Goldman Sachs admits: Capitalism is not the cure, it is the disease


Capitalist Hippocratic oath copy

Whenever you get grief for criticizing capitalism, point those giving you said grief to this story, because it perfectly describes capitalism’s grave shortcomings with just the question asked in the headline:

“Is curing patients a sustainable business model?”

The story is about a Goldman Sachs analysis of what smug media types would refer to as “the biotech space” (apparently “space” is the new hip synonym for a type of business or area of study and is meant to sound both less redneck than “field” and less corporate than “industry” yet somehow manages to just sound…um, spacey).  Here’s a quote from the Goldman report:

“The potential to deliver ‘one shot cures’ is one of the most attractive aspects of gene therapy, genetically-engineered cell therapy and gene editing. However, such treatments offer a very different outlook with regard to recurring revenue versus chronic therapies,” analyst Salveen Richter wrote in the note to clients Tuesday. “While this proposition carries tremendous value for patients and society, it could represent a challenge for genome medicine developers looking for sustained cash flow.”

And there it is in black and white: “recurring revenue” and “sustained cash flow” are going to be a “challenge” with “a very different outlook” if biotech companies go around healing everybody.  That is to say that, while most of us plebs think that the point of discovering new technologies is to cure disease, The Financial System™ thinks that the point of new technologies is to empty our pockets, which is going to be impossible unless people have diseases.  After all, if people aren’t sick, how can biotech companies sell their medicine?  There may be some hope yet for extracting more profit, the Goldman report avers:

“Solution 1: Address large markets: Hemophilia is a $9-10bn WW market (hemophilia A, B), growing at ~6-7% annually.”

“Solution 2: Address disorders with high incidence: Spinal muscular atrophy (SMA) affects the cells (neurons) in the spinal cord, impacting the ability to walk, eat, or breathe.”

“Solution 3: Constant innovation and portfolio expansion: There are hundreds of inherited retinal diseases (genetics forms of blindness) … Pace of innovation will also play a role as future programs can offset the declining revenue trajectory of prior assets.”

Therein lies one of the greatest paradoxes of capitalism–it is claimed to be a system that meets people’s needs in the most efficient manner possible, but in order to do that, capitalism requires needy people.  The sacrosanct profit motive can only be motivating if there are people to profit from, so capitalism’s incentives are misdirected into making money rather than actually helping people.  In other words, capitalism is not the cure, it is the disease.  It is easy to imagine capitalists curing all known diseases, then creating more diseases for the sole purpose of being able to sell more treatments/cures.  This is exactly why “capitalism” is inferior to “socialism”: capitalism serves capital and serving society is secondary where as socialism serves social beings while serving capital is secondary.


Posted in biotech, Crap-italism, Goldman Sachs, paradox, Rent-seeking, socialism, Uncategorized, Wealth transfer | Tagged , , , , , , , , | 1 Comment

‘Booked: Minimum Wage, Chomsky, The Evils of Stock Buybacks

A collection of today’s Facebook posts from the Liberty Road Media page (give it a like/share!)…

Seattle Minimum Wage Issue: UofW Study flawed

Turns out the study critical of the Seattle minimum wage increase suffers from two major flaws:

1) It excluded 48% of Seattle’s minimum wage workforce and 2) the head researcher is anti-minimum wage to begin with.

Not only that, the study is at odds with almost all other research into increased minimum wage, which tend to find that minimum wage increases are overall positive and have their intended effect of helping the workers.…/the-overhyped-seattle-minimum-w… (This article is by the great Barry Ritholtz and has tons of great links)

Chomsky on Libertarian Socialism, i.e., Anarchism

Great 2011 interview Chomsky gave in Norway. Don’t let the intro–in what I presume is Norwegian–throw you for a loop, it’s not long and the interviewer who talks to Chomsky speaks very good English.

Nick Hanauer on how Stock Buybacks Cause Inequality

The problem with capitalism is that the capitalists want to starve the workers of, well…capital. As Hanauer points out,

“…one of the reasons there’s no place to invest the cash is that wages as a percentage of GDP have fallen by so much that workers can’t afford to buy anything any more. If instead of doing stock buybacks with that 700 billion dollars, that corporations use that 700 billion dollars to raise wages for workers, those workers would then buy a ton more, which would require capital to go out and expand to meet that demand.”

Posted in Anarchy, class war, Debt Slavery, minimum wage, Redistribution, Reverse socialism, socialism, Uncategorized, Wage slavery, Wages, Wealth transfer | Tagged , , , , , , , , | Leave a comment

Fannie and Freddie Open Records Act Passes House!

fannie-mae-logo PARODY copy

Mnuchin on Fannie 43017

So I was watching the above video with Steve Mnuchin and Maria Bartiromo because of its title: “Mnuchin on Fannie And Freddie Funds Used to Pay for ObamaCare: It’s True”.  Bartiromo mentions in passing that a bill was being considered to make Fannie and Freddie comply with the Freedom of Information Act, which I had not heard about.  Sure enough, she was right, and it turns out that the bill—H.R. 1694, Fannie and Freddie Open Records Act of 2017 (click to read the text of the bill)—has passed the House and been sent to the Senate!

This is great news for those of us who, like me, were fighting against foreclosure and other mortgage shenanigans and tried to get FOIA info out of Fannie and/or Freddie but were told that Fannie and Freddie were private companies, even though they had been taken into conservatorship by the Federal Housing Finance Agency and been given billions in bailout money ($187 billion—largest bailout in history), making them effectively part of the government.  Indeed, in the Fox News video above, Bartiromo even mentions that Mnuchin thinks that Fannie and Freddie “need to be privatized” (approx. 4:00 in the video).  To hear Fannie and Freddie tell it, they have always been private.  That’s what they told me back in 2010:

Fannie Mae is a private company whose documents are not subject to the FOIA…The purpose of the FOIA is to open the actions of government agencies to public scrutiny, not to reveal the inner workings of private entities. The FHFA’s temporary role as conservator of Fannie Mae does not transform the business records of this private company into ‘agency records’ subject to the FOIA.”

