Sub-Prime Loans, Fraud and a Huge Government Bail out
by Jeff Davis
You know, this one pretty much speaks for itself. In a column by Sean Olender, the San Francisco Chronicle reports: “Proposals to ease our great mortgage meltdown keep rolling in. First the Treasury Department urged the creation of a new fund that would buy risky mortgage bonds as a tactic to hide what those bonds were really worth. Then the idea was to use Fannie Mae and Freddie Mac to buy the risky loans, even if it was clear that U.S. taxpayers would eventually be stuck with the bill.”
I guarantee you that this plan will eventually have taxpayers buying millions of houses and giving them primarily to blacks and Mexicans. Responsible white home-buyers who took a higher fixed rate will get no help and they will be taxed to pay for the people, who took the teaser (sucker) rates which naturally went up and up and up.
The article continues: “But that plan went south after Fannie suffered a new accounting scandal, and Freddie’s existing loan losses shot up more than expected. Now, just unveiled Thursday, comes the ‘freeze,’ the brainchild of Treasury Secretary Henry Paulson. It sounds good: For five years, mortgage lenders will freeze interest rates on a limited number of ‘teaser’ subprime loans.”
Sub-prime is a mortgage industry code word for blacks and Third World immigrants, many of them illegal, and also for dangerously overextended white working class people whose jobs are repeatedly shipped off to Asia, leaving them no longer capable of paying their whopping mortgages.
The Chronicle goes on: “Other homeowners facing foreclosure will be offered assistance from the Federal Housing Administration. But unfortunately, the ‘freeze’ is just another fraud - and like the other bailout proposals, it has nothing to do with U.S. house prices, with working families, keeping people in their homes or any of that nonsense. The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value - right now almost 10 times their market worth. The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.”
Fraud? FRAUD, in a multi-billion dollar American industry riddled with Jews from top to bottom? But how can that be? I’m shocked, I tell you, shocked!
Okay, back to the Chronicle: “To be sure, fraud is everywhere. It’s in the loan application documents, and it’s in the appraisals. There are e-mails and memos floating around showing that many people in banks, investment banks and appraisal companies - all the way up to senior management - knew about it. I can hear the hum of shredders working overtime, and maybe that is the new hot industry to invest in. There are lots of people who would like to muzzle subpoena-happy New York Attorney General Andrew Cuomo to buy time and make this all go away. Cuomo is just inches from getting what he needs to start putting a lot of people in prison. I bet some people are trying right now to make him an offer he can’t refuse.”
The Chronicle notes “Despite Thursday’s ballyhooed new deal with mortgage lenders, does anyone really think that it can ultimately stop fraud lawsuits by mortgage bond investors, many of them spread out across the globe?”
Why are we giving financial rights and title-holding over American people’s homes to foreigners?
So the real estate agents, appraisers and banks were all engaged in some sort of fraud to push as many sub-prime loans as possible. Whatever happened to the basic laws of risk and reward. The high risk people may get the most profit, but they run the risk of going broke.
Thanks to George W. Bush a giant, yet-to-be-determined amount of taxpayers’ money will be spent on this bail out. A responsible government might have cracked down on the fraud-based lending years ago and nipped this disaster in the bud. The Bush administration however can’t see three weeks into the future, and there may be yet another major disaster with Bush’s name on it —unless we impeach Bush and Cheney and end this failed presidency as soon as possible.