Federal Reserve Chairman Ben Bernanke - aka the man who said everything was fine and will live in infamy as a Wall Street puppet who funneled cash to the 1% and their wives (facts only know due to lawsuits by the media) - has now reversed his position on foreclosures as the solution to America's housing crisis. Yes, you read that correctly, it only took 5 years of total miserable failure for him to realize something obvious to anyone not hoping to work for Wall Street after their "public service"
More than four years into the housing crisis, and after millions of Americans have lost their homes, Federal Reserve Chairman Ben Bernanke is finally taking a stand.
Bernanke sent a Federal Reserve paper to the leaders of the House of Representatives' Committee on Financial Services arguing that relying heavily on foreclosures to deal with mortgage borrowers that can't meet their obligations is "costly and inefficient" for the housing market because they can lead to deteriorating homes and weigh on the property values in the surrounding community.
... he just realized that? Seriously?
Instead, the paper encourages lenders to "aggressively" pursue loan modifications and for servicers to be given more incentives to seek alternatives to foreclosure.
Wow. Does meat puppet Bernanke think families aren't "aggressively" trying to not get thrown out on the street and lose the most valuable asset most working and middle class people will ever have? Seriously?
Bernanke's Fun Scenario
"Hey honey we are about to lose our home and a better future for our children as we try and live out of a motel until the credit cards run out"
"Wait dear, have you considered trying to get a loan modification so we can stay in our home and avoid poverty?"
"Yes, the bank told me no."
"Oh dear...did you ask them to aggressively try?
"Ah shucks honey. You're right! I forgot to ask them to be aggressive! That will make all the difference in the world!"
"Everything is going to be OK. Oh America is a dreammmmmmmmm"
Somehow I don't think it's going to work. More about the Bernank about the jump.
Foreclosures "can result in 'deadweight losses,' or costs that do not benefit anyone, including the neglect and deterioration of properties that often sit vacant for months (or even years) and the associated negative effects on neighborhoods," the paper said. "These deadweight losses compound the losses that households and creditors already bear and can result in further downward pressure on house prices.
Anyone? Try again.
There's a reason fraudclosure is occurring and why the banks want a 50 state settlement and correspondingly why the Attorney Generals' of New York and California dumped the scheme.
Yes, you also read that correctly. Wall Street sold mortgages more than once - also called fraud. This is why they won't produce authentic documentation, they shredded it to avoid fraud charges.
So not only are people being foreclosed on without documentation, if any of that documentation still exists it will show the mortgage has been collateralized multiple times and then sold multiple times. Because why sell a financial security once when you can sell it twice for twice the fee? Or even more than twice.
And who is helping coverup this crime of the century by flooding the market with cash and buying every crap mortgage he can? Federal Reserve Chair Ben Bernanke.
Thanks but no thanks Bernanke. Stuff your advice. Time to go to court and find out what's really going on.