Here’s the step-by-step game plan the Wall Street Bankers followed to steal money, homes and hope from the American middle class.
- 2B2F Banks assures Local Banks they will purchase any and every mortgage they can originate
- Local Banks make loans to people who clearly cannot pay
- Local Banks sell all mortgages to 2B2F Banks, make easy money on fees and take zero risk
- 2B2F Banks package all those loans up into pools (Mortgage Backed Securities) for sale to Pension Funds and commercial investors
- 2B2F Banks pay Rating Companies, (Fitch, S&P, Moody’s), to rate these MBS as AAA – in other words – every bit as secure as US Treasury Bonds
- Rating Companies intentionally avoid performing due diligence on MBS packages so that they can rate them AAA and thus get paid by the 2B2F Banks
- 2B2F Banks sell MBS to Pension Funds which – by charter – can only buy AAA-rated debt
- 2B2F Banks buy CDS’s on MBSs from Insurance Companies (AIG).
- When mortgages in MBS became overdue, 2B2F Banks ran to Uncle Sam, threatened the end of the world, and got Congress to buy the mortgages using taxpayer money
- 2B2F Banks foreclose on homes they don’t own. They don’t own the homes because they destroyed the original documents because those documents would prove the loans were fraudulent, the MBS were fraudulent and the CDS’s were essentially a guaranteed sure-fire bet.
My question for you, dear readers, is this: Now that you know that Banks intentionally, willfully and deliberately set about defrauding you, and now that you know that the Federal Goverment was their willing accomplices, what are YOU going to do about it? Are you gonna bend over and take it, or are you going to resist?
As for me, my strategy is to starve them out.
KEY:
2B2F = Too Big To Fail – these are the banks, insurance companies and car companies that the government decided were too big to fail and thus “deserved” to be have their debts paid by the American middle class. Note that the bankers who are employed by these banks have taken somewhere in the neighborhood of $200 billion in bonuses since they got their bailout money. These include, but are not limited to: Fannie Mae, Freddie Mac, Goldman Sachs, JPMorgan-Chase, Morgan-Stanley, Wells Fargo, Bank of America, Citibank, GMAC Finance, GE Financial, Deutsche Bank, UBS, RBS, etcetera, etcetera.
MBS = Mortgage Backed Security – A commercial bond that is backed by a pool of mortgages. Compare this to a municipal bond that is backed by the citizens of a city, or a treasury bond that is backed by the government.
CDS = Credit Default Swap – An insurance policy on a financial instrument, in this case, Mortgage Backed Securities. If the MBS fails, then the holder of the CDS is paid off.
The reason AIG was considered 2B2F is because they had sold trillions of dollars worth of CDS’s to the 2B2Fs. When Lehman Brothers went bankrupt, they were obligated to pay the holders of CDS’s written against Lehman Brothers. Note that the 2B2Fs knew that the mortgages in the MBS were junk. They made money when they sold the MBS to the pension funds, they made money on the mortgages, they made money when the mortgages in the MBS went bad because of the CDS’s they bought, they got money for free from the government because they were 2B2F, they made money by foreclosing properties they did not own and then selling them, and they will likely make more money in other devious ways which are not yet public.
