1) Dude is $2 Million + in debt, including $140k in credit cards alone. 24-year old kid got access to $2 Million + in credit, with no income, no savings, no nothing. From wiki's "economic bubble" page:
Experts argue that the cause of bubbles is excessive monetary liquidity in the financial system. Excessive monetary liquidity (a.k.a. easy credit) potentially occurs while central banks are implementing expansionary monetary policy (ie. lowering of interest rates and flushing the financial system with money supply).
2) Dude is paying 30%+ on a lot of his credit cards. Oops, my mistake... Dude is being CHARGED 30%+ on a lot of his credit cards. Dude ain't actually PAYING anything, I forgot...
3) Dude bought all those properties and NOT ONE made a profit - all are on the way to foreclosure. Suzanne and Greg Swann researched it.
4) Dude ain't wearing the orange jumpsuit yet. Not after national media exposure admitting his crimes. Not after telling the world he committed raging mortgage fraud for months and months. Not even a letter or a knock on the door yet. Nothing. Nobody cares. Nobody is in charge. Financial anarchy is here.
5) China and the hedge funds who bought all this collaterized debt ain't getting their money back. A massive financial implosion is just around the corner...
January 10, 2007
Iamfacingforeclosure.com's Casey Serin shows the world why this credit bubble and crash will be the biggest in recorded human history
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43 comments:
omg!!! 30+% ??? is that legal?
Money is infinite. The money they loaned him cost them nothing. They can make money out of nothing. If the system were honest it would have crashed already. Casey and all those like him are gnats. The true thieves are the puppetmasters.
(Keith wrote:)
"5) China and the hedge funds who bought all this collaterized debt ain't getting their money back. A massive financial implosion is just around the corner..."
(Butch replies):
We need to add a few more suckers to the list:
1. Fannie and Freddie, who actually buy EACH OTHER'S MBS, and who hold directly $1.5 trillion of mortgage debt
2. The banking system, who not only hold $1 trillion in MBS, but also hold directly over $3 trillion in loans
3. Pension funds, who are stuffed to the gills with MBS
4. Money market funds/mutual funds, who also hold an enormous amount of the soon-to-be-junk MBS
As far as Casey goes, history will show him and the environment that created him to be the "poster boys" for everything that was wrong with this present-day credit system:
1. No visible means of support
2. Yet, able to rack up enormous amounts of debt
3. Debt which (even the charge card debt too!) was "diced and sliced" via the magic of securitization, then sold off to other, greater fools (see list above)
4. In the case of the charge card debt, at usurious interest rates
5. Yet, as Keith so aptly points out, NO regulators "minding the store" and monitoring/clamping down on this insane activity
6. Non-economic actors such as China, Japan, OPEC and others buying any and all treasuries and agencies, not for investment, but for currency manipulation
7.A fiat/fractional reserve/central banking/seciritization/derivatives nightmare-from-hell monetary system, which is in its last throes
Add all these up and indeed you are looking at the "Mother of all Economic Implosions" coming soon to your bank, mutual fund, pension fund, and any and all other parts of the economy.
No one will come out of this unscathed.
No one...
At least toilet paper won't scratch up your ass. The USD will be worth less than toilet paper by the time the government crooks are done with their raping of the American public
30% credit card rate, Thank You George Bush and the world of universal default. If you are one day late on one credit card, loan payment of any kind (house, boat, etc). Then all of you credit cards can instantly put you into default mode and charge 30%. That is wrong on so many levels.
That consumer credit protection act of 2005 really screwed alot of people, they just haven't figured it out yet.
30% is way legal thanks to Bush and the UNIVERSAL Default rule they came up with, late on one, default on all.
it's all bushes fault that people buy what they can't afford?
and we wonder why it all happened.
"i had no control. it's the presidents fault."
"where is my government?" (a quote from a katrina victim from spike lee's "why the levees broke" documentary.)
I like Butch's list, although I don't agree with his blanket condemnation of fractional reserve banking.
