[excopconservative]

I wonder how many times these “lenders” have been paid for these notes? They transferred them and sold them as securities and got paid. How do we know they didn’t chop them into 100 pieces and then sell 300 pieces? If the properties were foreclosed, then they got paid by the mortgage insurance. They also got bailed out by the government. They sold the securities without transferring the real estate as collateral so the investors don’t have any option to recover their investment. The banks will say, sorry guys, but the people didn’t pay and you lose. The banks can’t find the paperwork, sometimes can’t get legal standing in court to foreclose and after you pay off your note, they can’t deliver you a clear title because they don’t have the paperwork. What a mess!

[moehoward]

"I wonder how many times these “lenders” have been paid for these notes? They transferred them and sold them as securities and got paid."

At least those securities were backed by an actual mortgage. Well, most were. There have been stories about some of these securities containing mortgages that never existed. Then you have the SDSs and CDOs which are nothing more than bets.

IMHO the best thing that could have happened is let the whole crap-house go down in flames.

[LomanBill]

[How do we know they didn’t chop them into 100 pieces and then sell 300 pieces?]

 

300 derivative pieces?

 

 

Uhuh.   A whole lotta a$$paper still floating in the soup.    Especially the chunky institutional parts -- where "investments" related to folk's retirement dependencies are being held hostage.

 

 

Meanwhile, a$$clowns like Alan Greenspan are still unincarcerated...

 

 

"We didn't truly know the dangers of the market, because it was a dark market," says Brooksley Born, the head of an obscure federal regulatory agency -- the Commodity Futures Trading Commission [CFTC] -- who not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country's key economic powerbrokers to take actions that could have helped avert the crisis. "They were totally opposed to it," Born says. "That puzzled me. What was it that was in this market that had to be hidden?"

http://www.pbs.org/wgbh/pages/frontline/warning/view/

 

[meadsjn]

How do we know they didn’t chop them into 100 pieces and then sell 300 pieces?

Here's one very simple way to tell.

The outstanding residential mortgage total amount in the United States is $6.044 Trillion.

The total dollar amount of securities for which the banksters have been demanding taxpayer support is many times that amount.

How else does Six Trillion get turned into 26 Trillion in one analysis, then 50 or 80 Trillion in another, then 400 Trillion in others.