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 , , , , , , , | 2 Comments

Wells Fargo’s New Scam: Involuntary Debt Trap

So it has come to light that Wells Fargo employees did the following:

On Thursday, federal regulators said Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts — without their customers knowing it — since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.

“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement.

In other words, the bank went one step beyond what they normally do, which is to create money out of thin air when a customer requests it.  They obviously decided, “Why wait around for customers to come in and ask us to create money for them?  Why not just do it on our own?  That way we can earn all the fees from securitization and the deposits that these bank and credit card accounts will give us.”  In other words, “We’re not creating voluntary debt slaves fast enough, so what’s to stop us from involuntarily chaining people to debts that they don’t even know about (answer to that question: certainly not the paltry fine Wells was charged nor the immunity they were granted)?”

Yes, credit card “receivables” are securitized, just like home loans.  That’s one reason they’ll give a credit card to just about anybody—to be able to sell it into securitization after originating the account, thereby selling off any risk to the bank into the open secondary market for credit card debt.  For example, here is Wells Fargo touting its “credit-card-backed” ABS, among many other types:

Asset-backed securities (ABS) – Gain access to both consumer and commercial asset-backed securities, including those backed by credit card, auto, student loan, container, and rail car receivables, among others.

How many of the fake Wells Fargo credit card accounts were securitized, generating all manner of fees?  No one that I’ve seen is really talking about that particular aspect of this situation, but if I had to hazard a guess as to an exact number, I’d guess 100%.

Keep in mind that credit card applications are, for the purposes of the bank’s treatment of them, more or less the same as a promissory note.  Indeed, this Wells Fargo credit card application includes a section called “Promise to Pay,” which states the following on p. 4:

(9)Promise to Pay

.When you use your Account or let someone else use it, you promise to pay the total amount of the Purchases, Cash Advances, and balance transfers, plus all interest, fees and other amounts that you may owe us. We may limit or close your Account, but the terms of this Agreement will apply until you pay the Account in full.

And as we all know, “promise to pay” is the magic phrase that creates a debt, same as in a promissory note!  Further down, there are more references to a “promise to pay,” such as this one on p. 7:

(21) Payments.

•Minimum Payment.  You promise to pay the Minimum Payment due by the Payment Due Date.

The fact that Wells Fargo maintains the right to securitize your account is contained in the following language on p. 9:

(29) Assignment

.We have the right to assign your Account to another creditor. The other creditor is then entitled to any rights we assign to them. You do not have the right to assign your Account.

So the idea that a bank is restrained from creating money just whenever it wants has now been proven to be totally false.  We already knew that banks manufacture currency out of thin air as part of their “divine right” of money creation, but the one check on that has always been that they could only do it when someone asked for a “loan.”  That is, the customer was at least in control of deciding whether or not to take on a debt via the magic “promise to pay.”

But now we have confirmation that they can and do just create money—in the form of checking accounts and credit card accounts—whenever they damn well feel like it.  And they can make you responsible for it–removing your control of what debts you will or will not have to pay.  The news coverage of this situation has often referred to the accounts as “fake,” which they were, just as the money that was created by these accounts is also fake, but both the accounts and the money they created were treated legally as very real, which is the entire problem with the monetary system as it currently exists.  Creating money out of nothing upon request was already and bridge too far, so this new revelation is just absolutely beyond the pale.  That’s too much power. And if anyone thinks Wells Fargo is the only bank that did or would do this…think again.

The banks have to be seized, shut down, and the power of money-creation given back to the people individually as I have written about many times

Posted in Conspiracy, Debt Slavery, Everything Is Rigged, Financialization, Securities, self-issued currency, Wells Fargo | Tagged , , , , , | 1 Comment

American Death Squads? Terrence Crutcher and Compliance.

Another day, another police execution of an unarmed black male, this time with his hands unmistakably up, and captured on video from multiple angles.

My initial take on it was to to tweet/Facebook the following:

“He complied…but still died…”

The idea behind that is of course that a number of people tend to excuse the actions of police when they kill unarmed black people by offering the following bit of supposedly helpful advice—“If only the unarmed black person would have complied with the officer’s orders, he’d still be alive.”

