Reply #11: The legality of foreclosures has always been shaky at best, and I am damn glad someone [View All]

The main problem with credit, esp. mortgages, is that for the most part the money that the bank put into the loan doesn't really exist. i beleive that banks only need to have 1/10th of the money they loan backed by the reserves.

The whole foreclosure business is just an easy way for usurers to get cheap property. If you get to loan $1Million for some poor sap to buy a house, and the guy defaults, the bank gets to have the house. The funny thing is that in reality, the bank only had $100K of their dollars in it, since the rest of the loan was money they literally pulled out of their ass. So the bank gets to have now $1 million in assets, with an investment of only $100K. That is assuming you did not pay a single cent, however you are likely to have paid part of the mortgage by the time you get kicked out of your house. So it is an even better investment for the bank: as they probably got to kick you by the time you paid $80K or thereabouts. So in reality the bank ended up putting just $20K of their money on the line, and getting a $1M return. And that is why it is called usury.


The whole sub prime debacle, was really nothing of the sort. Once these lenders felt a bit of heat, because they got too greedy and were getting too many assets back in the form of foreclosures. They started panicking, but the main reason was that they were ending with assets that were hard to liquidate (real state is a bitch to move quickly). So the fed bailed them out, with a nice infusion of cash so they would have enough liquidity to give plenty of Christmas bonuses. The ironic part, is that not a single cent of that injection went to help the people making the payments, but the people who made the money out of thin air. And that money, at the end of the day belongs to us -- I know it was printed by the fed reserve, but the fiat is with the people of the US of A -- So in other words, we get to be the prostitute and pay for the screw at the same time.

The seriousness of this situation can't be denied. There has been a massive transfer of wealth from poor borrowers that had their assets seized, back to the lenders. This is, the money is being hoarded by the rich, not only via tax cuts and funneling of public money to their enterprises, but also via massive rates of foreclosures. Some experts claim that this decade has seen the biggest transfer of wealth away from the African American community for example.

Now, if we analyze the legality of it all, what is worse someone who could not pay back money that someone pulled out of their ass. Or some bank literally making money out of thin air w/o moving a single finger.

There is a reason, why Jesus the, prince of peace, only got physical with the bankers in the temple.