"...there's an extremely dangerous feature of the Geithner Plan..."
http://finance.yahoo.com/tech-ticker/article/216311/Part-I-Geithner's-Plan-%22Extremely-Dangerous%22-Economist-Galbraith-Says?tickers=%5Egspc,%5Edji,c,bac,jpm,WFC?sec=topStories&pos=2&asset=TBD&ccode=TBDProfessor James Galbraith is right-on. Galbraith gets it. He understands the real problem behind the toxic assets.
In an interview, he was asked, "Will this plan work?"
He said, "Well, it depends on what you mean by work."
Further in the interview, he was asked, "Are there any smart economists that agree with [Treasury Secretary Tim Geithner]?"
He answered, "That you'll have to go digging for."
At about one minute and 50 seconds into the innterview, he shed light on the problem:
"They [toxic assets] are backed in the files by documents that are often missing, that show misrepresentations, that show signs of fraud."
Jason Werner
I'd like to personally and sarcastically add: America, do you want my toxic liabilities? One of those liabilities is awaiting mediation in Cuyahoga County Court of Common Pleas because thugs Kenneth Lewis (Bank of America) and Angelo Mozilo (Countrywide) refused to take title to my Condo in North Olmsted, Ohio, after we agreed to give it to them August 2008 per Countrywide's offer. The Condo is worth about $60,000. America, you will be stuck dealing with a fraudulent condominium association and you'll be stuck with paying property taxes of nearly $100 per month, not to mention the liability of owning the property regardless of what happens in court.
The other toxic asset you'd be buying would be my liability on my primary residence in Olmsted Township, Ohio, which is loaded with fraud. This fraud-loaded mortgage, originated under former Chief Executive Officer Michael Perry of former IndyMac Bank, has been fraudulently sitting on the desk of a woman referrerd to as judge, Katherine O'Malley, in Northern District of Ohio, federal court, whereas it was transferred there by thugs representing Federal Deposit Insurance Corporation (FDIC) from our local state court to avoid a previous judge's order for mediation. You'd be buying a note that includes some type of contract that talks about construction, which of course has been changed multiple times by IndyMac representatives and FDIC representatives. The dwelling actually has substantial value, but you'll have to deal with the Olmsted Township Building Department if anyone other than Jason Werner owns the property in the future because there will be violations on the building due to recent construction (only the current owner can avoid the construction not being considered "in violation"). You'd also have to deal with real estate taxes at some point of just less than $10,000 a year. But again, it's in court, so you'll have to deal with a lazy and corrupt court system, whichever way that goes.
Still laughing at our silly government with me?
The value of these assets to taxpayers? The toxic mortgage on the Condo has lost much value because the borrower (me) has given up on the property. As for the asset with the primary residence, it has lost much value due to the fraud by IndyMac and continuation of that fraud by FDIC, but there is argument the asset could have value if FDIC were to properly and fairly negotiate with the borrower to keep the loan of more than $350,000 to the satisfaction of both the borrower and the FDIC.
Do you really trust people like Nancy Pelosi, Harry Reid, and Barack Hussein Obama to own and operate these toxic assets?
All in all, these are typical examples of the toxic assets that the United States Treasury wants to buy. A simpler fix would be indictments against multiple bank officers for fraud and white-collar crimes including investors like Fannie Mae and Freddie Mac. Once the bleeding is stopped with regulators actually doing their job, then the recovery can begin. Until then, we're going to have more complaints of executives receiving exorbitant bonuses and banks unfairly receiving and using bailout money, not to mention a drunken economy.
Speaking of the complaints, I must say that I laud what activists did on Saturday regarding the bus tour of AIG thieves in Connecticut. I urge all Americans to further their complaints to people like Attorney General Eric Holder, Office of Comptroller of the Currency Director John Dugan, former Office of Thrift Supervision Director John Reich, FDIC Director Sheila Bair and COO John Bovenzi, local branches of FBI, local prosecutors, and local sheriffs for ignoring the law.
Thanks so much,
Jason
