For the last three years I have been researching and compiling historical information concerning who and what caused the destruction of the U.S. and freeworlds economy. which actually began in late 2007. It’s historical trail is now clear and very well publicized for those who care to take the time to read, how the major U.S. investment banks, the FED and BOTH parties of the U.S. Political system, banded together to tear down the protective laws put in place after the horrors of the Great Depression. Under the misguided cause of financial modernization and a lot of personal greed and corruption, the trusting U.S. +
citizens were sold out by people such as Senators Phil Gramm (Rep.), Richard Rubin (Dem), Larry Summers (Dem), Alan Greenspan (FED), President Bill Clinton (Dem) and the elected representatives who voted to replace the Glass-Steagal Act of 1933 with the Gramm, Leach, Bliley Act of 1999(GLB). This ill conceived and harmful legislation (now law of the land) essentially allowed banks to merge with non-banks and gamble away the public’s money, real estate and economic prosperity with the use of derivatives, both of which were banned since 1933. Derivatives come in several forms and are used for hedging a variety of purposes (betting for or against). In the housing securitization crisis, the derivative type which caused most of the problems was the Credit Default Swap (CDS). Soon after the passage of the Gramm Leach Bliley Act of 1999, the volume of CDS outstanding increased 100-fold from 1998 to 2008, with estimates of the debt covered by CDS contracts, as of November 2008, ranging from US$33 to $47 trillion. Total over-the-counter (OTC) derivative national value rose to $683 trillion by June 2008, of which about 8% were real estate related CDS. At the time of the housing bust in 2007-2008 the total real value of U.S. Mortgages was approximately $11 trillion. It’s easy to see how that much negative leverage caused the entire U.S. Consumer economy to collapse in just a few months.
Despite all the books, movies, blogs, newspaper articles about the lies, corruption and economic destruction subsequently caused by the banks gambling with Wall Street, too many people in U.S. and the world still do not fully understand or grasp the depth and civil liability of the banksters nefarious actions which are still taking place as I write this paragraph —THEY ARE STILL USING DERIVATIVES AND SWAPS and another financial crash will happen again in the near future unless the GLB is repealed and the banks are forced to divest non bank activities. People need to come to the understanding that the major banks and Wall Street investment bankers have been paying off politicians with massive political donations aggressively for the last 50-60 years. It seems to surprise people when tell them that our supposedly liberal, populist and free spending President Barack Obama has been in league with the banksters even before he was elected President. Start with a list of who were Barack Obamas ten largest corporate donors in 2008 and you will see a list of some of the biggest contributors of the economic collapse. Did it surprise you when President Obama selected Larry Summers as his chief economic advisor and gave Summers the right to decide who received TARP money and how much. Summers was one of three men who persuaded President Clinton to signed the Gramm, Leach, Bliley Act in 1999. Did it surprise you that President Obama named Eric Holder, Attorney General when Holder at that time was a partner of the law firm of Covington & Burling who incidentally was on retainer from MERS (Mortgage Electronic Registration Service), a corporation linked to most of the U.S. Illegal foreclosure fraud and robo-signing, and to this day Holder has shielded his buddies at MERS from any criminal liability resulting from their civil disobedience. The more you peel President Obama’s Presidential Onion, the more you find that Wall Street and the Banks who caused all of the unemployment, income losses, real estate losses and most of the foreclosures actually have been in control of Obama’s administration. How about Tim Geitner and his ties to Wall Street and Larry Summers? Oh, I could go on and on, but the real political fraud on the public is how President Obama holds himself out as the champion of the people, the helper of those poor unemployed or underemployed Americans who have burned through their savings, their retirement, their assets and either lost their homes, are fighting to keep their homes or are right on the edge.
Given all of Obama’s two faced, back stabbing treatment of Americans financially hurt by the bankers actions you would think that conservative Republicans would have a field day exposing Obama to his gullible liberal supporters for the liar and charlatan that he is and has been from the start, serving no one but his own expensive lifestyle and growing bank account. However, even though a strong middle of the road, righteous Republican party could easily destroy Obama in 2012 with a plan to hold the banks accountable for the economic collapse of 2008, the job and income losses, the student loan defaults and the foreclosures—–the Republicans steadfastly ignore all of these glaring advantages. First of all, the Republicans core of power for the last 50 years has been directly linked to Wall Street and the same Banks who are at the heart of the problem. Republicans would rather point fingers at the blacks and the poor who were given mortgages they really never qualified to get but the Democrats forced the banks to loan to them. Conservative Republican pundits such as Rush Limbaugh and Sean Hannity eloquently point to the Community Redevelopment Act of 1977 and the strong arm actions of Clintons Attorney General Janet Reno as the cause. Then there is also their argument against Democrats Barney Frank and the corruption of Fanny Mae and Freddie Mac. Truthfully, these are all very big negatives and the people connected with such fraud should be punished and held accountable, but exposing 20% of the problem doesn’t solve the crisis when you ignore the 80% of the real cause which was the greed and corruption of the Wall Street investment bankers in league with or major bankers while the FED looked the other way. In truth, these banks gladly gave anybody a mortgage in order to keep the huge profit machine of securitization running at full speed.
The media has also played a big role in protecting the banks and Wall Street fraudsters who caused the problem. The conservative media simply waters down and ignores news about foreclosures and how badly the banks have behaved. During a 6-12 month period spanning the summer of 2009 and the winter of 2010 when robo-signing fraud was being talked about all over the newspapers, conservative Newsmax was virtually silent about foreclosure and Fox News reporting was short, minimal and seldom. At the same time liberal Huffington Post, the Wall Street Journal, the New York Times and the Washington Post were publishing lengthy detailed news releases about the horrors and fraud committed by the robosigning attorneys for the banks. The robo-signing scandal was mainstream big news and it should have been the talk of the year for both liberal and conservative honest news reporting, but the conservative press, radio and TV stonewalled and ignored it like it never happened.
CIVIL AND CRIMINAL LIABILITY:
When the big banks and Wall Street caused housing bust began in 2007, the fraudulent activities of the securitization process were virtually unknown except to a few close sources and nobody was listening. Banks and their service companies forged millions of signatures on unsuspecting homeowners, most who lost jobs and income because of the economic collapse directly related to the housing bust. Like a school of sharks in a feeding frenzy, the banks foreclosed on millions of American homes and put many of them back on the market in the form of short sales which lowered the value of all real estate in America (including commercial real estate due to the negative economic impact housing created). In early 2012 a South Florida attorney Lynn Symoniack (herself in foreclosure) finally was able to get law enforcement and media attention to her research (beginning in 2008) and blew the whistle on the robo signers prompting law suits and nationwide fraud investigations, foreclosures in America came to a screeching halt while both sides regrouped. Although the foreclosure backlog was slightly reduced through modifications, the value of U.S. residential real estate in general continues to plummet downward. Do you think that the banks and investors who created and participated in causing the housing crash and U.S. Economy to collapse causing millions of innocent Americans to lose their jobs, income, life savings and even their homes should have the right to foreclose on the same people they damages? Do you think that citizens who were damaged should have the right to countersue their lenders and investors for fraud and damages? Perhaps I’m in the minority, but yes, I do think American citizens should be compensated for their losses from this housing crisis they did not create.