Keith's point #4 was his best. Nobody is in charge here. All these new financial products, both in housing finance and in securities, make for more transactions, but for less stability. Far, far less stability.
"Deregulation" has been the catchword for thirty years now. It gave the ecnonomy some short term gains, and long term disruption. When Rubin was Sec'y Treasury, he might have had some time to deal with this issue if he wasn't so busy just managing crises for most of his tenure.
We need a national usury law. It can float with the fed funds rate or the 90 day treasury bill rate. Three points over the rate, whatever. But letting these credit card gangsters charge 30%, plus late fees and other fees, together with the new bankruptcy disincentives is a formula for indentured servitude.
Wars can sometimes start over unpaid debts.
exseccive credit ala the 1920's. we all know how that ended.
In a way this is all very cool. A 24 year old immigrant amasses $2.4 million in debt. It's so classic American.
And to the tools thanking Bush for 30% cc rates, that's right, I forgot pre-2001 cc rates were prime + 1. That act in 2005 sure was awful. It made borrowers actually have to pay their debts on time or face some serious consequences for defaulting. Imagine that, a risk/reward proposition offered to borrowers.
Let's turn the paranoia/hatred volume down just a notch huh boys and come back to reality slowly.
Why are you worried? Are you planning to default? For shame ... for shame...
Has Suzanne ever researched Casey to find out if he really has done all those idiot things or whether he is just a huge bullshit artist??
Just wondering, how did he qualify for all those loans when his monthly income is only $3k ?
What is the obession with this Greg Swann person on this blog? Who is he?
You don't know the world-famous Greg Swann? The most important real estate clerk in the Western United States?
Don't go there Keith.
te he.
After reading about universal default here, I was skeptical. I took a quick look on the web and found that it's all true. If you're more than 30 days late on one payment - all your OTHER credit cards can start charging you 29.99%! Doesn't matter if you live up to your contracts and pay all your other cards on time! Better hope you never have any bills lost in the mail and/or lose track of a payment for more than 30 days!
And who knows when that rate now attached to you will end. After you pay off all your balances? What about when you apply for your next card? And how long before some of these creative mortgagers figure out a way to jump on the bandwagon? Your 5% mortgage rate jumps to 29.99%....
I can understand the idea of a lender wanting to protect themselves from risk - but this is outrageous. Both the rate AND the terms!
Personally, I NEVER let balances run over month-to-month. There's some really derogatory term the industry uses for people like me. Still, I can envision some day running into an illness or some other emotional shock that puts me off track - at least for a month. This is like a premeditated trap to suck me dry before I can get my bearings. Maybe the industry feels justified because they "lost out" on all those years I paid off my monthly balances in full. Maybe they're so twisted they see it as pay-back. Or maybe it's just pure unmitigated greed. Make hay when the sun is shining. Get as much as you can as fast as you can.
Here iz what Casey had ta say:
Yeah, da values on real estate iz uh tricky one. I sort o' be usin' uh value dat I th'o't da property will appraise fo' taday (conservatively) an' it may sell fo' dat much if it sits dere long enough. But then ag'in, if da market keeps dropping it may not sell at all cuz its not in top showing shape an' buyers iz few an' very picky nowadays.
How do accountants handles dis here issues when preparing traditional financial statements? Do dey use “fire sale” value or da higher appraisal / market value?
I may gots ta jet in dere an' adjust da values ta where I th'o't it will sell taday, minus sales costs an' all. That will be uh much smaller number!
This month I be beginning ta be much mo' productive wiff muh ma fuckin consulting job an' I don’t see any problems in getting dat $3,000 fee dat we's originally discussed.
Now I just gots ta load up Microsoft Money an' setup da budget an' categories an' start tracking everything. My goal in 2007 iz ta track every single penny! (I also need ta git muh ma fuckin 2006 mess organized too… man… lots o' werk ahead!)
