The Law Office of Carol A. Molloy

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

We now have a growing group of unlikely bedfellows — investors, homeowners and local governments who were all duped and whose claims are being treated as though each one was unique when in fact the entire plan was a highly organized crime. Add the Federal government to that group who has also demanded “buy-back” of fake mortgages and fake mortgage bonds, although it is highly probable that the government was complicit, certainly in the BUSH administration when the Government and the Fed started all these bailout programs whose total seems to exceed the total of ALL credit that was extended in the original transactions!?!

MY QUESTION IS WHETHER DIMON IS RIGHT: DOES HE LIVE IN A COMPLETELY RISK-FREE ENVIRONMENT OR ARE WE GOING TO APPLY THE LAW TO HIM? GOD HELP US IF HIS ASSUMPTION IS CORRECT.

THE MORE IMPORTANT QUESTION IS WHETHER WE ARE FINALLY GOING TO MAKE THE OBVIOUS CORRECTION OF AN OBVIOUS LIE ABOUT THE VALUE OF THE PROPERTIES AND THE ELABORATELY CONSTRUCTED ILLUSION OF “GROWTH” ? IT ISN’T “PRINCIPAL REDUCTION” TO CUT IT DOWN TO THE REAL FIGURE THAT SHOULD HAVE BEEN USED — IT’S PRINCIPAL CORRECTION.

STATES, COUNTIES, CITIES, TOWNS, INVESTORS AND HOMEOWNERS CAN ONLY GET OUT FROM UNDER THE ILLUSION OF DEBT BY ACKNOWLEDGING THE OBVIOUS — IT ISN’T REALLY THERE IF YOU APPLY THE LAW. IT’S ONLY THERE IF YOU APPLY UNBOUNDED POWER.

EDITOR’S COMMENT: Time for local government to start seeking debt relief and doing those securitization reports and research. Whether they received money from the banks or not, officials in local government are being forced to face the reality that they are presiding over the collapse of our social system for lack of money.

They are in debt — and the amount of debt so vastly exceeds their ability to pay or any prospect to pay that defaults are inevitable — including strategic defaults and bankruptcies where the debt is modified downward. In other words, they are in the same boat as the homeowners.

Actually they are worse off because Wall Street had the nerve to sell local governments triple-A rated mortgage bonds that were worthless, putting them both in the same boat as homeowners and the same boat as other investors.

And if you dig deeper you will connect the dots — the appraisal fraud and other misleading information led these municipalities, towns and counties into planning and for phenomenal growth in demand for services over wider geographical areas, each local government believing that their revenue stream and population would grow at a rate that was both unprecedented and unsupported by any economic fundamentals. They are now stuck with debt to pay for services, they won’t deliver, roads they won’t build, and buildings that are being abandoned or sold.

In plain language, the argument that the crisis grew from greedy homeowners must also be extended to greedy politicians who intentionally bankrupted their cities and towns in the misguided attempt to make a fast buck. Few people will argue whether people are greedy, whether they are homeowners or politicians, but the argument that they would intentionally put themselves in a position of drowning in debt is absurd. There is only one reason this all happened — Wall Street sales machine went to work selling people on “concept” and funding it with other people’s money to create a vast illusion for which we are all paying whether we  participated or not.

The astonishing reversal of fortune for virtually all Americans (except a select few who continue to lie about what they did and when they knew what they were doing) and all their societal structures, governments and government services (police, fore, medical, education etc) is in stark contrast to the massive profits and bonuses that continue to be reported and paid on Wall Street. The entire country has been tilted past the tipping point, so that everything of value went from the the nation as a whole to Wall Street.

In a NY Times Magazine article on Jamie Dimon he continues the BIG LIE strategy that Moynihan over at BofA is using: we had didn’t realize the extent of the lying on stated income loans. He’s staying on message because it is working. As a group, most of us still want to believe and do believe that our system will not break down, but it IS breaking down. The process is already underway. Dimon’s current lie is intended to distract us from considering that the lie was created by him and his officers and employees. The lie works because you must take the time away from your job-hunting and ask yourself how all those applications were filled with bad information without anyone knowing about it. “Due diligence,” a term coined on Wall Street for inspecting the chicken before you buy it, is NEVER overlooked.

Countrywide, Chase, Citi, Goldman and others lied about the quality of the loans and the values of the real property and the documentation of the loans, notes and mortgages because they could. They controlled the entire apparatus. The sheer size made it look “institutional” instead of organized crime. Of course they knew, but they were acting in a totally risk-free environment because they were using other people’s money — investors to whom they lied with the same lies that were told to borrowers — we have reviewed the application, verified the data, verified the value of the property, and the loan meets with underwriting standards. The loan is approved. Or in the case of local government, the bond is approved, the underwriting and selling of it shall begin.

We now have a growing group of unlikely bedfellows — investors, homeowners and local governments who were all duped and whose claims are being treated as though each one was unique when in fact the entire plan was a highly organized crime. Add the Federal government to that group who has also demanded “buy-back” of fake mortgages and fake mortgage bonds, although it is highly probable that the government was complicit, certainly in the BUSH administration when the Government and the Fed started all these bailout programs whose total seems to exceed the total of ALL credit that was extended in the original transactions!?!

MY QUESTION IS WHETHER DIMON IS RIGHT: DOES HE LIVE IN A COMPLETELY RISK-FREE ENVIRONMENT OR ARE WE GOING TO APPLY THE LAW TO HIM? GOD HELP US IF HIS ASSUMPTION IS CORRECT.

THE MORE IMPORTANT QUESTION IS WHETHER WE ARE FINALLY GOING TO MAKE THE OBVIOUS CORRECTION OF AN OBVIOUS LIE ABOUT THE VALUE OF THE PROPERTIES AND THE ELABORATELY CONSTRUCTED ILLUSION OF “GROWTH” ? IT ISN’T PRINCIPAL REDUCTION TO CUT IT DOWN TO THE REAL FIGURE THAT SHOULD HAVE BEEN USED — IT’S PRINCIPAL CORRECTION.

STATES, COUNTIES, CITIES, TOWNS, INVESTORS AND HOMEOWNERS CAN ONLY GET OUT FROM UNDER THE ILLUSION OF DEBT BY ACKNOWLEDGING THE OBVIOUS — IT ISN’T REALLY THERE IF YOU APPLY THE LAW. IT’S ONLY THERE IF YOU APPLY UNBOUNDED POWER.