Except here, in the case of Terrence Crutcher, we see that such is not necessarily true, as it also wasn’t true in the case of Charles Kinsey, the black Florida mental health worker who was lying down on the ground with his hands up and visible, unarmed, yet was still shot by police.

It wasn’t true in the case of Philando Castile, who was shot and killed by an officer in Minnesota while reaching for his ID, per officer’s orders.

As cases like these continue to emerge, the question becomes obvious: Have the police essentially become American death squads? This is in no way meant to downplay or trivialize the horror of political death squads in El Salvador and other places.

But consider the first part of the Wikipedia definition of the term “death squad”:

“A death squad is an armed group that conducts extrajudicial killings…”

When the police, an armed group, kill an unarmed person like Terrence Crutcher, that is the very definition of an “extrajudicial” killing.  “Extrajudicial” simply means:

“done in contravention of due process of law”

When you have the police acting as judge, jury, and executioner—as has been the case in a number of these shootings–that is a denial of due process of law.  It is the exact opposite of the way that the American system of justice is supposed to work.

We can reach the conclusion that the police are acting as American death squads–per the definitions above–with a minimum of controversy when we consider the case of West Virginia officer Stephen Mader, the officer who was fired for not killing a suspect.

You may recall the details—Mader responded to a call from the victim’s girlfriend saying that the victim was threatening to kill himself.  When Mader showed up, the victim had a gun, but he wasn’t pointing it at Mader.  The victim told Mader to shoot him, and Mader said, “I’m not going to shoot you, brother”—and Mader kept his word.  Unfortunately, two other officers then showed up, and the victim flashed the gun in their direction, and he was shot without hesitation.  Mader was then fired because he did not shoot the suicidal man—the official explanation was that Mader “failed to eliminate a threat.”  The only problem with that assessment?  The victim’s gun wasn’t even loaded.

What are they so afraid of?

So it turns out that there actually was no threat, neither to Mader nor to the officers who did kill the suicidal man.  But that is the key—the police are taught to believe that the public at large is a threat, whether they have a gun or not, or whether it is loaded or not.  And that the threat must be eliminated.  In other words,  the police department (at least this one in West Virginia) wants extrajudicial killings to take place.

The public is also taught to believe that there are constant threats of violent crime, even though violent crime is way down compared to past decades.  As the Washington Post reports:

“This decline in gun violence is part of an overall decline in violent crime. According to the FBI’s data, the national rate of violent crime has decreased 49 percent since its apex in 1991. Even as a certain type of mass shooting is apparently becoming more frequent, America has become a much less violent place.”

So what are the cops so afraid of?  Or why do they say they’re so afraid?  Why do the cops seem to perceive a phantom threat that statistically speaking, isn’t there?  Or why do they want us, the general public, to believe that such as threat is there?

Why is it that, as the public has become less violent, the cops have become more violent?  To put it another way, it is the cops who are out of control, not the public.

Why was Crutcher executed?  After all, there was nothing going on to make the cops think anything untoward was happening–no gun visible, no one complaining of being harmed by Crutcher, no visible signs of anything awry. Just a guy with a car stalled in the middle of the road (which is why the cops were dispatched to the scene).  A big black guy.   And he very well may have been giving the cops some attitude, like “Why do you guys have a bunch of guns on me? I’m telling you, my car just stalled out. Watch, I’ll show you, it won’t even start…”  But that doesn’t mean he deserved to be executed.

Indeed, the cops could have retreated if they actually felt threatened. There was no apparent reason to take Crutcher into custody immediately.  But for some reason, they wouldn’t back off long enough to assess what was actually going on.  The cops and their defenders would like us to believe that it is entirely possible—and totally plausible—that Crutcher did have a big gun in his car and was reaching for it, even though statistically, that is way less likely than it would have been decades ago.

However, if that had been the case—and it wasn’t; Crutcher had no gun in his raised hands or in the car—the second the cops see it, they light him up. They’ve already got the drop on him. They’re trained. He presumably isn’t. They can afford to wait until they actually see a gun. That’s what we’re paying them for.

Or that’s what we think we’re paying them for.  The cops, though, seem to think they are a death squad, as evidenced by the case of Stephen Mader.  They literally think that they should shoot first, ask questions later.

I’m not at all comfortable with this state of affairs, and I’m shocked at people that are.  And there are quite a few people who think that way, who say that, “Well, if you don’t follow a cop’s orders to the letter, you’re gonna get shot and deservedly so.”  They think that  we are put on this earth to obey cops.

