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The Never Ending Pointless Debate – While the Banks Still Call the Shots

02 Jul

The government says they are supporting short sales and loan modifications for homeowners – yet less than 3 percent of all loan modifcations at this time include any reduction in principle on mortgages as housing values continue to fall.

Meantime short sales falter as banks add new “home owner contribution” requirements, strip agent commissions and demand “out side of escrow pay offs” which exceed the Fannie and Freddie Guidelines for junior liens… “We’ll kill your short sale over $5,000.00 in additional payment that we know must not appear on the HUD or in the escrow records (where it would violate the law and force the superior lien holder to cancel the contract”).

Arguing ideals is pointless – political ideals and reality are vastly different things. In our country right now there are banks and there are the government agencies which are run by the banks- the idea that republican and democrat mean anything at all beyond two sides of the same power monopoly is ignorance. There is no free system here anymore – there is so much corruption on so many levels that it is impossible to call any of it by any real politically correct name other than corrupted.

The man who warned us about all of this coming into being was Eisenhower but we didn’t listen. Now the powers that be can pit the people against each other as republican, democrats, gays, straights, religious, non religious and so on into the vast forever of stupid people ignorant of the controlling systems where all monetary and political decisions are made behind closed doors to benefit those making the decisions.

So long as the people are willing to squabble over the crumbs and remain ignorant of the power brokers moves there is no future other than the one where the entire nation is brought to its collective knees at the mercy of the “lenders” and the governments who fail to regulate them. Case in point: the easy money lending practices of the past decade were put in place purposefully by the Fed in order to shift the collapsing tech bubble into a new consumer bubble – sustaining the unsustainable consumption which powered the machinery of the profits the lenders and money printers needed while they ensnared the entire nation in unsupportable debt.

Now as the money supply is stripped from the people and given directly to those same “lenders” who front loaded and made billions in the past decade on fees and points the small businesses and people of the country are left with no credit and no cash flow. These are not accidental occurrences.

These are not simply “symptoms” of something not working. This is the direct result of a flawed money system which gives power to those in control and strips it from the people. How else in the world could a corrupt institution like the “now defunct” Countrywide Home Mortgage be able to demand “contributions” from sellers who are jobless and homeless when a buyer presents to purchase the property at a short sale?

How else can a lender like B of A demand a cash or promissory note contribution from a seller on a short sale and state clearly that the offer price is perfectly acceptable but the offer is denied unless and until the homeowner provides this additional contribution? And this on purchase money mortgages in the State of California where (like most sane states) the lender is forbade from pursuing the collection of their debt BEYOND THE PROPERTY?

Yet this is now happening all over the country in record numbers – where documented hard ships of the homeowners make absolutely no difference in the eyes of the “lender” who has been given billions in taxpayer bailout funds and is still not satisfied – even when it is a proven fact that a short sale will provide the lender with the highest possible return on their investment when compared to a foreclosure and subsequent REO sale?

It is amazing how much ignorance parades as knowledge in these times – where people are willing to defend irrational and long proven unsound money policy (print print print) rather than do the ONE thing that can and must be done:

Make the banks suffer the losses they incurred. Make the investors and derivative funds take the losses they incurred. Let the lenders and investors who played this insane gamble of leveraging the average American household up to its eyes take the hit and take the fall.

Right now the lenders and bankers are the ONLY ones NOT taking the hit – the homeowners are taking the hit – the local governments are taking the hit – the local businesses are taking the hit – but the banks are sitting on trillions of newly created dollars, cooking the books to the point that the OTS has SAID they were cooking the books and STILL NO ONE is being prosecuted and no one is calling the bluff.

The FDIC is now offering ReFi and loan mods with 125 percent Loan to Value in a market where the values are still falling! This is LUNACY. If you want to solve the problem for the PEOPLE of this nation then do the ONE thing no one is willing to do: make the banks take the same write down everyone else is being force fed and let them fail.

It is much easier to have a healthy financial institution (there are a few left, you know, who did NOT get into this insane derivatives game) take over the failed banks and RUN THEM CORRECTLY than it is to keep feeding FRNs to the incompetent banks and expecting things to get better!

Why is this so hard to understand? Because the vast majority of Americans have not taken the time to even research or understand their own country’s monetary system. We are a private money system run by a private money institution.

The FED which has, I notice in recent years been named a “quasi government organization” – really ? What the HELL is THAT? Is it something like the Halliburton corporation being owned by the VP and being allowed to over charge and strip resources directly out of the defense budget at the detriment of our own soldiers overseas?

Is it something like the vast federal prison system run by nested corporations owned at the highest levels by members of elite families like BUSH and others who can hire out labor of American prisoners to great profit while ignoring crowded conditions, vast and systemic corruption by prison guards, and even death of inmates in a country where some 60 percent of short term prison inmates are doing time for TRAFFIC OFFENSES?

Americans think that the problems they face are caused by their ignorant neighbors getting a loan they could not afford. That is not the problem. The problem is that the vast networks of power and corruption are so broad and so deep and so entrenched that when a financial collapse threatens, these same corrupt power brokers determine that the solution is to give the people and institutions that CAUSED the near collapse all the future earnings of the American people and the people are so ignorant that they don’t even understand what just happened to them.

This idea that the markets of this country are “free” is the biggest joke ever foisted on the American people – and they keep falling for it. Your money is all tied up in 401Ks the Government tells you is the only place you can put your retirement funds so you do it – then the banksters start playing in the derivatives markets and crash the markets and poof all your money is gone – but no one is bailing YOU out – how gullible are you?

But hell, I am just another crazy radical with sideways ideas – go back to blaming the farm workers who were easily conned into signing on contracts they couldn’t read, or the greed of consumers who ended up indebted to credit cards charging 29 percent interest when the market rates are something like 3 percent – But don’t you yourself make any consumer loans to anyone at such interest rates or you will go to jail for violating the usury laws – hmmmm.

Now let’s get back to arguing over the democrats and republicans, progressives and socialists, gays and lesbians, marriage or living togethers, anything to keep our eye off the ball that is in motion and about to swing so hard that the vast majority of Americans will be so caught of guard as to find themselves losing so much so fast (look around at the “minority” of Americans this has already happened to) that they will not know what hit them.

 
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