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By Jason Werner

The malicious and harassing act of the federal government allowing foreclosures to be filed continued for yet another month.

Foreclosure filings in the month of June increased 4.5 percent from the previous month to 336,173 bringing the number to more than 1.5 million so far in 2009 according to RealtyTrac. Moratoria are not working. The fraudulent modifications to hide bank fraud by the Treasury and Administration are not working.

Something like this has never happened in the history of the United State of America. Frivolous and malicious foreclosure proceedings increased about 1,000 percent from previous “normal” or “average” volume of foreclosure filings in only a few years.

There is no civil lawsuit like that of foreclosures. The only litigation even close to the volume is divorce, which is a completely different type of litigation. Car accidents, insurance issues, contract issues, employement disputes are nothing compared to the issue of foreclosure.

The federal government has a duty to prevent crime. Most experts and analysts have argued that at least 90 percent of all foreclosures involve misrepresentations by the bank. Therefore, the federal government must stop balking at the idea of purchasing toxic assets, nationalizing certain banks, and creating temporary moratoria. My argument is that the federal government should end the frivolous mafia-like business of its banks (most banks are regulated by the Treasury) and all banks are involved in some kind of federal regulation in the products they sell.

The only way to end Great Depression 2 is for the federal government to immediately halt all foreclosures through an executive order by the president or Congress quickly passing a law to – while allowing states to have their rights of foreclosure law – halt all foreclosures; implementing an ordered bankruptcy (or full nationalization if you will) of the ailing banks that have large numbers of foreclosures through the existing laws under Federal Deposit Insurance Act, whereby banks would be in receivership of the FDIC; prosecute the officers of banks that committed the fraud; and watch home values increase and the economy be revived.

The FDIC has a reserve line through the Treasury, which would obviously not be enough for an undertaking like this, whereas Congress would be compelled to replace the FDIC with a new government agency. FDIC has already failed, so it needs to be replaced anyway. This is truly the only way to fix the economy and save the dollar in 2009.

As for the banks that do not have such a large volume of foreclosures, they would already be rewarded in the capitalist marketplace.
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