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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Bush warns of long recession without rescue plan

2 minutes ago

WASHINGTON - President Bush on Wednesday warned Americans and lawmakers reluctant to pass a $700 billion financial rescue plan that failing to act fast risks wiping out retirement savings, rising foreclosures, lost jobs, closed businesses and even "a long and painful recession."

His dire warning came not long after the president issued extraordinary invitations to presidential candidates Barack Obama and John McCain, one of whom will inherit the mess in four months, as well as key congressional leaders to a White House meeting on Thursday to work on a compromise.

"Without immediate action by Congress, American could slip into a financial panic and a distressing scenario would unfold," Bush said in a 12-minute prime-time address from the White House East Room that he hoped would help rescue his tough-sell bailout package.

Bush explicitly endorsed several of the changes that have been demanded in recent days from the right and left. But he warned that he would draw the line at regulations he determined would hamper economic growth.

"It should be enacted as soon as possible," the president said.

The bailout, which the Bush administration asked Congress last weekend to approve before it adjourns, is meeting with deep skepticism, especially from conservatives in Bush's own party who are revolting at the high price tag and unprecedented private-sector intervention. Though there is general agreement that something must be done to address the spiraling economic problems, the timing and even the size of the package remained in doubt and the administration has been forced to accept changes almost daily.

Seeking to explain himself to conservatives, Bush stressed he was reluctant to put taxpayer money on the line to help businesses that had made bad decisions and that the rescue is not aimed at saving individual companies. He tried to address some of the major complaints from Democrats by promising that CEOs of failed companies won't be rewarded.

"With the situation becoming more precarious by the day, I faced a choice: to step in with dramatic government action or to stand back and allow the irresponsible actions by some to undermine the financial security of all," Bush said.

Intensive, personal wheeling and dealing is not usually Bush's style as president, unlike some predecessors. He does not often call or meet with individual lawmakers to push a legislative priority.

But with the nation facing the biggest financial meltdown in decades, Bush took the unusual step of calling Democrat Obama personally about the meeting, said presidential spokeswoman Dana Perino. White House aides extended the invitations to Republican McCain and to GOP and Democratic leaders from Capitol Hill.

Obama spokesman Bill Burton said the senator would attend and "will continue to work in a bipartisan spirit and do whatever is necessary to come up with a final solution." Senior McCain advisers said McCain will attend, too. The plans of the other invitees were unknown, and the exact details of the meeting, which Perino said was aimed at making fast progress to stem the biggest financial meltdown in decades, were still being set.

In another move welcome at the White House, Obama and McCain issued a joint statement urging lawmakers — in dire terms — to act.

"Now is a time to come together Democrats and Republicans in a spirit of cooperation for the sake of the American people," it said. "The plan that has been submitted to Congress by the Bush administration is flawed, but the effort to protect the American economy must not fail."

The two candidates — bitterly fighting each other for the White House but coming together over this issue — said the situation offers a chance for politicians to prove Washington's worth.

"This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe," they said.

However, the Oval Office rivals were not putting politics aside entirely. McCain asked Obama to agree to delay their first debate, scheduled for Friday, to deal with the meltdown. Obama said the debate should go ahead.

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Like many of us here didn't know this was going to happen. 
Now the President see's, why was he and his administration so blind for so many years?  It wasn't because they did not know it was coming.  Tens of thousands of complaints, and hundreds of thousands of foreclosures later its a crisis.
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4 justice now
Gary, I second that!!!

If Bush has endorsed it, I have no doubt that it's wrong. Those who are currently doing their utmost to peddle this $700B+ pig are the very same people who planned and executed this entire fraud to begin with.

Having some level of sympathy for one who has gambled and lost is human. Asking honest and hard working families to bail them out of what was caused by their own greed and criminal behavior using tax dollars is at best insane and a crime no matter what the cost may be.

Not just no, But HELL NO! 

My Opinion.

