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US Treasury and Federal Reserve involved in Mortgage-Securities Fraud?
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by René | August 14, 2008 at 08:54 am
721 views | 16 Recommendations | 11 comments
I discovered Solari and Solari circles a few years ago. The founder, Catherine Austin Fitts, is an investment adviser, a former Assistant Secretary for Housing-Federal Housing Commissioner (HUD), and investment banker. The following excerpt is some of her shocking discoveries relevant to the new Housing Bill.
The challenge that US Treasury Secretary Hank Paulson faces when working out the problems with Fannie Mae or Freddie Mac is that a significant number of mortgages that serve as collateral for US mortgage backed securities markets are not real. They do not exist.
The problem is not that the people who bought the house and borrowed the money can not afford to pay it back or the house that they bought has dropped in value. If these were the problems, we would not be watching the debt the US government is responsible for increase by $5 trillion dollars. We would not be watching the National Bank of Australia announce a 50% loss rate on their mortgage backed securities.---
....the US Treasury and the Federal Reserve would have to be complicit in significant fraud, including securities fraud.”
After I began researching HUD fraud in the last 1990s, I would be contacted by people with experience with HUD fraud. They insisted the same home was being used to create ten or more mortgages that were placed into different pools. They alleged that Chase as the lead HUD servicer and the other big banks were implementing such systems. This was why we would see the same house default two, three or four times in a year, they claimed. You needed to churn the FHA mortgages through multiple defaults to generate the cash to keep all these fraudulent pools afloat. This, they insisted, was all going to finance various secret government operations and private agendas.
Surprises in store if you explore.
Related stories on NP:
'The Creature from Jekyl Island' - video/audio and YouTube links.
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Most RecentMost Recommended Comments (11)
at 09:58 on August 14th, 2008
GSE's, Freddie and Fannie are democratic controlled. The private banks lean both ways. The GSE's had almost a billion stolen through bonuses to govenrment appointees under Clinton. That is why the democratic controlled congress is protecting them. They dangled goodies for the private sector in order to get Bush to agree. Now ploiticians have 5 billion to spend on foreclosed houses in their districts so they can pass them off to friends and relatives under the guise of saving the housing industry.
When you take that into consideration you can understand they have to create these pools to push the worthless junk so they can keep funding their corruption.
at 12:10 on August 14th, 2008
Undoubtedly both parties are dirty, Bill. for those who don't know what a GSE is, they were started back in 1912, just about the time the Fed was created.
at 10:07 on August 14th, 2008
René, I like this story. It's good stuff. Thanks for sharing this!
at 10:23 on August 14th, 2008
René, I like this story. It's good stuff. Shocking and unbeleavable, if its true why are they being allowed to get away with it.
at 12:47 on August 14th, 2008
"The people charged with saying No! Stop! are making so much money, why should they stop anything?" as Catherine puts it in this interview about the Tapeworm Economy. Corruption is so pervasive, no one in the government is immune.
But there are ways to fight this. One is to look for local banks and credit unions to put your money, and to create community efforts to invest and build wealth.
at 13:22 on August 14th, 2008
Liam, here's a story from the Telegraph: Governments caused the credit crisis, but capitalism gets the blame. the author ends with "One wants to weep."
at 10:46 on August 15th, 2008
Thanks René
at 13:05 on August 14th, 2008
An archive of articles on Tapeworm Economics, toxic. I really like the Popsicle Index, which is the percentage of people in a place that believe a child can leave home, go to the nearest place to buy a popsicle or snack and return home safely.
at 14:59 on August 14th, 2008
René, I like this story. It's good stuff.
at 21:02 on August 14th, 2008
René, I like this story. It's good stuff. Catherine Austin Fitts rocks! She recommends taking our money and wealth out of the corporate banking system which is bleeding the world's communities, and investing it in our local communities; a credit union is one way to do that, and you'll get better rates and services http://www.co-opnetwork.org/public/index.cfm
Her Solari Circles network is another winning idea; invest with and borrow from people you know and trust- family, friends, neighbors, local mercants- paying 18% on your credit card debt? There's people in your area only getting 2-3% on their savings account- why should the big banks be in the middle, bleeding both sides and investing in wars and corruption?
http://solariactionnetwork.com/phpbb/index.php?sid=9c5c514343668ad2a83a1e3f6c30c666
at 08:17 on August 15th, 2008
Thanks, Eric, she does rock. Why did I ever forget? Do check out the August 8th Rob Kirby's newsletter for an in-depth analysis of the missing $2 trillion. You'll find some intriguing links about 9-11 there.