Posts Tagged ‘fannie mae’
http://beforeitsnews.com/story/1329/881/Breaking_Going_Viral–The_Crash_Is_Coming:_I_Told_You_So.html
~sighhhhh~jude
Italy, France, and Portugal will go belly up soon. This tragedy will collapse the European Union economy. Riots will go worldwide–if we aren’t there already. Now, this is what will happen in the United States during 2012:
- The unemployment percentage will start rising again and approach 15%.
- The national debt will breeze by $15 trillion and will approach $20 trillion.
- Chrysler Corporation will go belly up.
- Bank of America (BoA) will go belly up because it is run by a bunch of incompetent crooks. They cheated us over 40 years ago, and I’ve never forgotten that. I have a very long memory. So, take your money out of BoA and put it in smaller, local banks and savings and loans. That will help small businesses increase job creation.
- The Stock Market will crash. Get out of the Stock Market, now! Buy precious metals (gold, silver, etc.).
- The economy will collapse because of Obama’s ridiculous, idiotic fiscal policies. A presidential challenge will be made to Obama soon by a patriotic, moderate Democrat. Obama will be railed out of town.
- The Fed will continue to counterfeit (print) funny money not backed by gold, which will start hyperinflation.
- Fannie Mae and Freddie Mac will go under due to incompetent, criminal management.
- The housing market will get even worse than it currently is.
- Don’t make any large purchases and obtain any long-term repayment loans. Live by cash and carry.
- The U.S. dollar will sink to become worthless.
- A double-dip recession will commence followed by a full-blown recession worse than The Great Depression.
- Major rioting, vandalism, and killings will occur in all major cities across America. Obama will declare martial law.
- A world war will commence.
- The Congressional Super-committee is a bunch of worthless, gutless lawbreakers. They WILL NOT do what is necessary to solve the United States’ fiscal problems. Mark my words. They are all driven by politics, not for the good of the country and “We the People.” Idiots!
What can you do about all of this:
Image via Wikipedia
BY JIM WILLIE
The US Federal Reserve has no monetary options whatsoever. They have been backed into the corner since 2007. It was coerced to reduce interest rates as the subprime mortgage crisis morphed into an absolute bond crisis, as the Jackass loudly stated during that fateful summer. The US bank leaders claimed it was contained. It was not. The USFed was backed into the corner in 2009, unable to raise interest rates from near 0% (the Zero Interest Rate Policy disease) and put into effect its propaganda theme of an Exit Strategy. The US bank leaders knew the longest period of time for the Fed Funds rate to stick at 0% was nine months, ensuring a future disaster. They saw it. They claimed a move toward normalcy. It did not come. The Jackass called them liars with a message of deception to manage the USTreasury Bond and stock market. They did not hike rates, as their bluff was called. The USFed looked weak as a result. They began to shed thick layers of prestige. The USFed was backed into the corner in 2010, unwilling to use printed money to monetize USTBonds, giving birth to the second dreaded Quantitative Easing disease. They did anyway. So the ZIRP & QE twin scourges became part of the landscape of ruin. The USFed denied they would embark on QE. The Jackass called them liars with a message of deception. They did embark on QE, then QE Lite, then QE2, all replete with denials. The USFed has lost all its prestige, all its credibility, and all its respect for economic analysis. They are actually a central office for the Syndicate. They are the focal point of the failure of the central bank franchise model.
The unfolding drama on Capitol Hill with the USGovt changed the entire picture, thus putting a toxic icing atop a hemlock pie with arsenic candles giving off deadly gas. In private discussions, my full expectation was for no debt default, not even close, with the debt limit extended, the unfolding American Tragedy saga taking place on a global stage. My call was for a path of least resistance to be taken in consensus, but it would involve decision avoidance and political expedience, if not constitutional cowardice. The players in the USCongress, along with the leader himself, were exposed as pusillanimous, deceptive, polarized, destructive, wayfaring fools. They are as much fully equipped squires for both the banking industry and the military establishment. They avoided a debt disaster in default, but they did not avoid a debt rating downgrade. They have given the system license to debase the USDollar further, as Gold has responded in a breakout. The President is so clueless as to believe patent reform can make a difference. The bigger obstacles are poor education, minimal math & science requirements, tendency to play video games & text messages than studying (even inside school classrooms). Of course the debilitation is compounded by the US lacking a strong industrial base. So better patent protection would mean the US corporations could more effectively protect their offshore jobs, where the majority of jobs are located.
