2nd wave of economic impact is staging

Im going to post some things from other sources that are just eye popping crazyness that our country is just a mess.

NEW YORK (CNNMoney.com) -- Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.

"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.

During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008...

No end in sight

The foreclosure crisis may not diminish anytime soon. "The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers," Sharga said. "It's going to be a lingering problem."

Plus, the RealtyTrac statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly.

And because there are so many delinquent borrowers, Sharga predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.

"It's hard to envision [the banks] putting millions on properties up for sale and cratering prices," he said. "Recovery will be slow and gradual. I don't see home prices getting much better until 2013."

Now this is from last year. But what we don't see here is the teaser loans that were wrote in 2005 and up till 2007 now a teaser rate loan is a loan written that has a 3-5 VERY low introductory rate at around 1%-1.5% and after that intro rate it inflates to a set market rate. i.e. you buy your house with a teaser loan you have this killer rate of 1% for first 5 years and your payment is 850.00 per month and you wrote this loan in 2005 now fast forward 2010 and now your rate is about to inflate to market rates or higher. so you paymeny is going up at lest to $1600.00 per month. And guess what these loan are about to hit there inflate date line this coming year and there were hundreds of thousands who wrote these junk loans and we have yet to see these hit the economy.

Check this crap out as well:

Financial Sector Takes 41% of All Profits and 8% GDP

www.huffingtonpost.com...

Over the last several decades, the financial sector has grown relentlessly. It has doubled in size over the last 14 years. During the period 1973 to 1985 the financial sector never earned more than 16% of domestic profits. This decade, it has averaged 41% of all the profits earned by businesses in the U.S.

In 1947 the financial sector represented only 2.5% of our gross domestic product. In 2006 it had risen to 8%. In other words, of every 12.5 dollars earned in the United States, one goes to the financial sector, much of which, let us recall, produces nothing.

That growth has not been among community or regional banks -- or credit unions. I'm talking about Wall Street.

Wall Street's growth is one big reason that most of America's economic growth during the last decade has flowed into the hands of investment bankers, stock traders and partners in firms like Goldman Sachs.

The Center on Budget and Policy Priorities reports that fully two-thirds of all income gains during the last economic expansion (2002 to 2007) flowed to the top 1% of the population. And that, in turn, is one of the chief reasons why the median income for ordinary Americans actually dropped by $2,197 per year since 2000.


Even more non-sense which some could have been posted already:

Fed Warns Truth Will Destroy Economy

www.reuters.com...

NEW YORK, Aug 27 (Reuters) - The U.S. Federal Reserve asked a federal judge not to enforce her order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received, saying such disclosure would threaten the companies and the economy.

The central bank filed its request on Wednesday, two days after Chief Judge Loretta Preska of the U.S. District Court in Manhattan ruled in favor of Bloomberg News, which had sought information under the federal Freedom of Information Act.

Preska said the Fed failed to show that revealing the names would stigmatize the banks and result in "imminent competitive harm." The Fed asked the judge not to require disclosure while it readies an appeal.

"Immediate release of these documents will cause irreparable harm to these institutions and to the board's ability to effectively manage the current, and any future, financial crisis," the central bank argued.

It added that the public interest favors a delay, citing a potential for "significant harms that could befall not only private companies, but the economy as a whole" if the information were disclosed.

I have more non-sense...

Fed Rejects Geithner’s Request for Study of Governance and Structure

www.bloomberg.com...

Sept. 21 (Bloomberg) -- The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.

The Obama administration proposed on June 17 a financial- regulatory overhaul including a “comprehensive review” of the Fed’s “ability to accomplish its existing and proposed functions” and the role of its regional banks. The Fed was to lead the study and enlist the Treasury and “a wide range of external experts.”

Some top central bank officials, after agreeing to the review, saw a potential threat to Fed independence after the Treasury released the proposal, two of the people said. The Obama plan said the Treasury would consider recommendations from the review and “propose any changes to the Fed’s governance and structure.”

“It is not obvious at all why that is a Treasury responsibility or even appropriate why the Treasury would undertake that kind of study,” said Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc. in Vineland, New Jersey, and a former Atlanta Fed research director. “The Fed was created by Congress and it is not part of the executive branch.”

U.S. lawmakers have also called for a review of the Fed’s power and structure, saying Fed Chairman Ben S. Bernanke overstepped his authority as he bailed out creditors of Bear Stearns Cos. and American International Group Inc. while battling a crisis that led to $1.62 trillion in writedowns and losses at financial firms.

If this doesn't speak of who has the real power in this country...

Let me just call bullcrap on point #1. Lenders are working AGAINST the efforts of the government to stem foreclosure. I know forst hand this is true. BOA is 'losing' documentation despite return receipts, they are constantly contradicting themselves, won't return calls, repeatedly send laters saying 'we've tried but can't reach you by phone' which is an outright LIE since I work from home and am always there. I thought it was just us but check this article out:

Consumer Affairs

They're full of crap. They want to help no one but themselves.

