Insight: Losses loom for investors enmeshed in U.S. mortgage chaos

This is what happens when you “deregulate” financial institutions for ordinary folks. You are handing sharks a license to steal, and then issuing blanket pardons for those who steal huge amounts of money while locking up those who steal a loaf of bread.

Government “insurance” (“bailouts”) for large investors and large speculating “banks” have wrecked this country’s finances and sewn distrust of banks and “investment” houses that will last for generations. They have brought ruin to every generation in the country under 65. Congratulations! You have managed to convince me we live in the financial equivalent of Somalia. This is a failed State.

If you invest in something called a ‘mortgage bond,’ you deserve to lose money. And I’ll sell you some auto loan inverse puts.

Bank of America should have it’s corporate status stripped, it’s assets sold at auction with the cash set aside for claimants and it’s executives jailed and/or fined in to poverty. They do not deserve to stay in business. The stench they have brought to the financial industry will be with us for a generation. The only solution is dissolution.

Deregulation, outsourcing, and ultimatley negligence and mismanagement by bankers seem to be the causes de jure. But it goes beyond mismanagement or negligence, this is predetermined malfeasance on a mega grand scale by the bankers to make them appear like the worst bumblers of the past 100 years. They know exactly what they are doing and it is purposeful with the intent they get their money (fees) no matter what. Time the DOJ, SEC, FBI, WB, IMF, and everybody else just start the indictments rolling on these notorious mobster bankers. The American people are tired of being played like patsies while the bankers, lobbyists, rob us blind every which way but Sunday.

“It’s not fraud, just lazy-ass bureaucrats!”

The interesting part of this article is that it indicates that detailed data regarding every single loan is available to investors, contrary to what the Wall Street Casinos with their toxic mortgage-backed financial derivatives have been claiming for many years. This implies that the borrower ratings are available too… The extent of lying is egregious.

Keep in mind that the largest mortgage loan originator and servicer, bigger than the rest put together, was Countrywide and now Bank of America. There is no excuse for all this sloppiness since the IT folks have the ability to track all of this data down to a gnat’s ass. So, the delays and “errors” must be deliberate.

The truth is finally seeping out. And, our buddy Timmy Geithner, threw Merrill Lynch and Countrywide @ Bank of America!

Fraud, fraud and more fraud and the DOJ has brought criminal charges against nobody even with overwhelming evidence and plenty of whistleblowers. The statute of limitations is running out. The only people being charged with crimes are borrowers, most of whom were snookered by Countrywide brokers, many of whom belong in jail.

See? If we leave corporations alone to make money, they’ll naturally do the right thing! What do we need government oversights, regulations and bureaucracies for? It’s just slowing the economy down, putting undue difficulties on the job creators! Leave those poor bankers alone to do what they know how to do best; it’s good for the economy!

The US financial system has billions of dollars of losses in its funds, penalties and fees that inflate the losses, and litigation over losses that prevent the US financial sector from recovering. US banks remain unwilling to lend because they know that they have massive hidden losses. Their refusal to lend prevents them from making profits that could pay off the losses, fees, and penalties. Without a truly functioning financial system, US economic recovery will remain slow.