Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Some of us here have been explaining ms fraud will create a domino effect that harms the U.S. economy and creates a ripple effect.

Depending on course of action ms fraud is quite likely to trigger a worldwide global collapse and WWIII. U.S. attacks on foreign investments here have two effects
the loss of investment value is obvious, but they upside the opportunity to control a larger share of the economy our business and property ownership is a threat to us and that is why it is critical to round these financial criminals up and bring them to justice.

The U.S. general public may be dumbfounded as to why other countries are angry with us for economic reasons on the issue lending and investment fraud. When
we permit out own country to be looted and American homes to be stolen in today's global economy our governments, lenders and investors policies are harming there nations as well.

So lets fix this problem here in the U.S. and not give other countries an excuse to hate us. Am I pointing a finger at the U.S. and blaming us first no because other counties have engaged in all sorts of economic warfare such as dumping, unfair government subsidies and financing, unfair monetary exchange rates, slave and prison labor, industrial espionage, etc.

Some U.S. politicians have represented  foreign interests in this economic war against the U.S. such as the Clinton's. Ranging joining an anti-us group in England marching down the street and burning the U.S. flag to meeting with a KGB front organization to form a partnership to harm U.S. interests. To Bill and Hillary Clinton's involvement with BCCI and setting up Asian and middle east money laundering in the U.S. To Bill Clinton's illegal sale of technology to intercepts and decrypt military communications and develop nuclear weapons and targeting. TO the push for NAFTA which created a massive loss of jobs for the U.S. and a Latin American invasion. The most directly relevant of all to MS fraud on a nationwide basis was the repeal of the Glass-Steagal act which was designed to prevent the the sub-prime crises and massive securities fraud. The Glass-Steagal act was designed to prevent a 29 style crash triggering a global economic crises.

So what is the answer to ms fraud since it's grave security risk it should be handed over to the military and they should launch an operation to round up these financial terrorists and get to the bottom of their attack on the U.S. people and incite Anti-U.S. sentiment and enemies.

Stock prices surge on new Fed plan

By MADLEN READ, AP Business Writer 1 hour, 3 minutes ago

NEW YORK - Wall Street shot higher Wednesday after the Federal Reserve announced a plan to work with other central banks to alleviate a global credit crisis. The Dow Jones industrials surged more than 120 points.

Investors upset by the Fed's quarter-point rate cut Tuesday were relieved by the central banks' commitment to help the economy weather the ongoing credit and mortgage crisis.

The Fed said it had agreed with the European Central Bank and the central banks of England, Canada and Switzerland to confront what it called elevated pressures in the credit markets. The Fed said it will create a temporary auction facility to make funds available to banks and set up lines of credit with the European and Swiss central banks for additional resources.

"I think it's certainly a strong measure to ease this credit crunch and I think it will encourage banks to use the discounted borrowing. If banks won't lend to each other, then at least the central banks will lend to them," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

In midmorning trading, the Dow, which plunged 294 points Tuesday, rose 128.35, or 0.96 percent, to 13,561.12. The blue chip index had risen as much as 271.75, or 2 percent, in early trading.

Broader stock indicators also soared. The Standard & Poor's 500 index gained 17.84, or 1.21 percent, to 1,495.49. The Nasdaq composite index added 38.39, or 1.45 percent, to 2,690.74.

Bond prices fell as investors returned to the stock market. The 10-year Treasury note's yield, which moves opposite the price, rose to 4.13 percent from 3.97 percent late Tuesday.

On Tuesday, stocks plummeted after the Fed lowered the target fed funds rate by a quarter point to 4.25 percent, disappointing investors who hoped for a more aggressive move to boost the economy during the seize-up in credit and rise in home foreclosures. Investors were also unnerved that the central bank did not implement a larger cut in the discount rate — the rate the Fed charges banks — and did not offer a more definite pledge to cut rates further.

"We've thought for some time the market was going to be volatile and trendless until the end of the year," said Brian Gendreau, investment strategist for ING Investment Management. "The Fed rate cut didn't do it to help us get through this weak patch in the economy. These new liquidity vehicles, and coordination with foreign central banks, is what investors were looking for."

Investors also digested new economic data. The Commerce Department reported that the U.S. trade deficit rose to the loftiest level in three months, driven by record-high oil prices and an influx of Chinese imports. Import prices surged.

In corporate news, SLM Corp., the student loan company known as Sallie Mae, slashed its 2008 earnings due to the costs of replacing an interim funding facility. The company also disclosed it failed to renegotiate a buyout with an investor group that balked several months ago at its original $25 billion cash offer.

