"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Tuesday, October 12, 2010

Dylan Ratigan on the banks, toxic mortgages and foreclosures. We do not hold the banks to the same level of consumer protection as we do restaurants selling poison hamburger

Once again, Dylan Ratigan is fired up about the injustice of what continues to be dumped on the U.S. taxpayer (and from Vigilant Grandpa's perspective, OUR GRANDCHILDREN). The banking system is like a man with heart disease who is in denial and the federal government who is the doctor is also in denial.

He is calling for an audit of Fannie Mae, Freddie Mac and the Federal Reserve to determine just how much of the $1.6 trillion in mortgages are deemed toxic. Dylan also notes that the government continues to print money to cover up the problem allowing their bankers who actually run the central government well paid.

$160 billion of taxpayer liability has already been pumped in to Fannie Mae and Freddie Mac and now the U.S. taxpayer could end up shouldering the financial burden of cleaning up the foreclosure mess. THERE IS NO LEGAL RECOURSE FOR THE TAXPAYER.

Banks selling loans to Fannie and Freddie were supposed to conform to a preset criteria however this was clearly not done. Fannie and Freddie are currently in court in an attempt to hand the non-conforming loans back to the banks and when Dylan asks how could the banks possibly win this case, Katherine states an argument could be that the banks contend Fannie and Freddie did not perform adequate due diligence.

If I own a restaurant and serve poison hamburgers and if the customer is dumb enough to eat them then I too should be able to get off. Katherine notes that our regulatory system holds restaurants more accountable for consumer protection than banks!

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