posted on Oct, 12 2010 @ 12:35 AM
The huge issue with "foreclosuregate" is the massive breach of trust. Without explaining it all, there is a great danger of a total seizure of the
housing markets and a widespread revolt against the banking industry. There are two major categories of people who are in danger of losing their
homes. The first are people that aren't able to pay, and the second are people being affected by fraud. If foreclosures are halted, the people that
can't pay will get a free ride. If foreclosures are continued, the people that are victimized by fraud, banker mistakes, Fannie or Freddie
carelessness, or whatever, will lose their homes for no fault of their own. Then what about the people who recently bought a foreclosed home when the
title is now discovered to be tainted?
This is a poopstorm of epic proportions. The housing market will once again seize or there will be massive attention being given to people who wrongly
lost their homes. Either way the situation is crap.
One thing is for sure is that lending institutions and the government regulators have completely and obviously failed in trustworthiness.
So why stop at "foreclosuregate"?
If the government and their bank owners can constantly screw the American people, what if the American people decide not to take any crap?
What if people start walking away from car loans? Or credit cards? Or student loans? Hell why does it have to be loan liabilities? What will stop
people from walking away from child support, taxes, or even from that $20 borrowed from someone's friend?
In the eyes of the law, we are all equal. For some reason though. corporation such as banks are also treated as individuals to protect their
shareholders. If a real person were to commit such fraud in this "foreclosuregate" they would be thrown in jail. If a real person were to be as
sloppy as banks when it comes to titles, they would be sued out of existence. If a real person went to the government for something as mundane as a
drivers license but forgot or forged some documents, they would be denied at the very least or jailed for lying to the government. Yet these banks are
protected. The banks commit fraud, use sloppy or incomplete documents, and go to the government with such in order to get special taxpayer funded
Well thanks to them, there is a danger of a total loss of trust within the economic system. No amount of money the Fed can print will help this. No
bailout, no flowery Obama telepromter speech, no nothing. Economy is based on trust, starting with a shake of the hand. If the banks can breech such a
trust, why can't I? Why can't everyone?
There are a lot of doomsdayers on ATS, but ever since this "foreclosuregate" broke, I am really tempted to join them.