Chris Whalen: The Fallacy of “Too Big To Fail”–Why the Big Banks Will Eventually Break Up

Jim Puplava is Author & Host of Financial Sense & Financial Sense Newshour providing weekly broadcasts and writing thought-provoking commentary for Financial Sense Online in addition to interviews with top financial thinkers.
In a riveting interview on the banking industry, Christopher Whalen of Tangent Capital Partners in New York joins Jim on Financial Sense Newshour to discuss the fallacy of “too big to fail,” conflicts of interest in the derivatives markets, problems with the 2005 bankruptcy laws, and political failures, policies and programs.

Chris Whalen elaborates on the present economic situation and why we are not seeing the changes Americans expect.   Continue reading

Behind the Securitization Curtain – 21st Century Mortgage Casino

The turn of the century mortgage lending fiasco was built like a 21st Century casino.
The entire scheme started with the homeowner who wanted to buy a home or refinance at unbelievable interest rates… too good to be true… and they were!

It all started with a loan application called a “1003.”  EVERY lender in the scheme used the same loan application software.  In fact, Fannie Mae patented the sucker. Inside this specific patent are numerous patents related to and referenced that make up the beloved 1003 loan application. These patents are listed on line in the USPTO.

One of the reference patents is a gem called the “Online system for fulfiling loan applications from loan originators” and it describes how technological methodology is integrated into the mortgage lending process.   Continue reading

LISA FOR CLERK!

As the Wall Street mortgage-backed securities fraud collapsed the United States economy Florida began to get hammered.  Heavily weighted in Florida loans, targeted Florida homeowners of these failing trusts were the first to feel the brunt force of foreclosures.

From the financial force majeure grew a group of “warriors” that knew something was wrong and they began combing the county records for clues.  Among the first of the warriors was Lisa Epstein, an oncology nurse in Palm Beach County, Florida who started noticing something new — and unsettling — as patients talked about their struggles. Not only were her patients and their families coping with a serious diagnosis and the cost and side effects of treatments, but more and more of them were also facing the loss of their homes.   Continue reading