Mortgage rate freeze aims to conceal fraud by banks

Mortgage rate freeze aims to conceal fraud by banks

www.sfgate.com

New proposals to ease our great mortgage meltdown keep rolling in. First the Treasury Department urged the creation of a new fund that would buy risky mortgage bonds as a tactic to hide what those bonds were really worth. (Not much.) Then the idea was to use Fannie Mae and Freddie Mac to buy the risky loans, even if it was clear that U.S. taxpayers would eventually be stuck with the bill. But that plan went south after Fannie suffered a new accounting scandal, and Freddie\'s existing loan losses shot up more than expected.

Now, just unveiled Thursday, comes the \"freeze,\" the brainchild of Treasury Secretary Henry Paulson. It sounds good: For five years, mortgage lenders will freeze interest rates on a limited number of \"teaser\" subprime loans. Other homeowners facing foreclosure will be offered assistance from the Federal Housing Administration.

But unfortunately the \"freeze\" is just another fraud -- and like the other bailout proposals, it has nothing to do with U.S. house prices, with \"working families,\" keeping people in their homes or any of that nonsense.

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.

(visit the link for the full news article)

And, you thought they were just concerned with you keeping your home??

Na, Attn. General Cuomo of NY has already found the evidence of fraud. And, if there was fraud involved in the mortgage contracts, the investors that are stuck with this next to worthless paper can come back to the lenders and the lenders are obligated to buy these notes back, at full face value.

That is of course, unless they can convince those poor indebted souls that own on these house to refinance. If they refinance, without all the fraud, that might eliminate the chance that these investors could come in and clean out the banks.

So, of course, ain't no one concerned that you were lied to about the value of the home you just bought, or any other type of fraud that may have occurred in the process. They really don't care that the interest rates you're paying is going through the roof. They are just interested in making sure that the fraud that was involved stays hidden, so they can stay out of jail and keep the small fortune they've made through this fraud.



www.sfgate.com
(visit the link for the full news article)

[edit on 11-12-2007 by dawnstar]

reply to post by dawnstar


I read this yesterday. It makes sense. I never thought for a second that the rate freeze or any reaction by the government was looking out for the American people. They are scrambling to keep the economy from folding in on itself. If these fraud lawsuits are to happen, things sure seem like they would get real ugly, real fast.

It would be nice to think that someone was looking out for the American people, but it just isn't true. We are only here to keep the machine running.

Catherine Austin Fitts Responds

Posted: 10 December 2007 Monday 10:27

I served as Assistant Secretary of Housing from 1989-90 during Bush I, and my company, Hamilton Securities Group, later served as lead financial advisor to the Federal Housing Administration from 1993-1997 until we were fired by Andrew Cuomo.

Significant systemic financial fraud in the mortgage markets did not start in 2004. It was going on when I tried to clean it up/stop it in 1989-90 and in 1993-97. This is a problem that has been growing steadily worse for some time.

Andrew Cuomo is not a reformer. If you want to understand what Cuomo is doing now, you need to understand his contribution in the Clinton Administration, the extraordinary amounts of money that went missing from HUD under his leadership as Secretary of Housing. Cuomo, like Paulson, is playing for the same team he was playing for when he was instrumental in the creation of the current housing bubble.

Another way to say this is that what we saw in cleaning up the S&L crisis at the last of the last housing bubble burst was that the players made more on the dump than they did on the pump. So Cuomo was in on the pump and now it appears he is in on the dump.

This housing bubble was part of the “strong dollar policy” which was in turn part of a reengineering of how resources will be governed in the United States and worldwide. There is a fundamental difference between fraud and a financial coup d’etat. The mortgage fraud we are dealing with is not a fraud that is a failure of government. It is part of a coup d’etat that is a reengineering of government and social and political order. - C.A.F. Full Text

Yesterday, in response to the Sean Olender missive, Catherine Austin Fitts made the above post on a trading board I frequent...The Contrary Investor Cafe. Thread title: The "Freeze" Hope Now?

If anyone besides myself lives with the nagging suspicion that what we are dealing with as a nation, runs much deeper than the subprime mortgage issue, I encourage you to click the above link and read CAF's full commentary.

There are those that would have us focus on surface noise, and swallow absurdities in the process: A worthless Dollar is actually good for you...good for the country....or....The gradual erosion of the Petrodollar, the world's reserve currency, will have no negative repercussions, either geopolitically, or domestically.

Well, these folks are either innocently misguided, or intentionally part of the problem. Spread the word and brace yourselves...come next summer...in my opinion...a pretty hard rain's gonna fall.

P/O

Solari

"reengineering of government and social and political order."

was just wondering, do these engineers even have a high school diploma?

from my veiwpoint they resemble more a group of wantabee clowns performing a rather crappy juggling act.....see..they just dropped another ball!! No one seems to have control of this economy. They seem to have backed themselves rather nicely into a corner, quite tightly. If they move one way, something starts to crumble over in another area.... If the move to correct that crumbling, another area begins to fall..


of course, maybe this reengineering requires the total collaspe of the present economic system. if this was the case, I imagine a certain amount of ineptitude would have to be played out.

The fed lowers the rate a quarter of a percent....and world wide....the markets drop like rocks. a quarter wasn't good enough...give us more. What, are we being blackmailed? Destroy your dollar, or we'll destroy the markets?

Of course, then you have a whole mess of people who sold off high....who will now be buying the same stock at the lower price, to ride the rollercoaster back up, so they can sell again at the next high....anything for some easy cash! Which, I think is the sickness that can be found in all of this economic mess.....far too many people willing to do whatever it takes, to make more and more money....even kill off the country they live in if need be.

all this rambling has only one purpose in mind....to bring this thread back up....spreading the word.
since, well, when the crap hits the fan, I know there will be many who will be trying to blame those "lazy" poor folks who just are just acting too irresponsible..

the poor folks don't have the economic power to cause this kind of damage....look somewhere else....hey, try following the cash out of the country, who's heading out with it...that would be a good indication of who's to blame. the ones bailing out of the sinking ship.

[edit on 12-12-2007 by dawnstar]

reply to post by dawnstar



there isn't too much all of us serfs & peons can do about it.

i don't think it's too late to redirect one's IRAs or ROTHs
into Commodity or Gold & P.M. funds or 'GLD' (a ETF)

as all the banks, investment banks, major funds which are allowed
to make these type investments are going to be very active in
the Arbitrage of these type commodities, so as to try to keep
their financial heads above water.
~for the next 5+ years as mortgage & credit schemes unwind,
there will be profits in gold/energy/resources...

when you begin to see the same madness like the 'Flip this House'
phenomena burst on the gold/energy/resource sectors...
It'll be time to move on to another strategy, ?
will it be return to 'commune' living ?

I say let homeowners in the US do the suing against the banks under the reason of malpractice.

After all most of the mess that was cause by the devious practices of the banking loan system.

I say wake up homeowners about to lose your homes and sue the banking system.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!