And here’s the copy of the letter they sent me:


The plot thickens, does it not?  The Republicans want to attack Obama and Obamacare and now suddenly want to use the diversion of Fannie and Freddie funds as a cudgel to beat Obamacare to death.  And this Fannie and Freddie Open Records Act will help them wield that cudgel.  What they may not realize is that they’ll be opening a Pandora’s Box of Fannie fraud when those of us who know that FANNIE MAE, BY ITS OWN ADMISSION, OWNS NOTHING (same goes for Freddie) will use this law (fingers crossed) to get the info we sought back in the thick of the foreclosure crisis!  And then nail Fannie and Freddie to the wall–because as the logo parody at the top of the page suggests, Fannie “Mae” not own your mortgage and never did!

Posted in Everything Is Rigged, Fannie Mae, Federal Reserve, Foreclosure, Foreclosure fraud, Secondary debt market, Securitization Fail | Tagged , , , , , , , , , | 2 Comments

The Real Fraudsters: Banks or Homeowners like Barbara Bratton?


I was informed last night that Barbara Bratton—who sued U.S. Bank in 2012 over the foreclosure of her home in Ontario, California–was recently convicted on 6 counts of real estate fraud and now faces up to 6 years in prison.  From Highland Community News:

SAN BERNARDINO, Calif. – On April 14, a San Bernardino County jury returned a verdict of guilty on 6 counts of real estate fraud against 58-year-old Barbara Rae Bratton of Upland. Bratton was taken into custody immediately following the guilty finding.

In May 2013, the Ontario Police Department investigated Bratton on suspicion of filing two false grant deeds with the San Bernardino County Recorder’s Office on a house in the 900 block of Locust Street in Ontario. The false deeds were filed a month earlier by Bratton in a fraudulent attempt to take possession of a house she once owned and had lost to foreclosure.

According to District Attorney Sr. Investigation John Vega, who was assigned to the case, the house had been sold to new buyers who then purchased it legally.

“Ms. Bratton owned the house at one time, but had not made a mortgage payment on it for approximately four years resulting in the foreclosure, and two evictions, to finally remove her from the property,” Sr. Investigator Vega said.

Bratton argued in court that the house still belonged to her in spite of years of not making payments on the property. She continuously cited flawed legal theories that some people use to not pay home loans.

What this story refers to as “flawed legal theories” is what reasonable people with correctly calibrated bullshit detectors call “bank fraud.”  That is to say, banks routinely and as a matter of course do what Barbara Bratton is purported to have done, i.e., file false documents in county land records.  But not one banker has ever gone to jail for doing so.  Not one.

Some would say it’s just a loony conspiracy theory that banks do that.  Those same people would say that Bratton was a tin-foil-hatter, a “sovereign citizen” who thought everyone was out to get her and she was trying to get something for nothing, apparently the worst crime that can ever be committed.

Except it’s not a conspiracy theory that banks falsify documents—it’s a conspiracy fact.  For example, here’s a story from 2014 that undeniably proves just that:

This kind of manufacturing of evidence happens all the time, it’s just that usually, hard evidence of this criminal behavior is hard to come by.  However, Wiley got undeniable proof of it this time.  He got his hands on a Nationstar (who used to call themselves “Aurora”) internal memo which said this:

Wiley Paper Terrorism case

So the Feeneys were right–there was no assignment that gave Aurora/Nationstar the right to do anything. SO THEY (AURORA/NATIONSTAR) MADE ONE UP, BACKDATED IT, AND GOT A NOTARY TO SIGN OFF ON IT! And then filed it in the land records of Greene County, Missouri!

And of course, let’s not forget about Lorraine Brown of DocX, who was found guilty of falsifying over a million documents and then filing them in the land records of counties all across the country.  She of course was not an employee of a bank, but the documents she falsified were produced on behalf of banks!  She and DocX were the patsies for the criminality of the banks.

Hell, just yesterday, Living Lies published an article in which bank employees and mortgage servicing employees emailed each other back and forth about how best to falsify necessary documents to foreclose on a woman who is currently in such fragile health from a battle with cancer that some fear that her imminent eviction as a result of this falsification could literally kill her:

October 27, 2008

From: Michael Barnett

To: Diane Meistad

Subject: RE: Default Assignment Request loan (Fauley, Robynne)

Okay Diane, I had my manager look at this file with me and we have determined that we need the following assignments to correct the chain of assignments:

1) Corrective Assignment from WAMU TO Deutsche Bank (to correct the assignment from RFC to WAMU, which was recorded in error) & Note Allonge

2) Assignment from Deutsche Bank to RFC & Note Allonge

3) Assignment from RFC to LNV Corp (Note allonge in file already)

The assignment from RFC to WAMU was recorded in error so it is not needed. We also have 2 endorsements on the original Note WAMU to RFC to Deutsche Bank which should be cancelled, to correct the Endorsement chain on the Note. We will just need the okay from you via email to cancel these endorsements. Will this work for you? Thanks Michael.

[NOTE: MGC has decided what was done right and wrong in prior transactions for which it has no knowledge, and what now needs to be done in its own best interest to steal and harvest the home. The transfers to and from WAMU as described above would be fraud due to WAMU being defunct. Then there is the request to have RFC cancel out the endorsements and replace with allonges. The third request in the sequence states that an allonge is already in the file from RFC to LNV Corp even though there are no assignments, yet, to support that allonge. That allonge created by MGC is fraudulent, and represents yet another broken sequence in the chain of title.]

