LAST CHANCE FOR JUSTICE

“We are still in the death grip of the banks as they attempt to portray themselves as the bulwarks of society even as they continue to rob us of homes, lives, jobs and vitally needed capital which is being channeled into natural resources so that when we commence the gargantuan task of repairing our infrastructure we can no longer afford it and must borrow the money from the thieves who created the gaping hole in our economy threatening the soul of our democracy.” Neil Garfield, livinglies.me

We all know that dozens of people rose to power in Europe and Asia in the 1930’s and 1940’s who turned the world on its head and were responsible for the extermination of tens of millions of people. World War II still haunts us as it projected us into an arms race in which we were the first and only country to kill all the people who lived in two cities in Japan. The losses on both sides of the war were horrendous.
Some of us remember the revelations in 1982 that the United States actively recruited unrepentant Nazi officers and scientists for intelligence and technological advantages in the coming showdown with what was known as the Soviet Union. Amongst the things done for the worst war criminals was safe passage (no prosecution for war crimes) and even new identities created by the United States Department of Justice. Policy was created that diverted richly deserved consequences into rich rewards for knowledge. With WWII in the rear view mirror policy-makers decided to look ahead and prepare for new challenges.

Some of us remember the savings and loans scandals where banks nearly destroyed everything in the U.S. marketplace in the 1970’s and 1980’s. Law enforcement went into high gear, investigated, and pieced together the methods and complex transactions meant to hide the guilt of the main perpetrators in and out of government and the business world. More than 800 people went to jail. Of course, none of the banks had achieved the size that now exists in our financial marketplace.

Increasing the mass of individual financial institutions produced a corresponding capacity for destruction that eclipsed anything imagined by anyone outside of Wall Street. The exponentially increasing threat was ignored as the knowledge of Einstein’s famous equation faded into obscurity. The possibilities for mass destruction of our societies was increasing exponentially as the mass of giant financial service companies grew and the accountability dropped off when they were allowed to incorporate and even sell their shares publicly, replacing a system, hundreds of years old in which partners were ultimately liable for losses they created.

The next generation of world dominators would be able to bring the world to its knees without firing a shot or gassing anyone. Institutions grew as malignancies on steroids and created the illusion of contributing half our gross domestic product while real work, real production and real inventions were constrained to function in a marketplace that had been reduced by 1/3 of its capacity — leaving the banks in control of  $7 trillion per year in what was counted as gross domestic product. Our primary output by far was trading paper based upon dubious and fictitious underlying transactions; if those transactions had existed, the share of GDP attributed to financial services would have remained at a constant 16%. Instead it grew to half of GDP.  The “paradox” of financial services becoming increasingly powerful and generating more revenues than any other sector while the rest of the economy was stagnating was noted by many, but nothing was done. The truth of this “paradox” is that it was a lie — a grand illusion created by the greatest salesmen on Wall Street.

So even minimum wage lost 1/3 of its value adjusted for inflation while salaries, profits and bonuses were conferred upon people deemed as financial geniuses as a natural consequence of believing the myths promulgated by Wall Street with its control over all forms of information, including information from the government.

But calling out Wall Street would mean admitting that the United States had made a wrong turn with horrendous results. No longer the supreme leader in education, medical care, crime, safety, happiness and most of all prospects for social and economic mobility, the United States had become supreme only through its military strength and the appearance of strength in the world of high finance, its currency being the world’s reserve despite the reality of the ailing economy and widening inequality of wealth and opportunity — the attributes of a banana republic.

All of us remember the great crash of 2008-2009. It was as close as could be imagined to a world wide nuclear attack, resulting in the apparent collapse of economies, tens of millions of people being reduced to poverty, tossed out of their homes, sleeping in cars, divorces, murder, riots, suicide and the loss of millions of jobs on a rising scale (over 700,000 per month when Obama took office) that did not stop rising until 2010 and which has yet to be corrected to figures that economists say would mean that our economy is functioning at proper levels. Month after month more than 700,000 people lost their jobs instead of a net gain of 300,000 jobs. It was a reversal of 1 million jobs per month that could clean out the country and every myth about us in less than a year.

