Show Me the Note Meets the Lynchpin

Thu, May 15, 2014 - 9:52am

The facade is cracking on the once impenetrable fortress that is the Wall Street securitization scheme for home mortgages.

One blogger who posts tirelessly has penned must-read piece for anyone interested in this area.

My thoughts are straightforward. Many homeowners took on home loan debt to get a piece of the American dream. The problem for millions of them, though, was the simple fact that they could not afford a traditional 20% down, 30 year amortized loan. Along came Wall Street, and invented Securitization. This scheme fostered reckless lending to anyone who could fog a mirror, because the lender had no skin in the game, and the borrower operated under the illusion that the low teaser payments on the low docs or no docs loan would never end. Eventually, millions of loans fell into default, sparking a foreclosure wave.

The problem was that the securitization model separated the lender from the borrower. In the foreclosures that ensued, borrowers claimed the loans were void, due to all sorts of fraud and fakery permeating the securitization process. Borrowers asked courts to set aside the loans for many reasons, including predatory lending claims, and the now famous "show me the note" defense where borrowers claimed that the foreclosing lender had no right to foreclose because it never gained the legal posture to do so.

On the surface, Courts balked at giving homeowners a "free" home, even in cases where fraud and deception were rampant.

In Florida, a judicial foreclosure state, forged, fake documents were the norm, and our lexicon gained a new word, "robosigner." Still, Wall Street churned out the foreclosures while some cases made their way up the appellate court ladder.

Among those cases was one that the Ninth Circuit decided recently, linked below, which shows that the courts are revisiting this area and really are focusing on the corrupt securitization model.

Also linked below is the most comprehensive, easy to read piece putting it all together that I have ever seen. Please read the below blogger's short piece, then click on the link and read the Amicus Brief. I promise you will walk away more informed.

As to my predictions of where this may lead, all I can say is that truth appears to be emerging as to the systemic corruption that is Wall Street and the western fiat scheme in general, so one can hope.

He wrote this, which is so good, that I wanted to share it verbatim, from his site, here,

"It is interesting to watch the evolution of thought in the Courts. But it is also infuriating. They treat false claims of securitization as a novel issue; but in fact, there is nothing novel about Ponzi Schemes, and other types of fraud.

Yet the Court continue to ponder the issue, probably wondering how they could possibly explain their prior decisions, the millions of foreclosures that have already occurred, and the 15 million people who were ejected from homes and lifestyles, jobs, and even lives (murder-suicides).

This is not rocket science despite the layers upon layers of paper that Wall Street throws at the issue. The simple facts and law governing loans, and secured loans in particular, need only be applied as they were written and interpreted for centuries.

If I loan you money, you must pay it back. If I don’t loan you money then I have no reason to demand you pay it “back” because I never loaned you money in the first instance. If I purchase a real loan for real money, then you owe the money to me. If I don’t purchase the loan, then I have no right to your money.

If some other person gives the loan you were looking for then that is a matter between you and them — not you and me. Whether I race to the courthouse or not, I cannot collect, get a judgment or foreclose unless you fail to contest it. The only way I could ever obtain a judgment against you on a false claim is if you don’t answer it. That isn’t because it is right that I should have a judgment against you and for me, it is just because the rules work that way. But even after that you still have some options to set aside the judgment or action on the alleged debt that doesn’t really exist.

Possessing an assignment from a party who never owned the loan has never been considered as conferring some right on the assignee. And Faulty, notes, mortgages, indorsements and assignments have very clear laws and precedent. The defective ones are thrown out. Why? Because the object is to identify REAL transactions in which real value exchanged hands. And because the object is to ignore documentation that REFERS to a transaction that never took place.

It is one thing to have an executed note or some other testimony of proffered evidence of a loan, and another to show the Court the actual canceled check in which you advanced the money. One document talks about the transaction while the other IS the transaction. It is the difference between talking the talk and walking the walk. Talking about Paris doesn’t get you there.

You might have received a loan from someone at closing but the odds are that you didn’t get it from the Payee on the note, the mortgagee on the mortgage, the nominee, the beneficiary on the deed of trust or any of the other parties that were disclosed.

Finally the Courts are asking about the reality that Judge Shack in New York and Judge Boyco in Ohio were talking about 6 years ago, which was picked up by a number of Judges that were suddenly rotated out of the position to hear foreclosure cases. Politics frequently trumps the law, at least for a while. And politics is all about money. And if it is about money, then the banks are the obvious place to look.