Worse, the players on the global debt debate stage exposed the USGovt as Greece times one hundred. The veil of ruin and arrogance has been lifted for all to see, the deep blemishes and skin cancer visible for all to see. The USGovt borrowing costs are near 0% for the same reason that the Greek borrowing costs are at 30%. BOTH NATION’S FINANCES ARE BROKEN. To cap it off, the tombstone on the US Republic will feature a Super Committee to recommend the most difficult of budget decisions. Such fanfare without proper label. The committee is a formalization of the Politburo process, a perverse interwoven political stranglehold fabric that takes the worst of the Weimar Republic and melds with the worst of the Fascist Business Model. Slowly forming is the Fascist Dictatorship that follows logically from nationalization of Fannie Mae and AIG, the home mortgage cesspool and the derivative black hole. The growth of czars will grow dangerously. Look in the near future for a wave of office shutdowns. The USGovt is required to pay its creditors. But it will act with negligence and shut down offices. See the Federal Aviation Agency, which must contend with 70,000 job cuts. It has lost its funding, while the USCongress went on its August vacation. An improvement would have come if the cut in budget came to the Transportation Security Admin (TSA) to alleviate the public from airport assaults that draws tears from old ladies, anger from defiant citizens, and consternation from most everybody. By the way, the planned date for the Super Committee to convene and make its recommendations is in the middle of the Presidential Primary season next summer. Expect a circus.
Moody’s Investors Service said Wednesday it has put the U.S. government’s top-notch credit rating on review for a possible downgrade because of the risk that Washington will not raise the federal debt ceiling in time to avoid a default.The firm added that even a brief failure of the government to pay its bills would mean that the United States’s Aaa rating “would likely no longer be appropriate.”
July 13 (Bloomberg) — U.S. Representative Barney Frank, a Massachusetts Democrat, talks about negotiations between lawmakers to raise the U.S. debt ceiling. Frank also discusses Federal Reserve Chairman Ben S. Bernanke’s testimony today before Congress. He speaks with Michael McKee on Bloomberg Television’s “Fast Forward.” (Source: Bloomberg)
Budget, debt ceiling glossaryA cheat sheet for understanding the debateThe announcement comes after Standard & Poor’s, another of the major credit rating agencies, has said that it would dramatically downgrade the U.S. government’s credit rating if payments were missed.
The U.S. has long been able to borrow money cheaply because global investors believe the government can be counted on to repay its debts. If credit rating agencies downgrade the U.S. and investors lose their faith in the creditworthiness of the government, the cost of borrowing money — in other words, the interest rate — could rise.The Treasury Department has said that on Aug. 2, it will run out of legal tools to meet the government’s financial obligations in the absence of an agreement to raise the $14.3 trillion legal limit on how much debt the government can maintain.The Moody’s review is prompted by “the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes,” an announcement from the firm said Wednesday. “Moody’s considers the probability of a default on interest payments to be low but no longer to be de minimis.”
It added that an actual default, or failure by the federal government to pay its bills, “would fundamentally alter Moody’s assessment of the timeliness of future payments.”
In early June, Moody’s had said it would likely review the federal government’s credit rating in mid-July if there were no “meaningful progress” in negotiations over raising the debt limit. That review is now happening.
Moody’s also has placed on review several companies that enjoy implicit backing of the federal government, most notably the mortgage finance giants Fannie Mae and Freddie Mac.
A senior Treasury Department official pointed to the Moody’s announcement as evidence that Congress needs to act to raise the debt ceiling.
“Moody’s assessment is a timely reminder of the need for Congress to move quickly to avoid defaulting on the country’s obligations and agree upon a substantial deficit reduction package,” said Jeffrey A. Goldstein, the Treasury undersecretary for domestic finance, in a statement.
Martin D. Weiss Ph.D. | Monday, June 27, 2011 at 7:30 am
Do you believe what government officials and experts are saying about the debt crisis?
If so, you’re taking your financial life into your hands.
Just consider how many times they’ve been wrong, issued deliberately misleading statements, or simply lied:
In 2007, they swore on a stack of Bibles that the debt crisis was limited to subprime mortgages.
But the crisis promptly spread to all kinds of mortgages, ripping through giant mortgage lenders like Countrywide, Fannie Mae, and Freddie Mac.
In 2008, they admitted it had spread, but swore that it was strictly contained to the housing and mortgage sector.
But in a few short months, it had enveloped commercial paper, money markets, and nearly all of Wall Street. Nearly every one of America’s largest banks either failed or came within a hair of insolvency.