The cause lay with misbehavior of the banks — again. This time the destruction was so wide and so deep that all conditions necessary for the collapse of our society and our government were present. Policy makers, law enforcement and regulators decided that it was better to maintain the illusion of business as usual in a last ditch effort to maintain the fabric of our society even if it meant that guilty people would go free and even be rewarded. It was a decision that was probably correct at the time given the available information, but it was a policy based upon an inaccurate description of the disaster written and produced by the banks themselves. Once the true information was discovered the government made another wrong turn — staying the course when the threat of collapse was over. In a sense it was worse than giving Nazi war criminals asylum because at the time they were protected by the Department of Justice their crimes were complete and there existed little opportunity for them to repeat those crimes. It could be fairly stated that they posed no existing threat to safety of the country. Not so for the banks.

Now as all the theft, deceit and arrogance are revealed, the original premise of the DOJ in granting the immunity from prosecution was based upon fraudulent information from the very people to whom they were granting safe passage. We have lost 5 million homes in foreclosure from their past crimes, but we remain in the midst of the commission of crimes — another 5 million illegal, wrongful foreclosures is continuing to wind its way through the courts.

Not one person has been prosecuted, not one statement has been made acknowledging the crimes, the continuing deceit in sworn filings with regulators, and the continuing drain on the economy and our ability to finance and capitalize on innovation to replace the lost productivity in real goods and services.

We are still in the death grip of the banks as they attempt to portray themselves as the bulwarks of society even as they continue to rob us of homes, lives, jobs and vitally needed capital which is being channeled into natural resources so that when we commence the gargantuan task of repairing our infrastructure we can no longer afford it and must borrow the money from the thieves who created the gaping hole in our economy threatening the soul of our democracy. If the crimes were in the rear view mirror one could argue that the policy makers could make decisions to protect our future. But the crimes are not just in the rear view mirror. More crimes lie ahead with the theft of an equal number of millions of homes based on false and wrongful foreclosures deriving their legitimacy from an illusion of debt — an illusion so artfully created that most people still believe the debts exist. Without a very sophisticated knowledge of exotic finance it seems inconceivable that a homeowner could receive the benefits of a loan and at the same time or shortly thereafter have the debt extinguished by third parties who were paid richly for doing so.

Job creation would be unleashed if we had the courage to stop the continuing fraud. It is time for the government to step forward and call them out, stop the virtual genocide and let the chips fall where they might when the paper giants collapse. It’s complicated, but that is your job. Few people lack the understanding that the bankers behind this mess belong in jail. This includes regulators, law enforcement and even judges. but the “secret” tacit message is not to mess with the status quo until we are sure it won’t topple our whole society and economy.

The time is now. If we leave the bankers alone they are highly likely to cause another crash in both financial instruments and economically by hoarding natural resources until the prices are intolerably high and we all end up pleading for payment terms on basic raw materials for the rebuilding of infrastructure. If we leave them alone another 20 million people will be displaced as more than 5 million foreclosures get processed in the next 3-4 years. If we leave them alone, we are allowing a clear and present danger to the future of our society and the prospects for safety and world peace. Don’t blame Wall Street — they are just doing what they were sent to do — make money. You don’t hold the soldier responsible for firing a bullet when he was ordered to do so. But you do blame the policy makers that him or her there. And you stop them when the policy is threatening another crash.

Stop them now, jail the ones who can be prosecuted, and take apart the large banks. IMF economists and central bankers around the world are looking on in horror at the new order of things hoping that when the United States has exhausted all other options, they will finally do the right thing. (see Winston Churchill quote to that effect).

But forget not that the ultimate power of government is in the hands of the people at large and that the regulators and law enforcement and judges are working for us, on our nickle. Action like Occupy Wall Street is required and you can see the growing nature of that movement in a sweep that is entirely missed by those who arrogantly pull the levers of power now. OWS despite criticism is proving the point — it isn’t new leaders that will get us out of this — it is the withdrawal of consent of the governed one by one without political affiliation or worshiping sound sound biting, hate mongering politicians.

