What Do You Need? We Need Your Input!

HELP!!

The challenge is no longer getting the information “out there.” The challenge is getting the job done by creating lawsuits, discovery and motions that will get actual traction in court. We need to BE good not just sound good.

What we are seeing is that errors in procedure and substance are being made clouding the message essential for the court to recognize a homeowner’s defenses.

AND what we are hearing is that pro se litigants and lawyers need a central place to go for forms and “ghostwriting”. I have been doing that for nearly 11 years but it is time to step up our game.

So I have assembled a pretty good crew of paralegals who have agreed in principal to provide services to consumers, especially homeowners, in litigation or approaching litigation. We have created excellent forms for Chain of Title Analysis and discovery like these interrogatories that can be used as a form or which can be tailored to your case.

see Florida First Set of Interrogatories

STAY WITH ME HERE. I need your input!

So on behalf of the group I am creating templates out of our past forms that we have actually used in successful litigation with edits of course to keep up with recent case law.

Here is the challenge: the above form can be used in its template form, changing names and inserting case numbers and the correct style BUT it is apparent that when people do that  they usually get lost in the details and either ask an irrelevant question in their case or worse make an admission accidentally that works against them.

So the answer seems obvious. Let people hire us to prepare discovery, motions etc. for their litigation cases whether they are lawyers or pro se litigants. Each case has differences that needs to be reflected in the discovery requests, motions and so forth. This means the writer must take the time to analyze your case sufficiently so that the parties are correctly identified and the right wording is used in whatever document they are preparing.

If a lawyer were retained to do this work, the interrogatories shown above would actually require at least one hour of file analysis and one hour drafting —- despite the apparent brevity of the document. This would cost at least $500 for even the youngest lawyers. So what happens is that since the lawyer is NOT getting paid to do original documentation, the case suffers.

The solution, I think is to either charge $75 for each form like the above interrogatories as a form or guide or template — or charge $150 for a paralegal to do it up right. This puts the the homeowner in position to apply the most pressure on the banks without breaking the homeowner’s  bank account. 

The question is whether this is a business model that will actually work. I don’t have enough money to be wrong. So please send your comments or response to NEILFGARFIELD@HOTMAIL.COM. 

Feel free to use the above form but in all cases check with local counsel as to both form and content and  the timing and method of filing and service.

Attorney Verification of Foreclosure Complaints

This is a blatant flaunting and end run around the rule of law. Following a 15 year tradition of fabricating “facially valid” documents, lawyers are having an employee of the law firm sign documents to verify a complaint or other filing.

Get a consult! 202-838-6345
https://www.vcita.com/v/lendinglies to schedule CONSULT, leave message or make payments.
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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Practically every consult I do for attorneys in litigation involves some document that was fabricated, forged and/or robosigned. This trick at misdirection of the court is accomplished by fabricating a document that looks to be facially valid but contains nothing but blatant lies about the people who signed it, the people who offered it, and the lawyers who pursue a false narrative based upon the presumptive validity of documents they know are not just flawed but more importantly fictitious having been fabricated strictly for the purpose of litigation and foreclosure.

Such documents are inadmissible, so the false proffer in court is that they are old valid and authentic documents that were not fabricated for use in court.

The latest turn (although not new) in these events is the execution of a “verification” or other document to be filed with the court by an employee of a law firm that at least initially starts the foreclosure. You may remember that David Stern and others made millions providing this service to banks, servicers and other parties who were involved in the initiation or maintenance of an action to foreclose. While Stern lost his license to practice law, he made off with tens of millions of dollars in fees directly attributable to falsifying documents.

Like the Bernie Madoff situation, some people were thrown under the bus and some people were not. Madoff’s PONZI scheme was not a singular event involving the the largest economic crime ($60 Billion) in Wall Street history. The publication of it gave convenient cover to underwriting banks and other cooperating entities involved in the absolute greatest of all PONZI schemes — the sale of worthless securities issued by empty trusts (over $5 trillion). The PONZI aspect was the same. But Madoff’s scheme was barely 1% of the amount stolen by Wall Street banks. And the Courts have been unwitting accomplices.

The actual “promise to pay” the investors came from the empty trust and not a homeowner or group of homeowners. The debt owed by homeowners was never owed to either the creditor (the investors) nor the trust (which was empty and never operated).  And the payments came from a dynamic dark pool consisting entirely of investor money that was legally and actually supposed to be in a bank account clearly labeled for the REMIC Trust that issued the RMBS — and then managed by a “Trustee” but the Trustee turned out to have no power. All the payments received by investors came from the dark pool — not from borrower payments or recoveries in foreclosure.

