there are many money printing machine out there so scam will get bigger and bigger... wait another decade or 2 and this will look like penny scam...
Told you the bailouts were coming, this guy is thinking the same thing I am thinking, they will not let the banks FAIL. PERIOD. Sorry Folks, The Put-Back Apocalypse Ain't Gonna Happen Published: Friday, 15 Oct 2010 | 11:21 AM ET Text Size By: John Carney Senior Editor, CNBC.com You should probably be a buyer of Bank of America right now. A Bank of America trader inside the NYSE. Oliver Quillia for CNBC.com A Bank of America trader inside the NYSE. I never thought Iâd find myself typing those words. Iâve been a huge critic of Bank of America for years. I'm bearish on the financial supermarket model. I don't think the acquisition of Merrill Lynch is working out. I still don't understand the logic of buying Countrywide. But Bank of America's recent declineâdown almost 10% this weekâis driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And Iâm pretty sure that is not going to happen. Why not? Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when thereâs an easy fix available that wonât cost taxpayers a dime. Hereâs what is going to happen: Congress will pass a law called something like âThe Financial Modernization and Stability Act of 2010â that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act. Thereâs a big difference between the financial crisis of 2008 and the new crisis. In 2008, banks were destabilized by the growing realization that they were over-exposed to the real estate market. Huge portions of their balance sheets were committed to mortgage-linked investments that were no longer generating the expected revenues or producing losses. That was a problem of economics that could only be solved by recapitalizing banks or letting some of the biggest banks in the U.S. fail. The put-back crisis is not driven by economics. It is driven by legal rights. And thereâs simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue. So hereâs what I expect will happen. The lame duck session of Congress will pass a bill that essentially papers over the misdeeds of the banks that originated mortgage securities. Every member of Congress and every Senator who has been voted out of office will cast a vote for the bill. And the President will sign it. Will the public be outraged? Probably. Financial bloggers will scream from the high heavens against another bailout of the banksters. Congress may try to create some cost for banks in exchange for the forgiveness, perhaps requiring more mortgage modifications. But the much feared put-back apocalypse will be laid to rest. If youâre skeptical about the possibility that this will happen, you have greater faith than I do in the ability of the political system to resist doing favors for bankers. _____________________________________________________________ Companies mentioned in this post Bank of America [BAC 12.0596 -0.5404 (-4.29%) ] JPMorgan Chase [JPM 37.56 -1.16 (-3%) ] Citigroup [C 3.99 -0.07 (-1.72%) ]
This crisis will only show that our judicial system is controlled by he who has the deepest pockets. Many who have been defrauded don't have a pot to piss in much less the 100K it will cost in legal fees and 3 years to resolve the matters through our courts.