To Date …. Three Regions Of Global Governance Have Emerged

I … Through waves of yen based carry trade investing, and waves of free trade legislation, such as CAFTA and NAFTA here in the US, as well as through the announcement of the Framework Agreements at various Summits both in the US and in Europe as well as Asia, globalization has effected the loss of national sovereignty and the rise of global governance manifesting in regions of global government.

World leaders are communicating the call of the Club of Rome made in 1974 for ten regions of global governance; three have emerged so far:

1)  The North American Continent was announced as a region of global governance at Baylor Baptist University by the leaders, Vincent Fox, Paul Martin and George Bush, with the Security and Prosperity Partnership of North America on March 23, 2005 with documentation as follows:

Baylor TV Coverage Of The Trilateral Summit News Conference

President Meets With President Fox and Prim Minister Martin Martin At Baylor University Waco, Texas

Baylor Has a Proven Record of Hosting White House Events On March 23, 2005, Baylor served as host for President Bush’s historic “Security and Prosperity Partnership for North America” meeting with Mexican President Vicente Fox and Canadian Prime Minister Paul Martin. The Armstrong Browning Library was the venue for the leaders’ meeting, which was followed by a news conference in the Bill Daniel Student Center’s Barfield Drawing Room

Baylor Hosts President Bush, Mexican President Fox And Canadian Prime Minister Martin For Historic Meeting

2) Those in the ASEAN trading group were knitted together as a region of global governance in May 2010 as they accepted China’s currency, as the basis to trade, as Nikkei.com reports in article Japan, China, S Korea Trade Ministers See Investment Pact In ’10

3) The Eurozone became a region of global governance on May 10, 2010, as the EU Finance Ministers announced European Economic Governance and called for a monetary union with seigniorage authority to issue eurobonds.

Global governance is the political driving force of this age as Flash News Today provides The Hindu report. India To Participate In Asia-Europe Dialogue: “On Monday, October 4, the leaders will convene “the eighth Asia Europe Meeting (ASEM) Summit in Brussels and will address “priority number one” — moving towards a declaration calling for more effective global financial and economic governance.”  ConsiliumEuropa provides the PDF transcript of the Herman Van Rompuy speech More Effective Global Financial And Economic Governance given at the 8th Asia-Europe, ASEM, Summit held in Brussels.  And, Stock Market News Australia reports Chinese Premier Wen Jiabao said at the Europe Asia Summit: “We must explore ways to establish a more effective global economic governance system”.  

Many today would like to dismantle the Eurozone by one means or another. My reply to them, is that there are indeed many problems in the Eurozone, these include different rates of productivity, growth, inflation, sovereign debt interest rates, taxation and others issues such as the report by Tyler Durden that The ECB Directly And Indirectly Monetized All Irish September Treasury Auctions; the action raised Irish ECB borrowings to 9% of liabilities, the same as Portuguese banks.

In my mind, there will never, repeat never be any dismantling of the Eurozone, nor will ever be any default of either sovereign debt or banking debt by Eurozone members.

The periphery countries, particularly Greece, Ireland, Italy, Portugal, and Spain indeed have significant issues, but they will never voluntarily leave of their own accord.

Herman Van Rompuy, President of the  European Council, presents a video reporting the accomplishments of the task force on economic governance which took place in Brussels on Monday July 12, 2010; and he specifically said that at the current time, sovereign debt default is out of the question — sovereign debt default would imply separation from the Union. And EuroIntelligence has it right as they report on October 8, 2010: No bond holder participation in Ireland: “It sounded like an exciting piece of news, when Ireland’s regulator pronounced that Ireland may after all participate the senior bondholders in the rescue costs. Ireland’s finance minister Brian Lenihan yesterday not only contradicted this. He also outlines the rules for the subordinate bondholders, which suggests that even those will not really be participating. It would only apply to institutions which are not listed on a recognised stock exchange, are in 100 percent state control and could not survive in the absence of total state support. That exempts pretty much anybody.  So the Irish bank bailout is de facto finance to 100% by the tax payer.”

