Countrywide (and Indymac) had the monkey-run FHLB buy up their toxic mortgage-fraud garbage, to the tune of over $100 billion. We couldn't believe it at the time, wondering just how corrupt or stupid the people at the FHLB had to be.
Well, we got our answer yesterday, as Hank Paulson and Ben Bernanke put the US taxpayer (again) on the hook for Angelo Mozilo's crimes, thanks to a tweak they had Congress make that allowed them to buy up unlimited FHLB debt. Unlimited. At any price they feel like.
No investigation. No oversight. No regulator. No mainstream media outrage. Nothing. Just $800 billion more pissed away yesterday. On top of the $6 trillion already gone out the door. And the trillions more to come.
I quit.
They win.
The US taxpayer loses.
Man, these grifters are good.
Here's the post on HousingPANIC from December 2007, warning of what was to come:
So why hasn't Countrywide Toxic Mortgage gone bankrupt yet? Simple. They conned the monkeys at the FHLB into lending them $50 billion plus
Right before banks fail you usually see them go to the central bank or the government as their "lender of last resort". And then they fail anyway. Just look at the Northern Rock mess in the UK for the perfect example, a failed bank which will now be nationalized (and the taxpayers of course get screwed).
Countrywide Toxic Mortgage, a corrupt institution which will fail in the end, has been looting the Federal Home Loan Bank, using it as its "personal ATM", potentially robbing taxpayers of over $50,000,000,000 so far and counting.
Taxpayers!? How could that be? Well, because when the FHLB fails, who do you think will fund their bailout? You got it. Us.
So how is Angelo Mozilo and his gang of thieves doing this? Simple. They've conned the FHLB into giving them all those billions by putting up mortgages as collateral.
Yes, if it wasn't so funny it'd be sad. They're putting up their toxic mortgages as collateral, and the FHLB is taking them.
The FHLB is either too corrupt or too stupid to know that there's a housing crash underway in the US, and that the crap that Countrywide has on their books is nowhere near worth what Angelo says its worth.
It's one big house of cards HP'ers. And when it all caves in, and the media is all a-twitter, asking "how did this happen"? and "nobody saw this coming", well, once again, it was all just so obvious (for HP'ers).
What stops this madness? When someone in DC finally realizes that the FHLB is being had, tells them that taxpayers will NOT bail them out, and they finally cut Countrywide and Mozilo off.
And then things will get interesting.
Sen. Charles Schumer, a New York Democrat and member of the Senate Banking Committee, accused Countrywide on Monday of treating the FHLB system "like its personal ATM," having borrowed $51.1 billion as of Sept 30.
He said that, as Countrywide's mortgage portfolio deteriorates, the FHLB exposure "poses an unreasonable risk."
Yet Bigelow said "we are very familiar with FHLB collateral requirements, and we are in full compliance ... The FHLB has some experience in risk management, and they probably have some idea what they're doing in terms of their lending activities."
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BANGKOK, Thailand (AP) — Protesters swarmed Thailand's main international airport Tuesday, forcing the cancellation of departing flights just hours after their comrades opened fire on government supporters in a clash on the streets of the capital.
It was the boldest move yet by the People's Alliance for Democracy in a monthslong campaign to topple Prime Minister Somchai Wongsawat, whom it accuses of being the puppet of a disgraced fugitive predecessor, billionaire Thaksin Shinawatra.
Tuesday's events saw for the first time the open use of guns by the alliance's so-called guards and the entanglement of foreigners — the thousands of tourists trapped at the international airport.
The protesters appeared intent on forcing the military to intervene and bring down the elected regime. Army commander Gen. Anupong Paochinda has repeatedly ruled out a coup, though he has also said the army "will keep peace and order to protect the public and uphold important institutions like the monarchy."
"I quit.
They win.
The US taxpayer loses."
Exactly! And you expected anything different this time ?
Gawd, when are you going to get it that the DUMBING DOWN of America has been COMPLETED.
Geesshhhh....
Keith said...
Man, these grifters are good.
No, these Americans are just so bad.
Keith,
These HousingPanic Classics are so good, both funny and illuminating.
A regular look back at what HP was saying and then what the MSM was saying would be a great weekly feature, kind of like the Schiff "Best of" video.
There is a reason that Disney has ESPN Classic and not ABC News Classic. It would show how useless the news is.
Absolutely unacceptable. Another absolutely unacceptable act by the Fed. It should be dissolved immediately before the entire country becomes its liquidity and Ben Bernanke and Alan Greenscam jailed for total incompetence.
Why pay taxes to anyone in the USA?
Fuck Bush.
Keith,
I think it is time to organize. We need one good layer to represent our movement, who is capable of getting national attention. I call for the end to paying taxes now. If the people of this country do not get to decide on this out of control spending, the we give nothing to spend. If they turn on the printing press then they meet a hollow point. I am f*cking sick of this shit. Everyone should go top their boss and say they want to claim enough exemptions so no taxes will be pulled from their paychecks. We need a national movement to stop funding our government.
Next we need to organize for a serious bloody battle. Get your ammo guys.
I say we take this bitch back.
"We need a national movement to stop funding our government."
Will this same organization fight the Fed?
I belive that is what I am indicating Nilla man.
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