Kevin Lamson

Foreclosure Epidemic in Minneapolis: Who's Behind This Mess?

PUBLIC NOTICE CONCERNING LAWSUITS BEING COMMENCED UNDER THE NAME MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC. ("MERS")
April 10, 2009
MERS

Basic Corporate Information
· MERS is incorporated within the State of Delaware.
· MERS was first incorporated in Delaware in 1999.
· The total number of shares of common stock authorized by MERS’ articles of incorporation is 1,000.
· The total number of shares of MERS common stock actually issued is 1,000.
· MERS is a wholly owned subsidiary of MERSCorp, Inc.
· MERS’ principal place of business at 1595 Spring Hill Road, Suite 310, Vienna, Virginia 22182
· MERS’ national data center is located in Plano, Texas.
· MERS’ serves as a "nominee" of mortgages and deeds of trust recorded in all fifty states.
· Over 55 million loans have been registered on the MERS system.
· MERS’ federal tax identification number is "541927784".

The Nature of MERS’ Business
· MERS does not take applications for, underwrite or negotiate mortgage loans.
· MERS does not make or originate mortgage loans to consumers.
· MERS does not extend any credit to consumers.
· MERS has no role in the origination or original funding of the mortgages or deeds of trust for which it serves as "nominee".
· MERS does not service mortgage loans.
· MERS does not sell mortgage loans.
· MERS is not an investor who acquires mortgage loans on the secondary market.
· MERS does not ever receive or process mortgage applications.
· MERS is simply named as a nominee and its parent company MERS Corp Inc. maintains an electronic registry, tracks changes in the ownership of mortgage loans and servicing rights related thereto.
· MERS© System is not a vehicle for creating or transferring beneficial interests in mortgage loans.
· MERS is not named as a beneficiary of the alleged promissory note.

Ownership of Promissory Notes or Mortgage Indebtedness
· MERS is never the owner of the promissory note for which it seeks foreclosure.
· MERS has no legal or beneficial interest in the promissory note underlying the security instrument for which it serves as "nominee".
· MERS has no legal or beneficial interest in the loan instrument underlying the security instrument for which it serves as "nominee"
· MERS has no legal or beneficial interest in the mortgage indebtedness underlying the security instrument for which it serves as "nominee".
· MERS has no interest at all in the promissory note evidencing the mortgage indebtedness.
· MERS is not a party to the alleged mortgage indebtedness underlying the security instrument for which it serves as "nominee".
· MERS has no financial or other interest in whether or not a mortgage loan is repaid.
· MERS is not the owner of the promissory note secured by the mortgage and has no rights to the payments made by the debtor on such promissory note.
· MERS does not make or acquire promissory notes or debt instruments of any nature and therefore cannot be said to be acquiring mortgage loans.
· MERS has no interest in the notes secured by mortgages or the mortgage servicing rights related thereto.
· MERS does not acquire any interest (legal or beneficial) in the loan instrument (i.e., the promissory note or other debt instrument).
· MERS has no rights whatsoever to any payments made on account of such mortgage loans, to any servicing rights related to such mortgage loans, or to any mortgaged properties securing such mortgage loans.
· The note owner appoints MERS to be its agent to only hold the mortgage lien interest, not to hold any interest in the note.
· MERS does not hold any interest (legal or beneficial) in the promissory notes that are secured by such mortgages or in any servicing rights associated with the mortgage loan.
· The debtor on the note owes no obligation to MERS and does not pay MERS on the note.

MERS’ Accounting of Mortgage Indebtedness / MERS Not At Risk
· MERS is not entitled to receive any of the payments associated with the alleged mortgage indebtedness.
· MERS is not entitled to receive any of the interest revenue associated with mortgage indebtedness for which it serves as "nominee".
· Interest revenue related to the mortgage indebtedness for which MERS serves as "nominee" is never reflected within MERS’ bookkeeping or accounting records nor does such interest influence MERS’ earnings.
· Mortgage indebtedness for which MERS serves as the serves as "nominee" is not reflected as an asset on MERS’ financial statements.
· Failure to collect the outstanding balance of a mortgage loan will not result in an accounting loss by MERS.
· When a foreclosure is completed, MERS never actually retains or enjoys the use of any of the proceeds from a sale of the foreclosed property, but rather would remit such proceeds to the true party at interest.
· MERS is not actually at risk as to the payment or nonpayment of the mortgages or deeds of trust for which it serves as "nominee".
· MERS has no pecuniary interest in the promissory notes or the mortgage indebtedness for which it serves as "nominee".
· MERS is not personally aggrieved by any alleged default of a promissory note for which it serves as "nominee".
· There exists no real controversy between MERS and any mortgagor alleged to be in default.
· MERS has never suffered any injury by arising out of any alleged default of a promissory note for which it serves as "nominee".

