Foreclosuregate- The Banking Crisis that Most People Dont Understand
This could eventually pull down some of the big banks. The banks could end up with thousands of foreclosed homes they are unable to sell off because they cant legally establish who holds the title.
Coupled with the fact that they will have problems establishing ownership to foreclose on homes owing mortgage arrears,its going to be like a Christmas present for lawyers.
I wonder if there is going to be TARP2 to get them out of Jail again?
Get your money out of the banks and into silver or gold.
The mortgage company or bank owns the home from the beginning. They bought it from a developer or previous owner, and own it outright. The legal problem is whether the mortgage holder can find the title at all (lost in paperwork) or whether they have the right to foreclose.
The second most important problem is that the mortgage company paid a large amount of money to buy the house for you, but the house is now valued at much less than the bank spent. It is no wonder that people are walking away from their mortgages. It is not the banks fault either.
But it is not our fault either. We should not have to pay the banks for their losses. Nobody pays me for mine.
__________________
.
- Jim
"I am not young enough to know everything." - Oscar Wilde
The reality is that as millions of U.S. mortgages have been bunched together and traded around the globe at lightning speed, it has become increasingly unclear who actually has title to them and who actually has the right to foreclose on these properties.
That quote from the article pretty much sums up the problem. Basically the bank that made the loan has sold it along with a bunch of other loans to another bank. Then that bank could combine it with other loans and sell them to someone else and this just goes on and on. Till you get to the point of just who actually owns the title?
Now if the bank that ones sends their mortgage payment to no longer owns the title to their home and is just acting as a collecting service then if the person defaults on payments how can that bank foreclose on property that it no longer owns. Ah what tangled webs we make.
Stay tuned and don�t touch that dial as I think this is going to get way more interesting. I believe that this has the potential to turn our recession into a full blown depression.
It's a perfect storm. The housing crisis was caused by job losses. Job losses were caused by tax incentives and relaxed import tariffs for companies to send jobs out of country for 2 decades. Two wars are ending, but where are returning soldiers and contractors going to find jobs. People are tightening their grip on their money, even though a US bank certificate of deposit (safe investment) is only giving 0.3% return. Soon we will have to pay the banks to hold our money. Interest rates are very low, but there is still no borrowing. People are afraid to let go of their money. CEOs are still getting outrageous pay and benefits, regardless of how poor the company's earnings.
If we don't hurry and create new industries with new jobs, this economy will implode.
Interest rates are very low, but there is still no borrowing. People are afraid to let go of their money.
Thats the problem, people are hanging on to their money and the value of it is eroding ever faster day by day through inflation.
This chart tells you what the real cost of living is, not the official cost of living issued by the government which is the consumer price index (CPI), at 1.1%(far right on the chart). We are getting to the stage where the real size of inflation is about to break out and the government will be unable to defend its ludicrous inflation figures. This is not just happening in the US its happening to all Western nations.
If you havent done so yet I suggest you put your trust in Jesus Christ and start buying gold and silver.
Here is a chart of the Commodity Research Bureau Commodity Index. It is a basket of commodity futures products, such as food, grains, metals, energy (oil), currencies.
It is clearly on the rise. Currently, the rise is due to wheat, corn, soy, cotton. Poor crops in Russia, China, and Australia due to weather. Corn is on the rise due to ethanol production.
I'm not convinced that the US CPI is appropriate for measurement of inflation.
China is sick of buying us. They have been doing that for years and years now. Arabia has thumbed its nose at us also... after all they got crystal cities in the desert to build for the elite.
Seems the Federal reserve is looking at purchasing our debt... so the company that is printing the money and handing it out to everyone they deem worthy will now be purchasing our bonds and T bills, and those bonds and T bills are just an indirect way of handing out money for projects and social programs that are bust.
This is monoply at its most obsurd!
What happens if things implode?
What will this world look like?
Are you ready for that?
or are we just gonna keep printing and handing out money forever?
To hell with the debt on our grandkids backs. We'll just print more money for that too!
__________________
"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth." Marcus Aurelius
Geesh.... I went and purchased bunch of junk silver last Feb. Its up over 6 dollars an ounce right now. I think I paid around 17.50 for it, and now its 24.
That was faster and higher than I thought.
Wish I had purchased twice as much as I did now.
hindsight is 20 20..
I do hope when the time comes that it will maintain trade value
I have put my faith in gold and silver.
Its a last ditch resort to enduring just a little longer I guess.
I'm also investing in food storage and have done so over the past 3 years
I notice that food on those charts is going up up up too.
People around here are saying that a bushel of wheat is going to be worth more than a bucket of gold.
We are actually in the middle of building our house right now. Lumber prices were freakin us out last winter but all came down in a nick of time for constrution this spring... Just getting the roofing rafters and roof sheeting on this week... but I am not feeling so good about waiting on purchasing building supplies till next year.
Soon as we get the framing enclosed I want to fill it up with construction supplies while the price is still down. Windows get ordered next week.
Foreclosuregate- The Banking Crisis that Most People Dont Understand
Hybrid Mode