People have asked me why I have not until now endorsed the OWS movement. The reason was that I wanted to give them time to see if they could actually accomplish the counter-intuitive result of exercising power without direct involvement in a corrupt political process. They have proven the point and they are likely to be a major force undermining the demagogues and greedy bankers and businesses who care more about their bottom line than their society that gives them the opportunity to earn that bottom line.

New Fraud Evidence Shows Trillions Of Dollars In Mortgages Have No Owner
http://thinkprogress.org/economy/2013/08/13/2460891/new-fraud-evidence-shows-trillions-of-dollars-in-mortgages-have-no-owner/

22 Responses

  1. But wait….hmmm….fnma already agreed to do that- with our money,- far as i can tell, by way of their guarantee to the MBS investors. I’m still wondering if anyone knows 1) why the heck fnma guaranteed
    paymentand buy-backs from the investors and why 2) fnma will pay the issuer, not the investors, unless the issuer is insolvent.

    The first one, the guarantee, I’ve opined, makes the investors
    lenders for FNMA. It’s not a true sale – unless you call a sale with a money – back guarantee a sale. Maybe that’s a sale. “You buy this from us AS LONG AS…..”

  2. caire at 1:09 – that’s what’s called a Red Herring. There is only a loss if the loans haven’t been paid or if the security interest holders haven’t been paid though banksters were. But then, fnma and fhlmc may have decided- with some help – to further bolster the banksters’ bottom lines (and do more) by actually paying money for dead and or orphaned deals. If the banksters were paid, then F & F have agreed to
    take the hits to any security interest holders. Lovely! We lose our homes AND we all pay to do so. Only in America. (well, hard to say on this one just now, any more, whatever). The govt has NO business
    committing our funds for this purpose. We are capitalsts, not communists. Capitalists must bear their own crapinski.

  3. carie – I’ve said it before and I’ll say it again – a dot trustee has NO
    authority, NO ability to auction a lien. The dot trustee is authorized to quiet title in favor of the lender, which selling a lien does NOT do.
    But since the judiciary is under a mushroom about real property laws, this one is probably under there with them, too. I’ve already tried to
    explain why what I said is so, so here I’ll just say that generally, parties may sell their rights in contracts or what not. The dot trustee may not
    avoid his own duty in such a manner. And anyway, to me, a dot trustee trying to pawn off a lien on someone else is indicative if not evidence he’s not comfortable that the party claiming injury is in fact a party injured.

  4. Lorraine brown and others could not, would not, have done what they did had it not been for MERS appointing not-even-member- employees as “certifying officers” to execute documents in MERS’ name. If Ms Brown were not (I can’t remember) designated a MERS officers by Hultman, thousands of others were. Yet MERS, or at least Hultman
    who executed these alleged corporate resolutions designating thousands as MERS’ officers with 0 diligence for even an inkling of
    qualification, walks the planet free. It’s mind-numbing. And btw, on info and belief, Hultman designated thousands of grunts as MERS’ officers at the request of members, who also walk the planet free.
    Generally the law holds that the act of a corporate officer (like a real v.p., etc.) binds the corporation, as least as relevant here to assignments. Disregarding – gag – that a corporation must have something to assign, these Hultman-designated non-MERS’ employees can’t imo bind a snowshoe, let along a corporation.
    Where the law says the act of a (true) corporate officer binds a corporation, clearly that law contemplates that a true corporate officer, by virtue of her (earned) corporate status, is qualified to perform such an act for the corporation. Just as clearly, that’s not the case with the Hultman-designated “officers”.

  5. ““We … must borrow the money from the thieves who created the gaping hole in our economy threatening the soul of our democracy.” Neil Garfield, livinglies.me
    We don’t need to borrow it from thieves, and we never did. Congress has the power to issue money–interest free money.