Shares plunged $2.99, or 9.2 percent, to $29.99.

The dollar fell against the euro and pound but rose versus the yen. Gold prices rose.

Energy prices rose after the Energy Information Administration reported surprising declines in U.S. stockpiles of crude oil and distillate fuels, such as heating oil. Light, sweet crude for January delivery jumped $2.21 to $92.23 a barrel on the New York Mercantile Exchange.

The Russell 2000 index rose 12.50, or 1.63 percent, to 778.77.

Advancing issues led decliners by a 4 to 1 basis on the New York Stock Exchange, where volume came to 348.4 million shares.

Overseas, Japan's Nikkei stock average closed down 0.70 percent, while Hong Kong's Hang Seng index closed down 2.41 percent. Britain's FTSE 100 rose 0.37 percent, Germany's DAX index added 0.95 percent, and France's CAC-40 rose 0.60 percent.


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Global economy is exposed to America’s houses of cards

By Joseph E. Stiglitz

There are times when being proven right brings no pleasure. For several years I have argued that a housing bubble that had replaced the stock market bubble of the 1990s was supporting America’s economy. But no bubble can expand forever. With middle-class incomes in the United States stagnating, Americans could not afford ever more expensive homes.

Economists, as opposed to those who make their living gambling on stocks, make no claim to being able to predict when the day of reckoning will come, much less identifying the event that will bring down the house of cards. But the patterns are systematic, with consequences that unfold gradually, and painfully, over time.

There is a macro-story and a micro-story here. The macro-story is simple, but dramatic. Some, observing the crash of the sub-prime mortgage market, say, “Don’t worry, it is only a problem in the real estate sector.” But this overlooks the key role that the housing sector has played in the US economy, with direct investment in real estate and money taken out of houses through refinancing mortgages accounting for two-thirds to three-quarters of growth over the last six years.

Booming home prices gave Americans the confidence, and the financial wherewithal, to spend more than their income. America’s household savings rate was at levels not seen since the Depression, either negative or zero. With higher interest rates depressing housing prices, the game is over. As America moves to, say, a 4 percent savings rate (still small by normal standards), aggregate demand will weaken, and with it, the economy.

The micro-story is more dramatic. Record-low interest rates in 2001, 2002 and 2003 did not lead Americans to invest more - there was already excess capacity. Instead, easy money stimulated the economy by inducing households to refinance their mortgages, and to spend some of their capital.

It is one thing to borrow to make an investment, which strengthens balance sheets; it is another thing to borrow to finance a vacation or a consumption binge. But this is what Alan Greenspan encouraged Americans to do. When normal mortgages did not prime the pump enough, he encouraged them to take out variable-rate mortgages - at a time when interest rates had nowhere to go but up.

Predatory lenders went further, offering negative amortization loans, so the amount owed went up year after year. Now reality has hit: Newspapers report cases of borrowers whose mortgage payments exceed their entire income.

Globalisation implies that America’s mortgage problem has worldwide repercussions. America managed to pass off bad mortgages worth hundreds of billions of dollars to investors (including banks) around the world. They buried the bad mortgages in complicated instruments, buried them so deep that no one knew exactly how badly they were impaired, and no one could calculate how to re-price them quickly. In the face of such uncertainty, markets froze.

Those in financial markets who believe in free markets have temporarily abandoned their faith. While the US Treasury and the International Monetary Fund warned East Asian countries facing financial crises 10 years ago against the risks of bailouts and told them not to raise their interest rates, the US ignored its own lectures about moral hazard effects, bought up billions in mortgages, and lowered interest rates.

But lower short-term interest rates have led to higher medium-term rates, which are more relevant for the mortgage market. It may make sense for central banks (or Fannie Mae, America’s major government-sponsored mortgage company) to buy mortgage-backed securities in order to help provide market liquidity. But those from whom they buy them should provide a guarantee, so the public does not have to pay the price for their bad investment decisions. Equity owners in banks should not get a free ride.

It is the victims of predatory lenders who need government help. With mortgages amounting to 95 percent or more of the value of the house, debt restructuring will not be easy. What is required is to give individuals with excessive indebtedness an expedited way to a fresh start: for example, a special bankruptcy provision allowing them to recover, say, 75 percent of the equity they originally put into the house, with the lenders bearing the cost. There are many lessons for America, and the rest of the world; but among them is the need for greater financial sector regulation, especially better protection against predatory lending, and more transparency.

Joseph Stiglitz is a Nobel laureate in economics.

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