Mind-boggling analysis of the mortgage/foreclosure debacle.

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It's kinda long, but my jaw dropped as I read it.

There is a slight to the Reid-led Senate, and a slight to Obama, but the breakdown of what is happening right now, and how it came to be...wow.

I don't know who this guy is either, his name is Gonzalo Lira. Never heard of him before. But this is one hell of a read. And if it's accurate, oh my God.

http://www.zerohedge.com/article/gonzalo-lira-second-leg-down-americas-death-spiral

[reformist2]

1. Yup. All true, and the flip side of this is

that while the banks may have to deal with millions of borrowers balking at paying them another dime, they also will have to deal with thousands of well-heeled investors demanding their money back on the crappy MBS they were sold! Unless China is willing to tolerate another trillion-dollar bailout, it's game over for the banks.

[cally]

2. Thanks for this link

It's a good summary of the crisis in the mortgage industry. The foreclosure documents crisis can bring down the industry and hurt millions.

[Trekologer]

3. The big(er) question may be from those who are paying their mortgages

If a homeowner's mortgage is one of those sliced and diced into MBS'es, and the chain of title for the note has been broken, does the mortgage servicer have standing to clean the lien on the deed? Can a homeowner get good title on the property?

[cally]

6. I guess that's being decided by the courts now

lawyers and consultants will make bundles from all of this and homeowners will be in limbo until it's resolved. Our house just dropped below the price we paid. I'm tempted to test whether the bank has the loan documents.

[glinda]

11. here ya go. We just did this today.

http://action.seiu.org/page/speakout/wheresthenote

[dkf]

4. See how he is talking about a silver bullet to fix this?

I'm guessing they will change the title process to nationalize it.

They won't let everything fail. Not gonna happen.

Also not all loans were sliced and diced. So not everyone is possibly home free.

[cally]

7. I think most are resold though

I agree they won't let the housing market fail but they need to act quickly.

[dkf]

5. More mind boggling links...

http://blogs.reuters.com/felix-salmon/2010/10/13/the-enormous-mortgage-bond-scandal/

http://www.nytimes.com/2010/09/27/business/27ratings.html&OQ=_rQ3D2Q26pagewantedQ3Dall&OP=7ab32cb6Q2FQ25Q2FRqQ25tQ5DQ2AobQ5DQ5Dj4Q2547B7Q257Q5EQ254lQ25qQ51oVPRooQ254lbQ22jVPQ7DomvjgM

[Hannah Bell]

8. knr. very easy to understand.

[G_j]

9. K&R

:think:

[DimplesinMI]

10. I talked about this tonight on the radio show and.........

His article is right on point. This foreclosure crisis is going to bring down the entire financial market, as we know it. Feel free to listen to the show link, if you like. It is a unemployment and job search related show (just for disclaimer).

It is about 40-45 minutes into the show.........

< http://www.blogtalkradio.com/detjobexaminer/2010/10/14/moving-back-into-the-workforce-after-being-on-unem>

[jgraz]

12. Allowing the reboot of the securitized debt market

will go down as Obama's biggest mistake. It won't even be close.

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13. kick