http://market-ticker.org/
Lol The talking head trying to figure out how to solve it.
This is Karl's blog, I left it straight up instead of giving you the individual article on purpose.
Karl has 2 more articles that are the fallout from this, that come right after this one.
Do not let the talking heads scare you or sway you.
Read what Karl has to say about it, trust me, he know volumes more than they do or ever will, about exactly what is going on.
They are paid to implant ideas, especially at this point, which is a prison point for an awful lot of people.
I have to laugh over someone must get paid, I'm pretty sure AIG already took care of that, at your expense, without your consent.
I only have one question for Karl, why did you leave Hank Paulson out?
Yes, I've dubbed it: Foreclosuregate.
I'd love to tell you that I think there's some reasonable way to get out of this.
There isn't.
The reality of this is far worse than it appears. Kudlow is still downplaying it, really, even though I emailed him today with the source documents of a half-dozen Tickers. Whether they prompted him to spend the time on it tonight I'll never know.
The real problem isn't the foreclosures. It's the REMICs.
The "loose document standards" of the go-go years were all predicated on this never happening - all the way up to now. In fact, the entire premise of the last three years of Bernanke, Geithner and everyone else's actions in the government has been under the (false) belief that they could "re-inflate" house prices. This would allow everyone to refinance out of the mess, and since nobody would ever see the inside of a court, nobody would be the wiser, other than a few REMIC holders who went after each other when a note was sold twice.
Instead, what we have is a nightmare. House prices are not going to go back up. As a direct consequence, we have an intractable problem.
The REMICs - the foundational conduits for all this paper - are to a large degree defective. I bet some of Fannie and Freddie's are too. Many notes were not conveyed, and in the states where recordation is necessary, most of them weren't recorded either. Many of these original notes are known to be sitting with the originator, never endorsed over and in some cases shipped overseas or deliberately destroyed. For all intents and purposes they're gone, because once the MBS closes they can't be put in later on.
This can't be fixed because both the offering circulars and IRS regulations set hard cut-offs for these things by which time everything has to be "in" and done. Further, you can't put anything in a REMIC that's defaulted - only good paper. So a defaulted note can't be put in, and nothing can be put in now, as the time has lapsed. Violate either of these and the REMIC's tax preference is destroyed. Don't violate it and some of the REMICs are empty boxes with, at best, naked promissory notes (legally a signature loan) and no standing to foreclose.
On Larry's show they were calling for "emergency legislation." It won't matter. The REMIC issues are the ones you can't fix. If those are defective then attempting to fix it triggers tax liabilities in the hundreds of billions of dollars. Forget that idea