In late 2009, they rescued the bankrupt banks and mortgage lenders using the $700 billion in emergency capital approved under the Trouble Asset Relief Program (TARP). Then, they ran deliberately lenient “stress tests” on the biggest banks to “prove” to the public that the emergency had passed.
By: Jim Willie CB
With the advent, then the continuation of the Quantitative Easing exercise in hyper-inflation and capital destruction, the US Federal Reserve has perhaps taken its deeply damaged reputation as a central banker and decimated it into shreds. They have lost the respect of the world, more so outside the nation’s borders than inside. The financial sector and politicians seem unable to stop showing deep reverence for the post, even licking the Chairman’s boots whenever he appears before the USCongress. Recent hints of contempt in WashingtonDC are encouraging. He has not made a single correct forecast on major items. The USFed in short has lost control. See the rising bond yields, which torpedo the housing ship, badly listing as a derelict vessel. The USFed seems thoroughly content to rescue the big US banks, whose wretched condition cannot possibly be rectified, even if such a rescue results in global price inflation and revolts. The decision made after recognition that a recent QE chapter has failed is clearly to repeat it. When QE2 is exhausted or deemed a failure, expect QE3 at the doorstep. This behavior exhibits insanity. The February package of Hat Trick Letter reports includes a special report entitled “USFed as Agent of Destruction” that elaborates on the deep damage.
The USFed balance sheet reads like a Fannie Mae lookalike, with perhaps $1 trillion in negative value, if priced to market. No wonder they altered their rules for a major dump on the USDept Treasury. The next chapter should see a default in USGovt debt, as it spirals out of control, supported mainly by the monetization engines, the stuff of hyper-inflation. Meanwhile, back at the inflation farm, a widening array of economic mythology has sprung up, replete with nonsense and deep deceptions like shallow walls to defend the monetary press. The new myths extend from the standard Second Half Recovery dupe, the Jobless Recovery insult, the Green Shoots absurdity, and the Exit Strategy refrain that ushered in QE2. The inflation engineers must defend their craft, which has destroyed the USEconomy and rendered its banking system insolvent, as well as households. By the way, Ben aint no Atlas, holding up the world. He aint no Poseidon, controlling the oceans and all their liquidity. He sure aint pretty like Aprhodite neither, even though his bust might serve as a fine pin cushion. Hey! Don’t mention pins when standing near the USTreasury Bond bubble!
By Jim Willie CB / GoldenJackass.com
Since the early 1990 decade, the nation’s maestros have promulgated the notion that cheap money is a beneficial factor for the sustenance of wealth, for economic development, for the standard of living, for the robust industries, in general for the American society. Nothing could be further from the truth, but even today the reckless US economists from the Keynesian Camp and their controllers from Wall Street have convinced the multitudes that cheap money is a good thing. Cheap money comes with a deadly ultimate cost. The inept professor occupying the US Federal Reserve Chairman post has gone on record claiming the US banking sector has a secret weapon in the Printing Pre$$ that it can use with zero cost, in its electronic form. Nothing could be further from the truth. The Clinton & Rubin team began the distortion of the Consumer Price Index, ostensibly to reduce Social Security and USGovt pension benefits in cost of living raises. They wanted to cause a massive USTreasury Bond bull market, and succeeded in doing so. They wished also to bring down the USTreasury Bond yields. The infamous Fed Valuation Model dictated that as rates rose, stocks fell. So the scheme to manipulate the bond market began with the venerable craftsmen of rigged markets, ruined engines, and mega-fraud schemes. They taught from their high priest pulpits that cheap money was good for the financial markets. Nothing could be further from the truth.
The following is a sneak peak of Tanya Cariina Hsu’s chapter in the new book from Global Research, “The Global Economic Crisis: The Great Depression of the XXI Century.” Order now from Global Research.
“I sincerely believe… that banking establishments are more dangerous than standing armies.”–U.S. President Thomas Jefferson; Letter to John Taylor, May 1816
America is dying. It is self-destructing and bringing the rest of the world down with it.Often referred to as a sub-prime mortgage collapse, this obfuscates the real reason. By associating tangible useless failed mortgages, at least something ‘real’ can be blamed for the carnage. The banking industry renamed insurance betting guarantees as “credit default swaps” and risky gambling wagers were called “derivatives”. Financial managers and banking executives were selling the ultimate con to the entire world, akin to the snake-oil salesmen from the 18th century but this time in suits and ties. And by October 2008, it was a quadrillion-dollar (that’s 1 000 trillion dollar) industry that few could understand.[1] Propped up by false hope, America is now falling like a house of cards.