  6. JPMorgan Chase Energy Trades Under Investigation By DOJ: Report

    Posted: 08/19/2013 5:39 pm EDT | Updated: 08/19/2013 6:06 pm EDT

    The Wall Street Journal reports that JPMorgan Chase, the country’s largest bank by assets, is under investigation yet again, this time by the Department of Justice over its energy trades.

    At a minimum, it’s the seventh ongoing investigation into the bank, according to the Journal.

    Reuters reports:

    (Reuters) – JPMorgan Chase & Co is being investigated by the U.S. Department of Justice for possible manipulation of energy markets following the company’s settlement of civil allegations last month with a separate federal energy agency, the Wall Street Journal reported on Monday, citing people familiar with the case.

    The probe, which was said to be in early stages, is being handled by U.S. Attorney Preet Bharara in Manhattan, the newspaper said on its website. Bharara recently brought criminal charges against two former JPMorgan traders for understating losses from the bank’s disastrous London Whale derivatives trades last year.

    The Justice Department began the probe of JPMorgan’s energy trades as the company agreed to pay $410 million to end an enforcement action by the Federal Energy Regulatory Commission, according to the report, which said the new probe is to include some of the same issues. It is not known if the investigation is civil or criminal, the newspaper said.

    A JPMorgan spokesman declined to comment on the report. A Justice Department spokeswoman in Washington had no immediate comment.

    Chief Executive Officer Jamie Dimon has publicly vowed to resolve the company’s regulatory issues.

  7. 4closed,

    I posted it because I thought it was interesting that MSNBC (notably pro-democrat) would take notice However, we don’t know, from that audio, for whom she left that phone message. It does sound like “Hey, I’m the committee chairman. You need to give me some and even more than to the other members. I’m the chairman!” but what was the exact context? That, I’d like to know. Because I’d send a FOIA request in a jiffy about how much they paid whom.

    We’ll get to the bottom of it eventually.

  8. I am appalled at the audacity of this woman! Congresswoman Holmes Norton, needs to step down she no longer has the public’s best interest at heart. Lobbing Congress or any public official should be illegal just like a judge or police officer. Get their un-grateful *** out of there. Jaime

  9. How when admitting to a million forged assignment those names are not released as to who was a victim of Ms Brown crimes?

  10. One minor correct, Lorraine Brown, although a small speck of sand in the grand scheme of things, but she did go to jail for associated crimes. Her attorney even mentioned at the sentencing that the banks have done exactly what she did directly and indirectly, therefor she should get a light sentence. My retort that I was not allowed to speak at the hearing, though, would have been, all the more reason for all those others to FOLLOW HER INTO THE JAIL CELLS!!!

  11. So Szymoniak file a case mid May 2011 and settlement announce by Jan 2012 and judge approves the settlement Apr 5, 2012 and she get $18 million of the $95 million.

    The same is true with Sherry Hunt who convinced a friend who was not a Qui Tam attorney in MO who went to nobody knows law school but side he try and they received $31 million out of the $158 million. Now this was filed Aug 5, 2011 and the same thing went down with her as far as getting paid.

    OK I first filed in Aug 2011 and again in Feb 2012, now I know why it was not dealt with but they got to deal with it now that Szymoniak case is unsealed. However I been writing about this since there settlement and trying to get an attorney to join in but everyone want to think that they discovered the securities flaw but it already long ago been discovered.

    I am just saying there is a lot of money (10-30% of $24 billion) to go around and Szymoniak got a team of of SC and DC, so whats up attorneys?

  12. http://www.huffingtonpost.com/2013/08/19/fannie-report_n_3779180.html?ref=topbar

    WASHINGTON, Aug 19 (Reuters) – Fannie Mae and Freddie Mac are masking billions of dollars losses because of the level of delinquent home loans they carry, a federal watchdog said in an internal report, and it said the companies should be required immediately to recognize the costs of some bad mortgages…

  13. Seen in newspaper for “Trustee’s Sale”:

    NOTICE
    TO POTENTIAL BIDDERS:
    If you are considering bidding
    on this property lien, you
    should understand that
    there are risks involved in
    bidding at a trustee auction.
    You will be bidding on a lien,
    not on the property itself.
    Placing the highest bid at
    a trustee auction does not
    automatically entitle you to
    free and clear ownership of
    the property…

  14. There Fannie & Freddie and the lenders folder like a cheap suite, so there in Ginnie Mae who started MBS, however with the Ginnie securities they got to hold the Notes which are blank for underlying collateral (someone else cannot hold because blank, other than custodian but it work as part of company).

