They tie up heavy loads and put them on men's shoulders,
but they themselves are not willing to lift a finger to move them. ~ Matthew 23:4
The foreclosure fraud scandal continues to grow.
People may not understand all the ins and outs of alphabet finance, but they understand that they need a roof over their head and a job to pay for it. Working people understand that their mortgage is a priority, and they write those mortgage checks to the bank, and they work hard to have the money to write the checks to the bank.
There is no third party between the person who pays the mortgage and the bank who cashes the check. It's very straight-forward. And considering that, for many Americans, after they pay a third of their income to the IRS (ie: the Fed, to mostly pay interest on the national debt), housing takes the next huge chunk of their (flat) income. And these are heavy burdens.
1) The American people, through the bailouts, already paid the banks enough money to pay off every mortgage in this country.
2) This is about property rights.
The banks are pissing on the third rail. Given certain conditions, there might be an unpleasant feedback loop.
Further reading:
Washington's Blog (multiple posts)
Ellen Brown, Foreclosuregate: Time to break up the too-big-to-fail banks
Charles Hugh Smith, The rot within: Our culture of financial fraud and the anger of the honest
Comments
If you know anyone with a "variable" interest rate, they do not have an enforcable contractual obligation, as there can be no contract made where there is a "variable" component.
veritas
Not bloody likely. It seems that CONgress is seeking to pass a law granting the banks immunity from their fraud. Yo’mama already used a pocket veto already to halt one (must be a election coming). It’s full steam ahead and ramming speed for the banksters again. Will this finally light a fire under many asses? Time will soon tell.
I my personal experience it’s like the moment when you realise you’re in an abusive relationship and the scales fall from your eyes. All of the years of pain and misery that have been excused for altruistic reasons are exposed and there is no going back.
Tick, tock that time’s a-coming.
- Aangirfan
But the reason for it's creation was to bundle the mortgages into these CDO and sell them as prime investments.
So the banks needed to hook as many homebuyers into the dream as they could.
They were thinking long term on that one!
Timster, ha, no kidding huh? got to get in front of the wave of outrage i guess.