2009-2010 Recap

Posted on January 2, 2010 by livinglies
  1. No governmental relief is in sight for homeowners except in
    isolated instances of community action together with publicity from the
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Downward pressure on both price and marketability continues with no end in sight.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. Modification of mortgages has been largely a sham.
  13. Short-sales have been largely a sham.
  14. 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.
  15. Legislative Intervention has been ineffective and indeed, misleading
  16. 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.
  17. Judicial intervention has been spotty and could be much better once
    people accept the complexity of securitization and the simplicity of
  18. Legal profession , slow to start went from zero to 15 mph during 2009. Let’s hope they get to 60 mph during 2010.
  19. 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.
  20. 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.
  21. 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%.
  22. 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
  23. 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
    American colonies.
  24. 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: , , , , , , , , , , , , ,