I commend to your reading, the short Hooker Case (Link below) and the Amicus Brief (link below) submitted by laymen for your review and study. While not exactly what we would like to see both provide compelling evidence of a movement on the bench toward reality and away from the smoke and mirrors of the largest economic crime in human history.

The implications for both pleading and discovery are, I believe, self evident. HINT: I have it on good authority that the IRS form mentioned in the Amicus Brief is feared by Wall Street as the lynchpin of their position: once pulled the whole thing falls apart as it becomes obvious that the “trusts” neither received funds from the investors nor did they receive loans from the aggregators. That Amicus Brief also contains the only valid diagram of the actual practice of securitization in existence (other than the ones I have drawn in seminars). Notice how different it is from the diagrams of securitization that trace the wording of the securitization documents. it is the simple difference between truth (what happened) and fiction (what they say happened and why you shouldn’t be allowed to ask what really happened).

Hooker v Northwest Trustee Services 11-35534


For information on lawyers, litigation assistance (to lawyers), how to research applicable laws, litigation, modification, short-sale, Hardest Hit Funds, and other Federal, State and private programs call 520-405-1688 or 954-495-9867. Ask about AMGAR our latest program for assistance to homeowners."

About the Author


May 15, 2014 - 10:12am


Great post CL!

Could you please give me your opinion on a note that went through the infamous MERS?

EDIT: I see this one did go through MERS.

old tradesman
May 15, 2014 - 10:21am
May 15, 2014 - 10:23am

Thanks CL

We have an offer on a home in Fl that is a bank agreed short sale. They are currently finalizing the paperwork and we expect it to be accepted with closing late June.

Is there a way to ensure that we know the bank has ownership and the home was not part of this robo signing?

We will pay around 60% down. The title insurance, as I understand will protect the mortgae company, should we get title insurance for our down payment?



May 15, 2014 - 10:26am
Dagney Taggart
May 15, 2014 - 10:29am



Mr. Fix
May 15, 2014 - 10:35am

Thank you California Lawyer,

This is a subject that has always held my interest, it kind of sucks that you would pay off the house over 30 years, and never be able to get title to it. The fraud runs even deeper than that, even when you own your house out right, the town, and the state will still extort fees from you for the rest of your life for simply being there.

“Homeownership” was a dream that has become a nightmare for many.

And it's all on purpose.

There is no way out of this crime wave, but even a complete collapse, and a reset, would still leave the Evil Empire firmly in charge, and the rest of us with literally nothing.

This will come down to fighting for our rights.

May 15, 2014 - 10:52am


I bought a house for 265K in Oct 2006. It is currently at ~170K

I made my last payment in Dec '09 - BoA and I still haven't been to court, haven't had any hearings. The house is still in my name at the court house as shown on all the records.

Some of my experiences..

My loan was originally through TBW (Taylor Bean and Whitaker). One month I got a call from BoA (bank of amerika) demanding that I submit my monthly loan payment. That is how I learned that they had purchased TBW and all of their loans. I called TBW of course and they refused to refund the monthly payment that I had already made, stating that it had already been forwarded to BoA. Somehow I was forced to act as the go between for the two banks and after dozens of phone calls over the course of about two weeks BoA reluctantly admitted that they had indeed received payment..days before calling me for the first time.

I lost my job in Dec 2009. I was calling BoA in October telling them about my imminent layoff. They stated that there was nothing they could do to help me unless and until I missed three consecutive payments. Having had previous experiences with (one of) the great satans before I kept an entire log book dedicated to recording everything that happened. Everything they told me was written down; employee names and numbers, times and dates of calls, directions, forms sent and received, etc.

Missing the three payments allowed them to fast track me for foreclosure of course, but that was something I learned years later. I was a claimant in the 50 state BS garbage contrived let the banks off the hook lawsuit. Got my check for a whopping $500. Most curious to me was that it specifically stated that by accepting I was NOT barred from future legal action.

Meanwhile the house has been completely unattended for more than 4 years. It is probably in need of repairs at this point.

BoA and I had contact twice. They scheduled a hearing and didn't show up. I was at the courthouse rearing to go. It was already rescheduled when I got there, yet not a single person at the courthouse could tell me where or when.

The second time was when I arrived home from work and saw two degenerates walking around the house. I was a leo at the time and was coming home from work in full uniform. Of course those "agents of the bank" had no id, no papers, nothing to identify themselves except a phone number. Unfortunately I couldn't press the issue.

My last contact was an incredibly long phone call where I kept demanding to speak to the next manager - it culminated in them threatening to sue me for recording them (my residence allows anyone to be recorded provided one person gives consent, obviously i consented to recording myself so..) and them refusing to speak to me. They never have since then.

