This Blog Has Moved!

My blog has moved. Check out my new blog at

Your Ad Here

Tuesday, October 19, 2010

Foreclosure-Based Economy

Some large banks have been forced to halt foreclosures. Due to a legal technicality, the banksters can no longer prove who actually owns the defaulted mortgages. They lack the legal standing to foreclose.

If you stop paying your mortgage, I can't foreclose. I don't own the mortgage. Similarly, the foreclosing bank has to prove legal ownership of the mortgage.

This has crossed the line from incompetence to fraud. Some lawyers and executives have signed mortgage foreclosure legal documents without reading them first. These are the "robo-signers". Some documents may have been forged and back-dated. This is perjury, rather than mere incompetence.

I doubt there will be any serious penalties. It will be, at worst, a slap on the wrist. If you lie to State insiders, then you go to jail like Blagojevich or Martha Stewart. If State insiders forge documents, they're just doing what's necessary to keep the economy moving.

The laws regarding foreclosures and liens are very strict and specific. In the 18th and 19th century, land ownership abuse was common. This led to very strict and specific laws. It's foolish to change these laws because some banksters were sloppy with their paperwork.

Some State comedians have been saying "We have to keep foreclosing. Otherwise the economy will collapse."

WTF? The USA has a foreclosure-based economy.

Let's translate from brainwashed zombie economist to English. "We have to keep foreclosing. Even though there are no buyers, we have to kick people out of their homes. We were sloppy with our paperwork, and we need another bailout. Our $100B+ bonuses have to come from somewhere, and kicking people out of their homes is the way we make our money. So what if we rigged the housing market against these suckers? It's their fault. They deserved to be cheated. The slaves have to know that if they don't pay us, we'll steal their home. That's an important principle we must defend at all costs."

This is the problem with the USA. "Rule of law!" has degenerated into "Insiders get a bailout while individuals lose their homes and their savings."

It is offensive. The banksters received trillions of dollars in bailout money. People lost their jobs, and now can't pay their mortgage. The banksters get a bailout, but individuals lose their homes and their savings.

I didn't buy a home during the housing bubble. My reward should be that I can buy a home cheaply now. Unfortunately, that isn't happening. Speculators are buying the foreclosed homes with bankster financing. Statists are trying to prop up the housing market. That denies me the opportunity to buy cheaply.

Instead of buying a home, I invested in the stock market. I didn't lose everything like the people who have an underwater mortgage. I did lose a huge chunk of my savings. When you compare to true inflation, it's even worse.

A mortgage contract with a bank is not a valid contract. When you borrow money from a bank, the bank literally prints new money and lends it to you. In order for a contract to be valid, both sides must contribute something tangible. A bank performs no real work when they lend you money. This is not "Rule of law!" It's "Rule of banksters!"

The banksters rigged the housing market, causing a bubble. They got a bailout. Not satisfied with that, they insist on kicking people out of their homes, due to a depression the banksters themselves created.

For example, instead of bailing out the banksters directly, Congress could have given each American a check for $10k. (300M Americans * $10k = $3T, approximately what the banksters received) Then, people could have paid off their mortgages or spent it on other things. Instead, insiders stole trillions of dollars. Then, they further insist on foreclosing on those junky mortgages.

Insiders say "Respect the rule of law!" when they want to steal from you. Then insiders say "We want a bailout! Give us money or the economy collapses!" They can't have it both ways.

The banks already received trillions of dollars in bailout money. Why not let some slaves keep their homes on a legal technicality?

The banksters are saying "The US economy will collapse if we can't foreclose!" I can't believe anyone can say that without laughing. They are literally saying that the USA has a foreclosure-based economy.


Chuck said...

I agree with your basic point, but I could not pay off my mortgage with $10k.

Scott said...

Have to say that's a fucking brilliant article there. You and Ron Paul. The only two people making sense out of 300 million.

FSK said...

The $10k would cover a couple of mortgage payments.

Also, other people would spend their $10k productively. Giving $10k to everyone is fairer than giving $3T to a handful of banksters, if "stimulate the economy via deficit spending" is the goal.

Robin Smith said...

Agreed. Excellent, clear post. Ellen Brown says this too. Trouble is neither the 'little' banks nor the government are in power. See here for an illustration:

How the world really works - An economic model

Robin Smith said...

I've thought a bit more about this:

Bailouts are already being used to socialise defaults. Why wait? Leviticus 25: 10-13 *

If posting links offends please let me know and I'll cease. Just seems easier that way. And yeah I get extras hits so thanks I owe you.

FSK said...

I prefer links to copying an entire article from your blog.

How many people follow a link posted in the comments here?

I prefer that it stays somewhat on-topic. There's one Anonymous guy who keeps complaining about State abuse in the UK even when it's not really relevant.

This Blog Has Moved!

My blog has moved. Check out my new blog at