Ambrose Evans-Pritchard in Telegraph article Europe Prepares Nuclear Response To Save Monetary Union, writes provided an astute observation:  “The walls of fiscal and economic sovereignty are being breached. The creation of an EU rescue mechanism with powers to issue bonds with Europe’s AAA rating to help eurozone states in trouble — apparently €60bn, with a separate facility that may be able to lever up to €500bn — is to go far beyond the Lisbon Treaty. This new agency is an EU Treasury in all but name, managing an EU fiscal union where liabilities become shared. A European state is being created before our eyes.”

Yes, as Mr. Evans-Pritchard communicates: national sovereignty was waived as the EU Leaders announced their agreement, just as in the United States, in March 2005, the three leaders of the North American continent announced the Security and Prosperity Partnership of North America, The SPP, at Baylor Baptist University; in so doing they abrogated Constitutional law; and waived sovereignty, and established a home, or better stated, a homeland for the continent’s people.

The future has been set; it is as Angela Merkel said, “If we are to have a global order and global governance we need to have an understanding for each other.” according to BBC report Germany’s Merkel Calls For Tougher Finance Regulation.

II ..The application is that the word, will and way of politicians, government administrators and banking leaders is emerging as the governing principle in economic affairs. A n Observant Mind believes a Financial Regulator, acting in concert an unannounced council of stakeholders, specifically elected officials, bank presidents, SEC/ECOFIN officials, and GSE administrators will effect policy that sustains an intertwined state corporate rule, that maintains the interest of the political and economic elite. One of their goals is to maintain the value of banking and real estate assets at the current levels as much as possible; and as such they effect policies to mitigate deflation. I present several examples below:

A … On, October 5, 2010, Japan took the ultimate action. In a unilateral decision, it went nuclear in the currency war that started September 15, 2010, when it intervened in the currency markets and sold Yen. In a unanimous vote, the Bank of Japan’s nine-member policy setting board set its interest rate at zero, that is, it established a Zero Interest Rate Policy, ZIRP,  in an attempt to stop the rise in its currency and to appease political dissent that has risen over Japan’s ongoing deflation.

EconomicPolicy Journal relates that the Bank of Japan announced that it may buy J-Reits and J-ETFs as well, in an attempt to appease Japanese politicians who relate they have had enough of deflation.

Shaun Richards relates: “In addition it stated that it would look at establishing a temporary 5-trillion-yen ($60 billion) fund to purchase various financial assets such as government securities, commercial paper and corporate bonds in an attempt to stimulate the economy by lowering longer-term interest rates or what are more commonly called asset purchases or Quantitative Easing. The central bank will offer another 30 trillion yen ($359 billion) through its loan program.”

It is quite a stunning thing when a central bank goes to zero; Japan has simply decided to print money at will. Furthermore, the central bank of Japan, has in effect become the unitary, and sole provider of capital and money in Japan crowding out all bank lending. It has  integrated banking and government into a state corporate combine; and it has effected a bloodless coup, establishing state corporatism, that is state corporate rule over the people of Japan.

The bank of Japan became Financial Regulator and Seignior, that is Credit Boss, overseeing money, lending, credit, banking and, investment in Japan.

B … On October 8, 2010, Robert Wenzel in EconomicPolicy Journal article Secret SEC Meeting with Goldman Sachs and JP Morgan:  “A secret meeting apparently took place on Wednesday at the Willard Hotel, between the SEC and top elite banking insiders. Here’s what Politico reports: Top Wall Street CEOs were in D.C. yesterday to meet privately with top regulators at the Willard hotel. Much of the discussion centered on Dodd-Frank implementation. The meeting was closed to press, but our spies say chief executives including Jamie Dimon of JPMorgan Chase and Lloyd Blankfein of Goldman Sachs expressed relief that they at least now know what the new rules of the road are going to be (even if they don’t always agree with them).

So in a secret meeting, Blankfein and Dimon get briefed on the new “rules of the road.”