My loan clearly shows MERS as the recipient. Guess someday this issue will resolve itself.

Scooter old tradesman
May 15, 2014 - 11:35am

Thanks OT !

Thanks OT !

May 15, 2014 - 12:09pm

Fascinating read CaL. Thx

Fascinating read CaL. Thx

May 15, 2014 - 12:28pm

Splinter in my mind

Dear people,

Something thought is driving me crazy like there is splinter in my mind for a while.

Its a theory why the gold and silver price is “controlled / contained” to abnormal low levels. It also applies for mining shares. I have the following assumptions:

1) Quantitative easing, or the creation of money out of the blue, DEVALUES the currency which is created

2) This “fresh” created money can be used to buy all forms mining equipment to dig up gold and silver .

3) The gold and silver found by this equipment can be dumped onto the market, or give as a present to the Chinese. Why? Because of point 4)

4) When gold and silver are dumped onto the market, this usually has a negative price effect on the asset (gold / silver).

5) A declining gold and silver price, makes the “currency” more strong, which eliminates the effect of step 1

6) repeat step 1

Does steps 1 to 6 explain all what is happening to the gold and silver market and mining shares the recent dramatic years?

Please convince me the above is not true.

I will post the above question also onto the blog of Dan Norcini

Forgive me my bad English

Thanks in advance

May 15, 2014 - 12:56pm

Question for California Lawyer on CS bars and serial numbers

California Lawyer,

Thanks for your always thought-provoking postings.

As a result of TF's analysis of Swiss gold and as a result of my prior analysis of GLD depositories, I have concluded that Swiss gold is entering the US market as CS gold bars.

I have seen these bars for sale in LCS and wholesalers in this region with growing regularity over the past 18 months. These 18 months correlate to the time when Craig is suggesting that SNB released physical gold inventory.

Therefore, I am concluding that some of the CS bars are likely correlated to physical gold inventories which could have been inventoried to the SNB in the past or perhaps even currently.

If SNB derivatives on gold were sold in London, the CS bars could have sold into the general market in London or New York with a trickle down effect resulting in those bars reaching LCS or wholesalers in this region.

If a CS bar serial number appears in a SNB inventory list but that bar was inappropriately sold into the general market, can the bar be subject to seizure by US or California law enforcement for repatriation upon demand of the Swiss, UK, or EU government? More importantly, if the SNB, ECB, or other bullion bank demands return of physical bars to their possession, does California law protect the innocent buyer of such a bar who acquires the bar in a local coin store or wholesaler? Does the wholesaler or local coin store have responsibility to check for the hypothecation of that specific bar serial number or is it really "buyer beware"?

May 15, 2014 - 2:11pm

EU accused of ‘fiddling’ with Greek deficit figures

08/05/2014 - 11:39

Syriza rally. Athens, 2012. [Popcino/Flickr]

The Ifo Institute, one of Germany’s most influential economic think tanks, has accused the EU institutions of “fiddling the figures” on Greece’s public deficit figures in order to “embellish” the country’s situation ahead of the May European elections.

In a strongly-worded statement, the Munich-based research institute said Eurostat had removed key data from its website in order to show a primary surplus of 0.8% for Greece in its 2013 budget figures.

Instead of a surplus, the actual figure should show an 8.7% deficit, the Ifo said on Wednesday (7 May).

“The European statistical office removed from its database the usual data on Greece’s public deficit excluding interest payments (primary balance) a couple of days ago,” Ifo President Hans-Werner Sinn said in the statement, accusing the EU statistical body of “window-dressing” ahead of the EU election.

“This way, the European institutions are following the strategy of embellishing the financial situation of the crisis countries prior to the European Parliament elections,” Sinn said.

The Ifo is highly regarded in Germany for its monthly Business Climate Index, which gauges German company’s confidence in the economy. Although the Ifo is a reputable institute, its President Hans-Werner Sinn, is also known for his frequent criticism of Greece’s bailout operation and its cost for the German taxpayer.

“In truth, Greece is still far from regaining financial health,” Sinn said, adding the data was withdrawn after Ifo had accused the European Commission of “misleading the public” on Greece’s real financial situation.

Shifting definitions

Simon O’Connor, the Commission’s spokesperson on economic and financial matters, admitted that “there is indeed a primary deficit of -8.7%” for Greece in 2013 according to Eurostat’s European System of Accounts (ESA).

But he said the accounting system was changed in the midst of the financial crisis in order to isolate the massive injection of public money that was needed to prop-up the collapsing banking sector. Between 2008 and 2013, €4.9 trillion of public money (39% of EU GDP) was committed to support ailing banks, according to the IMF. Of that amount, €1.7 trillion of taxpayer money was effectively used, representing 13% of EU GDP.

