The Real reason The Economy COULD Improve More But Isn't

Employment incentive keeps focus on going back to building, selling homes and home loans. It is like picking up a penny instead of a pound. Jobs were lost because while Bush was in office the economy went into a nose dive and his administration decided to kick the problem down to the next administration. Obama could and should have done more to understand the real issues and instead was briefed by the thieves who stole our economy.

Foreclosure, like women’s reproductive rights seems off limits in the debates.

We went into what easily could have been worse than the great depression because this one was purely man-made and controlled by those who profited on the way up but also made windfall profits on the way down. As the economy choked Wall Street kept it underwater, which is where most houses are right now. And they won’t let go as we pass out from the pressure around our necks.

The banks are getting a windfall with every foreclosure that is still not recognized by most people. But I can tell you that those who have followed my strongly worded suggestions to follow the money first, and forget the documents are finding out things like the mortgage was sold multiple times — not in a chain — but more like a wheel with spokes leading out from a common hub.

Through deny and discover pleading and practice they are discovering that the hub of the wheel is not the originator of the loan, that the wrong payee was on the note and mortgage, and that there does not appear to be any loan receivable ANYWHERE unless you stretch the meaning beyond one who has given or purchased a loan.

The spokes of the wheel are the sales of the loan by the originator whom we already know never had any right to claim itself a creditor in the original transaction, and then more wheels with spokes emerged as new hubs of claims sold multiple spokes of the same wheel as aggregators.

This was followed by yet newer hubs of claims sold multiple spokes of the same wheel by calling the loan part of a mortgage backed security — an assertion that has clearly been debunked in most circles on most mortgage backed bonds. Those bonds were issued by REMICs whose existence was ignored by the very underwriters who created them. The REMIC “trusts” were empty shells that were never funded with money or assets but issued bonds to investors who gave their money to the underwriting bank.

The investors are the other end of the spoke and wheel. Upon discovery of this house of cards (where many of the cards were missing) the country, indeed the world went into recession. The anemic growth and recovery from the recession is traceable to common factors like failure to educate the next generation properly, thus depriving new companies with workers whose knowledge and training could not match up to the available jobs. So a recession from macro-economic factors was virtually unavoidable.

But what triggered THIS recession and made it so DEEP was the intentional, collective acts of Wall Street that caused it and their unrelenting pressure to maintain the recession’s effects until they have squeezed the last ill-gotten dollar from it. And THAT is why our economy can only squeeze out a modicum of growth. If we didn’t protect the TBTF banks and let market forces have their way, those banks would fail, dozens of new banks would emerge, lending would resume and the Foreclosures would stop and might even be reversed — a stimulus package of ten times the stimulus of 2009.

Our economy eked out some growth despite the continued downward pressure from Wall Street which is still collecting on bets it made that the pools of loans would turn bad. Unemployment is improving despite Wall Street’s unrelenting pressure to keep housing down in the dumps after they successfully broke the back of housing, pensions, borrowers, insurers, and the U.S. Taxpayer. Housing starts are showing signs of life despite the glut of empty homes, many of which were bull-dozed by cities blighted by entirely empty neighborhoods.