I read this comment today on another site. I think it clearly explains the scam that was (is) being run on the American public.
“First of all many people do understand what caused 2008 and these are those who have or had MERS loans and the crisis was in fact intentional. The big banks bought mortgages from mortgage lenders and then placed these in $25 million pools held at JP Morgan. The notes were registered with MERS, (Mortgage Electronic Registration System but when first bought they did not pay the doc stamps and recording fees at the local level where the loans were made. Every time they sold the securities they changed ownership at MERS but again not at the local level. MERS was nothing more than a way for them to circumvent paying taxes at the local level. The problem with this is that there is a federal law that the supreme court ruled on over a 100 years ago that when you separate the note from the mortgage which they did when the notes were sold and then not recorded this makes it an unsecured loan and the mortgage in null and void.
Now many of these loans were made to fail and the question is why would they do that? Because the FED and the Comptroller of the Currency, (OCC), which is supposed to be independent and oversee banks allowed up to 10 insurance polices on each note in case of default. These were not ordinary policies but in case of default paid not the balance left but the original principal amount plus legal cost. Who underwrote these? AIG which we all know needed a bailout.
When these loans were not defaulting fast enough the banks hired legal firms who then forged documents and illegal foreclosed on millions of families. These were the robosigners. Even here in Florida they were foreclosing on families who were current and also on people who had no mortgage at all. The MO was they sent in a team of movers in the day when people were at work, moved the possessions and changed the locks forcing people to hire a attorney. In one case close to me in court after the judge ruled it was an illegal foreclosure, the bank still wanted the family to pay for the moving costs and storage fees.
Now when investors and pension funds all over the planet realized what the banks were doing and the securities were worthless and all of the illegal foreclosures they sued in droves. Other banks not involved refused to do any interbank lending with the banks involved with huge amounts of capital then fleeing the US. The banks then had Paulson go to Congress and claim that the whole system would collapse unless the taxpayers bailed them out. They received TARP which bailed out the banks and paid for the lawsuits and damages and also allowed treasury to buy the MERS loans. The FED by its mandate cannot buy these but is limited treasuries and US government backed agency debt and mortgages from Fannie Mae and Freddie MAC. These have higher lending standards than the lenders who underwrote the MERS loans. Now when Congress approved HAARP to help homeowners who were now underwater as real estate prices collapsed because of the illegal foreclosures, they intentionally left out the MERS homeowners and only loans that were from fannie mae and freddie mac could qualify for a new loan. Why? Because many MERS loans were still current and the insurance polices on these in case of default were still in place. My sister is one of those. It took her 10 years to refinance as she was underwater the whole time until just recently. Many people just walked away.
Both Bear Stearns and Lehman were taken down because they held huge pools of MERS loans in various funds. When investors again realized what the loans really were the flood of capital leaving these funds collapsed these firms. Paulson refused to bailout them out like the other banks in spite of the fact that nonfinancial firms like GM and Mcdonalds received bailouts.
This was the largest fraud in the history of the US and no one went to jail. Not one banker, not one attorney, not one robosigner, not one person in the credit agencies who classified them as AAA and not one person in the title companies who insured the chain of command and they knew the chain had been broken and should not have given clear title.
This is what caused 2008 crisis and it was intentional!
The FED has been raising rate gradually with some pauses since late 2015 and the reason for this is pensions. Bernanke left rates too low for too long devastating savors, retirees, many private and most public pensions including social security. Public pensions must hold a min. of 50% gov debt with SS at 100%. There is no yield so they are all going broke. SS can only pay 75% of monthly benefits because they do not take in enough from payroll taxes and yield. The SS Trust Fund pays the 25% which was created when there was more money coming in than out. It goes completely bust in three years and cuts will have to be made unless yield is brought back or taxes are increased significantly. Kudlow coming out recently and demanding they cut rates shows how connects he is to wall street as they want cheap money and also for the dollar to weaken, (cutting rates will do this) so the trillions in denominated loans to foreign entities can be serviced as a strong dollar makes this almost impossible. If the FED does cut this is a clear signal that they are going to let pensions go bust and keep destroying savors, retirees, private and public pensions. It is going to be interesting if wall street screws these groups as they did with homeowners. This will create social chaos across the US as those who paid into SS and are still paying will realize that what they were promised they will not receive.”