[RobRoy]

Is this our Black Swan?

I think this may be prove to be the biggest fraud in human history. If so, it will not merely go away harmlessly.

[justsaynomore]

I do not think it will go away, and I also don’t think banks will just hit the reset button with borrowers across the board.

I believe what will happen is that the government will step in and take over. If that happens, get ready to make your mortgage payments to uncle sam. Scary huh?

And I believe every bit of this was by design. You can’t get any more “cloward piven” than what is going on with the banks right now. Overwhelm the system and crash it...and the big banks were willing participants in this fraud.

[Blood of Tyrants]

“I think this may be prove to be the biggest fraud in human history.”

Doesn’t even come close to Social Security.

[cherry]

but why?......after all the corruption and crookedness and greed on Wall Street and in the holy banking industry, is this a “new” corruption or just the continuation?

[Bluebeard16]

“I think this may be prove to be the biggest fraud in human history.”

Until the proof comes out that BO is not eligble to hold office.

[ex-Texan]

Thanks of your insight into the problem. Waited and performed some research into Black Swan Theory before replying:

Excerpts:

What we call here a Black Swan (and capitalize it) is an event with the following three attributes.

First, it is an outlier, as it lies outside the realm of regular expectations, because nothing in the past can convincingly point to its possibility. Second, it carries an extreme impact. Third, in spite of its outlier status, human nature makes us concoct explanations for its occurrence after the fact, making it explainable and predictable.
* * *
Taleb enumerates ten principles for building systems that are robust to Black Swan Events:^[10]

1. What is fragile should break early while it is still small. Nothing should ever become Too Big to Fail.
2. No socialisation of losses and privatisation of gains.
3. People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.
4. Do not let someone making an "incentive" bonus manage a nuclear plant – or your financial risks.
5. Counter-balance complexity with simplicity.
6. Do not give children sticks of dynamite, even if they come with a warning.
7. Only Ponzi schemes should depend on confidence. Governments should never need to "restore confidence".
8. Do not give an addict more drugs if he has withdrawal pains.
9. Citizens should not depend on financial assets or fallible "expert" advice for their retirement.
10. Make an omelette with the broken eggs.

It pretty clear to me that this discovery of major, industry-wide fraud and forgery is a significant development. And these kinds of endemic criminal antics are not going to go away quickly regardless of peoples' wishes and fears. These crimes are still being uncovered. Without decisive action by both political parties to investigate and punish wrong doers -- this scandal will only worsen over time.

Frankly, I would like to see some CEOs and CFOs do the perp walk in orange jump suits. The alternative is to let a mob of innocent foreclosure victims arm themselves with large rocks and let whatever happens take place. But waiting for Congress to act fairly and decisively is probably a waste of time.

Especially with all those $$$ Trillions out there for campaign bribes . . .

[Fred]

Time for another French Revolution