What about the rest of the business and financial world? J.P. Freire at the Washington Examiner tried to learn about the meeting from the SEC:

Yesterday, the Securities and Exchange Commission (SEC) met with top brass at Goldman Sachs at the Willard Hotel to discuss implementation of the Dodd-Frank financial reform. So what happened? We wish we could tell you. When The Examiner called the SEC to ask for comment or for any notes from the meeting, they said that they would not comment and could neither confirm nor deny a meeting with Goldman. “But we know it happened,” I told the press officer. “No comment.”

This secret meeting by the SEC with Blankfein and Dimon, one block from the Treasury and the White House, has to be one of the most outrageous examples of elite plotting to be disclosed since Jekyll Island meetings. The SEC, Goldman and JP Morgan need to immediately disclose who was at the meeting and what was discussed. (ht Janet Tavakoli)”

C … In retrospect, it was the Dodd Frank legislation that established a Federal Financial Regulator, that being the Treasury Secretary, and granted him wide discretionary power of the economy. From the Robert Wenzel article, I conclude that in the US, through an October 6, 2010, meeting of bankers, investment bankers and SEC officials, an elite group of stakeholders has arisen to serve as a “banking, lending, credit, and investment Regulatory Council”, supporting the Financial Regulator in overseeing the US economy.

Tyler Durden writes that Karl Denninger, was on the Dylan Ratigan show, and not only provided one of the most comprehensive explanations of where we are in the mortgage foreclosure imbroglio, how we got here, and where we are going to date; but said in his concluding remarks: “What if we find that of these $6 trillion in securities that are out there, outstanding right now, half or more of them are defective. You put them back on the banks and they all blow up. You know what – we have a resolution authority under Frank-Dodd, how about if we use it?”

So, I believe that the Dodd Frank legislation, will empower the Federal Financial Regulator, to intervene in the mortgage issues; he will provide a solution that integrates the banks with the Government to rule over the people.

D … Irvine Renter in article Politicians Encourage Strategic Default with Foreclosure Moratoria writes about the lack of falling real estate prices and about the entitlement of banks to value property via FASB 157 at mark to managers best estimate and about the millions living payment free in mortgaged property:  “The announcement by BofA — who was strongly encouraged by numerous government officials — to suspend all foreclosures strongly encourages strategic default. Why would anyone pay their mortgage when they know they can stop paying and keep their house?

Why don’t borrowers steal away? Why don’t they keep the house and ignore the mortgage. With news like this, I really don’t understand Why Struggling Homeowners Keep Paying Their Mortgages; after all Squatting is Becoming a Way of Life for Many Delinquent Borrowers, and now, the bank is stopping all foreclosures. Given these circumstances, isn’t strategic default the most prudent course of action?

Not everyone will strategically default. Many borrowers really can afford their payments, and they rightfully figure the foreclosure moratorium will end; however, the struggling masses who are considering accelerating their defaults have just been given the green light to bail because they know the bank isn’t going to foreclose on them.

It looks as if the government is going to delay the recovery [of real estate sales] by keeping a huge overhang of shadow inventory despite the inevitably lawsuits.”

Freddie Mac, an entity under government conservatorship and run by the Treasury department, asked major commercial banks to stop foreclosing on delinquent borrowers. This is one of two things: (1) It is a purely political act of desperate Democratic incumbents (Harry Reid and others) to make themselves look good going into next month’s elections, or (2) the GSEs want to ramp up their own foreclosures while prices are still elevated and they don’t want competition from the major banks (Government Expedites Foreclosures, Threatens Banking Cartel). I lean more toward political causes, but the economic issue cannot be dismissed.

Do we need to give squatters any more breaks? For those of you waiting for these squatters to move out of your future home, how do you feel about this? You are paying a subsidy to the people living in your future home while you continue to work, pay bills, and rent.”

And Irvine Renter porvides the Dan Fitzpatrick, Damian Paletta and Robin Sidel in Wall Street Journal article BofA Halts Foreclosures  which communicates the growing likelihood of years of legal lawsuits: “Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy,” the industry letter said. Suspending foreclosures could end up forcing banks, which act as service companies for the loans, to spend billions of dollars to compensate investors who own the pools of mortgages they manage. And it could add to the losses at Fannie Mae and Freddie Mac, the two government-owned mortgage financiers. Pension funds and other investors in the pools of mortgage securities are worried that the big banks will get special treatment from Washington. “What’s happened is a gross mishandling of paperwork and often times a misrepresentation of the transaction,” said Chris Katopis, a spokesman for the Association of Mortgage Investors. “The banks have to have some responsibility and accountability for this.”