Four days after this last email on October 27, 2008, the following two attached assignments are recorded simultaneously in Clackamas County, Oregon (Recorded Assignments – October 31 2008 – Fauley). The first assignment (and I call it the “first” because of its fraudulently back-dated) is executed on “March 10, 2008″ and notarized as such by “Diane Meistad” – Notary Public – State of Minnesota.” The assignor is “Residential Funding Company, LLC fka Residential Funding Corporation” with no Assignee named. NO ASSIGNEE! However, the second assignment is executed on October 27, 2008 with the Assignor named as “Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company) and the Assignee – “Residential Funding Company, LLC.” This assignment is also notarized by “Diane Meistad.” As admitted by Meistad above, RFC was not in title position to transfer the asset as of October 27, 2008. Yet, she acquiesced to MGC’s fraudulent conspiracy to forge, fabricate, and alter documents.

So, Diane Meistad, Michael Barnett, and all the rest of you who where involved in this deceit, this one’s on you. You are the only ones who can put a stop to this injustice. Robynne Fauley, who is elderly and very sick, has suffered immensely from your actions. In six-days she is scheduled to be evicted from her home. Fix this!

We can clearly see then, that the cops and the courts shouldn’t be going after Barbara Bratton or others like her.  They should be going after the banks, as Trump might say, “big league.”  Because Bratton was right—the bank did steal her home, as they have literally millions of others.  As I wrote about Bratton and her case back in 2013:

I want to be clear that I am in no way arguing that because U.S. Bank may be a “paper terrorist,” then that means that Barbara Bratton is a paper terrorist–I believe the exact opposite is true.  Indeed, the truth is the ultimate defense.  So the truth needs to be determined, namely: who is entitled to the house, Bratton or U.S. Bank?  As the consent order with U.S. Bank makes abundantly clear, along with the general fact pattern of the ongoing foreclosure crisis, there is more than enough evidence to come down in favor of Bratton.  So if Bratton is in fact the true owner of her property, then that necessarily means the following: the documents she filed are not forgeries but the documents that U.S. Bank filed are forgeries, and should be treated as such.

Throwing Barbara Bratton in jail does not fix the problem of real estate fraud, because the banks are still running wild and free and commit fraud on a scale that is orders of magnitude larger than anything Bratton or any private citizen like her could ever dream of committing.  Her sentence is itself just more fraud.  God help us.  And God help Kimi Vandyk, who sources say is apparently now in a similar situation in the Santa Barbara area.

Posted in Everything Is Rigged, Financial Terrorism, Foreclosure, Foreclosure fraud, Living Lies, US Bank | Tagged , , , , , , , , | 20 Comments

North Korea: Convenient Casus Belli For War With China?

Already Against The Next War

As this great article from The AntiMedia points out, North Korea is not in any way a threat to the United States:

In what universe does it make sense that Kim Jong-un would think attacking an “enemy” in the region would be beneficial? On Monday, Anti-Media reported on the fact that former Pentagon chief William Perry told CNN in November that North Korea would never strike first because, very simply, Kim doesn’t want to die.

“I do not believe the North Korean regime is suicidal,” he said. “Therefore, I don’t believe they’re going to launch an unprovoked nuclear attack on anyone.”

That’s because Kim has certainly applied to the situation what the mainstream narrative would like you to discard — common sense. With just a dash of it, any logical being can look at the events unfolding and see that North Korea poses no threat, to any surrounding nation, period.


The article goes on to point out that what the U.S. is really doing is setting its sights on China:

China, incidentally, reportedly just deployed 150,000 troops to its border with North Korea. Much like Japan, the reason given was preparation. Preparation for war was the message between the words.

But it wouldn’t be war with North Korea. That tiny strip of land is merely the buffer between two military juggernauts, the United States and China. That’s World War III, friends, and it has nothing to do with Kim Jong-un.


While Kim may not be a threat to the U.S., is he a threat to U.S. allies South Korea or Japan? Much more so than the U.S., certainly, but Kim is not an idiot. He knows that any first strike he launches will be his last AND gives the U.S. its desired casus belli. THAT’S the real threat–that S. Korea or Japan will be hit be some missiles and we will be told that Kim did it, and it will be untrue. Remember the Gulf of Tonkin—the second attack of August 4, 1964 did not happen, even though it was the second attack that was used to pass the Tonkin Gulf Resolution that resulted in the escalation of the disastrous war in Vietnam.  We should be very wary of a similar situation happening now, especially in light of the very real questions over the intelligence regarding the alleged gas attack by Assad that led to the cruise missile attack on a Syrian airfield earlier this month.

Posted in False Flag, NSA, War Is A Racket | Tagged , , , , , , , , , , , | Leave a comment

United Kerfuffle Separates the Statists from the Anarchists

United-Fly The Friendly Skies Dao

A comment from a Facebook friend completely nails the inexplicable controversy over whether David Dao, the doctor with a checkered professional past,  should’ve been dragged off United 3411 or not:

“You can not defend personal freedom and defend what is essentially a “hidden” contract. A reasonable person would not read all the fine print and has a right to expect the service they pay for. Those that keep on with this carriage contract and obey orders nonsense are a perfect example of why totalitarianism works.”

This article explains why the “comply” crowd is completely misreading the situation, as it point out two things:

1) even the United CEO now says that Dao shouldn’t have been removed and wasn’t at fault:

“He can’t be. He was a paying passenger sitting on our seat in our aircraft, and no one should be treated like that. Period.”

2) Dao originally agreed to get off the plane when they asked for volunteers, but when he agreed, he apparently was not told or did not understand that the flight they were offering him was not until the next day and when he realized that, he changed his mind. So Dao clearly was not unreasonable or even unjustified in arguing that he should be able to keep his seat.