However, these massive cash injections are regarded as “one-off temporary measures” under the revised Stability and Growth Pact, which limits public deficits to 3% of GDP in the euro zone. This means banking sector injections “do not count against the member state in the context of the excessive deficit procedure," said Olli Rehn in a letter to EU finance ministers dated 9 October 2013.

“You have to remove these costs because they can give a completely distorted picture,” Connor told EurActiv in emailed comments. “For instance, Ireland had a deficit of 32% of GDP in 2010 because of its banking support measures. But that of course is not the same as pretending they are not there, as some people imply we are doing,” he said.

“We therefore fundamentally reject the suggestions that have been made in some quarters that the figures were fiddled with in order to give a more favourable view of the Greek public finances.”

Eurogroup praise for Greece

On Monday (5 May), the Eurogroup of 18 euro zone finance ministers hailed “the recent positive macroeconomic developments in the Greek economy,” saying the country’s harsh economic adjustment programme was “starting to pay off”.

“Fiscal performance continues to be strong, as reflected in the primary surplus for 2013,” the ministers said in a statement, calling on the Greek authorities to continue implementing the reforms agreed in return for EU/IMF bailout money.

The latest opinion polls in Greece put the centre-right New Democracy party of Antonis Samaras neck-and-neck with the leftist Syriza party of Alexis Tsipras for the European elections.

Syriza, which advocates erasing the debt of struggling euro zone countries, became Greece’s main opposition party after national elections in 2012.

May 15, 2014 - 2:13pm

Greek Stocks Tumble, Retroactive Tax

Four years and three prime ministers after Greece’s then premier, George Papandreou, requested an international bailout that slammed his nation with painful austerity (but saved the EU banks), Bloomberg notes that political instability still haunts Greece. Despite issuing bonds and GDP coming in slightly better than expected (still in recession/depression), former Prime Minister Costas Simitis of Pasok admits "The euro crisis seems to be over but its causes have not withered away," and if election polls are anything to go by, the fragile fraud that is a Greek recovery is set for problems Samaras' governing coalition as Syriza (the opposition that rejected the bailout terms) support soars and Pasok plunged to sixth place with just 5.5% support. In addition, retroactive taxes on bond gains are weighing on European bond markets (and Greek stocks).

First - there's this - Greece has decided to instigate a //newsletter[dot]pwc[dot]ch/inxmail9/html_mail[dot]jsp?params=109827+hans-joachim[dot]guenther[at]bluewin[dot]ch+0+000ekcq000en000000000002ied4o5sx" rel="nofollow">retroactive tax on gains made on Greek government debt...

The provisions of the Circular refer to both non-resident individual and non-resident legal entities without a Greek permanent residence/establishment that have realised capital gains from Greek debt (including government and corporate debt which is either listed or unlisted) in the period between 29 February 2012 and 31 December 2013.

The tax imposed on such capital gains is 33% for legal entities and 20% for individuals

In other words - if you damn speculators made money on the back of the ECB's promise, fuck you pay me!

Greek Stocks are not happy...

and the new 5Y bond issue is tanking...

The reaction to this uncertainty is clear in bonds...

And, as Bloomberg reports, the political event risk suddenly got serious

While New Democracy trails Syriza, the opposition group that rejected the terms of the bailout packages, the bigger threat to the government may be the collapse in support for Samaras’s coalition partner Pasok. Papandreou’s Pasok, which dominated Greek politics for three decades, plunged to sixth place with just 5.5 percent of the vote in a recent poll as voters blame the party for the country’s economic meltdown.

Samaras’s governing coalition has 152 lawmakers in the country’s 300-seat legislature. The prospect of the 27 Pasok lawmakers withdrawing their support could deter the foreign investors helping to fuel the recovery, according to Megan Greene, chief economist at Maverick Intelligence and a columnist with Bloomberg View.

If there were snap elections and investors were spooked by the prospect of Syriza being the negotiator for Greece, it could really hurt the Greek recovery because it’s so fragile,” she said in a telephone interview.


The euro crisis seems to be over but its causes have not withered away,” former Prime Minister Costas Simitis of Pasok, the socialist party that dominated Greek politics for three decades, said in a written response to questions. “High unemployment and uncertainty fuel euro-skepticism, while member-states become increasingly reluctant to cede more power to European institutions.”


Syriza wants a clean victory in order to put an end to the catastrophic path of one-sided austerity and great depression,” Dimitris Papadimoulis, a Syriza candidate said in an interview.