Shevy comments on the Irvine Renter article: “They are setting us up for another round of money to go from responsible Americans to the banks through more modificaiton money etc. What’s sad is it’s unlikely to help anyone but the banks. Of course, they will pretend it’s absolutley necessary and that they are helping those underwater, current homeowners, and that it’s in everyone’s interest not to allow the banks to lose money on these deals. In reality they are creating indentured servants and only helping the banks. The American public has to wake up and realize that the only people benefiting are banks.”

Renting In Newport comments:  These are amazing times we are living in.  There are so many potential ramifications of what is happening now that it boggles the mind.  I will admit that I am not an expert at these things, so it’s possible that my thoughts here are way off base.  But…
1.  Current non-defaulted, non-short sale sellers will have to provide verification to the new buyer that the title of the home can legitimately be transferred over.
2.  Buyers can potentially be buying homes and making payments to entities without proper title documentation.  In other words, what happens to the money they’ve been paying if they’ve been paying it to the wrong entity?
3.  Foreclosed buyers whose homes have already been sold to others might be able to make a claim that the forecloser was illegal and attempt to retake ownership of the homes that others have already bought.
4.  Banks may have been foreclosing and reselling homes when in reality, they no longer own the title to the home.  The title belongs to someone else, and they are reaping the money off of a second sale when that money really needs to be going to whoever now owns the title.
It is this fourth point that makes me think that BofA’s freezing of foreclosures may be necessary.  If they no longer own the title, we do not want them foreclosing and reselling homes only to find out later that they didn’t have the right to do that.

For those interested in issues of sovereignty and seigniorage, I suggest reading of my blog EconomicReview Journal.  

Keywords globalorder, global governance, european economic governance, oneeurogovernment, , foreclosure moratorium, foreclosuremoratorium, global order  

To Date …. Three Regions Of Global Governance Have Emerged

Author: theyenguy
Date: October 10, 2010

I … Through waves of yen based carry trade investing, and waves of free trade legislation, such as CAFTA and NAFTA here in the US, as well as through the announcement of the Framework Agreements at various Summits both in the US and in Europe as well as Asia, globalization has effected the loss of national sovereignty and the rise of global governance manifesting in regions of global government.

World leaders are communicating the call of the Club of Rome made in 1974 for ten regions of global governance; three have emerged so far:

1)  The North American Continent was announced as a region of global governance at Baylor Baptist University by the leaders, Vincent Fox, Paul Martin and George Bush, with the Security and Prosperity Partnership of North America on March 23, 2005 with documentation as follows:

Baylor TV Coverage Of The Trilateral Summit News Conference

President Meets With President Fox and Prim Minister Martin Martin At Baylor University Waco, Texas

Baylor Has a Proven Record of Hosting White House Events On March 23, 2005, Baylor served as host for President Bush’s historic “Security and Prosperity Partnership for North America” meeting with Mexican President Vicente Fox and Canadian Prime Minister Paul Martin. The Armstrong Browning Library was the venue for the leaders’ meeting, which was followed by a news conference in the Bill Daniel Student Center’s Barfield Drawing Room

Baylor Hosts President Bush, Mexican President Fox And Canadian Prime Minister Martin For Historic Meeting

2) Those in the ASEAN trading group were knitted together as a region of global governance in May 2010 as they accepted China’s currency, as the basis to trade, as Nikkei.com reports in article Japan, China, S Korea Trade Ministers See Investment Pact In ’10

3) The Eurozone became a region of global governance on May 10, 2010, as the EU Finance Ministers announced European Economic Governance and called for a monetary union with seigniorage authority to issue eurobonds.

