- No governmental relief is in sight for homeowners except in
isolated instances of community action together with publicity from the
- State and federal governments continue to sink deeper into debt,
cutting social and necessary services while avoiding the elephant in
the living room: the trillions of dollars owed and collectible in
taxes, recording fees, filing fees, late fees, penalties, financial
damages, punitive damages and interest due from the intermediary
players on Wall Street who created trading “instruments” based upon
conveyance of interests in real property located within state borders.
The death grip of the lobby for the financial service industry is
likely to continue thus making it impossible to resolve the housing
crisis, the state budget crisis or the federal budget deficit.
- Using taxpayer funds borrowed from foreign governments or created
through quantitative easing, trillions of dollars have been paid, or
provided in “credit lines” to intermediaries on the false premise that
they own or control the mortgage backed securities that have defaulted.
Foreclosures continue to hit new highs. Total money injected into the
system exceeds 8 trillion dollars. Record profits announced by the
financial services industry in which power is now more concentrated
than before, making them the strongest influence in Federal and State
capitals around the world.
- Toxic Titles reveal unmarketable properties in and out of
foreclosures with no relief in sight because nearly everyone is
ignoring this basic problem that is a deal-breaker on every transfer of
an interest in real property.
- Evictions continue to hit new highs as Judges continue to be
bombarded with ill-conceived motions that do not address the
jurisdiction or authority of the court. The illegal evictions are based
upon fraudulent conveyances procured through abuse of the foreclosure
process and direct misrepresentations and fraud upon the court and
recording system in each county as to the documents fabricated for
purposes of foreclosure — creating the illusion of a proper paper trail.
- 1.7 million new foreclosed properties are due to hit the market
according to published statistics. Livinglies estimate the number to be
at least 4 million.
- Downward pressure on both price and marketability continues with no end in sight.
- Unemployment continues to rise, albeit far more slowly than at the
beginning of 2009. Unemployment, underemployment, employment drop-outs,
absence of entry-level jobs, low statistics on new business starts,
and former members of workforce (particularly men) are harbingers for
continued decline in median income combined with higher expenses for
key components, particularly health care. The ability to pay anything
other than rent is continuing its decline.
- Concurrent with the increase in foreclosures and the decrease in
housing prices, official figures put the number of homes underwater at
25%. Livinglies estimates that when you look at three components not
included in official statistics, the figure rises to more than 45%. The
components are selling discounts, selling expenses, and continued
delusional asking prices that will soon crash when sellers realize that
past high prices were an illusion, not a market fluctuation.
- The number of people walking from their homes is increasing daily,
including people who are not behind in their mortgages. This is
increasing the inventory of homes that are not officially included in
the pipeline because they are not sufficiently advanced in the
delinquency or foreclosure process. This is a hidden second wave of
pressure on housing prices and marketability.
- With the entire economy on government life-support that is not
completely effective in preventing rises in homelessness and people
requiring public assistance, the likelihood of severe social unrest and
political upheaval increases month by month. Increasing risks of unrest
prompted at least one Wall Street Bank to order enough firearms and
ammunition to start an armory.
- Modification of mortgages has been largely a sham.
- Short-sales have been largely a sham.
- Quiet titles in favor of homeowners are increasing at a slow pace
as the sophistication of defenses improves on the side of financial
services companies seeking free homes through foreclosures.
- Legislative Intervention has been ineffective and indeed, misleading
- Executive intervention has been virtually non-existent. The people
who perpetrated this fraud not only have evaded prosecution, they
maintain close relationships with the Obama administration.
- Judicial intervention has been spotty and could be much better once
people accept the complexity of securitization and the simplicity of
STRATEGIES THAT WORK.
- Legal profession , slow to start went from zero to 15 mph during 2009. Let’s hope they get to 60 mph during 2010.
- Accounting profession, which has thus far stayed out of the process
is expected to jump in on several fronts, including closer scrutiny of
the published financial statements of public companies and financial
institutions and the cottage industry of examining loan documents for
compliance issues and violations of Federal and State lending laws.
- Prospects for actual economic recovery affecting the average
citizen are dim. While there has been considerable improvement from the
point of risk we had reached at the end of 2008, the new President and
Congress have yet to address essential reforms on joblessness,
regulation of financial services (including insurance businesses
permitted to write commitments without sufficient assets in reserve to
assure the payment of the risk. The economic indicators have been
undermined by the intentional fraud perpetrated upon the world economic
and financial system. Thus the official figures are further than ever
from revealing the truth about about our current status. Without key
acceptance of these anomalies it is inconceivable that the economy
will, in reality, improve during 2010.
- Real inflation affecting everyday Americans has already started to
rise as credit markets become increasingly remote from the prospective
borrowers. Hyperinflation remains a risk although most of us were off
on the timing because we underestimated the tenacious grip the dollar
had on world commerce. While this assisted us in moving toward a softer
landing, the probability that the dollar will continue to fall is still
very high, thus making certain non-dollar denominated commodities more
valuable. This phenomenon could affect housing prices in an upward
direction if the trend continues. However the higher dollar prices will
be offset by the fact that the cheaper dollars are required in greater
quantities to buy anything. Thus the home prices might rise from
$125,000 to $150,000 but the price of a loaf of bread will also be
higher by 20%.
- GDP has been skewed away from including econometrics for actual
work performed in the home unless money changes hands. Societal values
have thus depreciated the value of child-rearing and stable homes. The
results have been catastrophic in education, crime, technological
innovation and policy making. While GDP figures are officially
announced as moving higher, the country continues to move further into
a depression. No actual increase in GDP has occurred for many years,
unless the declining areas of the society are excluded from what is
- The stock market is vastly overvalued again based upon vaporous
forward earnings estimates and completely arbitrary price earnings
ratios used by analysts. The vapor created by a 1000% increase in money
supply caused by deregulation of the private financial institutions
together with the illusion of profits created by these institutions
trading between themselves has resulted in an increase from 16% to 45%
of GDP activity. This figure is impossible to be real. As long as it is
accepted as real or even possible, public figures, appointed and
elected will base policy decisions on the desires of what is currently
seen as the main driver of the U.S. economy. The balance of wealth will
continue to move toward the levels of revolutionary France or the
- Perceptible increases in savings and consumer resistance to retail
impulse buying bodes well for the long-term prospects of the country.
As the savings class becomes more savvy and more wealthy, they will,
like their counterparts in the upper echelons of government commence
exercising their power in the marketplace and in the voting booth.
Filed under: CDO, CORRUPTION, Eviction, GTC | Honor, Investor, Mortgage, bubble, currency, foreclosure, securities fraud | Tagged: bailout, bankruptcy, borrower, credit crisis, disclosure, Federal reserve, foreclosure defense, foreclosure offense, foreclosures, fraud, Lender Liability, MERS, securitization, TILA