60 Minutes: Grab your ankles -- Second Housing Shock is on it's Way

60 minutes investigates Mortgage Fraud and documents American Homeowners in Crisis across the nation. Link to 60 Minute Video

I find it horrifying that the State of Washington has refused to take steps to end non-judicial foreclosure in Washington State. After all, it's hardly a secret that mortgage fraud is running rampant across this nation. 

Financial Crisis Inquiry Commission

We had a 21st century financial system with 19th century safeguards.

For the last three years, Tea Party activists and Conservatives have blamed the financial crisis on social engineering and GSEs. Granted, the Financial Crisis Inquiry Commission's conclusions acknowledge that Fannie Mae and Freddie Mac played a lesser role in the financial crisis, but stated unequivocally that the GSEs did not contribute to the significant financial losses that were central to the financial crisis.

NYT: Path Is Sought for States to Escape Debt Burdens

"Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.

Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign."

Link to full post

Foreclosure Fraud: The Major Banks brought this Nation to its Knees with Predatory Lending and Servicing Practices: But Today, History was Made in Massachusetts

Today is a very special day for families who lost their homes due to Fraudulent Foreclosure practices

Hat tip to http://www.stopforeclosurefraud.com for the email

Today my friends history was made. The Massachusetts decision represents a major victory for consumers as well as for the handful of attorneys and advocates who dedicated their lives to protecting the defenseless. Perhaps the critical game-changing event in the Massachusetts litigation was the Amicus Brief submitted by Marie McDonnell setting forth and outlining the securitization paradigm and the defects in the chain of title.

$3.3 Trillion in Federal Aid went way beyond U.S. Borders

"The American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America"

The Washington Post takes a hard look at who benefited from the estimated $3.3 trillion in Federal Reserve emergency rescue programs.

Link to full post

American Jobs are Gone for Good - It's time for Americans to face the Music

"The claim that jobs offshoring by US corporations increases domestic employment in the US is one of the greatest hoaxes ever perpetrated."

2011 -- the Year of the Put-Back

Fannie Mae and Freddie Mac may throw a surprise wrench into the profits of our largest banks next year by demanding sizable repurchases of mortgages contained in flawed pools that underlie mortgage-backed securities.

The New Deal - The Federal Reserve steps forward

"The New Austerity makes the Fed the stimulus of last resort. Gridlock puts more pressure on the Fed to do something...it means potentially MORE QE2 if the economy continues to underperform and the Congress does nothing."

Senator Mitch McConnell's #1 Priority - Defeat Obama (Not the Economy or Jobs)

"McConnell to double down on his my-top-priority-is-to-defeat-Obama comment… He'll also call for repeal of health care, though the midterms didn't produce a mandate on the law... From the “thumping” in ’06 to the “shellacking” in ’10… The GOP ideological food fight begins… Unfinished business in WA, AK, MN, and CT… Dudley concedes to Kitzhaber in Oregon… And the 10 undecided House races."

Fed commits to buying $600 Billion more in Government Bonds

So, America, you actually thought the recession was over?

"The Federal Reserve launched an unorthodox new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.


The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression."

Link to full post at Ruters

Too Big to Fail Banks' Super-Charged Financial Crisis

Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial history.

A $43 Trillion Dollar Market That Most People Have Never Heard Of

According to Bill Gross, a fixed income market guru, the size of the credit default swap market is "$43 trillion, more that half the size of the entire asset base of the global banking system." If that is not scary enough he goes on to tell is that "total derivatives amount to over $500 trillion, many of them finding their way"......................well, everywhere.

Harvard Magazine: After the Bubble

Okay voters, let's make informed decisions as we mark those ballots: Or, heads up, "The real Austerity hasn't even begun."From Harvard Magazine

Accountability begins with Wall Street

Wall Street’s first reaction to this idea — aside from profanities — will be that it cannot possibly be done. Or that it would somehow threaten the sanctity of our capital markets

Foreclosure Reform - Something we haven't done in the State of Washington (See no evil, Hear no evil, Speak no evil)

State of California: S.B. 1137

Legislation that would reform the foreclosure process in California for the benefit of homeowners trying to hold on to their homes passed the Assembly today on a 55 to 18 vote, just one vote above the two-thirds majority it required. Ten Republican Assemblymembers joined 45 of the 48 Democrats in voting for the bill, while all 18 votes against it came from Republicans.

Connecticut Attorney General Richard Blumenthal Orders 60 day Moratorium on Foreclosures

California expands on it's moratorium: You may view the latest Stop Foreclosure Fraud  post at:

http://stopforeclosurefraud.com/2010/10/01/there-you-go-connecticut-all-bank-foreclosures-stopped/

Meanwhile, the State of Washington is twiddling it's thumbs...

Flawed Foreclosure Process Across Nation Expected to Slow Evictions - Return Ownership of some Homes back to the Original Owners

"Stricken neighborhoods across the country, for example, could benefit. One big factor undermining home sales is fear of a large number of foreclosed homes coming to the market. If the foreclosures are delayed or never happen, housing prices might find a floor."

Why can't you get a modification? (It's time for a Congressional Investigation of Servicers)

Here's President Obama's version of what's happening:




This is what is actually happening to distressed homeowners:

Interactive Adversity Index - Is the Recession really Over? (Not in Bellingham)

The Adversity Index, from msnbc.com and Moody's Economy.com, measures the economic health of 381 metro areas and all 50 states.

JPMorgan Brings Foreclosure Case In Mortgage In Which It Was Just A Servicer, Court Finds Bank Committed Fraud

By Tyler Durden: 

"An interesting development out of Jean Johnson, Circuit Judge in Duval Country, Florida, where in a case filed by JPMorgan/WaMu, as Plaintiff, and law firm of Shapiro and Fishman, attempted to evict defendants Hank and Marilyn Pocopanni. As basis for the legal case, WaMu had submitted an assignment of mortgage, which however the court just found never actually belonged to WaMu, and instead was carried on the books of Fannie Mae.