April 5, 2008
The dot com bubble was nothing compared with the sub-prime mortgage con jobs and the immensity of the scam is something no one wants to talk about, especially in light of the coming elections. This sub-prime business, like the dot -com business, was a deliberate rip off from the beginning.
The crooked local mortgage brokers deliberately falsified and invented fake income information on their phony mortgages. They sold these to all the major banking houses who snapped them up eagerly, packaged them and quickly shoved them off on the sucker trade.
Why on all sub-prime mortgages, while the initial monthly payments are low, the contracts always call for the “possibility” of a sharp increase after the lapse of a set period of time. The mortgage holders were always told by the con men that while there could be a little increase at some vague future time, it usually was very small or never happened.
Now, the poor suckers who bought into this con, are discovering that the sub-prime mortgages are always increased after the stipulated time. This is the huge selling point on such pieces of paper. It amounts to a huge income for the holder. For example, they buy in at say $240 per month knowing it will be raised to $1500 per month. Of course the initiators of the mortgages forgot to tell the banks that their customers had no money at all and could never make the larger payments and would have to default. They had a nice long time to collect their money and deposit it in Israeli banks from whence it could never be touched. And off they went to be near their money leaving tens or probably hundreds of thousands behind them who could never pay the increases. The number of banks and lending houses affected boggles the mind. We learn here that the huge Bank of America is about to fall into the quarry and have been frantically trying to get a Bear-Sterns type bail out. Of course if BoA gets this, then about thirty other major banks and lending emporiums will be lining up and the printing presses at the Bureau of Printing and Engraving will be cranking out bushels of money that will be as worthless as the wheelbarrow full of million mark notes the German hausfrau hauled in a wheelbarrow to the bakers to buy a loaf of bread after our economic collapse in 1929 wiped out the global economy. And now it is whispered that most of America ’s major airlines are in the same sinking boat as the BoA. The DHS and the sharply escalating cost of jet fuel will drive every one of them into bankruptcy, without any question, unless Uncle Sugar bails them out. Lousy service, long waits, overbooked flights, baggage lost and never found coupled with what would have to be immense fair increases will make Amtrak and Greyhound look even more inviting. Forget taking the car to the beach this summer. Rising gas prices and sea levels will put a stop to that practice and people can stay at home and hate each other.”