Ask For an FBI/CIA Investigation

A criminal investigation into the ascendency of certain brokerage/bank institutions is merited by the emerging knowledge that the housing economic bubble was based on wholesale fraud made possible by well intentioned individuals who thought the poor should have a chance at home ownership.

If somebody cannot pay for a debt incurred then that individual should not be loaned money. Seems logical but the optimal outcome for this housing loan activity was only to be able to market the debt at an instant profit for the broker, not to ensure eventual repayment of the loan. Nobody gave a shit if the loans were repaid. These kinds of loans were then bundled together and sold as AAA rated ‘securities’ to investors looking for safe investments. Two more frauds added to the original appraisal fraud, liars at the loan company, loans with inconsistent payments, inflated housing prices, a triumvirate of developer, broker and lender all cooperating to drive housing prices up and sell more housing by enabling incompetent buyers. Who cashed out?

Yet the USA taxpayer is bailing out all these people who perpetuated and made money on this fraud. Why not just give the towns and states and retirement funds and private accounts their principals back? This would stimulate the economy by aiding distressed states. Stop the AIG, CITI etc. payouts. Let them sue for the money. Did they think the insurance on the debt they bought should bail them out of a bad investment? Or was the insurance on the CDOs (collateralized debt obligations) known to pay off due to the poor quality of the mortgages all this was based on? You and me been had. Why would the SEC allow mortgage derivatives they did not understand?

It’s time for an investigation and indictments in the private and public sector…..this public/private partnership did not benefit the taxpayers, who worry about medical costs while these frauds receive billions and more.

Why are all these contracts and ‘securities’ legally binding when it was all based on fraud? Who made the decision to cover this free enterprise bilking by going through the lenders and brokers doing the bilking? The people being bilked, the bilkees should have first shot at the bailout money, not the moneylenders. Let these institutions built up too big to fail on fraudulent schemes based on subprime loans go under. Work with the investors and forget propping up these people who caused the problem. This will get actual money in circulation instead of tying it up. Local lenders who also service the loans can loan to locals to buy homes. No more mortgage derivatives. Mortgage derivatives are like an exported disease and bailout money proves that it isn’t free enterprise either. Let’s separate the housing/loan market from the debt export scene. The purpose of housing is housing, not to be used as a gambling chip.

Free enterprise when profitable but socialized when taking bailout money. Private profit and bailout for losses. Good odds for somebody while the rest of us pay and pay and pay. This horseshit began under President Bush and is happily continuing under President Obama.