    It a fact of Ginnie operation that it cannot buy and that it cannot sell. Here that assignment of a blank held Note? You got it, that it is impossible. So where is the settlement of Ginnie pool where government insurances as Szymoniak claim is exactly the same, only the agencies but Ginnie is 100% owned by the Federal Government!

    Is this still to hard to figure out?

  15. Agreed
    No lawyers with guts
    Even the radio talk shows are going for mods not worth the paper written on
    Do not purchase any property with title issued after 1998

  16. Actually, justice IS coming. With a whole lot more than we can dream of. I know it. i just don’t know how soon…

    http://kunstler.com/clusterfuck-nation/nowhere-to-run-nowhere-to-hide/

    Nowhere to Run, Nowhere to Hide
    August 19, 2013

    The fear is that the central banks have finally lost control of a situation that they have only pretended to control since 2007, when the grotesque racket of mortgage re-bundling caused a psychotic break in the banking system. The prescribed therapy for that was half a decade of ZIRP and maxing out the national credit card. The ugly truth now emerging through this fog of psychosis is that the bond market probably can’t be saved, and without it all other paper markets are toast, including the stock markets and very possibly the entire fiat currency system.

    In the background, of course, is the energy melodrama. How can anybody with half a brain suppose that the late turbo-industrial economy could “recover” with oil priced at $107 a barrel? Anyway, all the “recovery” memes floating around the collective media zeitgeist are based on a handful of doctored and massaged GDP numbers universally known to be false. In short, the USA can’t run the current setup on oil over $100 a barrel and has been trying to compensate for that basic fact by lending itself money. So has virtually every other advanced economy, and now they are all in trouble so there is nowhere to run, nowhere to hide — and for us, nowhere to export our financial quandaries to.

    Japan is the most interesting corpse in the pathology lab. It shot its wad twenty years ago and has been self-cannibalizing ever since. It has no oil or gas of its own, and now it has a runaway nuclear meltdown that is getting only slightly less attention than its financial meltdown. I used to think that Japan had no choice except to go medieval. Now I wonder if there will be anything there in ten years but a depopulated archipelago of steaming radioactive kelp. They can’t possibly buy more US treasury paper and must desperately need to dump their accumulated holdings, and when they do they will start a financial chain reaction that will flense the pretense of value from all the world’s sovereign debt paper. It may already be happening.

    If you prepare for anything, prepare for a world without financial pretense. Credibility is caught in that riptide developing off the Hamptons. When the water goes out, all you will see is ugly things wriggling in the mud, and when the water comes rushing back in again, all you will see is a spectacle of drowning bankers. The only higher ground to go to will be your local community, if you have one, and even there it will be a struggle to make sense of what has happened to the world.

  17. Chris,

    As i have been saying for years, the best way to kill anything is to stop feeding it. All it would take for all of this to end is only 3 things:

    1) Refuse to file income taxes until we have replaced everyone in congress and government and we have sufficient evidence that criminal prosecutions are taking place;
    2) Make a run for our money. Empty all our bank accounts within a 48-hour period and pay cash for everything we need while stopping payment of every debt contracted in our name and with our signature (house, credit card, car, student loan, everything). There are not enough judges,collection agencies, cops, sheriffs, etc. in this country to go after all of us;
    3) Restore the constitution, shut down the Feds, remove money from government.

    It is going to happen eventually. The problem is… after how many more casualties worldwide?

    So far, what has been missing is moral courage and momentum. Something like that would gain momentum in a split second.

