Reply #37: MERS was fraudulent from the outset

[soryang]

It went against everything I learned about real estate transactions in law school. If you don't record the transaction in the county court house and pay the doc stamp tax, you haven't perfected your security interest. Therefore, so called mortgage backed securities were fraudulent, because they weren't backed by mortgages nor were they secure. This is why the credit default swap scheme was planned out of AIG. AIG issued fraudulent mortgage insurance without setting a reserve, and then circumvented that legal requirement by calling the instruments CDS's.

The whole thing was institutionalized fraud. Let me warn prospective bargain hunter's. If you buy a foreclosed property, you may not get clear title. If you are buying a formerly $200,000 property for eighty thousand, you may be okay with that. But if you want to resell withing a few years, your warranty deed may expose you to liability risks. These involve what is known as "cloud on title." There will be for a generation, two different real estate markets, the "cloud on title" market selling at a massive discount, and the warranty deed market, selling at a substantial premium to that because the title is still warrantable.

This massive fraudulent scheme was devised IMHO to cover up and compensate for the massive capital flight caused by "free trade" policies resulting in a massive balance of payments problem driving the entire financial crisis. The financial crisis is really an ideological crisis. CDO's became a major export product to cover up the damage globalism is causing to the US economic, social and political structure. The result? A totally corrupt and decadent fascist society.

The huge investment banks who have Obama and both political parties in their pocket are not about to give up the excessive powers that they have assumed to continue covering up this massive fraud. That is why too big to fail and the credit derivatives market are still unregulated. The financial crisis will not be over until the financial sector is allowed to fail and move into resolution and the further structural problem of capital flight is resolved. The balance of payments crisis brought the excesses of Hitler and Stalin that led to WWII. It can happen again if it is not honestly addressed. The overseas military adventures also need to stop to bring immediate relief to the balance of payments crisis.