Yeah I do need ta peep into dat cell phone bill o' mine. I’m paying way too much…
Yeah I do need ta peep into dat cell phone bill o' mine. I’m paying way too much…
Oh man… I completely forgot ta include payments in muh ma fuckin budget on personal notes an' things like that… that’s going ta be uh tough one ta squeeze in.
Also, I wants ta find uh way ta refinance just muh ma fuckin wife’s portion o' unsecured debt since she hasn’t had any 30 day lates as o' yet an' I believe I can still preserve her credit. If I refi it wiff 30,000 credit line wiff say 12% simple payment that’s only 300/mo. Of course its likely going ta be higher but dat gets me excited dat it iz do-able.
Utah property loan issue iz still being attended to… will report when I git it resolved
Man iz he toast!
in the hood
Paranoid credit card holders:
Nobody will jack up your rates to 30% if you forget to pay one bill. I have have that happen to me on occasion. I got charged with the $45 late fees too. I called up the credit card explained the situation and they revesrsed the late charge as well as the record of a late payment.
They can tell the difference between a missed payment due to carelessness and a missed payment due to not having money to pay.
Relax. Take a deep breath. All will be well. I promise.
I don't think Casey has any idea how much in taxes he owes by this point. Taxes alone on his transactions would bankrupt him
Anyone want to do an over under for when he files?
I say March
The sad part about it all is that, not only is the government not doing anything about this, but they probably never will. On top of that, there are millions of people who would have killed to buy a house - tried, didn't qualify, and are stuck renting. He has gobbled up debt on nothing but lies, and is probably going to get a book deal or something out of it all.
Dream on all you "naive" people who think rules/laws will be changed on 30% late charges, fees etc. Who do you think you are? God. The private banks/federal reserve rules. Get use to it. They are the largest and best directed lobbying organistation in DC. Think you have a chance with your boughtfor/paidfor congressman? Get Real.
Dream on all of you navie people who think 30% late fees, charges isn't fair or can be changed. You do you think you are? God. The largest and best organized lobbying group in DC is, you guess it, the banking organization. The private/federal reserve who "rules" and decides on all banking regulations. Is this right or fair? The answer doesn't matter. Do you think your bought/paid for congressman will help you? Dream on.
how does he owe taxes on losses?
Dream on you navie people on private banks rules changing
Is it actually legal to declare bankruptcy after committing mortgage fraud?
It's the same as if a drug dealer loses his supply after Felix Arellano got arrested, then seeks legal protection for his ill gotten gains.
Yes its shocking Casey had NO JOB at the time and easily got large loans. 8 o them. rapidly.
How much of his and everyones loans are backed by the govt or a GSE? I wonder. Its S&L all over. The MBS's are junk bonds and bad real estate loans are part of it just like before.
Lending money to the unemployed, people in prison, etc. This is gonna be baaaad. Spring will show CA the hard truth summer will be desparation.
- Crash Landers
Ok, somebody please explain to me what should you invest in, if you fear imminent dollar crash? I am not an expert, but what I read tells me the 2 things to load up on in this are GOLD and LAND. I understand that gold is at all time high's and so is the land, thus what are people left with ?
Tony1790 said...
"30% credit card rate, Thank You George Bush and the world of universal default."
It's all Bush's fault that Casey is so far in Debt. The Republicans sure are mean to hard "working" flippers like Casey...
Keith,
IIRC Casey did make 30K in profit on the very first property that he sold. He might have used this as seed money on the eight later properties he bought, or it might have been included in the eight.
China may not be getting their money back now but then they undervalued their currency 40% in anticipation of the real estate bubble meltdown. China received their money in advance based on the balance of trade deficit .
>>Anonymous said...
how does he owe taxes on losses?
Wednesday, January 10, 2007 7:31:03 PM<<
Simple. According to the IRS, if you make money by ANY means (Stock market, property investments), the money you made becomes part of your income. Lost the income or the property? TOO BAD, you still owe the IRS the value of income....
>>>Joshua Dorkin said...
The sad part about it all is that, not only is the government not doing anything about this, but they probably never will. On top of that, there are millions of people who would have killed to buy a house - tried, didn't qualify, and are stuck renting. He has gobbled up debt on nothing but lies, and is probably going to get a book deal or something out of it all.