“Greece used to have a very stable political landscape,” said John Loulis, an Athens-based political analyst and communications strategist. “But the landscape has shifted dramatically. There is a big chance that we may see surprises the night of the elections.”


“We’re treating these elections as if they were a super opinion poll for national elections,” Lyberaki said in a May 13 telephone interview. “Reducing this to a choice between austerity and Syriza does a disservice to the guy in the street who’s in favor of Europe but has been brought to his knees by taxes.”

Except that is exactly what it is... and it seems investors are starting to comprehend that as IceCap noted last night.

May 15, 2014 - 2:52pm

Mining subsidation?


I'll venture a brief opinion. So what you are essentially saying is that IF the bankers are controlling the mines and subsidizing the extraction of PMs from deep storage, then they can use the PMs to continue the price suppression. Thus they are staling the wealth of the future by printing it now to keep their fiat system afloat against the fundamentals.

Makes sense to me, but it is just part of the puzzle. I wonder what SRSRocco would say?

Patriot Family
May 15, 2014 - 3:45pm

Strongsdie Jedi - Gold Bars

I'm no lawyer, but it would be awfully difficult to come after an individual holder of a gold bar for a few reasons:

1. It opens up the inquiry trail on how those bars arrived in the marketplace and would expose fraud.

2. The bars have not been reported as stolen.

3. Which LCS registers bars with specific serial numbers as part of their inventory? I'm not saying nobody does this, but the LCS and bullion shops I deal with do not note serial numbers on customer receipts if we request it. They simply list the weight, item type, purity and price paid. It is my understanding there is no requirement to track bullion inventory with serial numbers.

I believe the risk would be in the resale process of bars you purchased. Thats where assay tests and serial number checks come into play to see if they are dealing with stolen or counterfeit/fake product. But even then, who is tracking stuff like this once it leaves the bullion vault's chain of custody?

May 15, 2014 - 4:28pm

Listen To This- Start At 45 Minute Mark

Ab Initio

[Latin, From the beginning; from the first act; from the inception.] An agreement is said to be "void ab initio" if it has at no time had any legal validity. A party may be said to be a trespasser, an estate said to be good, an agreement or deed said to be void, or a marriage or act said to be unlawful, ab initio. Contrasted in this sense with ex post facto, or with postea.

The illegality of the conduct or the revelation of the real facts makes the entire situation illegal ab initio (from the beginning), not just from the time the wrongful behavior occurs. A person who enters property under the authority of law but who then by misconduct abuses his or her right to be on the property is considered a trespasser ab initio. If a sheriff enters property under the authority of a court order requiring him to seize a valuable painting, but instead he takes an expensive marble sculpture, he would be a trespasser from the beginning. Since the officer abused his authority, a court would presume that he intended from the outset to use that authority as a cloak from under which to enter the property for a wrongful purpose. This theory, used to correct abuses by public officers, has largely fallen into disuse.

Patriot Family
May 15, 2014 - 4:29pm

rl999 - We Went Through Something Similar

We had a home in FL, and in late 2006 got into some financial trouble due to a business failing. We worked with our mortgage company to add missed payments to the back end of the mortgage. We were clearly told to NOT pay on the mortgage until the loan modification process was complete. A few months later in 2007, I landed a great job and had the money to pay all back payments (I think there were 4 of them at the time). We were told, "No, you are in the loan modification process, we cannot accept money from you".

While our loan modification application was under review, we were moved directly into the foreclosure process. A "RF" (referred foreclosure) code hit my credit rating and just completely trashed my credit. Thank goodness I had already accepted the offer of employment and the RF was NOT on my credit report when the company ran my background checks. The bank couldn't seem to figure out how this had happened given they hadn't finished reviewing our application (rrrriiiiggghhhhhttt), and the foreclosure mill legal firm was extremely unresponsive to any inquiries we made. They were heavily investigated over the past few years and ended up shutting down - they had something like 1300 employees (that's a lot of foreclosure work coming their way). There are some people in FL who would probably beat the legal firm owner on sight and his name is very well known. While the firm denies wrong doing and actually got the investigation dropped by questioning jurisdiction, many homeowners feel they were part of the system that destroyed their lives by ramming foreclosures through the system.

Had they just been up front, told the truth, and given us 60 -90 days to sell, the house would have brought me $120K in profit after the loan and fees were paid off. Housing prices had started to slip in FL by then (2007), so every month of delay meant more reductions in the selling price of our home.

