Gary A's Comments

What Is Predatory Lending Anyway? Payday Lending and Ponzi Mortgage Loans Come From the Same Sources!

Thu, 24 May 2012 17:22:12 -0400

You are welcome, Lisa.

Risk Models Built On Sand

Wed, 23 May 2012 11:43:34 -0400

Sorry, to clarify, "the assumption that all the mortgages could not go south" was what I meant to say.

Risk Models Built On Sand

Wed, 23 May 2012 10:37:51 -0400

Hi Yasmine, interesting article. The premise in writing my ebooks and on BI is that the banks knew they could not nail down risk in the housing bubble and fraudulently adopted false assumptions. In other words, it wasn't a mistake, an error, bankers not knowing what they were doing. They knew exactly what they were doing which is why in Feb, 2004, Greenspan said you could get a "better deal" by taking out an adjustable mortgage.

The assumption that all the mortgages could go south ignored the Japanese meltdown, and later ignored risk models gone bad at Enron, Parmalot and Worldcom. These bankers, including Henry Paulson, the bankers at Basel 2 in 1998, and regulators Greenspan and Geithner should all be in jail. Yesterday.

The Derivatives Myth

Sun, 25 Mar 2012 11:17:21 -0400

Much of the market is a fraud, since governments bought insurance swaps protecting them against interest rate rises, only to see that the Fed had the banks' backs and lowered interest rates, thereby screwing the governments, including your county and state governments.

Just another sophisticated banker scam. I hope they all go to hell. Did these banks disclose that they knew the Fed would push down interest rates when selling these interest swaps?

America's Big Bank $244 Trillion Derivatives Market Exposed

Sun, 25 Mar 2012 11:10:16 -0400

I would like to see US, and state governments default on all these interest swaps because it was a scam for these banks to sell interest derivatives as a hedge against inflation when the banks knew the Fed would push interest rates down.

This is a massive scam against main street.

People Still Defend the TBTF banks and the Fed. So Let's Boycott Mortgages

Sun, 25 Mar 2012 10:54:04 -0400

I don't think we should physically fight the financial cabal, either. We just need to educate ourselves to be careful with borrowing, and we should boycott that which could hurt us. It is hard to trust the banks nowadays, and it is the behavior of the major banks that has brought us to this point. They have themselves to blame.

Land Of The Rising Debt-To-GDP Ratio

Thu, 23 Feb 2012 00:17:02 -0500

I think the difference between Greece and Japan is that CDS's have gone wild betting on Greek default. And if Greece defaults, the banks could be out a lot. However, I doubt if the banks will let it happen or even pay up if it happens. The Swaps regulator is owned by the banks. Bass should have known that before he bought the Swaps betting on default. Hahahahahaha.

Wrangling Over Income Inequality: A Comprehensive Review And Critique Of Robert Reich's Book 'Aftershock'

Mon, 23 Jan 2012 09:12:10 -0500

That is false, Bill. Even Barry Ritholtz agrees that the CRA was a small portion of the housing bubble, about 26 percent of subprime according to the Fed, and zero percent for jumbo and prime toxic loans.

Did the CRA give the housing bubble a kickstart? Perhaps. But without the shadow banks being involved it would not have been a serious bubble.

By far the most loans that juiced the bubble were made after 2003, and those were made by shadow banks, not the CRA who had pretty much pulled out by them. No, this was a basel 2 inspired scam, that used shadow banks like Ameriquest and Countrywide and laundered the bad loans through investment bank falsely rated CDO's.

Wrangling Over Income Inequality: A Comprehensive Review And Critique Of Robert Reich's Book 'Aftershock'

Mon, 23 Jan 2012 09:06:51 -0500

Try reading my ebook, Ponzi Housing Scheme 21st Century found on all major ebook stores. Or while you are at it, there is another smoking gun I just found. Read my article about how the easy money scam was imported from the UK and the City of London:

http://read.bi/yIGm0x

And don't pretend, Captain Ahab, that you don't understand this.

Wrangling Over Income Inequality: A Comprehensive Review And Critique Of Robert Reich's Book 'Aftershock'

Fri, 20 Jan 2012 10:14:05 -0500

Your statement has problems. First of all, the bankers started the housing bubble on purpose. Second, speculation in futures should be limited.

These are not accidental schemes to scam money from main street. They are done on purpose.

Fighting back against U.S. and EU threats of further sanctions, Iran announces a large 10-day naval exercise that will see its warships clogging the Persian Gulf from east of the Strait of Hormuz to the Gulf of Aden. Oil is perky, but back below the $100/barrel it flew through on the announcement. USO +0.4%.

Sat, 24 Dec 2011 19:50:31 -0500

Yeah, add to that the churn of speculation, like a hidden tax, and oil is bound to be more expensive than the market would affix to it. But totally free markets don't exist.

Does the World Economy Have a Debt Wish?

Sat, 24 Dec 2011 19:46:30 -0500

If I had to choose I would trust the police over a criminal.

Does the World Economy Have a Debt Wish?

Sun, 18 Dec 2011 10:10:18 -0500

FDR taught people not to trust bankers. That alone made him immensely valuable in an age where the casino was rampant.

Where Is the Foreclosure Mess Leading?

Sun, 30 Oct 2011 10:56:08 -0400

Because they piggybacked on the lead taken by the private MBS crowd. You know that.

Where Is the Foreclosure Mess Leading?

Sun, 30 Oct 2011 10:55:03 -0400

Wrong, because people were always kept from too much house when underwriting meant something. They were convinced that they would be locked out of the market and NAR and Lereah were telling people that DAILY. They were told they could refi later. You know that.

You Monday morning quarterbacks make me sick.

Where Is the Foreclosure Mess Leading?

