An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
He misses the biggest fraud of them all. The one that lies at the base of the fraud pyramid. That springs from the fact that banks do not lend savings, and are therefore not constrained in the amounts they can lend. It is control fraud up and down the entire food chain. A banker unconstrained by strictures on fraud, will seek to make as large a loan as possible. So
Fraud one: Force appraisers to appraise as high as they can go. The seller likes this and so does the bank. Both become co-conspirators in fraud - also leads automatically to real estate bubble
Fraud two: Induce mortgage brokers to sell "liars loans" - makes the buyer a co-conspirator in the fraud.
Fraud three four and five are discussed by Lavalle.
Fraud six: Buy insurance against the Collaterized loans
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He misses the biggest fraud of them all. The one that lies at the base of the fraud pyramid. That springs from the fact that banks do not lend savings, and are therefore not constrained in the amounts they can lend. It is control fraud up and down the entire food chain. A banker unconstrained by strictures on fraud, will seek to make as large a loan as possible. So
Fraud one: Force appraisers to appraise as high as they can go. The seller likes this and so does the bank. Both become co-conspirators in fraud - also leads automatically to real estate bubble
Fraud two: Induce mortgage brokers to sell "liars loans" - makes the buyer a co-conspirator in the fraud.
Fraud three four and five are discussed by Lavalle.
Fraud six: Buy insurance against the Collaterized loans
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