As it was, the company that hired me offered to relocate us to another state, and they actually contracted realtors, etc. to sell our house for us and covered all costs. We were very fortunate and sold quickly, walking away with a very healthy check. This was clearly an answer to prayer. I shudder to think of the alternative story if I hadn't landed that job just before the 2008/2009 financial crisis hit.

Normally I do not disclose information publicly like this. I hate the fact that we got into trouble, but it's life. It's a warning to all buyers - be VERY sure of who holds your loan, make sure all title info is in order, keep very accurate records on your payment history (including payments to tax authorities), and for goodness sake, make sure you have a significant emergency fund available to get you through tough times. If you get in trouble, get EVERYTHING in writing if your bank or mortgage company agrees to work with you. I also highly recommend you retain a lawyer and document everything with that law firm. I - and many others - found out that all the verbal and written promises in the world mean nothing when there are no consequences to a bank's actions.

Since then, I have not purchased another home. I view houses as a liability now, and if it's not turning a profit or presenting a neutral tax vs. tax write off benefit, it is a ball and chain (my wife feels the same). Yes, we have recovered financially, my credit scores are great, and I can afford to stack PMs. I've gotten over the idea that one must own their home in order to be a successful American and provider for their family. In the end, the ability to remain mobile in challenging job markets has been extremely helpful and even very beneficial to our bottom line. The only situation in which we would buy is either a screaming deal in a great neighborhood or a rural property that would serve our practical prepper family needs.

Today in FL, many residents get to stay in their home for 1-2 years after they stop making mortgage payments. I watched my neighbors doing this, even years later (some of them were so open about it I considered them freeloaders). If the banks dumped their entire foreclosure inventory on the market today, it would crash real estate prices in most FL counties. I'm not sure I'd buy there until the foreclosure mess is truly cleaned up.

Finally, one of my contacts at church is a partner in a business that buys and flips residential and commercial real estate in the Seattle area. They've been successful at this for many years. They are in the process of selling off the last remaining properties in their inventory, and will not re-enter the markets anytime soon. They are very concerned about the housing market crashing again - soon. Be careful in the FL housing markets. Can you afford a decline of 15%? 20%? 25%? During the last crash my former home's value declined by over 50%. We had already sold it off, though.

May 15, 2014 - 4:31pm

Sue for treble (three times actual damages) Void Ab Initio

I have been following this and heard some have sued for and won actual damages plus 3 times amount on top of actual damages.....

So $100,000 actual and 300,000 (treble) for a total of $400,000

Just think what would happen to the banks for the fraud they committed if the banks had to pay everyone back treble on foreclosed homes.

May 15, 2014 - 4:51pm

Ponzi Trouble

First chart forecast, 2nd chart trend. And this after shooting cannon fulls of FRN's at the line trying to reverse the trend.


May 15, 2014 - 5:38pm

@ Patriot family

After that I knew I would leave the country eventually. The sheer magnitude of the lawlessness - overall and in my individual case was stunning. They deliberately stole my house after I reached out to them for help.

I was "awake" before that, however that sealed the deal for me. No more banks, not buying property again, and have finally left the country. I have felt such an amazing sense of freedom and decrease in stress such getting on that plane - it is amazing.

May 15, 2014 - 7:17pm

.@ C.L.

We have discussed this note and deed of trust problem in the past. With thousands of robosigners on fake closings and the liability of the Title Insurance Companies for these transactions, this mess will never be settled. I still say "show me who received the proceeds of these thousands of robo closings and I will point out where the trouble will rise out from the ashes".

Someone still wants their funds returned!

StychoKiller Strongsidejedi
May 15, 2014 - 7:47pm

Serial Numbers...


Remember, Gold is a very malleable metal, just obliterate any identifying serial numbers or other markings -- a MapGas torch would probably work just as well...

Fred Hayek
May 15, 2014 - 10:15pm

Wow, CL some amazing stuff, a bit inside baseball but amazing

I think I get about 2/3 of what's being said in that incredible 42 page amicus brief. Wow. If I understand it correctly, what seemed like utter incompetence on the part of the banks slicing and dicing all these mortgages into securities was intentional, yes?

May 15, 2014 - 10:17pm

Harvey's Up! (TFMR)

The Full-Harvey at:

Harvey: There is no question that the banker boys have put a line in the sand at $1300 gold and $20.00 silver. The big story of the day is that Russia dumped 20% of its USA treasury holdings last month. Since Oct 2013, they have unloaded a huge 50 billion. Our mysterious buyer from Belgium with supporting cast members, the Caribbeans and now Luxembourg "purchased" these unwanted bonds. Dave Kranzler has provided a commentary confirming what I have been telling you, that the source of funds is not from normal USA issuance but from the swaps arranged with the Europeans a few years ago. The reason of course is that the authorities wished that these bonds would not have the signature ownership of the Fed. Donetsk has given an deadline of 6 pm est for the Ukrainian army to leave the area or face the consequences.