Sun, 30 Oct 2011 10:53:10 -0400

You are jus trying to save the bankers from jail. If the bankers can diffuse blame, they stay out of jail.

Investing in stocks is a scam too.

Where Is the Foreclosure Mess Leading?

Sun, 30 Oct 2011 10:52:09 -0400

No, Charles, the investment banks and the shadow banking system blew a bigger bubble. Did you look at that chart showing the Fed flow of funds with the private MBS taking over in mid 2003?

Where Is the Foreclosure Mess Leading?

Sat, 29 Oct 2011 09:18:53 -0400

If the bubble was only involving Fannie and Freddie and the CRA, it would never have exploded into the Basel 2 scam that is was. 76 percent of the mortgages that were subprime were private MBS. Look at the chart here:

http://read.bi/sEnIbQ

This chart exposes the private MBS as being the real ponzi. And that was unregulated Charles.

Where Is the Foreclosure Mess Leading?

Sat, 29 Oct 2011 09:16:18 -0400

Caveat emptor applies to the condition of houses not the condition of loans. Again, your argument is not accurate.

And it is possible that all those guys who bought credit default swaps from the cartel to bet against Greek default were swindled too. Come on Tack, wake up.

Where Is the Foreclosure Mess Leading?

Sat, 29 Oct 2011 09:13:35 -0400

Most people who take out a mortgage are not businessmen. Tack, you are on the wrong side of this. The source of the fraud were the banks who suddenly decided to stop underwriting cause they could pass the crap loans off onto unsuspecting investors.

Screw Wall Street Tack. They are done, finished. But they want another bubble and this time they want government guarantees for all lending. They want Dodd-Frank repealed and easy money to flow again.

Where Is the Foreclosure Mess Leading?

Thu, 27 Oct 2011 10:45:53 -0400

Charles, while the CRA and ACORN co-kickstarted the bubble, it was already planned at Basel 2 in 1998, way before securitization and a year before the repeal of Glass Steagall. The private MBS based upon this Basel 2 fraud ramped up in mid 2003, corresponding to Geithner's appointment to NY Fed pres.

Gramm and Clinton were both in on this application of Basel 2 in America. Basel 2 wanted mispriced CDO's based upon a Gaussian formula developed by the JPM employee. That mispriced risk, along with off balance sheet banking allowed the banks to fund the shadow lending with SIVS funded by hedge funds. This got around capital requirements.

Now, the Republicans and a few Democrats want another bubble. And in my ebook Dirty Dirty Republicans I explain it Charles.

Where Is the Foreclosure Mess Leading?

Thu, 27 Oct 2011 10:41:53 -0400

Here is the deal, no one is saying the bank can't have the house back. Just more people need to walk away to teach these arrogant bankers, who want ANOTHER housing bubble, to teach them that easy money is not the way to go.

I wrote in my ebook, Dirty Dirty Republicans that Cantor and Ryan want a brand new predatory housing bubble ASAP. And the hedge funds are backing them.

Where Is the Foreclosure Mess Leading?

Thu, 27 Oct 2011 09:48:36 -0400

Bankers never let homeowners own too much house before. Tell you what Greenriver, how about letting your spouse beat on you mercilessly and you stay in the marriage contract. Pretty absurd notion? The same if you are swindled by a toxic mortgage.

Ponzi Money

Tue, 25 Oct 2011 12:55:33 -0400

Author says, "The rich" prefer to suppress the economy so their money is worth more, and everybody else wants to suppress the value of money so their economy is worth more."

Not sure about that. Inflation is a tax on all of us. Commodity inflation is very bad but the rich make oodles of money from it.

Where Is the Foreclosure Mess Leading?

Tue, 25 Oct 2011 12:50:11 -0400

It is the responsibility of banks and their underwriters to make sure you don't buy too much house. If the banks don't care why should the homeowner? Oh, the banks pawned the loans off in bogus CDO's. Then why isn't Henry Paulson in JAIL. Walk away from these filthy bankers.

Take that Hammer.

Where Is the Foreclosure Mess Leading?

Tue, 25 Oct 2011 12:48:32 -0400

Mortgages in the bubble were a scam. Legal Smegal. It doesn't matter. The easy money was offered in such quantity that it drove the prices of houses artificially high. That was by design.

If there is another bubble and many Republicans and a few Dems like Larry Summers want it, then it will be ok to walk away then as well.

Check with a financial advisor or attorney if you do walk away, but most people benefit by walking away. Moose, you are on the loose.

Greenriver, everyone should get the message. Good for you Summer Sea. A ponzi is a scam and no one has to stay in a contract that is based upon a scam.

Paul Volcker's Inflation Warning

Wed, 21 Sep 2011 00:30:50 -0400

Inflation will kill the consumer. The problem has been stagnating wages and higher costs of living. Inflation would just make that worse. How is that better?

It would be better to just hand people money from a window in the Fed.

Central Banking 101: What the Fed Can Do as ‘Lender of Last Resort’

Wed, 21 Sep 2011 00:26:01 -0400

If the government controlled lending, it would depend on the soundness of the underwriting to determine the lending practice of the banks. And the profits would help the government in the long run. But bankers hate being bypassed. Obama wants to bypass them.

Unemployment Figures Confirm Renewed Precious Metals Bull Market

Sat, 20 Aug 2011 03:41:07 -0400

It could go back up. Maybe we did get it right.

The Early August Market Swings Were Unprecedented and Unnatural

Sat, 20 Aug 2011 03:40:19 -0400

Read my comment below. It is true that debt is profit to bankers. And debt will double in the next 10 years, with a housing bubble by the Republicans as they seek to repeal Dodd Frank. I write about it in the ebook, Dirty Dirty Republicans.