The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
In creating mortgage backed securities, the geniuses of the financial world didn't bother with pesky formalities like proper transfer of the note (the debt document). That wasn't a problem as long as people were paying their loans, but in the course of foreclosure proceedings it has become increasingly apparent that many of the foreclosing companies do not actually hold the note, and thus cannot foreclose - indeed, in many cases it seems to be impossible to legally establish who owns it; the fraud comes in because these companies started inventing paper to cover up the fact.
Now if the MBSs don't actually, legally hold the notes on which they are based, they are worth, in the worst case, about the price of a pair of stinky socks. (3 sentences!)
To my mind, the fraud business could well be simply the water-running-out phase of the tsunami cycle.
The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by Cyrille - Apr 18 2 comments
by Cyrille - Apr 12 29 comments
by ARGeezer - Apr 18 5 comments
by DoDo - Apr 6 39 comments
by Cyrille - Apr 8 6 comments
by Oui - Apr 16 3 comments
by ARGeezer - Mar 31 10 comments
by Zwackus - Mar 29 10 comments
by ARGeezer - Apr 185 comments
by Cyrille - Apr 182 comments
by Oui - Apr 163 comments
by Cyrille - Apr 1229 comments
by Cyrille - Apr 86 comments
by DoDo - Apr 639 comments
by aquilon - Apr 3158 comments
by ARGeezer - Mar 3110 comments
by Zwackus - Mar 2910 comments
by DoDo - Mar 279 comments
by Xavier in Paris - Mar 275 comments
by ManfromMiddletown - Mar 2066 comments