Hawaii house advances Mortgage Foreclosure Moratorium bill

This is at best a stalling measure which does not solve the real problem.

All this economic misery we are suffering (and which according to the FCIC report released a week ago, could have been avoided) goes right back to the fraudulent mortgage-backed securities Wall Street was selling to investment houses, pension funds, and banks around the world. History will show this as the biggest financial fraud since the Great South Seas Company fraud that collapsed in 1721. Even Allan Greenspan admitted on video during the recent centennial commemoration of the creation of the Federal Reserve that fraud and criminality pervade the American financial system.

But the scammers got caught. Mortgage-backed securities were loaded with non-performing mortgages. In some cases, mortgages already in default were in the bundles. Mortgages were pledged to more than one bundle, which is fraud. As foreign banks that had purchased the fraudulent packages stared to go broke, dragging their national economies down with them, demands were made of the Wall Street scammers to repurchase the fraudulent mortgage-backed securities. But the profits from the sales were already gone, vanished into record salaries and bonuses for Wall Street CEOs, so Wall Street turned to the US Government to bail them out. The US Congress, themselves invested in the very financial institutions at the heart of the scandal, started passing TARP and a host of other programs to buy up the fraudulent mortgage-backed securities, now code-named “toxic assets” to conceal what had been going on from the American people.

In all, some twelve trillion dollars were created out of thin air by the Federal Reserve and poured all over Wall Street to fund the buy-back of the bad paper and settle the credit default swaps, a form of hedge-fund gambling that turned billions into trillions of losses virtually overnight. But even that was not enough and banks struggling to stay solvent needed a new source of wealth to add to their balance sheets; your homes.

Starting in the Bush administration and accelerating under Obama, tax credits were given to corporations that encouraged the transfer of high paying jobs to other countries. Here in Hawaii the abuses of the TSA have wrecked our tourism. In short, the US Government took our jobs to make it easier for the banks to take our homes. This is wealth confiscation to save the banks, similar to Roosevelt’s gold-grab in 1933, only done in a way to trick Americans into thinking it is their own fault they lost their homes.

Until the people stand up and refuse to pay for the bankers’ crimes, and demand the return if high paying jobs and the end of TSA crotch-groping, a five-month delay in foreclosures is not a solution, it is a band-aid on an amputated limb.