Predictably and understandably, Dao has already hired lawyers to sue United.  Seems like a gimme for Dao, but corporate propaganda has a way of getting a hold on some people’s minds, even if—nay, especially if—some of those people happen to be judges.  More than likely, there will be an undisclosed settlement.  But we shall see…

Posted in Anarchy, civil rights, Crap-italism, freedom | Tagged , , , , , | Leave a comment

Fixing A Hole: Anarchism, Volunteering, and Self-Issued Currency

Anarchists have apparently decided that fixing potholes themselves is better than waiting for the city of Portland, Oregon to do it.  This is music to many people’s ears, mine included, and for me that’s because it confirms one of my arguments in favor of what I have come to call “self-issued currency” about which I have of course written many times.  I have not published much about this particular argument here on Liberty Road Media, but I have written about it in my forthcoming book on the subject, and this story of pothole-fixing anarchists provides the perfect opportunity to air this argument/theory publicly.

The purpose of this argument is to counter those detractors of the self-issued currency idea who typically will ask something along the lines of “If every individual can create the national currency in unlimited amounts, what will be the incentive for them to work, particularly at unpleasant or difficult—but necessary—tasks?”

In Portland, as we can see, simply being able to drive on smooth public roads is incentive and compensation enough to motivate these anarchists   This is but one example of how society could work going forward in a system of self-issued currency, in which profit is not measured in dollars and cents, but is measured in actual profit of being able to live in a well-functioning, cooperative society.  Believe it or not, there are people who like patching potholes, plumbing, math, housework, picking up trash, mending fences, digging ditches, and insert-unpleasant-task-here.  In a society of self-issued currency, the incentive to get these things done will be to get these things done, not to be paid a salary of imaginary, arbitrary government chits whose only real value is to pay the taxman and to control the wage slaves.

Posted in Anarchy, self-issued currency, Volunteer | Tagged , , , , , , , | 1 Comment

5 Ways to Fix The Economy For The Better: Richard Wolff Interview

This interview is instantly my favorite thing Lionel has ever done.  He interviews the brilliant economist Richard Wolff, and from the get-go, it’s a tour de force of common sense obliterating tired, hackneyed, jingoistic propaganda that somehow just won’t die no matter how many silver bullets of logic are fired into it.

If you don’t have time to watch/listen to the whole thing, here’s a basic breakdown.

1. Listen to Karl Marx

Lionel asks Wolff to explain what a “Marxist economist” is, since Wolff is often described as such.  Wolff mainly points out that Marx was intentionally marginalized by even America’s elite universities precisely because Marx was such an incisive critic of capitalism, and that as such, Marx should be embraced rather than ignored.  As Wolff puts it in the interview:

“If you mean by ‘Marxist’ that I have been informed by, I have learned from the works of Karl Marx, then by all means I am a Marxist.  I’m not gonna run away from that, I’m not gonna hide under the absurd pretense that I’m not a Marxist out of the proud recognition that I never looked at one word that this man had to say.  It’s just silly.”


2. Put workers in control

Lionel then asks Wolff to identify the single most pressing current economic issue and how Wolff would solve it, if he were made economic czar in a hypothetical Lionel presidency.  In a nutshell, Wolff’s answer is that the most pressing issue is the domination of the lives of workers and basically everyone else by a handful of unelected people whose only concern is profit, not the well-being of the people that work for them or anyone else.  Wolff is talking here about corporate boards of directors and the very negative and direct effect the policies of those who work for them, without those workers having any say-so at all about it despite being the ones actually performing the labor.  Wolff again:

  “We allow a tiny group of people, because most work is done in an institution called a ‘corporation’—a tiny group of people—these are the major shareholders of a corporation—and here we’re talking about 10 or 20 individuals or companies of one kind or another, and they own the shares, the bulk of the shares.  And if you know how a corporation works, the leadership of a corporation—the board of directors, it’s called—is typically 15 to 20 individuals who are selected by the shareholders under the system, ‘one share, one vote.’  So if you’re a big bank, and you own a million shares, you—you bank—get a million votes.  And if you’re a worker in that factory, and you don’t have any shares, you get no votes, and so forth.  So what we have is a tiny group of major shareholders—maybe a dozen—who select, because they have all the votes since they own the bulk of the shares, they select the 15 to 20 people who are the board of directors.

And now follow the logic—the board of directors and the major shareholders together make all the basic decisions that corporations make; what to produce, what goods and services to produce, how to produce them, what technology to use, where to produce them, in Cincinnati or Shanghai or wherever they choose.  And finally, they decide what to do with the profits generated by the labor of all the people who work there.  In any sizable corporation, the vast majority of the workers who do the work are not major shareholders nor are they members of the board of directors—that’s a tiny group of people.  Now the outcome of every economy depends, first and foremost, on the decisions made by this tiny group of people, people who are not elected by the public, people who are not elected by the workers in an enterprise, people who are not elected by the members of the community where that enterprise is located.  People who are elected by the shareholders where the major shareholders make the decision about who sits on the board of directors.  If we don’t like the results of an economy, such as most Americans don’t like the results of our economy today, the place you must look is at the decision-makers who brought this about.”

In sum, says Wolff:

“Really all that Karl Marx wanted was for us to face up—and boy are we long overdue about it—that if democracy is what we think is the best way to run our political life, then where in the world did we get off thinking that it wasn’t the best way to run our economic life?”

Lionel asks Wolff what can be done about this situation (approx. 18:36), and Wolff points to the current platform of Jeremy Corbyn’s Labour Party with respect of what has been called a “right to own.”  The short version of Wolff’s description of the policy is this: if and when Labour controls the UK government, it will put into place a policy that whenever a corporation wants to sell itself, the workers of that corporation will have the first crack at buying said corporation, with money loaned to the workers by the government.  Or, as Corbyn himself put it to  The Guardian:

“Labour will look to create a ‘right to own’, giving workers facing a change of ownership or closure of a firm the first refusal in putting together a worker-owned alternative.”