We are not, and we must remind the cops and their cheerleaders of that fact.

Posted in Police State, racism | Tagged , , , , , , , , , | 4 Comments

Obedience—not resistance—is futile


Resistance is not futile—obedience is.

Don’t believe me?

Think about it.

You obey and what happens? More obedience is required. You go to work, you pay your bills, you pay your taxes, you support your candidates, and so on.

Repeat after me I am free

And what happens? More work, more bills, more taxes, more unjust laws. It never ends—just more debt, i.e., obedience. “Obedience” is a code word for slavery. “Authority” is a code word for master.

What if you just didn’t obey? What if you resisted? That’s where the freedom is—in resistance.

The worst that could happen is…you’d be free…

The best that can happen with obedience?  Well, ask The Godfathers…


Where does resistance get you?  Think Rosa Parks.  Or George Washington.  Or MLK.  Or BolivarMalalaTank Man.  The results may not be immediate or immediately desirable, and getting to the results will not be easy.  Not at first, anyway.

Resistance is vital, and it’s everywhere in the news right now—Colin Kaepernick and his growing protest, the Native peoples fighting the pipeline.

Resistance is life—every day we resist hunger, thirst, disease, injury.  We daily refuse to obey the dictates of the world that constantly reminds us that it could do without us.

Some of the best writing on the detrimental effects of obedience I have ever read is from Arthur Silber:

By demanding obedience above all from a child (whether by physical punishment, by psychological means, or through some combination of both), parents forbid the child from fostering an authentic sense of self. Because children are completely dependent on their parents, they dare not question their parents’ goodness, or their “good intentions.” As a result, when children are punished, even if they are punished for no reason or for a reason that makes no sense, they blame themselves and believe that the fault lies within them. In this way, the idealization of the authority figure is allowed to continue. In addition, the child cannot allow himself to experience fully his own pain, because that, too, might lead to questioning of his parents.
In this manner, the child is prevented from developing a genuine, authentic sense of self. As he grows older, this deadening of his soul desensitizes the child to the pain of others. Eventually, the maturing adult will seek to express his repressed anger on external targets, since he has never been allowed to experience and express it in ways that would not be destructive. By such means, the cycle of violence is continued into another generation (using “violence” in the broadest sense). One of the additional consequences is that the adult, who has never developed an authentic self, can easily transfer his idealization of his parents to a new authority figure. As Miller says [emphasis added]:
“This perfect adaptation to society’s norms–in other words, to what is called “healthy normality”–carries with it the danger that such a person can be used for practically any purpose. It is not a loss of autonomy that occurs here, because this autonomy never existed, but a switching of values, which in themselves are of no importance anyway for the person in question as long as his whole value system is dominated by the principle of obedience. He has never gone beyond the stage of idealizing his parents with their demands for unquestioning obedience; this idealization can easily be transferred to a Fuhrer or to an ideology.”

Go forth and resist death and slavery knowing that it is NOT futility!

Posted in Crap-italism, Debt, Debt Slavery, Everything Is Rigged, freedom, Police State, Resistance, Tyranny, Wage slavery | Tagged , , , , , , , , , , , , , | Leave a comment

Kaepernick fires off a pass to…everyone. Hopefully we’ll make the catch.

NOTE 9/12/16: This was previously posted August 29, 2016 but was inexplicably removed for some reason.  Probably some error of mine, but I didn’t do anything differently than I normally do.  Oh well, here it is again, just not quite as timely…

A collection of thoughts about 49ers QB Colin Kaepernick…

So I posted this meme on Facebook under this status: “He will inspire others as others inspired him. It’s not really about what Colin did, it’s about what you are gonna do. In a very real sense, we are all his wide receivers…”

Colin Kaepernick

…and a Facebook friend mused that he could support Kaepernick in this case if only he hadn’t made it about race.  I mused back that:

That’s a fair point. And I agree–the real issue isn’t race, it’s state violence. Not that race isn’t also an issue, which is a source of confusion for a lot of people, because the victims of much of the most outrageous state violence are black. Having said that, the outrageous state violence upon minorities creates a desensitizing effect that will carry over when the same level of indiscriminate state violence gets turned on the white population. It will already be established that, if an unarmed person is killed by the police, that unarmed person should have “obeyed orders” and not been “breaking the law.” The unarmed victim will always be seen as having “brought it upon himself.”