Global governance is the political driving force of this age as Flash News Today provides The Hindu report. India To Participate In Asia-Europe Dialogue: “On Monday, October 4, the leaders will convene “the eighth Asia Europe Meeting (ASEM) Summit in Brussels and will address “priority number one” — moving towards a declaration calling for more effective global financial and economic governance.”  ConsiliumEuropa provides the PDF transcript of the Herman Van Rompuy speech More Effective Global Financial And Economic Governance given at the 8th Asia-Europe, ASEM, Summit held in Brussels.  And, Stock Market News Australia reports Chinese Premier Wen Jiabao said at the Europe Asia Summit: “We must explore ways to establish a more effective global economic governance system”.  

Many today would like to dismantle the Eurozone by one means or another. My reply to them, is that there are indeed many problems in the Eurozone, these include different rates of productivity, growth, inflation, sovereign debt interest rates, taxation and others issues such as the report by Tyler Durden that The ECB Directly And Indirectly Monetized All Irish September Treasury Auctions; the action raised Irish ECB borrowings to 9% of liabilities, the same as Portuguese banks.

In my mind, there will never, repeat never be any dismantling of the Eurozone, nor will ever be any default of either sovereign debt or banking debt by Eurozone members.

The periphery countries, particularly Greece, Ireland, Italy, Portugal, and Spain indeed have significant issues, but they will never voluntarily leave of their own accord.

Herman Van Rompuy, President of the  European Council, presents a video reporting the accomplishments of the task force on economic governance which took place in Brussels on Monday July 12, 2010; and he specifically said that at the current time, sovereign debt default is out of the question — sovereign debt default would imply separation from the Union. And EuroIntelligence has it right as they report on October 8, 2010: No bond holder participation in Ireland: “It sounded like an exciting piece of news, when Ireland’s regulator pronounced that Ireland may after all participate the senior bondholders in the rescue costs. Ireland’s finance minister Brian Lenihan yesterday not only contradicted this. He also outlines the rules for the subordinate bondholders, which suggests that even those will not really be participating. It would only apply to institutions which are not listed on a recognised stock exchange, are in 100 percent state control and could not survive in the absence of total state support. That exempts pretty much anybody.  So the Irish bank bailout is de facto finance to 100% by the tax payer.”

Ambrose Evans-Pritchard in Telegraph article Europe Prepares Nuclear Response To Save Monetary Union, writes provided an astute observation:  “The walls of fiscal and economic sovereignty are being breached. The creation of an EU rescue mechanism with powers to issue bonds with Europe’s AAA rating to help eurozone states in trouble — apparently €60bn, with a separate facility that may be able to lever up to €500bn — is to go far beyond the Lisbon Treaty. This new agency is an EU Treasury in all but name, managing an EU fiscal union where liabilities become shared. A European state is being created before our eyes.”

Yes, as Mr. Evans-Pritchard communicates: national sovereignty was waived as the EU Leaders announced their agreement, just as in the United States, in March 2005, the three leaders of the North American continent announced the Security and Prosperity Partnership of North America, The SPP, at Baylor Baptist University; in so doing they abrogated Constitutional law; and waived sovereignty, and established a home, or better stated, a homeland for the continent’s people.

The future has been set; it is as Angela Merkel said, “If we are to have a global order and global governance we need to have an understanding for each other.” according to BBC report Germany’s Merkel Calls For Tougher Finance Regulation.

II ..The application is that the word, will and way of politicians, government administrators and banking leaders is emerging as the governing principle in economic affairs. A n Observant Mind believes a Financial Regulator, acting in concert an unannounced council of stakeholders, specifically elected officials, bank presidents, SEC/ECOFIN officials, and GSE administrators will effect policy that sustains an intertwined state corporate rule, that maintains the interest of the political and economic elite. One of their goals is to maintain the value of banking and real estate assets at the current levels as much as possible; and as such they effect policies to mitigate deflation. I present several examples below:

A … On, October 5, 2010, Japan took the ultimate action. In a unilateral decision, it went nuclear in the currency war that started September 15, 2010, when it intervened in the currency markets and sold Yen. In a unanimous vote, the Bank of Japan’s nine-member policy setting board set its interest rate at zero, that is, it established a Zero Interest Rate Policy, ZIRP,  in an attempt to stop the rise in its currency and to appease political dissent that has risen over Japan’s ongoing deflation.

