I’ve believed for quite awhile that the main reason foreclosure sales have slowed to a crawl over the last two years is because the banks simply do not want to acknowledge the losses on these loans. If you don’t complete the foreclosure, the loan stays on your books at 100%, per the FASB. The criminal Wall Street banks have been reducing their loan loss reserves, creating tremendous profits out of thin air. Well Michael Olenick just let the air out of their balloon in this thorough detailed analysis of what is really happening in the home loan world. The next time you hear or see a housing recovery story, think back to this article. There are 9.8 million mortgages which will need to be written off in the next couple years.
Someone will be on the hook for $1 trillion of losses. Those who made the loans SHOULD be on the hook for the losses. These happen to be the biggest Wall Street banks. Do you think they will be taking the losses? Not bloody likely. Here’s how it will go down. Your friends at the Federal Reserve will print billions and buy up hundreds of billions in toxic worthless mortgages. The wards of the State – Fannie & Freddie – will be used by the government drones to buy up the rest of the bad loans. Wall Street banks will get off scot free because they own the Federal Reserve and the politicians in Washington.
Here is the loser – YOU!!!!
Federal Reserve created inflation will further impoverish you as the money printing will further debase the USD and make food and energy prices go up.
Fannie and Freddie are owned by you. They have already lost $180 billion of your tax dollars in the last three years. Whatever convoluted scheme Obama and his minions dream up will cost you hundreds of billions. Their debt is your debt.
Once again, the Wall Street banks will get away with murder while YOU bear the burden of their criminal actions. America the Great.