And when one really thinks about what Kaepernick actually did, one might conclude, as I did, that:

It’s actually quite eye-opening that the simple act of remaining seated while a song plays can generate so much controversy in 2016. The best thing those who oppose him for it could have done would have been to completely ignore it, which would have deprived his very small gesture of any of its power. The eye-opening part is of course that in an age in which we can carry all the accumulated knowledge of human history in our pockets, purses, bras or what have you, it still strikes a lot of people as super-important to conform to an outmoded, gratuitous exercise in groupthink.

An FB friend posted this misguided meme…

Colin Kaepernick alleged house

Which I reposted with the following:

No! The anti-Kaepernickians completely miss the point–he never said HE HIMSELF was oppressed. By sitting during the anthem, he stood NOT for himself, but for others. He stood up by sitting down. He is obviously quite aware of how good he personally has it, which puts him in the position of being able to call attention to the plight of those who aren’t as privileged as he is, which makes his simple act all the more admirable.

And finally, there was the Facebook friend who posted this single sentence: “There’s no such thing as an oppressed American.”

FB-No oppressed Americans

Wow. Lots of agreement with that statement by this person’s friends.  I asked what this person meant by the use of the word “oppression.”  His answer:  “By ‘oppressed,’ I mean when someone isn’t afforded the rights and opportunities that every other citizen enjoys…that no American is being held back, or treated unfairly.”  Eh, close, I guess.  Not exactly the Webster definition of “unjust or cruel exercise of authority or power.”  How anyone can state no Americans are oppressed under that definition is beyond me…

UPDATE:  In the days between the original posting of this article and this re-post, I created the following meme:



Posted in California, civil rights, Free Speech, racism | Tagged , , , | Leave a comment

Metallica on the bankster economy?

On their killer new tune “Hardwired,” Metallica probably didn’t intend to comment on the rigged, doomed-to-crash bankster economy, but that’s how I hear these lyrics in the song’s chorus:

“We’re so fucked/shit outta luck/hardwired to self-destruct…”

It’s the end of the world as we know it…but most people don’t know it!

Of course, if we cancelled the black hole of debt and took the radically equalizing step of using self-issued currency, we wouldn’t be fucked at all…

Posted in Crap-italism, Debt, Debt Slavery, Everything Is Rigged, Feudalism, self-issued currency, Uncategorized, Wealth transfer | Tagged , , , , , , , | Leave a comment

Wall Street Wanted Homeowners To Default And MIHOP


Great article from Neil Garfield today–How Servicers Engineer Defaults Using the Escrow Accounts, Forced Placed Insurance and False Projections— about how the Wall Street wolves got their defaults to trigger the big payoff from the CDS: manipulate escrow accounts.  Exactly this happened to me (from the article):

“…the escrow is manipulated by either projecting taxes and insurance too high or projecting them too low.”

My taxes were projected too low in order to make my monthly payment appear lower at signing. Like, way too low. Laughably, unrealistically low, especially when the tax bill for the year previous was available. At the end of the year, they—Countrywide–hadn’t collected enough to pay the taxes, creating an escrow deficiency, and that’s where the whole foreclosure mess started for me. I pointed all this out in my lawsuit and it of course fell on deaf ears.

Had Countrywide (this was in 2007) realistically projected what they knew I had to actually pay in taxes, I would’ve rejected the deal at signing because I wouldn’t have been able to afford it.  But that’s how they sucked us in, with the lower payment, made possible by simply fudging the numbers.  Some people would call it fraud.  The pitch was this: we can lower your monthly payment if you’ll just refinance with us!  But gotta have an escrow account with force-placed insurance!  And so when that escrow account goes into a deficiency, as I believe was purposely done because the amount of taxes was underestimated at closing, you then have to pay a new, higher monthly payment to make up the difference.  Or, default.  Because default is what Wall Street wanted. Read “The Big Short” if you don’t believe me.

They wouldn’t let us pay the escrow deficiency in a lump sum.  They tacked it on to the new, 30-odd% higher monthly payment, the very opposite of the pitch that got us to refinance in the first damn place.  And we couldn’t pay it.

