Here's
what happens EDITOR'S COMMENTS by Ole Bear, Editor Author Steffy's essay from the Houston Chronicle is a biting Sting to the Blitzkrieg Mortgage Lending gig of two-tiered structured finance according to knowledge gained from our Realty Reality Guru Doug Noland at Credit Bubble Bulletin at www.prudentbear.com. In Author Steffy's essay, we have a savvy Gentleman [Mr. Howard Bensema] who understands how much a Fakir Greenspan and the banking cartel really is, still trying to suck him into the Debt Berg at the excuse of the "credit score" gimmick. The insurance company saying Mr. Bensema is not a worthy credit risk needs to perhaps have NY AG Spitzer, check their 10Q's, to see just how much of derivative and financial risk they are, to the insurance industry in Houston. Perhaps, Mr. Spitzer should check as well the 10Qs of some realty valuation organizations and foundations to search for the origins of the rampant Mortgage Fraud the FBI believes exists here in the USA? Perhaps this is endemic, and epidemic? According to the FBI, the Show Me State, Missouri [MiZ-ZOU-Rah], is a hot spot of mortgage and appraisal fraud. So are several other states we don't care to mention right now. I got 'nuff troubles in my own back-yard figgering out what the local Charlatans are really doing! When you try to expose the Charlatans to the folks they worked for, it seems there is a big game of cover-up, and turning the other cheek [but not in the same way Jesus did] looking away. When I mention mortgage and appraisal fraud to some of these Big Boy appraisal mis-management firms, I get a lot of silence at the other end of the phone -- and obviously no work. I wonder if the dead silence is these folks looking at the foreclosed borrower's credit score [doing an oooops]???? Next time, I shall ask! I suspect Mr. Bensema, is more credit worthy than the insurance company raping [1] him on his insurance premiums. Gee, I love an honest man from Main Street America who understands the money issue, and the banking cartel! Author Steffy makes some nice moves in the essay, and has a wee bit of satirical fun with the smoke and mirror of the credit score panacea and model that has become the standard of the industry for safe-financial sex. When Insurance Companies and the Mortgage Lending Industry start giving out condoms with every Premium Collected and every Loan Closing, the Caveat Emptor [Consumer] will know that they are in Rome! Welcome to the Hedonic [Hedonistic] Bureau of Labor and Statistics Pleasure! We suspect, Mr. Bensema, although in his 70s, will probably be around a bit much lot longer than his insurance company with his story to tell, especially if his insurance company works like Enron [also located in Houston, wudn't it?]... and we suspect the Author... knows a heck of a lot more than they dared to say, as a regular columnist for the Houston Chronicle. As a free lance journalist, we suspect the Author would take some .45 Caliber shots [shades of Kelly Patricia O'Meara taking 30-06 rifle shots at HUD losing the $59 Billion Bucks] at some other Fat Cats and Big Boys... however, we suspect the Author is a Staff Journalist with a mortgage to pay just like all the rest of us, and wants to keep their job at the Chronicle!.-- There's nothing wrong with that at all! This Author penned an excellent exposé on the Fraud of the Credit Score! -- and the plight of Mr. Bensema! Congratulations! This so-called credit score thing is at the very heart of the FED's and GSEs induced money pump thing sucking capital to Wall Street, and is the basis for the prostitution we see around us, which the FBI seems to think is rampant. It evolved out of FIRREA 1989. When we combine it with the Fraud of FIRREA 1989, 99% of the mortgage folks being on sales commissions based on number of loan closings, the centralization of the realty valuation professional by their trade associations and foundations [using Delphi Techniques and Cognitive Dissonance], and the tentacles of control that the banking cartel has over the realty valuation industry as a whole, the implications for a few bad apple realty valuation folks [and mortgage folks] to pump a lot of money to Wall Street is quite remarkable. The end result is a property owner [borrower] who can get buried in his real estate. When you look at the fact that some GSEs have programs of no appraisal, just an AVM, a neighborhood analysis [yes, the house is really there], or no appraisal if the lender pays a "no appraisal funding fee" like to Freddie Mac [hey, BCNB, you do that don't you?], we suspect the credit score has the potential to bite a lot of lenders on their assets and portfolios -- namely their loan loss reserves. In the game of bailout, we suspect the counter-parties to the GSEs monkey business [aka the Big Boy derivatives banking houses], are pretty comfortable knowing that Greenspan knows how to be the lender of last resort, without a Congressional Bailout vote. The ultimate loser in the credit scoring panacea and this new paradigm -- will ultimately be the US Taxpayer in the Name of the Game is Bailout. Inflation to the money system, you bet! Inflationary to realty prices in perpetuity? In an ever inflating spiral? We think not... micro and macro realty market-wise. Ole Bear Editor Footnotes [1} See: http://education.yahoo.com/search/ahd?p=rape What is happening to Mr. Bensema is what I call "financial rape" .... the Federal Re$serve has been doing since 1913. And getting away with it! © 2004 Realty Reality © 2004 Realty Reality |
|
|
|
GLOBAL
REAL ESTATE MARKETS FORUM