Obviously, like during every bubble, there will be a tremendous amount of fraud that will eventually be exposed and uncovered. The dot-com blow-up gave us CEO's cooking the books, analysts on the take, brokers giving IPO shares to get business, heck, even art tax evasion. And many more.
Well, nothing ever changes. This housing bubble as we all know has been chock full of grade-A fraud. And there's so much we don't even know about yet - that'll wait for the 2008 Senate hearings on the bubble collapse.
Fraud, added to the bubble collapse, will be America's next S&L crisis. We as American taxpayers will be asked to foot the bill of perhaps trillions of dollars to cover the blowup of Fannie, Freddie and the banks. Get ready.
With Fannie and Freddie buying up the loans, eliminating local oversight and loan ownership, it's like the kids playing while the parents are away. Also, this corrupt and unregulated symbiotic relationship between realtors, mortgage brokers and appraisers was just asking for payoffs and corruption.
So, let's give them a list for starters. Housing Bubble Fraud Hall of Fame:
1) mortgage brokers paying spiffs to appraisers to "make the numbers work"
2) realtors paying off mortgage brokers to "make the numbers work"
3) syndicate buying houses under a homeless guy's name to defraud the banks
4) buyers lying about their qualifications on loans (by the way, Fife Symington, former Arizona governor before he was indicted, got taken down by this one - it's a classic!)
5) Developers lying about customers qualifications to get them a loan
6) Forging documents to get property
7) So many more.. add your thoughts to the list
May 15, 2006
Fraud
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13 comments:
You forgot to mention all the home buyers who signed those docs knowing that they didn't make that kind of money! I can't tell you, how maney people I know who faked they're income to buy that house. One I questioned them, they just told me that everyone was doing it. It's just how it works today.
And these people will be the ones on TV crying on the curb, while their stuff is being moved out onto the lawn!
classic bitter liberals...always looking for someone to blame. You are all the same. Losers
i love being called a liberal by a realtor. boy, you must not read this blog much, eh?
Don't forget desperate underwater homeowners torching their homes when they can't sell and can't re-fi out from under their reset ARMS. A lot of arson investigators are going to be real busy ...
Unethical behavior happens in business regardless of whether or not it is booming or crashing.
"Hearings" will be held for the following reasons:
1) To find a scape goat to blame for everything that went wrong.
2) To make the politicians seem like they are "doing something"
And the result will be the passing of new laws that will make everything worse, not better, for the working man, and ultimately cost industry billions of dollars (Sarbanes-Oxley, anyone?)
Pardoned by Clinton after a 7 year fed investigation. That says it all. Mark Rich was in the same group.
Don't forget all the lenders that "looked the other way" and closed those deals. They don't care, they don't keep the paper.
"i love being called a liberal by a realtor. boy, you must not read this blog much, eh? "
Actually, I trade commodities for a bank. Youare liberal, socialist and anti-free market. You ARE always looking for someone to blame. That is what you left boys do.
Yeah, Douglasbtrain...thats me...I trade for a living everyday. Take the subway to work, a grind it out. What do you do?
Oh, and I trade natural gas and oil too. I love haring Keith cheer "go go COP" classic idiot,liberal, amature trader. Liberal trader is an oxymoron btw...
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