Has anyone read an obsure article written by Ellen Brown detailing the next banking crisis?
OpEdNews - Article: LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS
In short, the banking crisis was triggered by mortgages. The author is an attorney and her article covers recent judicial decisions by a United States Federal judge in Ohio and the Kansas Supreme Court concerning foreclosure procedures. These rulings and the effect they will have on foreclosures are instilling outright panic world wide. As a result, it's not only possible, it's almost a certainty that all large international banks will collapse.
We all know how mortages were sliced and diced and sold as secured collateral until the market collapsed in 2007. The issue is when these securities change hands as they must, the mortgage note.. meaning the actual mortgage instrument becomes legally separated from the security. In foreclosure courts, judges ask two questions. First if the homeowners have defaulted on their obligation, and 2nd who the debtor is demanding payment. The slicing and dicing of CDO's has resulted in the forclosure parties not being able to prove they are the mortgagor. All across the country, judges are throwing the foreclosures out of court.
The real problem is the holder of the CDO's. If foreclosures aren't enforceable, they can't get paid. Their bonds are worthless. They are now suing the originating investment bank for fraud. This will be the end of banking as we know it and why none of you have heard of this. No one wants to talk about it, yet the problem is growing and can not go away. 39% of those sub-prime mortgages are in default and heading for foreclosure as are over 6% of every American mortgage written. The basis of a mortgage is historical. There is so much law written on this there can be no possible legislation proposed that can change 200 years of the body of law.
This is a train wreck that can not be prevented and no one at CNBC or Bloomberg is talking about it. This is like the crew of the Titanic discussing diesel fuel economy as their ship is sinking.
Read the article.