We are no longer Americans, that proud and thinking people that meant something in this world. Today we are Amerikans…drugged, dumbed down. Out of touch, out of work and unable to engage in that lost American skill….critical thinking.
The propaganda surrounding the National Mortgage Sellout is just one glaring example. There are many, but this one is so blatant and ugly that it’s breathtaking. So much lies, misinformation and distraction. All presented in glossy color…WITH GRAPHICS! AND PICTURES! All the better to mislead and distract the dopey, gullible public.
And perhaps more disturbing…there’s a tiny footnote to let us all know that none of the lies and propaganda are real…none of the information has been verified….information given to us by companies from a settlement of a case where the banks were perpetrating lies and fraud…NICE!
From Naked Capitalism:
As we and others have written at considerable length, the mortgage settlement was a big exercise in optics. The $26.1 billion number sounds impressive until you compare it to the size of the housing market and the damage done to homeowners. 40% of the value of the settlement can come from junk credits, things the banks would have done anyhow or should be doing in the normal course of business, like razing vacant homes, short sales, and giving homes to charities. And of the remaining part, which was a relatively small amount of actual cash payment ($5.8 billion, but that included over a billion of fines federal regulators rolled into that total), the rest is supposed to be reduction of mortgage principal. Oh, but wait, they can take credit for modifying OTHER PEOPLE’S MORTGAGES, meaning those owned by investors. And they’ve been doing that in more than half the cases. As the Financial Times reported last week:
Investors in US mortgage securities have been forced to absorb large writedowns in response to a deal between leading financial groups and government agencies over the ” robosigning” scandal”¦.
The banks ““ JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Ally Financial ““ agreed to forgive billions of dollars worth of distressed borrowers’ mortgage principal in exchange for waivers from potential liability.
On Wednesday, BofA said that 60 per cent of the $4.75bn in first-lien mortgage principal it has thus far agreed to forgive would come from non-government guaranteed loans that were packaged into bonds and sold to investors.
Of JPMorgan’s $3bn in forgiven mortgage debt, slightly less than half has come from investors’ holdings, a person familiar with the matter said. The other three banks either declined to provide numbers or did not respond to requests for comment.