So glad to see an article about this. A small sense of vindication washed over me as I read it.  So yes, default from homeowners was where Wall Street got the real payoff.  Collecting on mortgages for 30 years each was chump change.  The CDS and CDO markets were the tables where the high-rollers played.  They put their own spin on the old Vegas saw that “The house always wins”—they always win your house, by purposely engineering you into default.  It’s called MIHOP: “made it happen on purpose.”

Posted in Financialization, Foreclosure, Foreclosure fraud, Redistribution | Tagged , , , , , , , , , | 1 Comment


The 45th anniversary…perfect time for education, not celebration.



Forty-three years ago today in what is now not-so-commonly known as the “Nixon Shock”, Richard Nixon ended the Bretton Woods system by ending the convertibility of Federal Reserve Notes to gold, thereby putting the United States—and the world—on the road to financial ruin.  Or, to put it another way, Nixon made us all debt slaves to money printed out of thin air, leading to the inevitable foreclosure fraud, unemployment, bailouts, bail-ins and other treachery currently being visited upon us all.

Yes, Bank of America picked a winner when they plucked ol’ Dick Nixon from obscurity in 1945.  Through Nixon, Bank of America achieved a magical feat even more fantastic than alchemy—to be able to create unlimited amounts of money at will, unbound by any brutish metals or economic reality.  To be able to wield the incredible power and influence that such unlimited money can buy, and to be able…

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Posted in Uncategorized | Leave a comment

Does Money Exist? Of Course Not.


I was heartened to see the headline “Money Doesn’t Exist” on Zero Hedge today, even if the article did turn out to be more or less an ad for a Forex trading system.  From the article:

“The biggest secret the Elite doesn’t want the have-nots to know: Money Doesn’t Exist!…The basis of the global financial system is built on a foundation of simple abstract concepts such as money, debt, finance, liquidity, equity, and trade.  Money is a concept, an idea.  It’s a medium of exchange – not a store of value!”

Further down:

“…There’s little difference between ‘play’ money and Federal Reserve Notes, except that people ‘believe’ in the Federal Reserve System.  Money is a belief, a dogma – more than a financial system.

But let’s be practical about the global monetary system – there’s no conspiracy, it’s simply a means of maintaining the status quo.  Work is outdated, there needs to be a modern tool to keep the Elite “Elite” otherwise who would dig all the ditches?  And more practically, big business, and global empire, needs a good accounting system.  Money isn’t so much an enslavement system (although it is – but only because users ‘choose’ not to understand finance and basic math) as it is a means to create wealth and expand empire.”

This is the key concept that most people cannot wrap their heads around, that money does not exist in nature and can only be “created” out of nothing.  I asked the question “DOES MONEY EXIST?” a couple years ago and came to this conclusion:

“…Money does not exist.  It’s not that I haven’t thought that before or said it a million times and written about it before.  I’m not sure why Fox’s explanation made me think it again, but it did.

Because when you really think about it, since the money is created out of thin air, that necessarily means it doesn’t exist.   The Fed can no more say that the $20 million in Fox’s above example exists in any sort of objective reality any more than you or I could say that we have, I don’t know, super powers or something, because in objective reality, we do not.

The truth hurts

In other words, money is fictional.  Imaginary. Think about that for a minute, particularly if it sounds wrong or nonsensical to you.  Let it sink in.  Try not to let what you’ve been told your entire life about money get in the way of understanding this very simple concept.

I know you don’t want to believe it.  You can’t believe it.  After all, if it were true, that would mean…all the hard work…all the long hours…for something imaginary?  And that would mean all the hounding of the debt collectors and the shame and the guilt and the worry and the sleeplessness and the suicide or thoughts of it…were for something imaginary?

The truth hurts.  But it is still the truth.  And once we understand this truth, we face more difficult, painful questions, i.e., why should we let this continue?  How best to get out of this false reality?”