3. Public control of the money supply

Lionel asks Wolff what role the Federal Reserve would have under Wolff’s hypothetical regime as economic czar.  Wolff responds thusly:

We should not put something that is a publicly important institution into the hands of people who structurally instructed to make money off of it, to make it be profitable.  What’s profitable for a company isn’t necessarily what’s best for the community as a whole.  And when there’s a difference between those two, it should be the community as a whole that prevails, not the private profit.  And therefore for me, the key thing would be to democratize monetary policy.  The decision of how much money to be circulated, the decision of what the price of a loan (in other words, the interest rate) ought to be, should not be decided by a Federal Reserve which is kind of half the private banks, who are [Wolff’s Skype connection garbles a portion here]…dependent for its money, its lobbying fees, and so on, on those same banks, that it really is  more the banks who are making this decision more than it is the public well-being.  And for me, that’s the problem of a democracy that never went beyond the political to encompass the economic and for that reason the political never worked out real well either and we see the constant buying of political decisions by the undemocratic economic system.  For me, the Federal Reserve is just another example of  that fundamental flaw that has to be fixed.”


4. Revolution

Lionel concurs with Wolff’s assessment of the Fed and that money should be controlled for the benefit of the public rather than for the benefit of privateers, and asks Wolff what would replace the Fed.  Wolff responds:

“Well, I’m an old believer in the following simple idea: Only the people can ever make sure that they, the people, are in charge.  So I don’t expect what I’ve been talking about to come from the Republican Party or from the Democratic Party.  Not its old leadership, and at least for the moment, not its new leadership either.  That has to come—there’s no other way to say this—from below.  That has to come when the mass of the American people—and boy do I think we’re getting there, and fast—when the mass of American people say: ‘The existing system is simply intolerable.  We will not continue this way.  It’s too unsettling for us, it’s too dangerous for the lives our children are facing—we’re not gonna take this anymore.’  When that happens, then suddenly the politics, the ideology, the economics, begins to give way to a much more powerful force.  That’s what got us our independence from England, that’s what got us out of being half a society of masters and slaves, etc., etc.”

And as if we needed any more proof, from approximately 43 minutes in until the about 45 minutes, Wolff confirms what we have written about many times here at LRM, and that is that money is created out of thin air and that is the reason why, among other things, it is perfectly acceptable and not at all crazy to write off student loans.  And then Wolff gives his last recommendation…

5. Make Jobs A Guaranteed Right

Wolff prescribes this fix in response to Lionel’s question about immigration.



Posted in Crap-italism, Everything Is Rigged, Federal Reserve, fiat currency, freedom, history, Redistribution, Reverse socialism, socialism, Wage slavery, Wealth transfer | Tagged , , , , , , , , , | 1 Comment

First Look: New Linda Tirelli Suit Against Bank of America

Attorney Linda Tirelli, a rockstar in the arena of foreclosure defense, has just filed an adversarial bankruptcy suit in the Southern District of New York naming the following as defendants: Bank of America, Nationstar, U.S. Bank, and Recontrust. As many former and soon-to-be-former homeowners know, this group is a veritable rogue’s gallery of home/wealth/livelihood/sanity thieves and scam artists.  The fact that Tirelli is going after this financial mafia family is heartening, because Tirelli gets results.

So I read through her complaint, filed on November 29, 2016.  You can read it here.  What follows are my first impressions and sections of the complaint that stood out to me.

The Remedies

I am thrilled to see that Tirelli is going for the jugular with this complaint, and not shying away from what her client (and millions of people who are or have been in the same situation) truly deserves.  Namely, Tirelli is seeking to void the lien and to void the debt.  On top of that, she is also seeking punitive damages.  As we’ll see below, she has very good reason to seeking these remedies.

The Facts:  When Countrywide is involved, look out

The “debtor” (I will only put that word in quotes this one time, but please feel free to add them in your mind every time you see them from this point on) is named Helen Racanelli, who “borrowed” (same deal with the quotes) $508,000 from Countrywide prior to the 2008 crisis.  She sought a modification from Countrywide in October 2008 and per Countrywide’s instructions, sent them a check for almost $5,000 as part of the modification process.  Countrywide refused the payment and returned it to Racanelli.  That started Racanelli down the road to the eventual Chapter 13 bankruptcy she sought earlier in 2016.

The evidence marshaled against the defendants

I am interested in this case for a number of reasons, but there are two in particular: 1) it calls out fraudulent, “ta-da” endorsement of promissory notes, and 2) it involves such an endorsement bearing the names of Michele Sjolander and Laurie Meder.  I have personal experience with those very same characters and a ta-da endorsement that was used to take my house back in 2012.  I have written about this a number of times, notably in the posts “BANK OF AMERICA’S MAGIC WAND” and “NO ENDORSEMENT, NO NEGOTIATION–NO NEGOTIATION, NO SECURITIZATION.”  So I read the following passage from the complaint with great interest:

26. The Court should further know that according to the FDIC public website, Countrywide Bank NA became an inactive institution on April 27, 2009. MERS could not have acted as a nominee for Countrywide Bank, FSB, an inactive institution, on August 9, 2009.
27. Defendants also attached a copy of the original note with a dual blank endorsement bearing the rubber-stamped signature of Michelle Sjolander and Laurie Meder (“the endorsements”) to the proof of claim.
28. BOA, as servicer for U.S. Bank, caused agents and/or employees to affix the endorsements to the back of the original note as part of a “90 day delinquent note endorsement process” involving systemic surrogate signing for notes more than 90 days delinquent.
29. BOA’s agents and/or employees affixed the endorsements by rubber stamp in anticipation of filing the foreclosure, years after origination and years after the closing date of the trust in an effort to perpetrate a fraud upon the court.
30. As discussed supra, BOA, its agents, and its corporate representative prepared false evidence and testified falsely to defraud federal bankruptcy courts and state court judges into believing the endorsements were affixed within days of origination by document custodian employees authorized to use Ms. Sjolander’s or Ms. Meder’s rubber signature stamp.

