"The Rude Guy"

[The Rude Guy Podcast #87 Financial Gangsters February 15, 2012]

[MLK clip]

My hero. Martin Luther King Junior…Rich Zubaty here. Here’s some good news.

The New York and Los Angeles City Councils have passed resolutions stating unequivocally that: corporations are not people, and money is not speech. Yahoo.

Also Missoula Montana, Boulder Colorado and Madison, Wisconsin all passed direct-ballot voter-initiatives by over 75% of the voters, that corporations are not people, and money is not speech. Hallelujah!

Also…State Representatives Mark Pocan and Chris Taylor of Madison Wisconsin introduced a resolution to pass an amendment to the United States Constitution that corporations are not people and money is not speech. If Congress fails to act, the resolution further calls for a National Constitutional Convention under Article V of the United States Constitution.

Also signature drives have commenced to get the…“corporations are not people, money is not speech”…resolution, on the ballots, in November, in Oregon, Illinois, California and Utah.

Thank you Occupy Wall Street. Let’s not stop now.

[RG voice ] Thank you Occupy Wall Street

[bird]

Here’s the inside dope on the mortgage mess, and the lawbreaking bankers who created it. I put it in story form so it’s easier to understand.

OK… Let’s say it’s 2001, you’ve got a steady job, you own a house, and want to build-on an addition for your teenage kids and your old mom. You go to a bank and ask to borrow $50,000.

The banker says, what the hell, you’ve got a good job. Why not borrow $250,000, put that together with the equity you already have in your house, and buy yourself a new house. Don’t worry. We can keep the monthly payments low. In six years you’ll have a balloon payment, but the price of your house will have risen so much by then, we can just refinance it to pay off the balloon.

“OK,” sez you. And you buy a new house.

The banker takes your mortgage and bundles it together with hundreds of other mortgages and sends them all offshore to a shell company – a dummy company – in the Cayman Islands, which is actually owned by Deutsche Bank. The dummy company turns the mortgages into securities – stocks – and then issues the stocks back to your bank.

What has your bank done?

Listen closely. Your bank is required by the SEC, the Securities and Exchange Commission, to maintain a 9 to 1, debt to assets ratio. 9 to 1, debt to deposits. That means that for every 1 dollar it has on deposit, it can loan out nine. Not ten, not eleven, nine.

However, by shipping its loans offshore and securitizing them, and taking back stock on those securities, it now holds stock, which is an asset, not a loan. So it can turn around and issue hundreds more mortgages based upon the legal limit of the 9 – 1 debt to asset ratio. In other words it’s a flat out scam to get around SEC regulations, and the SEC has been asleep at the switch and probably being paid off to look the other way. Continue reading →