Just wondering how they sweep this fraud under the table

http://www.cbsnews.com/video/watch/?id=7361572n

It's interesting to note how long it took the mainstream media to get hold of this story, and they still don't have it right. Notice how the focus is on the trials and tribulations of the homeowner and not the massive fraud perpetrated on courts across the nation. They address the "robo-signer" document scandal, but no mention of the states themselves setting up robo-judges (many brought back from retirement with no experience in mortgage law) in robo-courts to rubber stamp and hustle through as many of these fraudulent foreclosures as possible.

Karl Deninnger has been covering this story since 2007 when problems at Bear Sterns and AIG first surfaced. Go to his archive and take a trip down memory lane: www.market-ticker.org

The story goes back further than that however - to at least 2004 when problems related to derivatives written against CDO's first started to appear. Doug Noland (www.prudentbear.com), an analyst I follow, has been warning about an impending credit collapse since I first started reading him back in 2000, although the main focus at the time was Fannie and Freddie, not the MBS market per se.

Denninger thinks, and I tend to agree, that the game currently being played is to drag out the investigative process on what is clearly a fraud of massive proportions until the statute of limitations expires, which is five years. Well, here we are, 4 years since the problem first surfaced, and not a single indictment of any major player has been handed down. I'm not even aware of any grand jury being struck to look into this stuff. It really drives home the point that there's one law for us and basically none for the big banks. They act with impunity, placing the entire financial system at risk, and congress looks the other way, either for fear of the consequences of fighting back, os the more banal reason of losing their campaign financing, 40% of which comes from the financial sector.

MY own father was directly affected by all this. He's been trying to sell a condo in Florida for over 3 years now. He gets about two inquiries a year. I warned him to get out in 2006 before the SHTF, but when do fathers ever listen to their sons? He's a retired high level diplomat who negotiated trade agreements for the Canadian government. and even he can't get his mind around this thing. Who can blame him? Who would have believed things could ever go this far? I recently advised him to put his place up for sale again, but this time with a notice that says "documented clear title." Probably one of the few properties in his area that can make that claim. Truly unreal.

ebear