For the dollar, a 'crisis' is relative. With no alternative, a USD collapse is unlikely

Los Angeles Times ^ | 04/23/2011 | Tom Petruno

[driftdiver]

The difference between bank and mortgage company is a technical difference. Both had their large share of corruption and fraud.

[driftdiver]

“A lot of it is balderdash. We still produce and in quantity but not the same stuff”

What will we produce? Once people are forced into a different career, lack start up funding, and lack a viable market where will go turn to produce?

[dhs12345]

One thing that we have going for us is that we are huge consumers. We have the infrastructure to support consumption. This is important to countries like China who sell us junk.

Consumption feeds upon itself. But it will eventually fail when the dollar loses it’s value and we can consume less and less. Probably analogous to the air leaking out of an over inflated balloon. When demand drops off so does our economy.

[LomanBill]

[The difference between bank and mortgage company is a technical difference.]

Fiduciary responsibility is much more than just a "technical" difference.

It's a legal and moral obligation... 

Ameriquest -Proud Sponsors Pirates of the American Dream

 

....neither of which applied to Roland Arnal's Sub-prime pirate armada where...

 

...mortgage fraud, drugs, sex, and money, money, and more money. My friend and manager handed out crystal methamphetamine to loan officers in a bid to keep them up and at work longer hours. At any given moment inside the restrooms - cocaine and meth was being snorted by my estimates more than a third of the staff, and more than half the staff manipulating documents to get loans to fund and more then 75% just completely made falses tatements on 1003s regarding stated income etc to get loans funded. A typical welcome aboard gift was a pair of scissors, tape, and white out, three things a loan officer or financial professional should never need.. Of course no where in training OR in management training did this 20 year old ever learn that false statements on a 1003 were a federal offense....

http://www.freerepublic.com/focus/news/2184646/posts?page=8#8

 

[driftdiver]

“Fiduciary responsibility is much more than just a “technical” difference.”

Both mortgage companies and banks have a fiduciary responsibility defined by law.

[LomanBill]

Both mortgage companies and banks have a fiduciary responsibility defined by law.

Bullshyte.

What Does Shadow Banking System Mean?
The financial intermediaries involved in facilitating the creation of credit across the global financial system, but whose members are not subject to regulatory oversight. The shadow banking system also refers to unregulated activities by regulated institutions.

http://www.investopedia.com/terms/s/shadow-banking-system.asp

 

Unregulated?  Hmmm. Let's ask the good Lutheran question - what does this mean?

[LomanBill]

[While this is happening, our government is accumulating huge debt.]

I recently had a class with a Master Software Architect who told me he'd seen a list of classified software projects that were all 100+ Million dollars -- and all in failure mode. The list was several pages long.

Reminds me of the time when executives of a certain mortgage company were also executives of an east-Asian outsourcing firm... a firm which received substantial funds, related to a loan processing system with a rumored cost in the neighborhood of half a billion dollars -- that failed... ASAP.

Nothing to see there, just a little curryous washing being done at the H1B laundromat, evidently.

[LomanBill]

>>Both mortgage companies and banks have a fiduciary responsibility defined by law.

 

To: MLee [at] innercitypress.org

From: [Name withheld]

Sent: Thu, 21 Sep 2006 1:23 AM

Dear Mr. Lee: I was previously employed by Argent Mortgage for two and a half years and managed, among other areas, the corporation’s fraud investigation, borrower complaints and repurchase departments. There are currently over 568 open fraud investigations involving hundreds of brokers and hundreds of millions of dollars in fraudulent loans that are being covered up by top executives in the company. If a broker sustains a certain monthly volume, Argent management looks the other way and, not only does not suspend the bad brokers, but knowingly sells these fraudulent loans on the secondary market to unwitting investors.

I was terminated today and left with just my purse in tow, but I have names of individuals in the company who need to be served with subpoenas to enable them to turn over their spreadsheets and boxes full of documentation and evidence of all the fraud they have found that is being covered up by Argent Mortgage’s executive management. The state regulators need to know the truth about the blind eye Argent turns to the fraud perpetrated on innocent consumers by high volume brokers. They also need to be aware that Argent knowingly bundles these fraudulent loans and sells them as mortgage-backed securities on Wall Street, thereby compromising the SEC, as well as our country’s economic stability.

At a recent fraud seminar attended by hundreds of mortgage lenders in Washington D.C. a week ago, an attorney who works for Argent’s retained law firm, Buchalter Nemer, stood up and told the seminar attendees that the wholesale lenders in the audience had better beware, unless their name is Argent. Argent is safe from investigation because the government got their $325 million settlement from Ameriquest and won’t be looking into Argent, per the settlement agreement. I hope this isn’t true because Argent Mortgage funded over $50 billion in 2005 and is gearing up to fund well over $80 billion dollars of fraudulent loans in 2007.

 

Evidently not all of them.

[driftdiver]

So this person knowingly committed fraud, didn’t report it, and is somehow honorable?

[driftdiver]

“Both mortgage companies and banks have a fiduciary responsibility defined by law.

Bullshyte.”

What part of my statement is bs? For you to argue that point shows your ignorance.

[LomanBill]

>>What part of my statement is bs?

The generalized part.

[driftdiver]

Well your ignorance is showing. Both industries are well regulated but the regulations are not enforced and they are full of corrupt people who only care about the $$.

[LomanBill]

>>didn’t report it

What makes you think they didn't report it?

They might have reported it to the SEC - like I did when I discovered, per their production database, that Argent had fabricated/falsified thousands of FICO scores on their loan apps...

...only to have the "investigation" go mysteriously cold.

 

So, willing to stipulate into the record that significant players in the mortgage bidness were unregulated yet?

What is/was your association with the industry?

 

 

[LomanBill]

>>well regulated but the regulations are not enforced

LOL.

A well regulated system where the rules aren’t enforced. Riiight.

That’s almost funny.

Did you learn that with Wile E. Coyote at the ACME school of logic, reason, and Law Enforcement?

[PA Engineer]

the boomer generation inherited a great economy,

and fiat currency.

[Psalm 144]

I agree with you completely. The major crisis will come though. Math will have its way on this socialist nation, as surely as it did on the Soviet Union and the Warsaw Pact.

[driftdiver]

I force people like you to build secure systems.

[LomanBill]

You’re a felon who attempts to break into computer systems you don’t have legal access to... in between building black helicopter conspiracy theories?

Otay Wiley. If you and the other ACME black-hatsters say so.

LOL.

[LomanBill]

>>I force people like you to build secure systems.

More “well-secured” than your hypothetically well-regulated (but unenforced) financial systems?

[LomanBill]

>>I force people like you to build secure systems.

And how exactly (for the benefit of the black helicopters hovering over your house) do you "force" folks to do that, Wiley?

>>I went with a stated income when I bought my house, mostly because I own my own company and the paperwork is a nightmare

 

Friend of yours?  Co-worker perhaps?   His paperwork evidently gets messy too... especially when one of those exploding ink-pack gadgets goes kerploey in his ACME hoody.