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I just don`t understand why a bail out is even being considered.  What good will it do in the long run and how about the innocent people that have been hurt and are continuing to be will any of this help them?  I think about all of the people on this message board that have been fighting this mess and trying to expose it for will they ever be compensated for their time and effort  I am sure that some have had health problems and financial problems just to get this out in the open.

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Jane Doe
I waited for years while the FTC told me that they were investigating EMC.
I was dang excited when they made their charges.
but the 28 mil settlement says that they gave EMC/Bears Stearns a pass. A nod of the head. It's OK.
It's OK if you stole all those homes from those people & distroyed the very loan pools that are self distructing as we speak.
Now it seems to be OK if we bail them out. Bush wants this BAD. He wants his buddies to cary on, business as usual & to delay the crisis until AFTER he's out of office. Because if the problems/faud isn't fixed, the crisis WILL come. Worse than ever. this is just a bandaid over a gushing wound.

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ARM Teaser Freezer Plan Designed To Help Banks, Not the Market

So it was that Henry Paulson came up with an idea... the 'teaser freezer' plan. The ARM teaser freezer is being sold to the public as a way to protect homeowners. But it has another purpose, says a reporter from the San Francisco Gate, to help save the banks from their own bad judgment.

"The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates," says an article at SF Gate about the ARM teaser freezer plan. "The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

"And, to be sure, fraud is everywhere. It's in the loan application documents, and it's in the appraisals. There are e-mails and memos floating around showing that many people in banks, investment banks and appraisal companies - all the way up to senior management - knew about it.

"The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC.

"The problem isn't just subprime loans. It is the entire mortgage market. As home prices fall, defaults will rise sharply - period. And so will the patience of mortgage bondholders. Different classes of mortgage bonds from various risk pools are owned by different central banks, funds, pensions and investors all over the world. Even your pension or 401(k) might have some of these bonds in it.

"Ultimately, the people in these secret Paulson meetings were probably less worried about saving the mortgage market than with saving themselves. Some might be looking at prison time. As chief of Goldman Sachs, Paulson was involved, to degrees as yet unrevealed, in the mortgage securitization process during the halcyon days of mortgage fraud from 2004 to 2006.

"Paulson became the U.S. Treasury Secretary on July 10, 2006, after the extent of the debacle was coming into focus for those in the know. Goldman Sachs achieved recent accolades in the markets for having bet heavily against the housing market, while Citigroup, Morgan Stanley, Bear Sterns, Merrill Lynch and others got hammered for failing to time the end of the credit bubble.

"Goldman Sachs is the only major investment bank in the United States that has emerged as yet unscathed from this debacle. The success of its strategy must have resulted from fairly substantial bets against housing, mortgage banking and related industries, which also means that Goldman Sachs saw this coming at the same time they were bundling and selling these loans.

"It is truly amazing that right now everyone in the country is deferring to Paulson and the heads of Countrywide, JPMorgan, Bank of America and others as the best group to work out a solution to this problem. No one is talking about the fact that these people created the problem and profited to the tune of hundreds of billions of dollars from it."

Hmmm... does this sound like another government official that we know? If our dear readers will recall, Dave, over at the Desidooru Saloon reported a similar story - about the Vice President of the United States.

Apparently, Kiplinger's magazine had done some digging around in the financial disclosure forms that Cheney and his wife filled out in 2006 and found some pretty interesting stuff.

Kiplinger's reports: "Vice President Dick Cheney's financial advisers are apparently betting on a rise in inflation and interest rates and on a decline in the value of the dollar against foreign currencies."

"Let's examine just that first sentence in light of recent events," says Dave. "The Vice President's own investment portfolio is structured in a way to benefit from the rampant inflation and precipitous drop in the dollar brought about in part by his own stated economic philosophy that 'deficits don't matter.'"

Looks like there's a new "Tricky Dick" in town...

Bill Bonner
The Daily Reckoning Australia

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About the Author

Bill BonnerBest-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.


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