EconomicPolicy Journal relates that the Bank of Japan announced that it may buy J-Reits and J-ETFs as well, in an attempt to appease Japanese politicians who relate they have had enough of deflation.

Shaun Richards relates: “In addition it stated that it would look at establishing a temporary 5-trillion-yen ($60 billion) fund to purchase various financial assets such as government securities, commercial paper and corporate bonds in an attempt to stimulate the economy by lowering longer-term interest rates or what are more commonly called asset purchases or Quantitative Easing. The central bank will offer another 30 trillion yen ($359 billion) through its loan program.”

It is quite a stunning thing when a central bank goes to zero; Japan has simply decided to print money at will. Furthermore, the central bank of Japan, has in effect become the unitary, and sole provider of capital and money in Japan crowding out all bank lending. It has  integrated banking and government into a state corporate combine; and it has effected a bloodless coup, establishing state corporatism, that is state corporate rule over the people of Japan.

The bank of Japan became Financial Regulator and Seignior, that is Credit Boss, overseeing money, lending, credit, banking and, investment in Japan.

B … On October 8, 2010, Robert Wenzel in EconomicPolicy Journal article Secret SEC Meeting with Goldman Sachs and JP Morgan:  “A secret meeting apparently took place on Wednesday at the Willard Hotel, between the SEC and top elite banking insiders. Here’s what Politico reports: Top Wall Street CEOs were in D.C. yesterday to meet privately with top regulators at the Willard hotel. Much of the discussion centered on Dodd-Frank implementation. The meeting was closed to press, but our spies say chief executives including Jamie Dimon of JPMorgan Chase and Lloyd Blankfein of Goldman Sachs expressed relief that they at least now know what the new rules of the road are going to be (even if they don’t always agree with them).

So in a secret meeting, Blankfein and Dimon get briefed on the new “rules of the road.”

What about the rest of the business and financial world? J.P. Freire at the Washington Examiner tried to learn about the meeting from the SEC:

Yesterday, the Securities and Exchange Commission (SEC) met with top brass at Goldman Sachs at the Willard Hotel to discuss implementation of the Dodd-Frank financial reform. So what happened? We wish we could tell you. When The Examiner called the SEC to ask for comment or for any notes from the meeting, they said that they would not comment and could neither confirm nor deny a meeting with Goldman. “But we know it happened,” I told the press officer. “No comment.”

This secret meeting by the SEC with Blankfein and Dimon, one block from the Treasury and the White House, has to be one of the most outrageous examples of elite plotting to be disclosed since Jekyll Island meetings. The SEC, Goldman and JP Morgan need to immediately disclose who was at the meeting and what was discussed. (ht Janet Tavakoli)”

C … In retrospect, it was the Dodd Frank legislation that established a Federal Financial Regulator, that being the Treasury Secretary, and granted him wide discretionary power of the economy. From the Robert Wenzel article, I conclude that in the US, through an October 6, 2010, meeting of bankers, investment bankers and SEC officials, an elite group of stakeholders has arisen to serve as a “banking, lending, credit, and investment Regulatory Council”, supporting the Financial Regulator in overseeing the US economy.

Tyler Durden writes that Karl Denninger, was on the Dylan Ratigan show, and not only provided one of the most comprehensive explanations of where we are in the mortgage foreclosure imbroglio, how we got here, and where we are going to date; but said in his concluding remarks: “What if we find that of these $6 trillion in securities that are out there, outstanding right now, half or more of them are defective. You put them back on the banks and they all blow up. You know what – we have a resolution authority under Frank-Dodd, how about if we use it?”

So, I believe that the Dodd Frank legislation, will empower the Federal Financial Regulator, to intervene in the mortgage issues; he will provide a solution that integrates the banks with the Government to rule over the people.

D … Irvine Renter in article Politicians Encourage Strategic Default with Foreclosure Moratoria writes about the lack of falling real estate prices and about the entitlement of banks to value property via FASB 157 at mark to managers best estimate and about the millions living payment free in mortgaged property:  “The announcement by BofA — who was strongly encouraged by numerous government officials — to suspend all foreclosures strongly encourages strategic default. Why would anyone pay their mortgage when they know they can stop paying and keep their house?

