Friday, October 08, 2010


That's the sound of the other shoe dropping, i.e. the news that much of the foreclosures underway in the US are using fraudulent means. Those means are necessitated by the lack of real documentation for many or most of the loans. A giant quadrillion dollar pile of paper has been created on top of the biggest fraud in the history of the capital markets.

What's worse is that it will be rather difficult to blame the poor for these problems, the banks are going to have to find a new scapegoat for their schemes, and a new reason to justify another bailout.

This will probably require another panic or other 'emergency'. It shouldn't be long.


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