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MORE Banking Fraud (Foreclosure Stats)

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posted on Aug, 21 2009 @ 10:07 AM
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When does the willful blindness in terms of bank fraud taking place daily in the so-called "marks" on housing-related loans stop?

The Mortgage Bankers Association released its latest update:


The non-seasonally adjusted delinquency rate increased 64 basis points from 8.22 percent in the first quarter of 2009 to 8.86 percent this quarter.

and

The delinquency rate includes loans that are at least one payment past due but does not include loans somewhere in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 4.30 percent, an increase of 45 basis points from the first quarter of 2009 and 155 basis points from one year ago. The combined percentage of loans in foreclosure and at least one payment past due was 13.16 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey.


That's right folks.  That means that of all mortgage loans 13.16% are not in "accrual" status - that is, they're not performing in that interest and principal are not being paid.  This is no longer about "subprime" - it is now all about prime loans; the claim that this was going to be "contained' is now proved false.
That our banks are not being forced to take the marks associated with these delinquencies is an outrage.  It is the cause of the FDIC's losses, it is the cause of our credit system remaining locked up, and it is the cause of our continued moribund economy, as without a functioning credit system there can be no actual economic recovery.
These institutions are being protected by our Congress and the willful, intentional blindness of The Federal Reserve, FDIC, OTS and OCC.
These agencies and persons have the same data that is being released to the market.  The stock market continues to rally not based on improving economics but based on the federal government and The Federal Reserve continuing to allow institutions to LIE about their financial condition and the expectation that the LIES will be permitted to continue!
This is exactly akin to me going to buy a new car, telling the dealer that I have no money, no job, no assets and no hope of gaining any of the above, but the dealer writes me a loan anyway and lets me drive off so he can claim he made a sale, with full knowledge that there is no chance in Hell I can afford to pay for what just "purchased."  He does so because he believes he can (and has been allowed to!) lie about my financial condition for more than two years by the government thus far, and he thus expects he will be able to so do going forward indefinitely.
But any so-called "economic recovery" based on such a thing is in fact false, as I can't pay and thus won't.  The cash flow that my payments should generate will not materialize and both the car dealer and government know it.



This is an intentional act of fraud up and down the line and it MUST STOP or we will face an economic catastrophe far worse than anything that was believed to be at our doorstep last fall as the production that has occurred but cannot be paid for WILL cause a massive economic dislocation in the near future.

market-ticker.denninger.net...

Denninger is always on the ball with these things.
Still have money in the markets? You better think about pulling it out before it's too late.





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