Thursday, February 16, 2012

Foreclosure Fraud Endemic: Symptomatic of Rampant Corruption in Every Aspect of Governance

Audit Uncovers Extensive Flaws in Foreclosures by Gretchen Morgenson Feb 15, 2012 New York Times

[excerpted] "An audit by San Francisco county officials of about 400 recent
foreclosures there determined that almost all involved either legal violations or suspicious documentation, according to a report released Wednesday...."

Majia here: Ellen Brown, a brilliant investigator, asks why and posits an intriguing answer that demonstrates once again the corruption inherent in the shadow banking system:

Ellen Brown: The Deeper Question Is Why
 [excerpted] "Whether massive robo-signing occurred is no longer in issue. The question that needs to be investigated is why it was being done. The alleged justification—that the bankers were so busy that they cut corners—hardly seems credible given the extent of the practice...

Here is a working hypothesis, suggested by Martin Andelman: securitized mortgages are the “pawns” used in the pawn shop known as the “repo market.” “Repos” are overnight sales and repurchases of collateral. Yale economist Gary Gorton explains that repos are the “deposit insurance” for the shadow banking system, which is now larger than the conventional banking system and is necessary for the conventional system to operate. The problem is that repos require “sales,” which means the mortgage notes have to remain free to be bought and sold. The mortgages are left unendorsed so they can be used in this repo market...." [end quote]

Read Ellen's analysis here: A Web of Financial Fraud and Criminality: America's Shadow Banking System

Majia here: What is truly striking and telling is that the scale of the response by government agencies has nowhere approached the scale of the corruption.

William Black, who was involved in prosecuting fraud from the Savings and Loan scandal, has talked at length about the scope and severity of the criminal activities that produced today's financial crisis and the inadequacy of the response 

Majia here: The problem is that this level of corruption is pervasive in all corners of our society.

Wall Street runs American's economy.

Monsanto, Cargill, General Mills, etc run America's food.

The military runs America's foreign policy and plays an important role in its economy (military Keynesianism).

The nuclear, oil, and natural gas industry run America's energy economy and fight tooth and nail to preclude environmental regulations and the development of alternative energy.

There can be no salvation for humanity until the interests of corporations and government institutions are subordinated to the sustainable welfare of the biosphere.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.