There should be no more doubt that the Federal Reserve is working to aid the Banking Industry in destroying America. It's too bad that too many American's have such a minimal understanding of economics and monetary policy that they don't even realize who the real culprits are. Also very disappointing that Obama has surrounded himself with the very people who created this whole mess to 'try and fix it'. Good post.

The best part of all of this is that these articles are being written through rose tinted glasses.

The real picture is much worse. MUCH MUCH WORSE.

The government and corporations are working their butts off to hide the fact they are collapsing.

You can catch glimpses of the real picture if you look hard enough. (Not that most people want too)

Preska said the Fed failed to show that revealing the names would stigmatize the banks and result in "imminent competitive harm." The Fed asked the judge not to require disclosure while it readies an appeal.

Congratulations Judge Preska! We will know the truth, to bad the fed will keep stalling as long as possible. It is absurd to try and tell the people that they have screwed while robbing them blind that, knowing the truth will damage us. We are not children and demand to know what is really happening.

"Immediate release of these documents will cause irreparable harm to these institutions and to the board's ability to effectively manage the current, and any future, financial crisis," the central bank argued.

Why do they have to manage a crisis that they themselves created??

What I take from this bit is that releasing these documents would impact their ability to so easily create and then "manage" the crisis for their own profit.

For those of you with Wall Street Journal access, grock it: GMAC has asked the gubbmint for its THIRD heapin' helpin' of taxpayer cash!:

online.wsj.com...

Great news, comrades! Recovery is underway in the People's Republic of America!

[atsimg]http://files.abovetopsecret.com/images/member/c69cc51d3284.png[/atsimg]

Originally posted by tsloan
Preska said the Fed failed to show that revealing the names would stigmatize the banks and result in "imminent competitive harm." The Fed asked the judge not to require disclosure while it readies an appeal.

"Immediate release of these documents will cause irreparable harm to these institutions and to the board's ability to effectively manage the current, and any future, financial crisis," the central bank argued.

It added that the public interest favors a delay, citing a potential for "significant harms that could befall not only private companies, but the economy as a whole" if the information were disclosed.

I love this part.

If this is the case, they should be given an option, release the information, or submit to being audited.

The government and legal authorities have a DUTY to investigate and monitor where the public funds are going, it is a legal responsibility. To guarantee that the Fed Reserve hasn't just robbed the people, they should be required to either show where all of the money has gone, or submit to a complete audit of the entire Federal Reserve actions over the last twenty-five years (at least).

The world has lost its head, governments are incapable or corrupt beyond belief. And the proof of this is found in the fact that no government is acting properly to guarantee where the money is going and has gone!

How can it possibly be right, or even sane, to expect people to just accept that a private bank has the ability to plunge a nation into massive debt and then not tell people anything?
Why are our governments allowing this to happen, without comment and without a battle? They are not working for the people at all, and this very simple and basic fact proves this point.

As i see it, the mortgage lenders don't care the properties go into foreclosure...

the property does not really have to go up for sale in those depressed markets either... see, the mortgage lender will just bundle up a bunch of foreclosed properties and 'TRADE' them to the FED who will bankroll the loss for a number of years.

the mortgage lender, will at some future date be able to 'BUY back'
that mortgage property (which was creatively termed a Loan/Swap/Trade or whatever) Thjat is IF that property will be 'worth' the buy-back effort & cost....
else wise....the public is allowing the FED to become the largest landowner of US property there ever was... and meantime the FED balance sheet is so deep in-the-Red the FED would not be allowed to own these properties


wake--up-americans, the Gentry & elites will allow 'we the masses' to be sharecroppers & indentured servents, given shelters which used to be our own homes.

Originally posted by St Udio


As i see it, the mortgage lenders don't care the properties go into foreclosure...

the property does not really have to go up for sale in those depressed markets either... see, the mortgage lender will just bundle up a bunch of foreclosed properties and 'TRADE' them to the FED who will bankroll the loss for a number of years.

the mortgage lender, will at some future date be able to 'BUY back'
that mortgage property (which was creatively termed a Loan/Swap/Trade or whatever) Thjat is IF that property will be 'worth' the buy-back effort & cost....
else wise....the public is allowing the FED to become the largest landowner of US property there ever was... and meantime the FED balance sheet is so deep in-the-Red the FED would not be allowed to own these properties


wake--up-americans, the Gentry & elites will allow 'we the masses' to be sharecroppers & indentured servents, given shelters which used to be our own homes.

Your are a winner,winner...chicken dinner!!!! You are my friend are seeing exactly what was written between the lines. The government is about to become the LARGEST land owner. You see for our local governments to expand more they need more resources and with all the public crying for "green" ways to do things the government needs land and property to use to push it's agenda. I know this is a big country with a lot of empty property...but some of the property needed is owned by people or companies etc. and this issues is so deep it makes my head hurt thinking about it.