Mark O'Byrne: Gold consolidated above the key $1,300/oz level as technical buying supported gold and tensions in Ukraine and geopolitical risk remained to the forefront of traders minds. Spot gold in Singapore traded 0.3% lower to $1,301.60/oz prior to gold popping higher and eking out gains in London trading. Silver for immediate delivery fell marginally to $19.739 an ounce in London.

Jim Rickards (via GoldCore): Privately, leading equity investors will say, look, the bank covenants are gone, cost of funds is very close to zero, they've got more leverage than they've ever had, the U.S. inner stock exchange has greater leverage than they've ever had, so it looks good but this is a bubble being supported by zero interest rates, high leverage. We all know what happens, they will collapse sooner than later. You know, stocks could actually be higher by the end of the year, based on, I expect, the Federal pause, the taper around the middle of the year. But in the long...this is a bubble. The problem is bubbles, they last longer than we think, but when they pop, it ends very badly. This is all being floated by zero interest rates and leverage.

Jim Rickards on China: You know, the wealth management products are a Ponzi and that's not from me, the Chairman of the Bank of China said they're a Ponzi, so you've seen the Chinese banking officials saying the same thing. The problem is the money's going into real estate so if you're a state-owned enterprise, and you produce steel or glass or any of the cement or any of the components for construction and you just wanna roll steel and build buildings. I've been out there, I expect you have too, I've seen the ghost cities, I've seen them as far as the eye can see -- completely empty. And people say, "Well, they'll fill up in the years ahead." No, they won't. I mean, that migration from the countryside to the cities is largely over, number one. Number two, it doesn't take into account obsolescence. You can't mothball a building; you have to occupy it and maintain it. So, this is wasted investment. If you adjust the Chinese GDP for the amount that's wasted, it would already be lower

Ambrose Evans-Pritchard (The Telegraph, London): We are told that the euro crisis is now over. I do not see how one can safely reach that conclusion when Italy and Portugal are contracting again and France is back to zero growth, or when lowflation/deflation is causing the debt trajectories of southern Europe to spiral ever higher; all against a background of G2 monetary tightening in the US and China. There will be another spasm to this crisis. So whom will Europe's elites topple next, and what other conspiracies will they hatch to perpetuate a monetary venture that serves no worthwhile moral purpose?

Zero Hedge: Following last quarter's biggest miss in 18 months, Japanese GDP surged to its biggest beat in 3 years. This is the same kind of reflexive (and at that time entirely unsustainable) bounce that was seen after the Tsunami in 2011. Of course the big problem is that this removes much of the crutch for further QQE in July that so many have been hoping for. The initial pop in the Nikkei has faded rapidly into selling pressure and USDJPY is also losing ground... good news is once again, terrible news for equity investors. GDP bounces just as it did after the Tsunami following a big seems this level of bounce has been unsustainable for the last 14 years.

Harvey: Your big story of the day - Russia dumps 20% of its USA treasury holdings. On top of this we see that our mysterious Belgium buyer of treasuries has reappeared adding another whopping 40 billion to its holdings up to 381 billion dollars (Belgium's GDP in dollars is only approximately $419 billion). There is no doubt that the mystery buyer as outlined yesterday by Dave Kranzler and Dr Craig Roberts is the Fed itself done through swaps.

Tyler Durden: Donetsk self-defense forces set an ultimatum for the Kiev military, warning that if troops do not withdraw from block posts in the Donetsk region within 24 hours, they will be taken by force, RIA Novosti reported. The pro-autonomy militia of Donbass region in eastern Ukraine made the statement on Wednesday. "If the armored vehicles are not pulled back, the roadblocks of the so-called legitimate authorities are not removed, I will have enough power and means – the commander supported me today – to destroy and burn everything.

Zero Hedge: In yet another quarter confirming that Walmart is merely a company that can beat analyst expectations when it cashes Uncle Sam's welfare checks and foodstamps, when the impact of Obamacare is ignored, and when the second it snows all bets are off, WalMart reported Q1 EPS of $1.10, below the $1.15 expected, even if the company was able to explicitly quantify what the impact of snow in the winter was: "Severe weather in the U.S. businesses negatively impacted EPS by approximately $0.03."

Zero Hedge: since US consumer disposable income is lower than most of these annual increases, it is increasingly becoming clear that aside from meat, airline travel, shelter and medical care, which are getting ever more unaffordable, US households have never been able to buy as many LCD TVs as they can now.