In this section, it is almost as though I am reading from the complaint I filed in my own losing case against a couple of these same defendants.  Other victims of foreclosure fraud likely feel the same way.  I also found—and included in my complaint–that same info from the FDIC about Countrywide being an inactive institution and had the same experience of parties acting supposedly at the behest of Countrywide after Countrywide was supposedly inactive.  And of course as I already mentioned, I had the same blank endorsement bearing the names of Sjolander and Meder, about which I was able to depose Sjolander, which you can read here: Robo-stamped | Full Deposition of Michele Sjolander Executive Vice President of Countrywide Home Loans.

I absolutely agree with this next bit:

32. Rather than dismiss those cases, pay attorney’s fees and new filing fees to refile the cases after endorsing the original notes, BOA engaged in fraud upon the court setting up a cover story that the surrogate signed endorsements of Michelle Sjolander, David Spector, Laurie Meder and Christina Schmidt were affixed within days of origination by document custodian employees acting under proper authorizations.

I couldn’t have said it better myself.

I was incredibly encouraged to see that Tirelli cited the testimony of Bank of America employee Linda DeMartini—in the case of Kemp v. Countrywide—that Countrywide/Bank of America did not endorse notes in the normal course of business and that she had “never seen an actual note that has an endorsement on the bottom.”  According to DeMartini, the only time endorsements were bothered with was when they were needed as a defense at trial.  It’s really incredible that this explosive testimony has not already taken down Bank of America’s foreclosure machine.

Incredible report on Fannie Mae and the effect of UCC-9

Tirelli continues her damning deluge of evidence by describing an incredible report that I had not heard about until reading this complaint, and I try and make it a point to keep abreast of such things:

46. In 2001, New York State adopted the Uniform Commission on Laws Recommendations to Amend Article 9 of the Uniform Commercial Code to include the sale of promissory notes in the law governing secured transactions and to codify the common law rule that the mortgage follows the note.
47. These 2001 amendments codified that, upon proof of purchase of the debt evidenced by the signed agreements from the closing of the securitized trust documenting a complete chain of title for each loan, the mortgages would follow the note for all the loans in the securitized transaction, without need for further evidence.
48. In 2006, in response to allegations of widespread improprieties made at a Fannie Mae shareholders meeting, the international law firm of Baker Hostetler issued a report to Fannie Mae to address the allegations (“the BH Report”). On February 4, 2012, the New York Times published this report online. See Request for Judicial Notice Tab A.
49. The 2006 BH Report to Fannie Mae concluded at page 35 “that foreclosure attorneys in Florida are routinely filing false pleadings and affidavits regarding the Plaintiff’s – MERS or servicers – interest in the proceedings and regarding lost, missing or destroyed promissory notes. The practice could be occurring elsewhere3. It is axiomatic that the practice is improper and should be stopped.”

Tirelli goes on to make a great point about the Article 9 amendment:

“61. Despite the clear changes to New York and Florida law confirmed by the BH report, the Defendants BOA and Nationstar, on their own and/or as agents of Defendant US Bank N.A., as Trustee, continue to misrepresent to this court and courts throughout this nation that Article 3 of the UCC controls and that the effect of a note endorsed in blank as alleged here provides them with sufficient evidence of standing without regard to Article 9.”

Tirelli even alleges—correctly, I might add—that the so-called “uniform” promissory notes that are used to secure mortgages throughout the country are arguably not negotiable and therefore cannot be securitized:

64. The Debtor avers that the Note is a non-negotiable instrument as the parties contracted out of the UCC definition of “Holder” in ¶1 of the promissory note which states: “… Lender or anyone who takes by transfer and who is entitled to receive payments under this Note is called the “Note Holder.” Therefore, a party in possession of the original note with a blank endorsement would still need to prove it took by lawful transfer and had entitlement to receive payments. Article 3 of the UCC says even a thief can enforce a blank endorsed note. This note does not permit such a result.
65. The Debtor further avers that the Note is a non-negotiable instrument pursuant to ¶6 of the promissory note which provides any loan charge later found to be illegal may, at lender’s option, result in a reduction in principal. Accordingly, the reader must refer to the outside source in order to determine the value of the instrument.
66. The Debtor further avers that the Note is a non-negotiable instrument pursuant to ¶11 of the promissory note which provides there are additional protections for the Note Holder in the mortgage if the borrower fails to keep its promises. Accordingly, the note is governed by and subject to the various provisions of the mortgage that affect the amounts due under that note.
67. Specifically, the mortgage defines the term “loan” at §(G) as all amounts due under the note and mortgage. The mortgage further provides at page 6, ¶2, the application of payments goes first to interest, then principal, then amounts due under ¶3 of the mortgage, then late charges, then any other charges under the mortgage, then to reduce the principal. This renders the note subject to the mortgage and affects the amount due under the note.
68. The Debtor further avers that the Note is a non-negotiable instrument pursuant to page 5, ¶5 of the promissory note which provides the lender may force place insurance and page 16-08254-rdd Doc 1 Filed 11/29/16 Entered 11/29/16 11:12:46 Main Document
Pg 15 of 52
7 ¶9 which provides any amounts lender pays to protect the property all become additional debt secured by the mortgage that accrues interest at the note rate.
69. Moreover, at pages 6 and 8, the mortgage provides the lender may use any “insurance proceeds” or “miscellaneous proceeds” to reduce the amount due under the note. This also renders the note subject to the mortgage and affects the amount due under the note, all and any of which destroy the notes negotiability.
70. Even if the note were a negotiable instrument, the “mortgage follows the note” doctrine has been codified by Article 9 of the NYS Uniform Commercial Code. The exclusive statutory means to prove purchase of the debt is by N.Y. U.C.C. Law § 9-203(b) (McKinney). Only then does the mortgage follows the note under N.Y. U.C.C. Law § 9-203(g).

