Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit's supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a "sack of shit."
Really?! Are you serious?
Well son of a b#$%# !!
Here I was under the impression, at least as I was told by Steve, Maria and the rest of the boobs and boobs in chairs on CNBC, that no one saw this housing debacle coming.
Gee whiz, don't I just feel the dunce in the room. Oh wait many did see it. Not that CNBC would care.
Wait we're not done here yet. Notice the first line about how the former Bear Stearns executives thugs now run mortgage ops at Goldman, Bank America, Ally. Executives... ha ha ha that is funny shit I tell ya! Thugs the lot em', lord knows where else many of these cockroaches have surfaced besides the 3 institutions mentioned.
its gets better. The Atlantic piece goes on to say:
'Bear deal manager Nicolas Smith wrote an e-mail on August 11th, 2006 to Keith Lind, a Managing Director on the trading desk, referring to a particular bond, SACO 2006-8, as "SACK OF SHIT [2006-]8" and said, "I hope your [sic] making a lot of money off this trade."'
I encourage you to read the entire article. For those still drinking the kool-aid just pop another prozac with an ambien chaser and turn Idol on.
Like I said phantom income, phantom profits = real bonuses
This e-mail thing makes me fondly recall the one and only Henry 'I'm a proof reader from Random House....no wait ....I am a savvy internet analyst making fantastic stock calls.... no wait..... please don't read my emails' Blodgett. But heck, according to 'Money Honey' Maria Bartiromo, Steve Liesman and rest of the boobs at CNBC no one saw the internet bubble coming either.
It also makes me recall George Santayana's admonition:
"those who do not remember the past are condemned to repeat it."
That past being not learning from Henry Blodgett's mistake about writing- via email - about what dogshit so many of those internet IPO's were.
This news today regarding Bear Stearns makes me recount what so many of the financial terrorists masquerading as the authorities, pundits and critical thinkers said at the time "they had to save Bear". "The system was at risk". Oh yeah, I almost forgot, "it was a mistake letting Lehman Bros. fail.". I have repeatedly stated here before and will say it here again so there is no misunderstanding.....
"LETTING LEHMAN FAIL WAS THE ONLY THING THE MORONS IN CHARGE DID CORRECT !"
There, that should make my position quite clear.
It appears that this parallel universe we live in called bizarro world is in no jeopardy of changing anytime soon. This is evidenced by the not only by the lack of arrests and prosecutions for financial terrorism but by the fact that so many of the uncountable number of cockroaches responsible for it not only still roam the earth freely, as evidenced by the above Atlantic article,but in many cases are still in charge of the crime scene.
Ahhh the irony of it all is simply breathtaking. But take consolation as our collective denial will provide countless hours of mind numbing viewing and reading for current children who are either:
- far too young,
- too dumbed down on Ritalin or
- too enthralled with Idol, Survivor, Jersey Shore, Housewives or the local tattoo parlor
to realize what their parents and grandparents have done to them, that being sold into debt bondage and economic enslavement by a generation too:
- submissive (grope me, keep me secure, and send me a gov't cheque)
- avaricious (buy now pay later) and
- narcissistic (can't be my fault get that mirror away from me)
to know better or even care. Yes it all ensures countless hours of the evidence documenting the looting of the nation before our very eyes that will most surely boggle the collective minds of even the most cynical of this nations future clinical psych and socio experts.
You think things have changed, things have improved? Okay, then explain to me how, given this piece via Reuters, US Judge Temporarily Delays Loan Document Shredding.
I am not even going to get started on the piece Accounting Tweak Could Save Fed From Losses. We live in a buy now pay later society so why should the Fed be any different?
So a bankrupt subprime Ninja, liar loan lender wants to shred its loan documents? Sure, that'll make everything better! What is this, all just a big Harry Potter movie scene?"
The judge in the case, US bankruptcy judge Peter Walsh, granted a 30 day delay and said he would hold another hearing on Mortgage Lenders' request.
Anyone wanna place a bet against the documents getting shredded?
Any takers? ...........I didn't think so. That same article recounts that:
"In a separate hearing Monday in the same court, U.S. Bankruptcy Judge Christopher Sontchi allowed defunct American Home Mortgage, once one of the largest subprime lenders, to destroy most of the 4,100 boxes of original loan files it still has."
Lovely. Still wondering why I often remark "we don't stand a chance with people like this in charge". Please stop wondering. It would also help you in this regard if you simply skip your dose of prozac as well.
Gee I wonder why this judge would let liar loan central destroy the evidence of liar loans?
Hmmmm. Remember now, this blogger didn't matriculate Ivy league so it will definitely take me some time to figure that one out for sure.
Gosh, it really makes one take a moment to appreciate having a system you can really count on, one so reliable you can set your watch to it. The thugs gotta just love it. What, when you are the fox in charge of the henhouse, combined with a boatload banked offshore from the ponzi? What a gig! It is oft said that the cover up is far worse than the crime. I have no doubt that this is most certainly the case now. Cover up at any and all costs.
And the mainstream media?
Their stupidity or complicity, take your pick, is breathtaking.
What does this all mean? Well, I grew up in a corporal punishment (CP) house, no not an abuse house where the drunk or high parent slams the child over nothing as the PC crowd portrays corporal punishment as, but rather a corporal punishment house where actions = consequences. Where you got the belt or the spoon as a direct result of defying parental orders for the umpteenth time,
This wonderful nation has become abandoned the corporal punishment idea replaced by a politically correct time out house. Gotta tell ya, I would have loved time outs! Time out to get re-charged and re-energized for the next offensive debacle on our home for sure . One of my many fears is that, societally, we have gotten so far off our collective rocker of equilibrium and if we don't return back to not only rule of law but ENFORCEMENT of said laws, that something far worse than corporal punishment could rear its ugly face here. For those that need a hint think Stalin, Mao, Pol Pot, Idi Amin and Hitler and you start to get the picture.
There is a piece of paper called the Constitution. There is also a thing called rule of law. I humbly suggest we start enforcing both without bias or prejudice.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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