Friday, August 30, 2013

Bank Record Earnings Are from Theft From Investors and Homeowners

Bank Record Earnings Are from Theft From Investors and Homeowners

by Neil Garfield
Sitting in my living room I notice the little trailer at the bottom of the screen. The earnings are from trading profits, they say -- which is exactly what I told you they would say when they brought back the money in installments that they had already stolen from investors and are still in the process of stealing from hapless homeowners.
It still seems too crazy to be true and the Banks are banking on the idea that people will reject the notion that these trading profits are fictitious just like the mortgage bonds and loan documents. And the same as the Foreclosures that are also legally indefensible but proceeding anyway because it seems "obvious" that if you don't pay your loan you are in default. And if some bank, say U.S. Bank as trustee relating to certificates XYZ - 2006b2 comes along and says you know you didn't pay, you know you have defaulted, and since we are the new creditor you lose your home --- that is what you signed up for.
It never occurs to the homeowner that in the shrouded corridors of Wall Street his loan is not in default. How could that be true when he stopped paying? It never occurs to the homeowner that the whole thing was a sham. It never occurs to him because he asks himself what difference does it make who owns the loan, I didn't pay so I'm out. And so 96% of homeowners didn't skip a beat as they left their keys on the counter after cleaning up so nobody would think they were slobs, just deadbeats.
I said in 2007 and I say it again, that virtually all loans, whether the alleged borrower was paying or not, we're paid off from the very beginning. I say again there can be no default on a debt that isn't due regardless of how it came to be "not due." And I say again that Wall Street was stealing investors money from the beginning through the middle and at the end --- and that the borrowers were a smoke screen for the theft. The Banks got paid on loans they never made. They got insurance on defaults that never occurred. They got credit default swap money on declarations from the banks that they were losing money on deals they never invested any money whatsoever.
They got paid 300 cents on the dollar, minimum. If you collect from the borrower too you get 400 cents on the dollar. The dollar is the dollar of investors not even 1 cent from the banks. Their return is infinite. It is a great deal for the banks. They took trillions of dollars. Now, each year they get to say they made trading profits in rising quantities each year exceeding all expectations --- because nobody else did that well --- consisting almost entirely of stolen money being laundered through fictitious trades. With a guarantee of rising profits, each higher than the one before, the price earnings ratio soars and the bank's stock goes up like a moon launch.
Why do they need Foreclosures? To complete the illusion and put a cap on their potential liability to return money to the government on sales of bonds they never owned, to the insurers for the same reason, to the guarantors of loans that never existed, and to counterparties on credit default swaps. That is 500 cents on the dollar. Every foreclosure represents the end to that liability. Their only problem is how to get the cap on the mortgages that are not in default.
Just imagine when the truth gets out. Because this isn't about the mortgages declared to be in default. It is about nearly all mortgages that were created 2001-2011. I don't believe any money is due on any of them.

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