Easily the hardest hitting MSM piece on the corrupt and ill-fated Housing Gambler Bailout and mortgage mess that I've seen.
Congress needs to bite the hand that feeds it and launch formal investigations of the REIC, and failing that Andrew Cuomo needs to go after the investment houses, lenders and even Congressmen who committed and condoned mortgage fraud something fierce.
We knew all along fraud was everywhere (for god's sake they called them "Liar's Loans"!), and so did the likes of Angelo Mozilo and Hank Paulson, but they were too busy enriching themselves to stop, and now Americans (and the world) will pay a terrible price.
After it's all said and done folks, the Great Mortgage Scandal will be bigger than Watergate, ENRON, ABSCAM, Keating, Oil-for-Food and Iran/Contra combined. The corruption is throughout the REIC, and also extends into the halls of power, with REIC money blatantly corrupting the likes of Clinton, Dodd and Schumer. And the financial damage when all is said and done will be staggering.
Here's some highlights but read the whole piece. Sickening. Just sickening. Too bad the MSM and Congress were asleep at the wheel during the greatest financial scandal in human history.
MORTGAGE MELTDOWN - Interest rate 'freeze' - the real story is fraud. Bankers pay lip service to families while scurrying to avert suits, prison
The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value - right now almost 10 times their market worth.
The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.
And, to be sure, fraud is everywhere. It's in the loan application documents, and it's in the appraisals. There are e-mails and memos floating around showing that many people in banks, investment banks and appraisal companies - all the way up to senior management - knew about it.
The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC.
The problem isn't just subprime loans. It is the entire mortgage market.
Ultimately, the people in these secret Paulson meetings were probably less worried about saving the mortgage market than with saving themselves. Some might be looking at prison time.
As chief of Goldman Sachs, Paulson was involved, to degrees as yet unrevealed, in the mortgage securitization process during the halcyon days of mortgage fraud from 2004 to 2006.
If a mortgage bond investor sues Goldman Sachs to force the institution to buy back loans, could Paulson be forced to testify as to whether Goldman Sachs knew or had reason to know about fraud in the origination process of the loans it was bundling?
We are on the cusp of a mammoth financial crisis, and the Federal Reserve and the U.S. Treasury are trying to limit the liability of their banking friends under the guise of trying to help borrowers. At stake is nothing short of the continued existence of the U.S. banking system.