Wednesday, January 10, 2007 7:09:40 PM<<
To add insult to injury, if the same people stuck renting tried to buy a forclosed house, we are either told that they don't exsist or forced to suffer through BS pay sites. The greedy real estate clerks have it set up that way to make money on both ends (flippers and wanna be homeowners)
Holding up Casey is almost too easy. He got into the game too late and violated the key rule of real estate investing (purchase price in king!).
As to how did he get these loans? He lied.
Casey may not go to jail - but he's going to wish he had -- at least they have three hot meals a day.
Anybody who has any info AT ALL on what's going on with the organizations, people whoever "bought" all these bad loans:
Please Report! Please inform!
Hm. I live within my means for the last two years, save up about $200K. Skippy, meanwhile, runs up about $200K in unsecured debt living it up.
End result? Both of us will end up having to flee the country. Him to avoid jail, me to avoid being robbed in the great homedebtor bailout aka socialist revolution.
Ok. Let's clear up a few things.
1. Casey did not "make" $30,000. He sold his property to someone for $30,000 more than what he paid IN EXHCANGE for buying the other guys property at a ridiculous price. HOWEVER, he will owe taxes on the "gain", as he it was not owner occupied or did he live in it for 3 out of years, etc...
2. He is not liable for the "income" or cash back he received from the 8 fraudulent loans, becuase they were loans, not income. HOWEVER, he may be subject to numerous counts of fraud for doing so.
3. He will be subject to tazes on all of the 1099's coming shortly from the foreclosures, short sales, etc, and the past due taxes.
4. He will also be liable for the writeoffs from the cc companies and other charged off loans, as income.
5. He will have a nightmare of a time filing a 1040 this year with all of the shady deals and questionable employment, dubious loans, etc.
But he didn't make a profit on any of the houses. The IRS taxes profits. He has no profits. He owes no taxes.
If I buy a house for $100,000 then sell it for $80,000 the IRS will not come knocking at my door.
-----------------------------------
>>Anonymous said...
how does he owe taxes on losses?
Wednesday, January 10, 2007 7:31:03 PM<<
Simple. According to the IRS, if you make money by ANY means (Stock market, property investments), the money you made becomes part of your income. Lost the income or the property? TOO BAD, you still owe the IRS the value of income....
On top of that, there are millions of people who would have killed to buy a house - tried, didn't qualify, and are stuck renting.
Stuck renting? HUH? I thought renting was more desired than owning. Isn't that what HP preaches over and over?
Anonymous said...
But he didn't make a profit on any of the houses. The IRS taxes profits. He has no profits. He owes no taxes.
If I buy a house for $100,000 then sell it for $80,000 the IRS will not come knocking at my door.
Not to come off as an ass, but you are dead wrong.
WHEN, not IF, but WHEN Casey gets all of those 1099's for the balance owed between the loan value and proceeds from the auction sales, he will owe the taxes on that amount.
HE is not selling the properties, the LENDERS are. The properties are being foreclosed, remember?
Under your misguided logic, we can ALL go out and buy million dollar properties for nothing down, not ever pay a penny in mortgage payments, have them sold at a loss due to foreclosure, and owe NOTHING in taxes? And WHOM is reposible for those losses?
Please tell me you are no way related to the financial industry. Most likely, your a Realtor....lol
Casey's main guru Russ Whitney has some bizzare advice...
People like Casey scream caveat emptor and then expect community benefits. They expects safe roads to drive on, police and fire protection, clean food and water, treatment for himself and his loved one's if he ends up in the emergency room and they expect the US taxpayer to bail them out of their self created mess.
Casey should be in .... well, I was going to say Jail, but then that'll cost us another 40K per year. I way we so how about this idea .... we trade Mexico our fraudulent speculators and sub-prime lenders for a bunch of people willing to work. Then these economic serial killers can find out what it's like to live in a Wild West economy.
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