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Is there anyone around who can explain in 3 sentences without too many economical terms what the foreclosure fraud MEANS?

It means either the entire global economy has gone bye-bye or governments are going to have to toss out current banking laws and regulations and start over because $14 trillion dollars of Collateralized Mortgage Obligations (CMO) just went south and who knows how much in derivatives based directly or indirectly on CMOs that are now in legal limbo land.

Skepticism is the first step on the road to truth. -- Denis Diderot

by ATinNM on Wed Oct 13th, 2010 at 08:55:52 PM EST
[ Parent ]
who knows how much in derivatives based directly or indirectly on CMOs that are now in legal limbo land

To give an idea of the range of what has been thrown into question:

The ISDA reported in April 2007 that total notional amount on outstanding credit derivatives was $35.1 trillion with a gross market value of $948 billion (ISDA's Website). As reported in The Times on September 15, 2008, the "Worldwide credit derivatives market is valued at $62 trillion".

Putting that in perspective, the total global yearly GNP is estimated to be $67 trillion.  

Skepticism is the first step on the road to truth. -- Denis Diderot

by ATinNM on Wed Oct 13th, 2010 at 09:03:06 PM EST
[ Parent ]
And that's the good news.

As I've said before - what are the odds that at least some other consumer and 'professional' financial obligations aren't in a similar state?

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Oct 13th, 2010 at 09:09:12 PM EST
[ Parent ]
Spreading joy where 'ere I go.  Little Mr. Ray of Sunshine, I is.

Skepticism is the first step on the road to truth. -- Denis Diderot
by ATinNM on Wed Oct 13th, 2010 at 09:15:11 PM EST
[ Parent ]
It will be all be over by Christmas.

For non-trivial values of 'it.'

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Oct 13th, 2010 at 10:01:23 PM EST
[ Parent ]
ATinNM:
governments are going to have to toss out current banking laws and regulations and start over
You mean "Basel III" didn't just save the day a couple of weeks ago?

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Thu Oct 14th, 2010 at 04:46:14 AM EST
[ Parent ]
I'm waiting for Basil I.  If nothing else we can use it to make pesto.

Skepticism is the first step on the road to truth. -- Denis Diderot
by ATinNM on Thu Oct 14th, 2010 at 10:52:36 AM EST
[ Parent ]

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