Bombshell Sjolander info

I always wondered what the rest of the story was with Sjolander after my case ended.  I never heard much of anything else that went on.  Apparently a lot, as can be seen here.  She’s been deposed quite a bit and here are some highlights of that testimony that Tirelli provides:

146. According to the testimony of Ms. Sjolander and Ms. Garner, only Ms. Meder and Ms. Sjolander were authorized signors legally allowed to endorse original notes.
147. Plaintiff’s corporate representative conceded in a sworn videotaped deposition that both Ms. Meder and Ms. Sjolander lacked any present intention to adopt the signatures on the original note at the time they were made.

148. Teams of unauthorized signors used rubber stamps to affix Ms. Sjolander and Ms. Meder’s signatures outside their presence and control.
149. These teams were not the same people identified in the authorization agreements produced in discovery to explain the use of rubber stamps to affix the signatures of Ms. Sjolander and Ms. Meder onto endorsements on original notes.
150. Ms. Garner and Ms. Sjolander both testified falsely under oath that these rubber stamped signatures were affixed to the original note within days of origination in March of 2009.

151. BOA engaged in a systemic practice using rubber stamps to surrogate sign endorsements onto original notes years after origination.
152. BOA engaged Sourcecorp to scan original notes after going through a “90 Day Delinquent Note Endorsement Process” where the surrogate signing occurred.
153. This systemic surrogate signing practice first began with notes already in foreclosure with a complaint that alleged a lost note count.
154. In those cases, BOA’s counsel was in possession of the unendorsed original note before filing the lost note count and attached to that complaint a copy of the original note in their possession which had no endorsement. Years later, Plaintiff surreptitiously surrogate signed undated endorsements onto original notes.
155. The sworn video-taped deposition testimony of Ms. Sjolander and Plaintiff’s Corporate Representative, Marie Garner, that these endorsements were “surrogate signed” by document custodian employees using a rubber stamps outside the signor’s presence within days of origination is false.

In short, Tirelli doesn’t miss an argument that can be made against these greed creeps and their heretofore unhindered marauding of the wealth and well-being of the American middle class.

Just sample the rest of the subject headings that Tirelli addresses:

E. The Robo-Signing Scandal and the Various Settlements that Followed

F. MERS Is Still Being Used as an Instrumentality of Fraud

F. [sic]  BOA’s Fraud Upon the Court Began in 2008 and Still Continues

The beautiful thing is that these bastards will have to respond to each of these allegations in their answer, which will no doubt be convoluted and full of tortured logic—in short, incredibly interesting to read.  Tirelli is essentially attempting to put the entire mortgage banking system on trial here, and her past successes are any indication, things do look too good for the system.

Fingers crossed!



Posted in Bank of America, Everything Is Rigged, Fannie Mae, Financial Terrorism, Foreclosure, Foreclosure fraud, Paper terrorism, US Bank, Wealth transfer | Tagged , , , , , , , , , , , , , , , , , , , , , | 19 Comments

Wells Fargo Beatdown over endorsements that are not “genuine”


Here at LRM, I have written a lot about the importance of endorsements on promissory notes, specifically what has come to be known as a “ta-da” endorsement, which is roughly defined thusly:

“…endorsements that magically turn up on promissory notes after a lawsuit has been going for some time with banks relying on notes that have no endorsements.”

So why are endorsements so important in a foreclosure fraud case?  Because the endorsements establish who actually does—or doesn’t, as the case may be—have the right to take someone’s house from them.  In my research and in my personal belief, banks routinely did not endorse notes in order to effect negotiation of said notes to the various securitization trusts/pools into which they were supposedly bundled and sold.  In my view, the question of endorsements is the question when it comes to the propriety of foreclosure in any given case, and improper or missing endorsements lead to not only securitization fail, but also to foreclosure fraud.

Attorney Linda Tirelli—who famously quipped that “If you don’t have the documents, perhaps you just don’t have the right to foreclose” on Fox Business Channel–has been relentlessly pursuing banks regarding issues of foreclosure fraud (read LRM articles about her here), and just yesterday, she got a big win in the case of Wells Fargo v. Cynthia Carssow-Franklin.   A New York bankruptcy court had ruled against Wells Fargo on the grounds that a note with a ta-da endorsement that Wells had provided in Carssow-Frankin’s bankruptcy case was invalid.  The opinion that was filed yesterday in the appeals case from the Southern District of New York upholds the idea that the endorsement was not “genuine,” thereby proving that Wells Fargo is not the holder of the note in question.  This is a stunning turn of events, and one that is long overdue.

The opinion itself is a great and encouraging read for anti-foreclosure fraud activists.  You can read it here.  What follows are some really good excerpts from a really good decision.

How the ta-da endorsement came into play

“The proof of claim attached a number of documents, including a copy of the Note, dated October 30, 2000, payable to Mortgage Factory in the amount of $145,850, which was signed by Debtor. (See Order 2; see also A67–A105.) The version of the Note attached to Claim No. 1-1 bears a specific indorsement by Mortgage Factory to ABN Amro and no other indorsements. (Id.; see also A71.) Claim No. 1-1 also attached the aforementioned assignments, including the Assignment of Lien, dated October 30, 2000, pursuant to which Mortgage Factory assigned its rights under the Note and related liens to ABN Amro, and the “Assignment of Deed of Trust” by ABN Amro, dated June 20, 2002, pursuant to which ABN Amro assigned “all beneficial interest in” the Deed of Trust securing the Note, “together with the [N]ote,” to MERS, “as nominee for Washington Mutual Bank, FA.” (See A100–A102; Order 2.) Also attached to Claim No. 1-1 was an “Assignment of Mortgage,” pursuant to which MERS purported to assign to Wells Fargo Case “a certain mortgage” made by Debtor pertaining to the Note. (See A104–A105.) The Assignment of Mortgage is dated July 12, 2010, which is three days before Wells Fargo filed Claim No. 1-1, and is executed on behalf of MERS “as nominee for Washington Mutual,” by John Kennerty (“Kennerty”), who is identified only as an “Assistant Secretary.” (See A105; see also Order 3.)

