http://www.cnbc.com/id/39686897?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
Your not allowed to change the rules at the end of the game.
And by all rights I do believe this is the end of the game for the bankers.
And this is a big sell to spin what the banks and politicians want to have happen.
But if this occurs, then it will undoutable prove that there is no longer enforcable judicial law to govern the country by.
The mortgage meltdown was not a mistake
But a well thought out criminal action.
It's not something you can look the other way on.
Nor should the government be allowed to tell you, you should.
If you can't do the time, don't do the crime.
Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when there’s an easy fix available that won’t cost taxpayers a dime.
Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act.
There’s a big difference between the financial crisis of 2008 and the new crisis. In 2008, banks were destabilized by the growing realization that they were over-exposed to the real estate market. Huge portions of their balance sheets were committed to mortgage-linked investments that were no longer generating the expected revenues or producing losses. That was a problem of economics that could only be solved by recapitalizing banks or letting some of the biggest banks in the U.S. fail.
The put-back crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue.
So here’s what I expect will happen. The lame duck session of Congress will pass a bill that essentially papers over the misdeeds of the banks that originated mortgage securities. Every member of Congress and every Senator who has been voted out of office will cast a vote for the bill. And the President will sign it.