MERS’ Interest in the Mortgage Security Instrument
· MERS is named on the mortgage as nominee for the owner of the promissory note.
· MERS, in a nominee capacity for lenders, claims that it merely acquires legal title to the security instrument (i.e., the deed of trust or mortgage that secures the loan).
· MERS claims that it holds legal title to mortgages and deeds of trust as a nominee for the owner of the promissory note.
· MERS claims that it immobilizes the mortgage lien while transfers of the promissory notes and servicing rights continue to occur.
· The lender or investor continues to own and hold the promissory note, but under the MERS® System, the servicing entity only holds contractual servicing rights and MERS holds legal title to the mortgage as nominee for the benefit of the investor (or owner and holder of the note) and not for itself.
· MERS claims that one of the advantages of its paperless systems is that the mortgage lien becomes immobilized by MERS continuing to hold the mortgage lien when the note is sold from one investor to another via an endorsement and delivery of the note or the transfer of servicing rights from one MERS member to another MERS member via a purchase and sale agreement which is a non-recordable contract right.
· MERS claims that the legal title to the mortgage or deed of trust remains in MERS after such transfers and is tracked by MERS in its electronic registry.

Beneficial Interest in the Mortgage Indebtedness
· MERS claims to hold legal title to the mortgage for the benefit of the owner of the note.
· The beneficial interest in the mortgage (or person or entity whose interest is secured by the mortgage) runs to the owner and holder of the promissory note and/or servicing rights thereunder.
· MERS has no interest at all in the promissory note evidencing the mortgage loan.
· MERS does not acquire an interest in promissory notes or debt instruments of any nature.
· The beneficial interest in the mortgage (or the person or entity whose interest is secured by the mortgage) runs to the owner and holder of the promissory note (NOT MERS).


MERS As Holder
· MERS is never the holder of a promissory note in the ordinary course of business.
· MERS is not a custodian of promissory notes underlying the security instrument for which it serves as "nominee".
· MERS does not even maintain copies of promissory notes underlying the security instrument for which it serves as "nominee".
· Sometimes when an investor or servicer desires to foreclose, the servicer obtains the promissory note from the custodian holding the note on behalf of the mortgage investor and places that note in the hands of a servicer employee who has been "appointed" as an officer (vice president and assistant secretary) of MERS by corporate resolution. This technique is used by attorneys who purport to be representing MERS to feign standing by MERS to foreclose the mortgage by claiming that MERS is the holder of the promissory note. When in fact MERS, by its inventors design is never the holder of the promissory note.
· When a promissory note is placed in the hands of a servicer employee that employee will then assume the position as an MERS officer de jour and pretend that this transfer of custody of the note into the hands of this nominal officer (without any transfer of ownership or beneficial interest) renders MERS the holder.
· No consideration or compensation is exchanged between the owner of the promissory note and MERS in consideration of this transfer in custody. MERS is a bankruptcy remote corporation, and does not have any assets.
· Even when the promissory note is physically placed in the hands of the servicer’s employee who is, at best, a nominal MERS officer, MERS has no actual authority to control the foreclosure or the legal actions undertaken in its name.
· MERS will never willingly reveal the identity of the owner of the promissory note unless ordered to do so by the court. Nor will the law firms who pretend to represent MERS.
· MERS will never willingly reveal the identity of the prior holders of the promissory note unless ordered to do so by the court. Nor will the law firms who pretend to represent MERS.
· Since the transfer in custody of the promissory note is not for consideration, this transfer of custody is not reflected in any contemporaneous accounting records. MERS does not hold any loans nor pay any legal fees to foreclose any loans. MERS is essentially a shell.
· MERS is never a holder in due course when the transfer of custody occurs after default.
· MERS is never the holder when the promissory note is shown to be lost or stolen.
· So-called "certifying officers" of MERS have submitted thousands if not tens of thousands of affidavits in Court proceedings falsely claiming that MERS was the holder of the promissory note or that the note had been lost.
· An increasing number of court’s have learned of the fast and loose practice of various foreclosure attorneys preparing and the submitting affidavits signed by "certifying officers" of MERS wherein the statements contained in these affidavits are "disingenuous and/or outright misrepresentations"
· Court’s which have actually scrutinized the statements contained in these certifying officer’s affidavits have determined that these affidavit statements were not admissible because they were signed by people who had no personal knowledge of the facts contained in the affidavits. They were therefore not competent to testify to the alleged facts.
· The Hon. Linda B. Riegle, U.S. Bankrutpcy Judge, recently took issue with several affidavits that had been filed in support of several Motions for Relief from Stay by attorneys purporting to represent MERS. Judge Riegle refused to accept the affidavits of people claiming to be "Certifying Officers of MERS" which were submitted by attorneys purporting to represent MERS in an attempt to feign standing by pretending to be a holder of notes. Hawkins 2009 WL 901766 (Bkrtcy-D.Nev. March 31, 2009) The Court found that the affiant’s were not competant to testify concerning the underlying loans. "Ms. Mech’s bald assertion that she has "reviewed the loan file" is inadequate to show that she is personally knowledgeable of the facts".
· Similarly the Hon. Terry L. Meyers, U.S. Chief Bankruptcy Judge, recently rejected a post hearing submission of an affidavit sign by a lawyer purporting to represent MERS in motion to lift stay. Judge Meyers enumerated six (6) reasons that he was rejecting the affidavit which had been submitted in a last ditch attempt by legal counsel purporting to represent MERS to establish standing for MERS by claiming MERS was the holder of the underlying promissory note. Judge Meyers found the affidavit statements by counsel claiming to represent MERS was inadmissible because the lawyer as a witness was not competent to testify regarding various documents and a note the lawyer’s sworn statements "appeared to be based nit on the affiant’s (counsel) persoanl knowledge but on the assertions of someone else . . . . the proffer of this "new" note as the "original" note directly contradicts MERS’ prior representations that the Note attached to the Motion was true and correct and the operatice document in this matter"