Tyler Durden: Hardly surprising given the surge in beef and pork that we have been noting, but according to the latest inflation data from the BLS, meat prices spike by almost 3% in April - the most since November 2003 (this is also the 2nd biggest price spike in 34 years!) As we noted previously, this soaring food price inflation is not about to stop anytime soon.

Zero Hedge: While soft-survey-driven data shows sentiment rebounding after Americans hibernation, it appears the hard data on what they are actually producing - now that weather is behind us - is dismal. Industrial Production slumped by 0.6% - its biggest miss since April 2011 - after its March rebound. This drop is the lowest since June 2009... and this is after the post-weather rebound...Still wondering why bond yields are collapsing? Don't trust the signals of the bond market - stick with believing in the analysts - 80 out of 81 economists thought industrial production would have done something better in April. What a mess - the bounce in March has been completely destroyed.

All this and MOAR () on...

on the Harvey Report!


May 16, 2014 - 1:12am

Property Tax needs to be abolished

It is a sin that people have to pay to live in their own homes, and if you are backed up on your taxes, the government will take your home for as little as 50 cents. Especially if you happen to be a veteran away on tour. The government loves taking homes from veterans who aren't at home. And little old ladies.

It's going to take a lot of convincing to get people to understand why property tax is bad - and how it makes wage slaves out of everyone. It also means that we NEED social security and other programs like welfare so people can stay in homes that they might otherwise own outright.

What about the public schools you say? Considering how they are hell-bent on dumbing down the kids, I'd almost rather the kids run around feral. We used to give our children a much better education in a one-room schoolhouse with no heat and one teacher for all the grades.

I'm sounding like a grumpy old man this evening. LOL. :-)

May 16, 2014 - 4:47am

Do you think the judgment will be allowed to stand?

If you haven't had your boating accident yet, and lost your stash, it might be time to get a move on.

Groaner climbthathill
May 16, 2014 - 7:00am


I clicked on the link.. Breitbart.. I will never look at a website that blasts you with pop up adds and windows...

Urban Roman
May 16, 2014 - 9:26am


That article was on ZH yesterday, you can read it here with ZH ads instead of BB ads:

, and then there is this:

NW VIEW Stephanie C
May 16, 2014 - 9:45am

Overtaxed Stephanie!

You are correct again about property taxes. The taxation has evolved to a place where there is not enough income for families to keep their homes in retirement. I stated before that I would need 2.4 million dollars in savings at todays current interest income rate to just pay my home property tax. Many boomers who thought they would live off of a 6% return are discovering that they are in big trouble.

Public schools? Oh yes we could talk about that for hours. Our six grandkids have been home schooled and all are doing great. The two oldest are completing the high school and honor role's while obtaining an AA at college. We decided to place one 14 yr. old in public high school this year. She sits with me and says "Poppy, these schools are filled with losers. Drugs, sex, smoking, drinking, fighting, and drama all day long. The students are setting up their lives to fail. The girls seem to have developed a more foul mouth than the guys. I pray every day that I can avoid the drama from the girls as I walk into the school."

May 16, 2014 - 11:31am


CUSIP, birth certificate........


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Key Economic Events Week of 5/13

TWELVE Goon speeches through the week
5/14 8:30 ET Import Price Index
5/15 8:30 ET Retail Sales and Empire State Manu. Idx.
5/15 9:15 ET Cap. Ute. and Ind. Prod.
5/15 10:00 ET Business Inventories
5/16 10:00 ET Housing Starts and Philly Fed
5/17 10:00 ET Consumer Sentiment

Key Economic Events Week of 5/6

5/9 8:30 ET US Trade Deficit
5/9 8:30 ET Producer Price Index (PPI)
5/9 10:00 ET Wholesale Inventories
5/10 8:30 ET Consumer Price Index (CPI)

Key Economic Events Week of 4/29

4/29 8:30 ET Pers Inc, Cons Spend, Core Infl
4/30 8:30 ET Employment Costs
4/30 9:45 ET Chicago PMI
5/1 8:15 ET ADP jobs report
5/1 9:45 & 10:00 ET Markit and ISM Manu PMIs
5/1 10:00 ET Construction Spending
5/1 2:00 ET FOMC Fedlines
5/1 2:30 ET CGP presser
5/2 8:30 ET Productivity and Unit Labor Costs
5/2 10:00 ET Factory Orders
5/3 8:30 ET BLSBS
5/3 9:45 & 10:00 ET Markit and ISMServices PMIs

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