All power was vested in the “Master Servicer” which of course was the underwriter who sold the bogus RMBS in the first place — another hallmark of control always present in PONZI schemes. The entire scheme was based upon invested capital being diverted from the trusts — and then covered up by (a) payments out of the dynamic dark pool (PONZI) and (b) originating rather than buying nonconforming loans (a more elaborate PONZI).  The rest of the money was concealed in “trading profits” that are gradually released from the stockpile of money sucked out of the economy by the participating banks.

All of these transactions were “off balance sheet.” Since there were no “real transactions” in “real life” (loans, sales of loans creating a chain) the obvious fraud could only be covered up by getting court orders on a mass scale that assumed the false bank narrative was true. Those court orders and judgments were the first and only presumptively legal document in the entire chain. This is why the banks seek foreclosures at all costs to seal up potential civil and criminal liability for their initial theft from investors. Modifications must be done for purpose of appearances, but they are an intrusion into the business plan of getting as many foreclosures booked as possible.

In order to obtain such orders judges had to be satisfied that the designated forecloser was indeed a “lender” or “Creditor.” In order to do that the banks had to present fraudulent documents. In order to get the fraudulent documents through the system, the bank attorneys knew that in most cases they would only need to present “facially valid documents.” The judges would not look “under the hood.” And borrowers who could see the scam did not have access to information that would lead to the discovery of admissible evidence. Hence most contested foreclosures are still resolved in favor of the co-venturers involved in the fraudulent scheme.

Foreclosure mills are among the people whom the banks will readily throw under the bus (“we’re shocked to discover that our law firm was committing such heinous crimes”). If the law firms were unwilling to provide these “extracurricular services” they never would have retained the business of foreclosures. The banks needed to win because they needed that one legal document that would create the almost conclusive presumption that everything that preceded the judgment allowing foreclosure. And the banks knew that could only be done by fraudulent misrepresentations to the courts, to borrowers, to government agencies including law enforcement that to date has jailed absolutely nobody except Lorraine Brown of DOCX.

So what do I say when represented by an obviously  false document executed by an employee of the foreclosure mill? For example I just received (hat tip to Bill Paatalo) one such “verification” in  which the signor declares that the client is out of town and so the law firm is executing the verification for the client.

The obvious response is that (1) being located somewhere else doesn’t prevent an authorized competent person from doing the verification (2) the absence of a competent witness does not give authority to anyone else to verify as though they were a competent witness (3) the verification does not and probably cannot assert that the signor is competent, to wit:

COMPETENCY consists of (a) OATH (b) PERCEPTION (C) MEMORY and (d) the ability to communicate what the witness saw, heard or otherwise experienced personally.

The law firm clearly has no personal knowledge and therefore is executing the verification just to satisfy the elements of a facially valid verification, when both reason and parole evidence clearly shows that the verification is a sham.

Hence, sanctions should be appropriate against the employee who signed it, the lawyer, the law firm and the “client” if the client knew that this was being done. Of course in most cases the party named as bringing the foreclosure is NOT the client, which is another fraudulent misrepresentation in court that would defeat jurisdiction. The client is always the sub-servicer who takes orders from the “Master Servicer”, i.e.  the underwriter who created bogus trusts to issue bogus mortgage bonds and walked away with trillions of dollars.

 

Eric Holder Doctrine: Decriminalize Big Crimes

see also Guest Post: Why The Government Is Desperately Trying To Inflate A New Housing Bubble
http://www.zerohedge.com/news/2013-03-25/guest-post-why-government-desperately-trying-inflate-new-housing-bubble

The problem with the theory that criminal prosecution of the banks could have a negative effect on the world economies is that the banks have already had their effect on the world economy. Along with their own well-deserved hit to their reputations they took the U.S. reputation and probably the whole Eurozone with them.

Refusing to prosecute is like saying we should not prosecute organized crime — or even the same crimes committed by smaller institutions — because someone might get killed or jailed or swindled out of more money than they already lost.
Our rating has dropped by all accounts in all the rating services — a consequence of not getting our house in order and not controlling institutions whose importance is obviously parallel to that of a water or electric utility. And people are still losing wealth and homes, thus undermining any prospect of a true economic recovery.
Eric Holder’s logic is simply not sustainable and the people of Maryland are doing the best they can to keep criminal banks out of their state. We should all do that, and do what the State of New York came close to doing — revoking the license of criminal banks to ply their snake oil financial products within their state. Now that does something to protect the public and puts everyone on notice that doing business with criminal mega-banks is risky business no matter what the smiling bank representative tells you.
The biggest flaw in Holder’s so-called logic about the banks being too big to jail is that an important part of justice has been thwarted. In fraud cases the victim receives some restitution from a receiver appointed after the culprit’s assets are seized. That can’t happen as long as we avoid criminal prosecution. And until there is criminal prosecution judges will continue to think that borrowers are deadbeats instead of victims.
Investors is the fake mortgage backed bonds issued by empty REMIC trusts that were never funded and thus never entered into a transaction in which they acquired loans deserve restitution. Clawing back the money held in the Cayman’s, Cyprus and other places can never happen as long as criminal prosecution is avoided.
The trust we earned from world central bankers,investors and borrowers has been destroyed and that is what is causing economic problems all over the world. Nobody knows where to put their money or even what currency will ultimately survive. This uncertainty is undermining our claim to moral superiority across the board in matters of state as well as commercial activity. We have opened the door to allowing Chinese firms to take the lead, like Alibaba which has quietly become larger than Amazon and EBay combined and is on track to become the world’s first trillion dollar company.
If we truly want to survive and prosper we can show the world that we know how to do the right thing rather than become an accessory during and after the fact of a continuing crime that ranks as the greatest fraud in human history. When investors get a check from a court-appointed receiver in a criminal case, when we see bankers go to jail, and when the amount demanded from borrowers is reduced by payments to the banksters, THEN confidence will be restored along with wealth, investment and employment.
We are pursuing a going out of business strategy. By holding back on the basis of the Holder Doctrine we are confirming that we lost our moral high ground. Someone will fill that void and don’t think for a minute that the Chinese are not acutely aware of their opportunity.
Remember when we made fun of Japanese products as cheap unreliable imports? They fixed that, didn’t they. The Chinese are now spreading out creating new standards of morality in the marketplace such as not releasing money to an online seller until the buyer is satisfied.

It won’t be long before Chinese currency and currencies pegged to Chinese currency become the standard medium of value replacing western currencies, unless we change and start running a country that controls and disciplines its players domestically and on the world stage.

Money-laundering firm should get no welcome in Maryland
http://www.baltimoresun.com/news/opinion/oped/bs-ed-hsbc-20130325,0,1565911.story

Where is all that money the banks took? Hiding in Plain Sight

You’ll probably never get to this point in litigation but if you do, you’ll be glad you read this. Obviously there is a lot of talk about where all the money went. Right off the top the banks took some 20%+ off of the money that investors gave them to invest in mortgages. That is $2.6 trillion alone off of the $13 trillion in “mortgages” that were mostly defective or fabricated. Then add their profit from insurance and credit default swaps which might amount to on a nominal basis several times the original $13 trillion invested and we get an idea of how much money is being withheld from world economies including the United States.

The answer is that they are hiding it in plain sight and in conjunction with legitimate investments from many other investors and entities. They are putting it in the stock market, mostly, causing it to rise without reason, and to a lesser extent they are putting it into bonds. If someday someone traces the first dollar in from investors all the way through the convoluted fabricated system of what the banks called securitization and the rest of us know was a PONZI scheme, you’ll find it right in front of you listed in the Wall Street Journal.

And if you Google it, you’ll see that BofA’s security analysts agree that the Dow Jones Average and other equity indexes are not reflecting true economic activity. They didn’t get the memo to shut up and sit down. That is what happens when you are too big to fail — you are also too big to manage, too big to jail and too big to regulate. The complicity of regulators, auditing firms and others in this mess has yet to be determined but it seems likely that there will be suits and prosecutions against the auditing firms for taking management’s word for the data rather than testing it the way any first course in auditing 101 would teach future CPA’s. I do know, because I taught auditing classes when I was getting my MBA.

Where is the money that the bankers siphoned out of our economy? Hiding in plain sight in the equity markets. With societies in chaos and economies in tailspins around the world, somehow the equity indexes are reaching record highs and profits are being recorded that are clearly not conforming to economic activity that in some countries is at a virtual standstill or even declining.

Yet the equity markets supposedly are a measure of future earnings which magically appear, justifying the increase in stock prices. If I stole a few trillion dollars and I needed a place to hide it, I would invest it relentlessly in the equity markets and to a lesser degree into debt instruments.

The increase in the DJIA represents trillions in wealth increase — or it represents a deposit of ill-gotten wealth generated by the Wall Street banks and their co-venturers. With GDP so fragile around the world my conclusion is that economic activity around the world is not reflecting any support for the increase in expectations and increase in stock prices.

The banks cornered the market on money and had to decide where they were going to hide ill-gotten profits that most people don’t understand, know about or care about. The obvious answer was, when they were holding trillions of dollars, where the dollar was in possible jeopardy, was to put the money in equities on a slowly increasing relentless purchase of stocks and bonds.

Stocks are measured in numbers of shares rather than strictly dollar denominated accounts. This allows the holders of equities to sell in any marketplace converting the investment into any currency of their choice, potentially avoiding the negative impact of a sudden devaluation of the type that made George Soros so rich.

Undoubtedly this logic has not escaped other legitimate investors and investment managers. Thus the bull market effects produced by the underlying floor of bankers’ purchases of equities is hidden under an increase in legitimate buying. It is a perfect plan as long as receivers are not appointed over the mega banks and dollars are traced to their origin and destination.

If things seem upside down when you turn on the news, now you know why. It is still hard for people to wrap their head around this proposition. All anecdotal evidence which is now so extensive that it almost qualifies as a scientific survey, points to at least 2/3 of all mortgages being fatally defective as perfected liens, unreported compensation on loans (that the banks say were charged against investors) is present in nearly all loans of every kind where a claim of securitization is present, and bank profits and capital have continued to rise even though as intermediaries, they should be making less money because there is less economic activity in a recession or stagnant economy.

That money in the mega banks is our money — taxpayers, shareholders of insurance companies, shareholders of guarantors and co-obligors, investors who advanced the money the homeowners who put up their homes as collateral on non-existent or defective transactions in which the loan and property were intentionally inflated in value. The extra money in those deals were funneled into off shore accounts and transactions that were never taxed by agreement with the jurisdiction in which the the transactions were cited as taking place even though it all happened in the good old USA. I have seen the document where Bermuda accepted the jurisdiction over the transaction and agreed not to tax it.

Although this is my opinion for general information purposes, I feel comfortable sharing it with the public  because I have enough facts from current events and enough experience from my own past experience on Wall Street to be confident that the above rendition is true. Once again I remind readers that the legal consequence of these practices might vary from state to state and even between judges in the same district. Federal and State courts are likely to treat these presentations differently as well.

And just because you are right, doesn’t mean you can prove it or win. So it is imperative that you consult with an attorney who knows all the facts of your case, is familiar with securitization and is licensed in the jurisdiction in which your property or domicile is located.

Premarkets: Dow defies gravity, S&P nears record
http://money.cnn.com/2013/03/15/investing/premarkets/

Senate “Whale” Report Reveals JP Morgan as a Lying, Scheming Rogue Trader (Quelle Surprise!)
http://www.nakedcapitalism.com/2013/03/senate-whale-report-reveals-jp-morgan-as-a-lying-scheming-rogue-trader-quelle-surprise.html

Goldman partner Barg moves to New York from Asia in new role
http://www.reuters.com/article/2013/03/15/us-goldman-barg-idUSBRE92E0CS20130315

Big Banks Headed For Break-Up

“What policy makers are starting to realize is that the absence of prosecutions and regulatory action against these banks has produced a profound loss of confidence not only in the financial markets but in the leader of the financial markets (the United States) to control itself and its own participants in finance. It’s not just fair to enforce existing laws and regulations against the banks who so flagrantly violated them and nearly destroyed all the economies of the world, it’s the only practical thing to do.” — Neil F Garfield, livinglies.me
If you are seeking legal representation or other services call our Florida customer service number at 954-495-9867 (East Coast) and for the West coast the number remains 520-405-1688. Customer service for the livinglies store with workbooks, services and analysis remains the same at 520-405-1688. The people who answer the phone are NOT attorneys and NOT permitted to provide any legal advice, but they can guide you toward some of our products and services.
The selection of an attorney is an important decision  and should only be made after you have interviewed licensed attorneys familiar with investment banking, securities, property law, consumer law, mortgages, foreclosures, and collection procedures. This site is dedicated to providing those services directly or indirectly through attorneys seeking guidance or assistance in representing consumers and homeowners. We are available to any lawyer seeking assistance anywhere in the country, U.S. possessions and territories. Neil Garfield is a licensed member of the Florida Bar and is qualified to appear as an expert witness or litigator in in several states including the district of Columbia. The information on this blog is general information and should NEVER be considered to be advice on one specific case. Consultation with a licensed attorney is required in this highly complex field.

Editor’s Comment: There is an old expression that says “At the end of the day, everybody knows everything.” The question of course is how long is the “day.” In this case the day for the bank appears to be about 10-12 years. The foibles of their masters, the conduct of their policies, and the arrogance of their behavior has led them into the position where the once unthinkable break-up of the bank oligopoly and their control, over our government is coming to a close.

The titans of Wall Street have thus far avoided criminal prosecution because of the misguided assumption — promulgated by Wall Street itself — that such prosecutions would destroy the economic systems all over the world (remember when Detroit arrogance reached its peak with “what’s good for GM is good for the country?”). But the Dallas Fed are joining the ranks of of once lone voices like Simon Johnson stating that Too Big to Fail is not a sustainable model and that it distorts the markets, the marketplace and our society.

It is virtually certain now that the mega banks are going to literally be cut down to size and that some form of Glass-Steagel will be revived. As that day nears, the images and facts pouring out onto the public and the danger to the American taxpayer facing deficits caused by the banks in part because they siphoned out the life-blood of liquidity from the American marketplace will overwhelm the last vestiges of resistance and the same lobbyists who were the king makers will be the kiss of death for re-election of any public official.

As they are cut down, the accounting and auditing will start and it will take years to complete. What will emerge is a pattern of theft, deceit, fraud, forgery, perjury and other crimes that are most easily seen in the residential foreclosures that now appear to be mostly illusions that have caused nightmare scenarios for millions of Americans and people in other countries. Those illusions though are still with us and they are still taken as real by many in all branches of government. The thought that the borrower should never have been foreclosed and that the amount demanded of them was wrong is not accepted yet. But it will be because of arithmetic.

Investment banks sold worthless bonds issued by empty creatures that existed only on paper without any assets, money or value of any kind. The banks then funded mortgages of increasingly obvious toxicity to people who might have been able to afford a normal mortgage or who couldn’t afford a mortgage at all but were assured by the banks that the deal was solid. Both investors and homeowners were taken to the cleaners. Neither of them has been addressed in any bailout or restitution.

It is the bailout or restitution to the investors and homeowners that is the key to rejuvenating our economy. Trust in the system and wealth in the middle class is the only historical reference point for a successful society. All the rest crumbled. As the banks are taken apart, the privilege of using “off-balance sheet” transactions will be revealed as a free pass to steal money from investors. The banks took the money from investors and used a large part of it to gamble. Then they covered their tracks with lies about the quality of loans whose nominal rates of interest were skyrocketing through previous laws against usury.

For those who worry about the deficit while at the same time remain loyal to their largest banking contributors, they are standing with one foot upon the other. They can’t move and eventually they will fall. The American public may not be filled with PhD economists, but they know theft when it is revealed and they know what should happen to the thief and the compatriots of the thief.

For the moment we are still rocketing along the path of assuming the home loans, student loans, credit cards, auto loans, furniture loans et al were valid loans wherein the lenders had a risk of loss and actually suffered a loss resulting from the non payment by the borrower. As the information spreads about what really happened with all consumer debt, housing included, the people will understand that their debts were paid off by the investment banks, the insurance, companies and the counterparties on hedge products like credit default swaps.

A creditor is entitled to be repaid the money loaned. But if they have been repaid, the fact that the borrower didn’t pay it does not create a fact pattern under which the current law allows the creditor to seek additional payment from the borrower when their receivable account is zero. Yet it is possible that the parties who paid off the debt might be entitled to contribution from the borrower — if they didn’t waive that right when they entered into the insurance or hedge contract with the investment banks. Even so, the mortgage lien would be eviscerated. And the debt open to discussion because the insurers and counterparties did in fact agree not to pursue any remedies against the borrowers. It’s all part of the cover-up so the transactions look like civil matters instead of criminal matters.

Thus far, we have allowed windfall after windfall to the banks who never had any risk of loss and who received federal bailouts, insurance, and proceeds of credit default swaps and multiple sales of the same loan — all without crediting the investors who advanced all the money that was used in the mortgage maelstrom.

The practical significance of this is simple: the money given to the banks went into a black hole and may never be seen again. The money given BACK to (restitution) investors will result in fixing at least partly the imbalance caused by the bank theft. It will also decrease the loss suffered by the lenders in the loans marked as home loans, auto loans, student loans etc. This in turn reduces the amount owed by the borrower. Their is no “reduction” of principal there is merely a “deduction” or “correction” to reflect payments received by the investors or their agents.

The practical significance of this is that money, wealth and income will be  channeled back to the those who are in the middle class or who belong there but for the trickery of the banks and the economy starts to hum a little better than before.

It all starts with abandoning the Too Big To Fail hypothesis. What policy makers are starting to realize is that the absence of prosecutions and regulatory action against these banks has produced a profound loss of confidence not only in the financial markets but in the leader of the financial markets to control itself and its own participants in finance. It’s not just fair to enforce existing laws and regulations against the banks who so flagrantly violated them and nearly destroyed all the economies of the world, it’s the only practical thing to do.

Big Banks Have a Big Problem
http://economix.blogs.nytimes.com/2013/03/14/big-banks-have-a-big-problem/

We The Taxpayers Are On The Hook For Mortgages, Student Loans, Banks
http://lonelyconservative.com/2013/03/we-the-taxpayers-are-on-the-hook-for-mortgages-student-loans-banks/

Documentary Co-Produced by Broker Exposes Foreclosure Devastation, Housing System Flaws, in Low-Income Hispanic Neighborhood of Phoenix
http://rismedia.com/2013-03-13/documentary-co-produced-by-broker-exposes-foreclosure-devastation-housing-system-flaws-in-low-income-hispanic-neighborhood-of-phoenix/

Housing advocates accuse Wells Fargo of damaging communities through foreclosures
http://www.scpr.org/blogs/economy/2013/03/13/12908/housing-advocates-accuse-well-fargo-damaging-commu/

 

Student Loans, Housing and Poverty in the U.S.

“Bottom Line: Foreclosures need to stop, student loans need to be modified and return to pre-2005 rules for dischargeability, wages need to rise and the number of people earning wages needs to rise. If you don’t have those ingredients, the economic “recovery” will forever be fragile and will forever be in danger of a much deeper collapse than we saw in 2008 because underlying conditions are worse. That’s why American companies are holding trillions in cash and assets overseas. They don’t trust us anymore.” — Neil F Garfield, livinglies.me

For assistance with presenting a case for wrongful foreclosure and student loans, please call 954-495-9867 (East Coast) 520-405-1688 (West Coast), customer service, who will guide you to our information resources and upon request put you in touch with an attorney in the states of Florida, Tennessee, Georgia, California, Ohio, and Nevada. (NOTE: Chapter 11 may be easier than you think).

Editor’s Analysis: According to the official figures there are around 50 million people living below the poverty line. Surveys show that the number of people who can’t buy essentials for their family actually total close to 150 million people, which is half the country. The unemployment rate, if one were to add the number of people who are underemployed or who have given up looking for work, is probably over 20% — 60 million people!

The chasm referred to as income and wealth inequality is growing daily. $1 trillion in debt burdens students who could be far more productive. Until 2005, this debt was dischargeable in bankruptcy. But the banks managed to get changes made in the bankruptcy code equating student debt with alimony and child support and further requiring means testing in chapter 7 thus inhibiting the discharge of debts on credit cards charging 20% or more per year in interest and medical costs, which if you read Brill’s article in Time Magazine last week, are marked up 3000%.

Some $13 trillion in mortgage loans were faked and the banks continue to lie to the President, the Congress, the state legislatures, governors and Attorneys general.

If you add it all up, it isn’t hard to see why economists refer to the “recovery” as fragile. If you ask me it is unjust, wrong and impractical to continue on the same path we are on in the hopes that down the road somehow we will grow out of the problem we have — an economy that benefits a few people while the number of people falling behind, with lower and lower wages and decreased accessibility to credit increasing every month. Billions are added each month in student loan debt which is fast becoming a cancer on our society simply because of the new bankruptcy provisions.

The 7 year experiment in making student loans non-dischargeable is a miserable failure. It is a major contributor to the impending decline in the credit rating of the what was once the strongest nation on earth in every way. Because we allowed the banks to get the TARP funds and all the other forms of bank bailouts, and because we ignored the real victims — the investors and the homeowners who were tricked into deals that could not possibly work, the foundation of the country has been so undermined that we now rank #10 behind France and Spain in upward economic mobility. That means that the chances are better in those countries to climb the ladder of success than they are here.

This is not a piece suggesting we convert to socialism as our economic path. It is rather a call-out to our government that it cannot continue to bow to the will of the banks and expect the country to hold together. With half the country gasping for air, we must jettison our ideology and go for the practical solutions — most of which already exist or existed until a short while ago.

The problem is not that capitalism isn’t working. The problem is that capitalism is being used as a cover for the creation of illusions of prosperity and the reality of a near fascist state. That is what happens when someone corners the market on oranges and that is what happens when the someone is allowed to corner the market on money. And THAT is why we need government regulators and legislators who are NOT permitted to go through the revolving door from government to business and back again. If you take the referees off the field, don’t be surprised with what happens next.

For better or worse our economy is still 70% dependent upon consumer spending. Yet we pursue policies that diminish the ability of consumers to spend and diminish the number of consumers. The fact that there is still some muscle in the our system is testament to our inner strengths and prospects if we make the necessary changes to our democratic institutions and reign in those who are admittedly too large to govern or regulate.

Despite the obvious fundamental defects in the loan originations and transfers of loans that were the products of imagination and illusion, we treat them as real and even sacred. The playing field has been tilted so that all the benefits roll into one corner while the rest of us scramble to  make ends meet. The risk factors in any loan or program have been pushed entirely over into the public sector when the government should be able to stop the foreclosures, cure the student defaults and renew the progress of wage growth.

The keys to end this nightmare here and abroad is housing, student loans and employment. Students who have unpayable student loans are refused employment because many employers do credit checks. The same holds true for the millions of Americans who have been victims of fake foreclosures by strangers who never put up a dime to fund or purchase the loan and then submitted a credit bid at the “auction.” The private student loans arose because somebody thought it was a good idea to raise the cost of student loans by inserting profit seeking banks as intermediaries. Now that is corrected as to future loans, but it does nothing to correct the problems of past mistakes by government.

This isn’t just theory. Trillions of dollars are being held off shore by companies who legitimately are not convinced that the U.S. will actually pull out of this spiral anytime soon. So they are investing in capital and labor elsewhere. No effort has been made to claw back the trillions of dollars that disappeared in the maelstrom of the mortgage meltdown. Those funds are hidden off shore too.

And even more importantly, no company wants to invest in a marketplace where the laws are not enforced with consistency. If you speak with many CEO’s in private they will tell you that jail time for bankers would be a stimulus to confidence in the U.S. marketplace. What we have is a marketplace without boundaries as to the the fraud and other criminal behavior that was never before tolerated in our system.

Large and medium sized organizations holding trillions of dollars in liquid assets and other investments overseas see this very clearly. They have no more reason to commit to the U.S. economy than they do to any other banana  republic.

Why Student Debt Will Make U.S. Insolvent
http://www.business2community.com/finance/why-student-debt-will-make-u-s-insolvent-0430373

Wall Street turns profit in student loan debt
http://www.wsws.org/en/articles/2013/03/11/loan-m11.html

Student Debt Crushes Borrowers And Threatens The U.S. Economy
http://www.addictinginfo.org/2013/03/09/student-debt-crushes-borrowers-and-threatens-the-u-s-economy/

http://blog.credit.com/2013/03/do-we-need-to-change-bankruptcy-rules-for-student-loans/

Don’t Panic: Wall Street Is Going Crazy For Student Loans — But It’s Not a Bubble http://www.theatlantic.com/business/archive/2013/03/dont-panic-wall-street-is-going-crazy-for-student-loans-but-its-not-a-bubble/273682/

You Know What Sucks? Your Student Debt. You Know What’s Great? The Solution.
http://beingliberal.upworthy.com/you-know-what-sucks-your-student-debt-you-know-whats-great-the-solution-2

Banks Controlled Independent Reviews

“TARP was supposed to cover losses from defaulting loans. But then it was switched to make direct capital infusions into the mega banks. Why the switch? Because everyone realized very early on that the banks had no losses from defaulting loans. It was the investors who made the loans and would take those losses. But even though the government recognized this fact, it did so in secret allowing the confusing notion of bank losses to permeate the judicial cases. All they had to do to stop foreclosures was to tell the truth and Judges would have correctly assumed that the Banks were mere intermediaries. PRACTICE HINT: Is Champerty and maintenance a cause of action for damages, a defense to a lawsuit or both?” — Neil F Garfield, livinglies.me

CHECK OUT OUR DECEMBER SPECIAL!

What’s the Next Step? Consult with Neil Garfield

For assistance with presenting a case for wrongful foreclosure, please call 520-405-1688, customer service, who will put you in touch with an attorney in the states of Florida, California, Ohio, and Nevada. (NOTE: Chapter 11 may be easier than you think).

If you are having trouble believing that the recession, the mortgages, the foreclosures, the auctions, and the health of the banks are all a big lie click here for Matt Taibbi’s Article in Rolling Stone

Editor’s Comment: The so-called independent reviews were neither independent nor reviewed. They were processed. Which is to say they went in one end and came out the other. The so-called reviews relied completely on the banks themselves to review their own criminality in the foreclosure process that was only one step in a multifaceted plan to take down the wealth of America and concentrate in the hands of people who could claim it as their own.

The reviews were not independent because all the information offered was the information that the banks wanted to reveal and half of that was completely fictitious. The lack of an administrative hearing process made it impossible for the independent review conclusions to be challenged. Talk about stacking the deck.

A random survey of foreclosures would show that the forecloser was a complete stranger to the transaction, never invested a penny in the origination or purchase of the loan, and never accounted properly for its actions to the actual lender/investors. How do we know this with certainty? Because real independent reviews like the ones conducted in counties all over the country came to exactly that conclusion after reviewing foreclosures that were “completed.”

There is no ambiguity except whether the credit bid and ensuing deed upon foreclosure is void or voidable. I maintain it is void and not voidable. Voidable means that the victim must do something to replace the job of the county recorder. Voidable means that the transaction stands and the deed is valid even though we know it is a wild deed with no place for it in the chain of title. Voidable means that in a later refi or sale if some title lawyer is actually doing his work the way it was done since the dawn of title records, he or she is going to discover the wild deed and declare the title to be clouded defective or fatally defective. And that would be because of all the documents submitted by a series of entities that had no function except layering over the festering corruption of title created in the first place.

Actual findings that somehow leaked through the controlled review process were suppressed. It all comes down to the same thing in administrative action, law enforcement action, executive action and legislative action: homeowners are deadbeats who don’t count or can be managed through the miracle of telling big lies through the media. The conclusion reached in virtually all cases was the same: while the forgeries, fabrications and perjury were bad things and the ensuing theft of the homes was allowed to proceed anyway, the net result is that these people borrowed the money, defaulted on the payments and lost the house they were supposed to lose anyway.

It is a compelling argument if it was true. In fact, the posturing and lying of the banks enhanced the lender/investor losses and stopped the homeowners from connecting up with real lenders to settle the loans and then go after the banks together for lying to everyone about appraisals, underwriting, and loan quality.

As I see it, the only way this is going to wind up is that those people who fight back with Deny and Discover will be rewarded for their efforts if they persist. But on the whole, most people will not fight back leaving the Banks with windfall several times over. Government won’t help them. If the Banks lose every case that is contested it will be less than the amount they would reserve for loan losses if their loans were real.

We all know that the Banks were using investor money 96% of the time, and yet we allowed them to get insurance, credit default swaps, and federal bailouts on investments they never made. We allow them to pretend that they own what the investors own, thus corrupting their balance sheets with fictitious assets. We allowed them to book fictitious sales of bogus mortgage bonds to investors using the investors own money to create the infrastructure that was never used to sell, assign or securitize the loans. The Bankers who control the banks also control all the profits from these false “proprietary trades”, book them as they wish partly to keep the value of the stock higher and higher, and then keep the rest in off balance sheet off-shore transactions spread around the world.

In an economy that is still driven 70% by consumer spending these policies are arrogant and stupid. The investors who were the real lenders should be paid. The balance on the books owed to those investors should be reduced. And the process of separating the false tier 2 premiums on proprietary trades and the REAL balance owed by borrowers should proceed. This can only happen, given current circumstances by denial of all elements of the cause of action for foreclosure, and pressing on through discovery against the Master Servicer, subservicer (who did they pay? how long did they day after the declaration of default?), the Trustee of the REMIC trust (where are the trust accounts?), the aggregators and other parties that were engaged in the PONZI scheme that was covered over by a false infrastructure of assignments and securitization which never took place.

Our economy is projected to grow at a mere 2% this year if we are lucky, because the banks are holding all the fuel for the engine. If we were to apply simple precepts of law on fraud and contracts, the amount clawed back to investors and homeowners would end the crisis for the economy and yes, possibly threaten the existence of the large banks, but greatly enhance the prospects for the 7,000 other banks in the U.S. alone. But that of course would only happen if we were doing things right.

OCC Foreclosure Reviewer: “Independent” Reviews Were Controlled by Banks, Which Suppressed Any Findings of Harm to Foreclosed Homeowners
http://www.nakedcapitalism.com/2013/01/occ-foreclosure-file-reviewer-independent-reviews-were-controlled-by-banks-which-suppressed-any-findings-of-harm-to-foreclosed-homeowner.html

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