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Mike Whitney Gets it Right – Paying Banksters with Taxpayer Monies Again? Let’s Do This, Says Congress.

11 Oct
In this latest from CounterPunch on the bankster scammers, Mike Whitney rightly points out that the banks are getting a free hall pass from the Senate on ‘put-backs’ – the system whereby Fannie and Freddie push bad loans back to banks when they fail the test of being properly underwritten and/or processed.
The poor banks are whining that they cannot make new loans because they are afraid of this ‘put-back’ ability of Fannie and Freddie – who, meantime, are backing a whopping 95% of all new mortgage loans.  Oh dear. Poor bankers. They actually have to follow the rules and make good loans? Well, that is an oxymoron anyhow, as the loans are all a form of fiat currency extortion against potential ‘homeowners’; but let’s ignore that for a moment.
The truth is, the banks have sucked the money system dry and siphoned off billions into the private pockets of their executives and top ‘producers’ in a massive ponzi scheme payable byt he American taxpayer and yet they are now coming to the door pretending to be the injured party.  Laughable, yes. Pathetic, yes. But as Whitney rightly points out, unless and until there are criminal charges and jail time, there is no reason to expect anything other than this sort of pathetic cow-towing by the government.  After all, they are already fully owned by the banksters and corporations who control all public policy around the globe.
How the Financial Lobbyists Carried the Day

The Bankers vs. the People

by MIKE WHITNEY
 “So far, Fannie and Freddie have asked banks to repurchase $66 billion in mortgages made between 2006 and 2008, according to an analysis of federal filings by Inside Mortgage Finance, an industry newsletter. The balance of outstanding demands from both companies at the end of July was up 37% from a year earlier. Most of these loans have defaulted, so banks face losses when they take them back.”

Is this the most convoluted argument you’ve ever heard? The author admits up-front that “Most of these loans have defaulted” which is a tacit admission that the underwriting was either shoddy or fraudulent, right? And, yet, he seems to think that someone else should stump-up the doe for the losses. In other words, John Q. Public.

 
 

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