  18. Neil once I read Szymoniak complaint I knew she knew what I called her office about with the Ginnie Mae MBS involvement the matter she brought up with Fannie & Freddie, but I do understand her not injecting Ginnie Mae because that was no something the Federal Government would want to have address because its about the agreement between Ginnie and the Fed and the repayment of the securities advancements that were received by lenders.

    The only difference in my claim SC whistle-blower claim and here paid claim is Ginnie Mae, but all the same crooks are involved but Fannie & Freddie. So as I had to refile my claim in Feb 2012 because of the conveniently lost submission, we have to look at what was at risk when the Nation finally finds out that they are on the hook to pay back the Fed for the losses incurred in this crisis.

    However as homeowner are foreclosed by entities that are the beneficiary of trillion of dollars from the Fed, so we got a catch 22 where the Fed is regulator and investor of this product and bring charges against their trading partner create a situation as to do they receive insurance payments for the full 100% of the investment from the tax payer due to the fraudulent practices of Ginnie Mae and the banks the Fed oversees.

    So do we taxpayer say to the Fed you had a responsibility in supervising this horse trading as you knew the OCC was not mentally capable or had the training to understand the securities, mortgage or state foreclosure laws.

    As a 15yr old I played a football game on the Nuremberg Rally Field of Hitler, and as I don’t remember the beating we took that day accept for the score, I do remember myself having almost this out of body experience that never to far back in my memoir of this 400,000 stadium. A black kid in this Colosseum Hitler made to show the World of his power. I envision what if I were there at one of the rallies running around trying to escape from Nazis.

    I do feel that in some way it shaped me, but to look at the rise and fall of Hitler, and for me today is a replay of the depression situation, were Wall Street again is the point man for the economic crisis of the world. Wheat price in Egypt, and energy price in the Midwest the JP Chase is paying fines and the Big Whale in London, but let not forget Greece and hiding its debt by US Banks in order for Greece to enter the EU!

    Here I am this lone black bank home mortgage loan officer for years up until the 2008 crash, yet America saw subprime loan officers in bank and assume they did normal loan when that was not the case. So why do millions take the wrong loans. It not that they simply walk in an order a hamburger as shows on shown of some menu when that not the fact and there were no menu but advice as to what the borrowers would take.

    We allowed this President to have it both way in calling out bankers as Fat Cats and borrowers as Deadbeats and leave it at that, as if borrowers created the product an demanded the the banks produce and sell them something the bank board had not even approved!

    How does a undereducated ex-infantryman present to the Federal Government the exact crime Szymoniak and her team of lawyers word for word, and only different is the holders of the securities, and my claim returns more False Claim dollars ($24 billion)

  19. Dang it, messed up the html. Here it is.

  20. Wow Christine, just appalling but something we all know to be True. Still we press on. We are going to Sundance with this series, which has been 3 years in the making. This trailer has a former NH Executive Councilor describing how he could not get through to former NH AG Kelly Ayotte, who is now a bought-and-sold U.S. Senator. The first interview with the propane explosion survivor has much more depth to it that will be shared later,
    Peace.

  21. The Banks are UnAmerican They make BinLadin look like an Angel. One of the reasons for the founding of this country was to fight Feudalism (Where a King etc… for no reason (or made up reason) can steal your property. Hitler did it to the Jews etc… with the help of Deutche Bank. Nasser and Humeini stole Jewish properties etc… Now in the United States of America they are making the attempt to steal are properties. Are we really gonna go back to Feudalism?

    NEVER AGAIN

  22. “But forget not that the ultimate power of government is in the hands of the people at large and that the regulators and law enforcement and judges are working for us, on our nickle.”

    Really?

    Case in point…

    Congresswomen’s Voicemail: Where’s My Bribe?
    Monday, August 19, 2013 7:21

    “Congresswoman Eleanor Holmes Norton left a voicemail for a lobbyist in which she brazenly begs for a “contribution.” It’s a not-so-subtle reminder of how legalized bribery is the standard operating procedure in Washington. Until money is taken out of politics, this kind of corruption will only get worse and worse.”

    Still willing to pay their salaries, health insurance, retirement, vacation, travels, kids schooling, etc?

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