MERS’ Role in Mortgage Servicing
· MERS does not service mortgage loans.
· MERS is not the owner of the servicing rights relating to the mortgage loan and MERS does not service loans.
· MERS does not collect mortgage payments.
· MERS does not hold escrow’s for taxes and insurance.
· MERS does not provide pr perform any servicing functions on mortgage loans, whatsoever.
· Those rights are typically held by the servicer of the loan, who may or may not also be the holder of the note.
MERS’ Rights To Control the Foreclosure
· MERS Corp. must all times comply with the instructions of the holder of the mortgage loan promissory notes.
· MERS Corp. only acts when directed to by its members and for the sole benefit of the owners and holders of the promissory notes secured by the mortgage instruments naming MERS as nominee owner.
· MERS Corp. members employ and pay the attorneys bringing foreclosure actions in MERS’ name.

MERS’ Access To or Control Over Records or Documents
· MERS has never maintained archival copies of any mortgage application for which it serves as "nominee".
· In its regular course of business, MERS as a corporation does not maintain physical possession or custody of promissory notes, deeds of trust or other mortgage security instruments on behalf of its principals.
· MERS as a corporation has no archive or repository of the promissory notes secured by deeds of trust or other mortgage security instruments for which it serves as nominee.
· MERS as a corporation is not a custodian of the promissory notes secured by deeds of trust or other mortgage security instruments for which it serves as nominee.
· MERS as a corporation has no archive or repository of the deeds of trust or other mortgage security instruments for which it serves as nominee.
· In its regular course of business, MERS as a corporation does not routinely receive or archive copies of the promissory notes secured by the mortgage security instruments for which it serves as nominee.
· In its regular course of business, MERS as a corporation does not routinely receive or archive copies of the mortgage security instruments for which it serves as nominee.
· Copies of the instruments attached to MERS’ petitions or complaints do not come from MERS’ corporate files or archives.
· In its regular course of business, MERS as a corporation does not input the promissory note or mortgage security instrument ownership registration data for new mortgages for which it serves as nominee, but rather the registration information for such mortgages are entered by the "member" mortgage lenders, investors and/or servicers originating, purchasing, and/or selling such mortgages or mortgage servicing rights.
· MERS does not maintain a central corporate archive of demands, notices, claims, appointments, releases, assignments, or other files, documents and/or communications relating to collections efforts undertaken by MERS officers appointed by corporate resolution and acting under its authority.
Management and Supervision
· In preparing affidavits and certifications, nominal officers of MERS, including Vice Presidents and Assistant Secretaries, making representations under MERS’ authority and on MERS’ behalf, are not primarily relying upon books of account, documents, records or files within MERS’ corporate supervision, custody or control.
· Officers of MERS preparing affidavits and certifications, including Vice Presidents and Assistant Secretaries, and otherwise making representations under MERS’ authority and on MERS’ behalf, as a matter of routine do not furnish copies of these affidavits or certifications to MERS for corporate retention or archival.
· Officers of MERS preparing affidavits and certifications, including Vice Presidents and Assistant Secretaries, and otherwise making representations under MERS’ authority and on MERS’ behalf are not working under the supervision or direction of senior MERS officers or employees, but rather are supervised by personnel employed by mortgage investors or mortgage servicers.

This should be a pretty good start for those of you faced with a foreclosure in which MERS is falsely asserting that it is the owner of the promissory note. Whether MERS is or was ever the holder is a FACT QUESTION which can be determined only by ascertain the chain of custody of the promissory note. When the promissory note is lost, missing or stolen, MERS is NOT the holder.

If you are served with any lawsuit wherein MERS is named as the Plaintiff make sure you raise the issue that the lawyer or law firm who had signed the complaint is not actually representing MERS. I sincerely hope that dissemination of the aforementioned information concerning MERS will help educate and inform all Americans, including lawyers, judges, legal scholars and perhaps even the mainstream media as to just what MERS is and more importantly what it is not. I am hoping that this information will dispel any misconceptions that MERS is a mortgage lender, a creditor or the holder of any promissory note. Accordingly MERS, or more correctly, lawyers claiming to represent MERS are commencing legal actions in MERS name when in fact MERS has no pecuniary interest in the underlying debt and therefore has absolutely no standing to bring any legal action which is based upon an indebtedness that is owed to someone other than MRS.

Lastly it appears that most suits that have been brought on behalf of MERS are lawyer initiated with no authorization, control or involvement from MERS. Legal fees for these MERS suits are never paid for by the MERS, but are paid either by the actual lender or creditor or the servicer of the loan who may of may not be holding the original promissory note. Foreclosure lawyers and law firms scattered around the country have been able initiate tens of thousands foreclosure actions, and eviction actions under the name of MERS because until recently most people thought MERS was a creditor, lender or servicer with standing to foreclose and officers who could testify as to the underlying loan. The many recent decisions dismissing MERS actions for lack of standing and court’s taking issue with affidavits submitted in conjunction with these pretended and unauthorized suits indicates a growing awareness of the MERS ruse.


REQUEST FOR INFORMATION:

If you have any information regarding recent legal actions commenced by MERS and/or Bank of New York or recent court decisions wherein MERS and/or Bank of New York were named as Plaintiff’s please email the information to me for review and inclusion in my ever growing dossier.

Kevin Lamson

kevin_lamson

Markets Plunge Following Geithner's Plan - And That's Not a Bad Thing

In my view the Stock Market fluctuations, up and/or down, has no correlation what so ever to the acutal underlying value of the stock of a particular company. Nor will the various "bailouts" or "stimulus" packages shore up the stock market prices long term. Government "bailouts" and "stimulus" packages have historically been proven not to work. What has been historically proven is the "bailout" and stimulus" funds end up in the coffers of a very few well heeled and well connected people or entities. This certainly appears to be the case with the 750 Billion Bank bailout bill that was bums rushed on our congress in late 2008 by the Treasury Secretary, Barney Frank and Former President Bush. Despite the fact that polls showed 70% of American's were opposed to that bailout.

Poole: The Fed is Printing Money

The Federal Reserve is printing money and using it to buy god knows what. Where is the transparency they keep talking about. It seems to me that the Fed is loading up on a bunch of paper, which is of questionable value. I'm sure Madoff would have loved to have unloaded some of his worthless paper on the Fed. The Fed is just taking the heat of the CEO's of the large banks and investment banks who created the mess. I don't think it is prudent for the Fed to be buying bad debt just to bail out Wall Street. This will come back to haunt U.S. Taxpayers.

Is the Second Great Depression Imminent?

The U.S. must pursue a new foreign relations agenda that makes both common and economic sense. We must replace lopsided so-called alliances with countries like Israel and Georgia that produce little of no oil, with real allies who have something the U.S. needs in exchange for U.S. friendship. By cozying up to countries like Israel and Georgia, which require payment for their friendship, the U.S. is prevented form forming strong bonds or alliances with such oil producing nations as .Iran, Iraq, Russia, Venzuela, etc. Even Kuwait, an oil producing plebiscite, which the U.S. "rescued" from the Iraq invasion 17 years ago is no longer on friendly terms with the U.S.

After the cold war was over in place of forming strong alliance with Russia, we chose to form alliances with Georgia, the Ukraine and Poland, and an assortment of other former states of the Soviet Union. How do these so-called alliances benefit the U.S. economically or in any other measurable way? They simply require payment of billions of dollars to prop up their weak economies and or governments. What direct benefit has the U.S. received in exchange for supporting Israel or Georgia. Now contrast any benefit received vs. the problems caused by siding with Israel and/or Georgia against such oil producing nations as Iran or Russia. I think it is high time for the U.S. government to re-evaluate and/or retool its global strategy from a big losing proposition to one where the U.S.A starts garnering the rewards it justly deserves.

We should not continue to subject the U.S. and its citizens to the scorn of the Muslim world because of our cozy and unexplainable relationship with Israel . We should not agitate the peace we have enjoyed with Russia since the end cold war by allying ourselves with Georgia over Russia. Let's hope our new administration will start thinking outside of the box and do so before it is to late. We have been operating under a losing game plan globally for a long time. Let's hope our new administration will start thinking outside of the box and do so before it is to late.

Exploring Madoff's Ponzi Scheme Will Unveil the Causes of This Global Monetary Crisis

Well written piece. However I do take issue with your lumping all banks with Ponzi scheme operators. Ponzi scheme by definition means a scheme whereby the schemer obtains money by promising huge returns on the money. After obtaining the funds, in place of actually investing the money as promised, the Ponzi schemers uses the money for other purposes which include financing unuausally expensive personal lifestyle, gambling and other losses, and acquiring expensive personal and real property, which gives the outward appearance of success. Because the Ponzi schemer has spent the money he was given to invest he no longer has the money or any assets he can access to repay the principal to the party who gave him the money. This is why he must continually lure new investors into his ever growing web of deceit.

Banks are set up as depositories for depostor's money. Most of the money that is desposited is then loaned to borrowers or invested in different types of rated securities. If there is a run on the bank the bank may not have the liquidity to immediately pay the depositors money. This off course does not mean that the bank has no money or assets as is usuaully the case in a Ponzi scheme.

As a result of the myriod of investment vehicles that have been "invented" in the last few years, many banks have invested despositor's money in such things as mortgage backed securities. Many of these so-called securites have turned out to be of questionable value. This off course means that the banks who invested in these securities are holding assets of questionable value. It may be that some of the executives of these banks have concealed the actual losses from these assets in order to ward off a run on the bank. This off course has the appearance of a Ponzi scheme. Perhaps the U.S. Goverment by bailing out these banks has actually allowed these banks to conceal their actual losses and illiquidity.

I think that many hedge funds and mutual funds could actually have been Ponzi schemes. Only time will tell. But where there is smoke fire usually folows.

Does Keynesian Spending Force Savers to Spend As Well?

Bail out who? Stimulate who or what? Borrowing and spending like a drunken sailor is what got us in the spot we find ourselves. As much as the Wall Street and Beltway crowd crow about this and that, the reality is that we can not borrow or spend ourselves out of this mess. We have a government that has run up a six billion dollar tab ($10,000,000,000,000) by among other things, gallivanting around the globe like an overweight jet setter financing invasions and occupations, dolling out billions to other countries or their leaders to presumably garner their favor. U.S. foreign policy = giving billions of dollars that we don't have so that the leaders of those countries will LIKE US! We don't have the financial means to pay our own bills much less be giving money away to countries like Saudi Arabia and Israel. So we borrow it.

The question each American must ask his or herself is how much unsecured credit will we allow our government to borrow on our behalf to continue to fund all of these unnecessary excesses. It is financial madness. Let's stop the madness. We must demand that our government live within a budget, not commit to things which we can ill afford and this so-called foreign policy where we give billions of dollars away to their countries. Both Americans and our government must learn to live within our respective means. Force the millionaires and billionaires who live in Manhattan to fall face first back to reality land. I mean really 200 million dollar condominiums? $1,000.00 martinis. Why the hell are we bailing these fat cats out? They along with our politicians are the primary reason we find ourselves in this current financial debacle. They have been ripping us off for years and enjoying the lavish benefits of this financial fraud.

Bail out who? Stimulate who or what? Borrowing and spending like a drunken sailor is what got us in the spot we find ourselves. As much as the Wall Street and Beltway crowd crow about this and that, the reality is that we can not borrow or spend ourselves out of this mess. Our government has run up a ten billion dollar tab ($10,000,000,000,000) by among other things, gallivanting around the globe like an aging and overweight jet setter financing invasions and occupations, and dolling out billions to other countries or their respective leaders to presumably garner their favor. U.S. foreign policy = giving billions of dollars that we don't have so that the leaders of those countries will LIKE US! We don't have the financial means to pay our own bills much less be giving money away to countries like Saudi Arabia and Israel. So we borrow it.

The question each American must ask his or herself is how much more will we allow our government to borrow on our behalf to continue to fund all of these unnecessary excesses. It is financial madness. Let's stop the madness. We must demand that our government live within a budget, not commit to things which we can ill afford and this so-called foreign policy where we give billions of dollars away to their countries. Both Americans and our government must learn to live within our respective means.

Let's force the millionaires and billionaires who live in Manhattan and American War Profiteers fall head first back to reality land. Why the hell are we bailing these fat cats out? Why are we financing two "wars" that we simply can not afford. They, along with our politicians, are the primary reason we find ourselves in this financial debacle. They have been ripping us off for years and scaring us into undertaking unnecessary military actions. The disproportionate wealth between these scum bag fat cats and the average American can be seen everywhere. I mean really, 200 million dollar Condominiums, Private Jets, Helicopters, Multiple Homes, $1,000.00 Martinis. Lavish lifestyles and ostentatious living on a level never before seen in this or any other country. Most of which appears to have been funded by excessive salaries, bonuses, free stock and funds by falsely reporting profits from financial markets that were powered by loose credit and from profits garnered from oil and military madness.

While the financial "wizards" of Wall Street and War profiteers live like Sultans, it was recently reported that many American's (48%) live pay check to pay check and are forced to borrow money through credit card debt at usurious (18% - 30%) interest rates. Remember there was a time when Americans were protected from loan sharks by usury laws in this country. Then the banks and credit card companies convinced or paid off our politicians to pass a law exempting the banks from the from usury laws. Apparently the gentleman on Wall Street were envious of the interest rates the Fellas on Mulberry Street were realizing on their "loans".

Now we are forced by our politician's vote to bail out these unscrupulous boondogglers and the institutions they run. When Sen. Barney Frank and President Bush are on the same page, you know something is amiss. I wonder if treasury secretary Pauslon would have come up with his 700 billion dollar emergency plan a few days earlier if he was the former C.E.O. and Chairman of Lehman Bros. Funny how his plan materialized when Goldman Sachs was starting to show signs of insovlency. Perhaps Mr. Paulson thought that preserving his legacy and his $560 miilion in Goldman Sachs warranted a "bailout" plan.

Greenspan, Cox: Not Too Big to Flail

Amazing how Goldman Sachs has morphed from Stock Broker, to Investment Bank and then used the meltdown mess to get approval to morph into a full fledged chartered National Bank just in time for the Federal Reserve/Treasury Bailout of National Banks. It is simply outragous that our Governement is participating in this Wall Street game of three card monte. Wake up America!!!

The Fed and the Banking System

For anyone who doesn't understand what the Federal Reserve has done let me try to simplify it. The Large Banks and Investment Banks were all insolvent. (Liabilities exceeded assets) Rather then going simply going bankrupt the Federal Reserve decided to loan these insolvent Banks twice as much money as they had already loaned to them. They claimed that this was needed to fix the "credit squeeze" so banks would start loaning money to other banks. In other words the insolvent banks were not lending money to other banks. So the Federal Reserve agreed to flood these insolvent institutions with more money. They have now loaned more than twice as much money to Large Banks, and former Investment Banks than they owed seven (7) weeks ago. But many of these banks are simply hoarding these new funds, and still not lending to other banks.

Why not loan money to Americans who are upside down on their home loans. Why not loan them twice as much as they already owe. This would certianly spike the economy!

This whole "bailout" is nothing more than a ruse to cover up the fact that the Federal Reserve and our entire banking system is for all intents and purposes bankrupt. Unfortunately the cost of this ruse will be laid upon the American taxpayer. Wall Street bankers will continue to mismanage their banks as long as they continue to get paid millions in salaries and wages and are not taken to task for bankrupting these institutions. America wake up!

Bad Mortgages Are Only the Beginning

The "easy credit" but "high interest rate" culture has permeated every facet of American's society. Easy credit has allowed people to buy things they did not need nor afford. This buy now pay later mentality has allowed Americans to over indulge in every aspect of their lives. Buying big expensive gas guzzling cars ("SUVS"), larger and larger homes ("McMansions"), fattening themselves on high calorie restaurant meals and sending their children to expensive over priced schools that leaves many families or their children owing tens of thousands of dollars on student loans.

The demand for this easy credit is what had allowed credit card companies to charge usurious interest rates which in turn has created a demand for expensive cars, homes, food and "consumer goods". It seems that American's insatiable gluttony for buying "stuff" on credit has now come home to roost.

Our government is the gluttonous uncle who borrows and spends like a drunken sailor. Borrowing billions to fund invasions and wars that we can ill afford and giving billions of dollars to other countries or their leaders in hopes of endearing them to the U.S. It’s mad!.

What happen to the concept of living within ones means. Having a budget and living within that budget. Earning a living, paying your bills and then saving. We American's should stop this easy credit insanity. We should also stop our drunken uncle (U.S. Government) from spending like a mad man and live within a budget.

The U.S. Banking System is Effectively Insolvent

There was a time in this country where bank shareholders were responsible to bank creditor/depositors if the bank became insolvent. Sadly now over paid executives and directors can bankrupt a bank and the FDIC is responsible to depositors for deposits up to $100,000. This was done to replace shareholders liability to depositors. Now some politicians are be seduced into plan that involve guaranteeing money market funds and amounts on deposit over $100,000. This is simply outrageous.

Don’t Blame Wall Street - At Least Not Completely

If "Wall Street is Bankrupt" then why are the same executives and directors still running the companies. When companies go bankrupt their management is ousted and replaced by trustees. Whose duty is to operate or liquidate the enterprise for the benefit of its creditors. For soem reason Hank Paulson's 4 page "bailout" plan left his old Wall Street cronies in charge of their respective companies as well as the shareholders keeping their interests intact. I'd like this plan if I held $500 Million in Goldman Sachs shares as Hank Paulson reportedly holds.
I would like to personally like to applaud each and every American who called or emailed their congressman or women and expressed their outrage with Hank Paulson's 700 Billion bailout plan and/or the various ad hoc amendments that were made by Barney Frank and Company. This so-called 700 Billion Bailout did not address the root causes that resulted in our economy taking on water and what is needed to fix those problems.
The only people who were touting this 700 Billion bailout appeared to be Wall Street and its televised shills and of course our always misinformed President, Mr. Bush. Americans have responded to this fear mongering by Wall Street and its friends in the media by saying NO to this bums rush bailout. Now we will see what kind of crazy new claims Wall Street will make for "imediate" releif to socialize its loses on the American taxpayer. Remember a good recession seems to weed out the dead wood. Maybe its time for a wholsale change of who is running Wall Street and this country.

Bailouts Are Painful - And Should Be

Bail out what? Wall Street and Washington fail to specifically state what it is that Hank Paulson wants to "bailout" or why it needs bailing. A boat usually needs bailing when their is a leak in the boat. However in my view it is better to determine where the leak is in the boat, stop the leak and then bail. Otherwise you will have to continually bail the water from the boat. So first of all we should identify where is the leak in Wall Street, how do we fix it, fix it and then bail. In my view this "bailout" plan is premature and is a bums rush on congress and the American public. They use fear of “financial failure” as the catalyst for a “quick” decision.
Bush said that "failing to approve it would risk DIRE consequences for the economy and most Americans". Notice Bush did not elaborate what the DIRE consequences will be.
Bush went on to say "Without IMMEDIATE action by Congress, America could slip into a financial panic, and a DISTRESSING SCENARIO would unfold," Seems to me our President is the one who is screaming fire by publicly predicting American's will "panic". The distressing scenario is the ultra rich Wall Street and Washington gang stands to lose lots money by the stock market continuing to contract to its proper place.
Bush said as he worked to resurrect the unpopular bailout package. "Our ENTIRE economy is in DANGER." In danger of what? I mean Wall Street has already flipped trillions of dollars of bad paper on the global market. Why does this create "danger" for the American economy? Someone other than Uncle Sam will simply buy this distressed debt at a discount from its current holders. The selling party will take a loss and that will be that. Where’s the danger to the American Economy? How will using the public trough to buy distressed debt prevent the financial Armageddon that is now being prophesied by our incredibly smart President?
Seems to me that Wall Street and Washington have once again decided to use fear to sell us another line of B.S. in the same way they fooled many people into buying the WMD story or Y2K. Americans should see through this B.S. and be outraged with our politicians who pass the “bailout bill”.

Reasons to Cheer Lehman’s Demise

I completely agree with the contributor who suggested that politicians and regulators were bought off. I mean come on getting an executive postion with Fannie Mae and Feddie Mac was completely political. Look at the millions Johnson and Raines pulled out of Fannie Mae and Freddie Mac during their "Reigns" over those fiefdoms. Its been reported that Mr. Johnson used Fannie Mae money and spread it around the Beltway like it was his own. He even set up a Fannie Mae foundation to dole out millions to his favorite causes.

Contrary to widespread beleif the U.S. Federal Reserve did take action piror to the crash of 1929 and after the crash. First lowering interest rates to spur the economy then rasing them to sow the economy. These steps resulted in the incredible, for that time,

First it was the end of war-related inflation and booming exports for war reparations, next artificially low interest rates in 1925 and 1927 and booming exports due to a reduced value of the Dollar vs. the Pound. There were major tax reductions instituted by the Republicans under Hoover and finally in June of 1929 an international accord was struck with the Germans (albeit short-lived) over the financing of war reparations, a major issue of the decade.

By Monday, October 28, 1929 the Dow had fallen 20% to 300. It fell 40 more points that day and another 30 on Tuesday (Tragic Tuesday) to reach a temporary bottom at 230.07. It was down 40% from the peak 56 days earlier.

The head of the New York Federal Reserve at the time of the crash, George Harrison, bravely stepped in to provide tremendous amounts of credit to the banking system. This action prevented immediate bank failures and bankruptcies and a total collapse. The market recovered a good bit of ground but began to fall again before year-end. By mid-1930 this liberal credit policy was to be reversed affecting a money supply crisis. Once again the government intervened, but could not stop the bank from failing because people has lost confidence a system which had obviously failed.

It is generally agreed today that the "money supply", which refers to the total amount of money circulating in the economy, should grow at the same rate that the economy grows. Any faster is inflationary and any slower is deflationary. When a bank fails the Fed has the option to either bailout that bank by lending it money or to lend more money to other banks to fill in the shrinkage in the money supply. Otherwise the amount of money in circulation shrinks and the economy limps along like a person parched for water.

I think the Fed has continued to keep the money supply tap open. It just isn't going into some of the Wall Street firms who have betrayed the public's confidence through dishonest and greed driven business practices.

Reasons to Cheer Lehman’s Demise

READ EM AND WEEP AND LET THE CHIPS FALL WHERE THEY LAY!

In my opinion it is high time that these Wall Street executives and their respective firms are exposed for what THEY, not the "shorts", have done to their companies and American finance by playing it fast and loose with the TRUTH. The truth about how much bad debt they flipped into the domestic and international markets and the truth about how much there executives reaped by reporting false profits tied to this mortgage loan flipping scheme. Flooding the markets with phony paper. The American public should be outraged at how our government regulators, politicians and the Bush administration allowed Wall Street to get away with this international fleecing of investors. It is an international embarrassment that America’s bankers ripped off the world in the new "global economy". But, we must now "let the cards read and the chips fall where they may". We need to turn out these crooks, their companies and their disastrous scheme in order in order to regain trust and return international confidence in the American business and banking practices. Not continue to hold our cards and pretend we have a winning hand .

Lehman Files For Bankruptcy

READ EM AND WEEP AND LET THE CHIPS FALL WHERE THEY LAY!

In my opinion it is high time that these Wall Street executives and their respective firms are exposed for what THEY, not the "shorts", have done to their companies and American finance by playing it fast and loose with the TRUTH. The truth about how much bad debt they flipped into the domestic and international markets and the truth about how much there executives reaped by reporting false profits tied to this mortgage loan flipping scheme. Flooding the markets with phony paper. The American public should be outraged at how our government regulators, politicians and the Bush administration allowed Wall Street to get away with this international fleecing of investors. It is an international embarrassment that America’s bankers ripped off the world in the new "global economy". But, we must now "let the cards read and the chips fall where they may". We need to turn out these crooks, their companies and their disastrous scheme in order in order to regain trust and return international confidence in the American business and banking practices. Not continue to hold our cards and pretend we have a winning hand .