The Beginning of the End
It all began in the early part of the 20th century. In 1907, J.P. Morgan, a private New York banker, published a rumor that a competing unnamed large bank was about to fail. It was a false charge but customers nonetheless raced to their banks to withdraw their money, in case it was their bank. As they pulled out their funds, the banks lost their cash deposits and were forced to call in their loans. People therefore had to pay back their mortgages to fill the banks with income, going bankrupt in the process. The 1907 panic resulted in a crash that prompted the creation of the Federal Reserve, a private banking cartel with the veneer of an independent government organization. Effectively, it was a coup by elite bankers in order to control the industry.
by Jim Willie
Market Oracle
Some significant events are in progress, extremely important developments in the grand pathogenesis that reflects the deep decay and deterioration in the US financial structure. The most recent events pertaining to mortgage loans, home foreclosures, and disclosed fraud carry great potential to open extremely wide cracks in the American social order. Revealed systemic fraud is slowly coming into the open. Civil disobedience has already entered the arena of popular protest. However, the recent events surrounding illegal home foreclosure seizure of properties elevates the exposed fraud to a very clear high new level. This is a boil ready to break open, releasing financial puss.
By Ellen Brown
Global Research, October 3, 2010
webofdebt.com – 2010-10-02
“Maybe this is like shock therapy. Maybe this will actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody.” –Economist Karl E. Case, quoted in the New York Times
The hits are coming fast and furiously. Major Wall Street mortgage lenders could soon be falling like dominos – and looking again for handouts.
- On September 20th, Ally Financial Inc., which owns GMAC Mortgage, the nation’s 4th largest lender, halted evictions and resale of repossessed homes in 23 states. This was after a document processor for the company admitted that he had signed off on 10,000 pieces of foreclosure paperwork a month without reading them. The 23 states were all those where foreclosures must be approved by a court, including New York, New Jersey, Connecticut, Florida and Illinois.
- On September 24, Representatives Alan Grayson (D-FL), Barney Frank (D- MA) and Corrine Brown (D-FL) directed a letter to Fannie Mae questioning its use of “foreclosure mills,” which were described as “law firms representing lenders that specialize in speeding up the foreclose process, often without regard to process, substance or legal propriety.” The letter followed a report by the Florida attorney general’s office in August that it was investigating three law firms that had allegedly fabricated documents in thousands of cases to obtain final judgments of foreclosure.
- On September 24, California attorney general Jerry Brown asked GMAC to halt foreclosures in his state until the lender could prove it was complying with a law that prohibits lenders from taking steps to foreclose a home before making an effort to work with the borrower. California is a non-judicial foreclosure state, meaning foreclosures do not require the prior approval of a court.
- On September 28, JPMorgan Chase said it was halting 56,000 foreclosures because some of its employees might have improperly prepared the necessary documents. All of the suspensions were in the 23 states where foreclosures require court approval.
- On September 29, the Washington Post reported that a top federal bank regulator had directed seven of the nation’s largest lenders to review their foreclosure processes, after learning about widespread mishandling of homeowner evictions. Besides JPMorgan Chase, they included Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo. The Washington Post reported:
The paperwork problems range from potentially forged documents to bank employees who never read borrowers’ files before signing off on an eviction. . . .
This is a very important read…I can not stress that enough…A lot has been done to distract us from this problem but that has definately not made it go away…
~jude
“It is absurd that the United States has a central bank that is more accountable to the financial industry than it is to the public.”
“The Rally against Obamacare for the Banks”
Dean Baker, The Guardian, 9/23/09
“…Only liquidation of the biggest banks can enable a recovery, period!! Of course, the process is complicated, especially politically. Actually, it is more than political, since the big banks control the USGovt. The response reaction from gold & silver will give loud messages to systemic failure, as money is wasted, invested in failure, and directed to the elite troughs…
The major 100 banks in the US are almost without exception insolvent, and thus do not lend. Sure, they boast a positive book value, but only after given permission to use phony FASB accounting rules. They can declare their assets at any value they wish. In fact, on many debt securities, they actually declare unrealized losses as gains…The FDIC came out this week to announce the Q2 list of problem banks went from 775 in number to 829…The main thrust of the limp activity is monetary creation, banker welfare, absurd programs, and war spending…
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