In the underlying Claim Objection, Debtor’s counsel represented without dispute that
after reviewing Claim No. 1-1, she contacted Wells Fargo’s then-counsel with questions
regarding Wells Fargo’s standing to assert Claim No. 1-1. (Order 3.) Eventually, on September 23, 2010, Wells Fargo filed another proof of claim, amended Claim No. 1-2, which was the same as Claim No. 1-1 in all respects, except that the copy of the Note attached to Claim No. 1-2 had a second indorsement (in addition to the specific indorsement from Mortgage Factory to ABN Amro): a blank indorsement, signed by Margaret A. Bezy, Vice President, for ABN Amro. (Order 4; compare A110, with A71.)”  (p. 4-5)

Finally, the bad behavior of the banks may be catching up to them

I say this for two reasons: 1) usually a court takes any document proffered by a bank as true, often without being validated by an affidavit or declaration, but especially if it is—but this time it was different, and 2) Wells Fargo in particular, having been in the news very much in the last couple weeks for its unconscionable involuntary debt trap scam, may have at least confirmed for the court (if not actively guided its thinking while drafting its opinion) that at least Wells Fargo, if not all banks in general, are not to be trusted anymore.  Which leads the court to a conclusion like this:

Even granting Wells Fargo this point, the Assignment of Mortgage remains probative evidence of the possible invalidity of the blank indorsement because of MERS’s apparent lack of authority to assign the Deed of Trust in light of Washington Mutual’s non-existence and, more importantly, the assignment’s timing. The Assignment of Mortgage was signed July 12, 2010, just three days before Proof of Claim No. 1-1 was filed. (See A104–A105; see also A67.) If Wells Fargo already possessed the Note with a blank indorsement, which would be sufficient to confer standing to enforce the Note three days later, what would have necessitated the Assignment of Mortgage three days before filing the proof of claim? The decision to execute such an assignment is even more unusual given the likelihood that MERS lacked authority to assign a Deed of Trust as nominee for a defunct entity.
Based on the timing of the Assignment of Mortgage and the lack of authority (as well as Kennerty’s deposition testimony, discussed below), the Court cannot find that the bankruptcy court’s factual finding that the Assignment of Mortgage “was prepared by Wells Fargo’s then counsel to ‘improve’ the record supporting Wells Fargo’s right to file a secured claim,” (Order 16), was clearly erroneous. (p. 19)

The court goes on to politely call Wells’ ta-da endorsement an attempt to “improve the record.”  An elegant—but damning—phrase, that.  It’s just a hop, skip and jump away from another damning phrase: “committing perjury.”  Indeed, the Court also found that:

“However, such assignment, like the allonge in In re Tarantola, remains evidence of the fact that Wells Fargo felt compelled to create a better record regarding its standing, despite purportedly possessing a note indorsed in blank, which, under Texas law, provided Wells Fargo standing to enforce the Note as a holder.” (p. 20-21)

The court also heard testimony regarding Wells’ procedures in which Wells would manufacture assignments and endorsements as needed to “improve the record” (i.e., commit perjury or an offense tantamount to it).  Here’s the court’s take on the testimony:

Kennerty also testified to a seemingly similar process with respect to indorsements. “The request would come in” and the indorsement team “would check to see if [they] had the collateral file” and the note and once they located the note they would “check to see if there was any [i]ndorsement on the back of the note.” (A1250.) Kennerty did not specifically recall how the indorsement team would go about indorsing the note if there was no indorsement, but, to the best of his recollection, “a stamp was involved but then it had to be signed.” (A1251.)
The Court agrees with the bankruptcy court that, while “it is conceivable that all of Wells Fargo’s newly created mortgage assignments and newly created indorsements were proper . . . that interpretation certainly does not leap out from . . . Kennerty’s testimony.” (Order 21.) As such, the Court cannot say that it is “left with the definite and firm conviction that a mistake has been made,” Travellers, 41 F.3d at 1574 (internal quotation marks omitted), and thus cannot say that the bankruptcy court’s findings with respect to the testimony were clearly erroneous. (p. 22)

Thus, the court concludes:

“…a reasonable fact-finder could infer that the blank indorsement was not genuine, eliminating the indorsement’s presumption of validity.” (p. 23)



According to the court, this lack of validity means that Wells Fargo is not the holder of the note!  After all, that is the only conclusion that one can reach!

The burden thus shifted to Wells Fargo to establish, by a preponderance of the evidence, that the indorsement was genuine. The bankruptcy court found that Wells Fargo failed to do so. As noted above, Wells Fargo did not argue in its briefing before this Court that it made such a showing in the event the presumption of authenticity was overcome. Accordingly, the Court affirms the bankruptcy court’s ruling that Wells Fargo lacks standing to file its proof of claim as a holder of the Note. (p.24)

Congrats to Linda Tirelli and Carssow-Franklin!  Hopefully we will begin to see more cases with this result, and hopefully in rapid succession.  Because we all know that this one case is far from an isolated incident…

Posted in Conspiracy, Endorsement, Everything Is Rigged, Foreclosure, Foreclosure fraud, Securitization Fail, Wells Fargo | Tagged , , , , , , , | 4 Comments