,XLF,jpm,gs

[12DrinkMore]

I wonder whether it is functional?

That, Klingon Naam, depends entirely on you.....

Why did you decide to reduce your ambition from becoming the "most hated" to the "most bored"?

[flying]

<deleted> beautiful Flying! i wonder whether it is functional?

100%

[flying]

Three part interview with Elizabeth Warren. Nice, honest, direct speaking lady. Good intentions and zero power.

http://finance.yahoo.com/tech-ticker/artic...,XLP,XLF,jpm,gs

In her own words...The only power they have is the power to shame.

Wish the sheeple would wake up & realize it is they that have the power.

Shut it down become the US unbanked.

Edited October 19, 2009 by flying

[Abrak]

Three part interview with Elizabeth Warren. Nice, honest, direct speaking lady. Good intentions and zero power.

http://finance.yahoo.com/tech-ticker/artic...,XLP,XLF,jpm,gs

You know actually it is people like Elizabeth Warren that give me some long term optimism in the US economy. So bright, so smart, so on the ball and responsive

Two books by her that are fascinating:

http://www.amazon.com/Two-Income-Trap-Midd...s/dp/0465090826

Warren, Elizabeth. "The Vanishing Middle Class" in Ending Poverty in America: How to Restore the American Dream 38 (The New Press, 2007)

Edited October 19, 2009 by Abrak

[flying]

You know actually it is people like Elizabeth Warren that give me some long term optimism in the US economy. So bright, so smart, so on the ball and responsive.

I also like her. Since many months ago when I first heard her speak.

But the problem is there are many many bright,smart,on the ball powerless people here.

Time for talking has come & gone. Her discussion of how even now the banks thumb their noses at the people shows it plainly.

All through history bright smart on the ball people have been led to their destruction willingly albeit saying something along the lines of....this is just not right

[flying]

Bair Admits FDIC in the Red Until 2012

[Abrak]

You know actually it is people like Elizabeth Warren that give me some long term optimism in the US economy. So bright, so smart, so on the ball and responsive.

I also like her. Since many months ago when I first heard her speak.

But the problem is there are many many bright,smart,on the ball powerless people here.

Time for talking has come & gone. Her discussion of how even now the banks thumb their noses at the people shows it plainly.

All through history bright smart on the ball people have been led to their destruction willingly albeit saying something along the lines of....this is just not right

Actually Flying I am one of those 'triumph of hope over experience' sort of guys. I do believe there will change in the USA, I do believes values are changing.

I am not convinced that repeating 'I'll be back' makes you the consummate politician. And, one day, people will listen to her and realize she makes sense. And maybe one day someone like her will be President.

I know it sounds ridiculous now but somehow you have to put faith in capitalism and democracy because there is nothing else.

So there are a couple of people on this thread who believe there will be riots and food fights. I just believe that Eclipses, bling and Paris Hilton will be out and a new social conscience will be in. 'Urban Art' is very big you know.

[flying]

Actually Flying I am one of those 'triumph of hope over experience' sort of guys.

I know it sounds ridiculous now but somehow you have to put faith in capitalism and democracy because there is nothing else.

So there are a couple of people on this thread who believe there will be riots and food fights.

Hope is good but worthless as a stand alone unit.

As for Democracy....I wonder why we say ...And to the Republic for which it stands

As for food fights & riots I have no ideas. I personally do not think it has to go there & if it did it is a losing battle which truth be known TPTB would probably like.

[Naam]

I wonder whether it is functional?

That, Klingon Naam, depends entirely on you... Why did you decide to reduce your ambition from becoming the "most hated" to the "most bored"?

being hated becomes boring after while "12". for a change i am contemplating to drop the role of advocatus diaboli as far as that shiny metal Aurum is concerned, enrol in the Austrian School of Economics, get rid of all fiat assets i own and buy some local gold shops, engage in Bernanke bashing, cheer Ron Paul, clean my guns and practise to take aim at little old ladies passing my house (unfortunately my house is located at a cul-de-sac), increase my stock of canned baked beans, train my dogs not only to bark at rioting villagers but to bite them...

to be continued...

[flying]

Greenlight Capital's David Einhorn was speaking today at the 5th Value Investing Congress in New York City.

http://www.cnbc.com/id/15840232?video=1300235801

[flying]

Matt Taibbi: "Wall Street's Naked Swindle"

Here is the whole article......

http://www.rollingstone.com/politics/story...naked_swindle/1

Our economy is so completely fuc_ked, the rich are running out of things to steal.

Then, on March 11th — around the same time that mystery Nostradamus was betting $1.7 million that Bear was about to collapse — a curious thing happened that attracted virtually no notice on Wall Street. On that day, a meeting was held at the Federal Reserve Bank of New York that was brokered by Fed chief Ben Bernanke and then-New York Fed president Timothy Geithner. The luncheon included virtually everyone who was anyone on Wall Street — except for Bear Stearns.

"We were actually on it for 668 consecutive days," says Patrick Byrne, the CEO of Overstock, who became a much-ridiculed pariah on Wall Street for his lobbying against naked short-selling. At one point, investors claimed ownership of nearly 42 million shares in Overstock — even though fewer than 24 million shares in the company had actually been issued.

Edited October 20, 2009 by flying