Why don’t borrowers steal away? Why don’t they keep the house and ignore the mortgage. With news like this, I really don’t understand Why Struggling Homeowners Keep Paying Their Mortgages; after all Squatting is Becoming a Way of Life for Many Delinquent Borrowers, and now, the bank is stopping all foreclosures. Given these circumstances, isn’t strategic default the most prudent course of action?

Not everyone will strategically default. Many borrowers really can afford their payments, and they rightfully figure the foreclosure moratorium will end; however, the struggling masses who are considering accelerating their defaults have just been given the green light to bail because they know the bank isn’t going to foreclose on them.

It looks as if the government is going to delay the recovery [of real estate sales] by keeping a huge overhang of shadow inventory despite the inevitably lawsuits.”

Freddie Mac, an entity under government conservatorship and run by the Treasury department, asked major commercial banks to stop foreclosing on delinquent borrowers. This is one of two things: (1) It is a purely political act of desperate Democratic incumbents (Harry Reid and others) to make themselves look good going into next month’s elections, or (2) the GSEs want to ramp up their own foreclosures while prices are still elevated and they don’t want competition from the major banks (Government Expedites Foreclosures, Threatens Banking Cartel). I lean more toward political causes, but the economic issue cannot be dismissed.

Do we need to give squatters any more breaks? For those of you waiting for these squatters to move out of your future home, how do you feel about this? You are paying a subsidy to the people living in your future home while you continue to work, pay bills, and rent.”

And Irvine Renter porvides the Dan Fitzpatrick, Damian Paletta and Robin Sidel in Wall Street Journal article BofA Halts Foreclosures  which communicates the growing likelihood of years of legal lawsuits: “Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy,” the industry letter said. Suspending foreclosures could end up forcing banks, which act as service companies for the loans, to spend billions of dollars to compensate investors who own the pools of mortgages they manage. And it could add to the losses at Fannie Mae and Freddie Mac, the two government-owned mortgage financiers. Pension funds and other investors in the pools of mortgage securities are worried that the big banks will get special treatment from Washington. “What’s happened is a gross mishandling of paperwork and often times a misrepresentation of the transaction,” said Chris Katopis, a spokesman for the Association of Mortgage Investors. “The banks have to have some responsibility and accountability for this.”

Shevy comments on the Irvine Renter article: “They are setting us up for another round of money to go from responsible Americans to the banks through more modificaiton money etc. What’s sad is it’s unlikely to help anyone but the banks. Of course, they will pretend it’s absolutley necessary and that they are helping those underwater, current homeowners, and that it’s in everyone’s interest not to allow the banks to lose money on these deals. In reality they are creating indentured servants and only helping the banks. The American public has to wake up and realize that the only people benefiting are banks.”

Renting In Newport comments:  These are amazing times we are living in.  There are so many potential ramifications of what is happening now that it boggles the mind.  I will admit that I am not an expert at these things, so it’s possible that my thoughts here are way off base.  But…
1.  Current non-defaulted, non-short sale sellers will have to provide verification to the new buyer that the title of the home can legitimately be transferred over.
2.  Buyers can potentially be buying homes and making payments to entities without proper title documentation.  In other words, what happens to the money they’ve been paying if they’ve been paying it to the wrong entity?
3.  Foreclosed buyers whose homes have already been sold to others might be able to make a claim that the forecloser was illegal and attempt to retake ownership of the homes that others have already bought.
4.  Banks may have been foreclosing and reselling homes when in reality, they no longer own the title to the home.  The title belongs to someone else, and they are reaping the money off of a second sale when that money really needs to be going to whoever now owns the title.
It is this fourth point that makes me think that BofA’s freezing of foreclosures may be necessary.  If they no longer own the title, we do not want them foreclosing and reselling homes only to find out later that they didn’t have the right to do that.

For those interested in issues of sovereignty and seigniorage, I suggest reading of my blog EconomicReview Journal.  

Keywords globalorder, global governance, european economic governance, oneeurogovernment, foreclosure moratorium, foreclosuremoratorium, global order  

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: