Crooked Cheap Mortgage System

Here comes the fall

American Scofflaw

A recession is for sure and a depression not so likely but not impossible. What’s doing all the damage is the utter and complete collapse of the crooked cheap mortgage system. This is based on outright swindles. It is not an accident. Huge hordes of shyster-like mortgage brokers deliberately let mortgages out to anybody who was above room temperature, even though they new for a certainty that when the banks and big lending agencies they sold them to, raised the rates, the mortgage holders would simply walk away.

The institutions also knew these were fake but they readily bundled them and jammed them into anyone with money. Now, the small fry crooks have fled the country and the big banks and lending people are screwed right into the walls of their offices. It’s been all over the papers so there is no point in rehashing this but all the major banks, and I mean all of them, are taking it in the shorts and a number of the most prestigious ones are right on the edge of total bankruptcy.

The government will cover all deposits up to $100,000 but not over that. And the hedge funds are another area about to cave in. They did a Ponzi with their suckers and when many try to cash out, they can’t because their ain’t no money, honey. They’ve been paying off the new customers with money from the old and once this one starts to cave in, there will be planes full of frantic former billionaires heading for Aruba or a safer Israel to join the mortgage brokers. This is a huge, terrible problem.Perhaps if an investor looks for security for their funds, they might consider a Russian or Irish bank.