OK, you might say, I can finally accept that money doesn’t exist—but so what?  Well, that is the question—what do we do with that knowledge?  As always, my proposal is this:

“The solution to these problems, then, is self-issued currency.  That is, every citizen in a fiat system ought to have the ability to issue his or her own money, up to any amount needed.  [NOTE 8-5-15: By “his or her own money”, I mean money denominated in the national currency, i.e., dollars, euro, etc.  I do not mean that each person would issue his or own personal currency named after him or herself, as some critics of this idea apparently misunderstood.]  This will solve both of the problems above, because when self-issued currency becomes the norm, paying money will be as easy and as painless and as much as an afterthought as saying “Thank you” is now.  Problem one solved.  And obviously problem two is solved because there would be no monopoly on the issuance of currency, hence no unnecessary control over anyone or anything, either by the state or by the issuer of the state’s currency.

For those that might recoil in horror at such an idea, keep in mind that all money is fictional.  In fact, all money is already self-issued, as will be shown below.  Money must be created by someone, somewhere, because money does not exist in nature–except to the extent that a natural item like gold or salt might be assigned the properties of money.  Despite what the typical Western economics professor might say, money does not just naturally come into being as a consequence of people needing to exchange things.”

But wait, you might say—I thought money was fake? Why do you want to keep using money, even if it is self-issued?  Well, I covered that in “Beat The Banks At Their Own Game: Self-Issued Currency In Action (Part Two)”:

“Why even bother with a currency at all, one might wonder,  if the self-issued currency essentially makes everything free?  Well, that’s just it—things aren’t “free” in the self-issued currency scheme.  Prices would still be denominated in the national currency and self-issued checks would be written for those amounts.  But the checks would function more as a “thank you note”—again, an acknowledgment that person A did something for or gave something to person B.    That’s what money is already, we just aren’t trained to think of it that way.  That is, all money is already fake and already worthless, even in the Federal Reserve/modern central bank scheme under which we live.  Indeed, “Federal Reserve Notes” and “thank you notes” are both notes, they’re only distinguishable by their legal status, not by their value.  And that’s why self-issued currency is more palatable than no currency at all—because people want an acknowledgment of a transaction.  They don’t want to feel that someone got something over on them or that somebody got something for nothing.  For that reason, there needs to be some form of currency, but it should be self-issued and not state- or bank-issued.”

Something like this is inevitable in the future, as more and more people get wise to the fact that money doesn’t exist.  I’m overjoyed to see Zero Hedge hipping its large audience that that very important truth!

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MERS: Fake organization sues pranksters pretending to be MERS

LRM-Jack London Mail

The mail store where the prank MERS had its mail sent.

Ah, MERS—the “mortgagee of record” on some 62 million + mortgages.  Their very business model is fakery, in that they claim to be the “beneficiary” or “mortgagee” of these millions of mortgages, when they know that they are in fact not the beneficiary because they don’t make loans and aren’t owed any money.  Texas judge Nelva Gonzales Ramos, for instance, memorably saw through the chicanery of MERS in a 2013 order:

1. “MERS does not, however, hold any beneficial interest in the deeds of trust, and it is not a beneficiary of the deeds of trust.  It is merely an agent or nominee of the beneficiary.” (p. 14)

2. “By having itself designated as the “beneficiary under the security instrument” in the deeds of trust presented to the County Clerk for recordation in the County’s property records, knowing that it would be listed as the grantee of the security interest in the property, it appears that MERS asserted a legal right in the properties.  The Court concludes that, viewing the FAC’s allegations in the light most favorable to Plaintiff, one could plausibly infer that the recorded deeds of trust [naming MERS as “beneficiary”] constituted fraudulent liens or claims against real property or an interest in real property. “ (p. 14)

3.  “While Defendants may not have acted with the actual purpose or motive to cause harm to the County, the FAC alleges that through their creation of MERS, Defendants intended to establish their own recording system in order to avoid having to record transfers or assignments with the County and paying the associated filing fees. (FAC ¶¶ 2, 3, 17.)  Accordingly, one can reasonably infer from the allegations set forth in the FAC that Defendants were aware of the harmful effects the fraudulent liens would have on the County.  That is sufficient to establish intent.” (p. 16)

4. “Accordingly, the Court concludes that the FAC sets forth sufficient facts to give rise to a plausible inference that Defendants made false statements to the County regarding their rights under the deeds of trust and their relationships to the borrowers in the mortgages issued by MERS members.” (p. 22)

5. “County records as having a security interest in the properties.  Accordingly, viewing the allegations of the FAC in the light most favorable to Plaintiff, the Court concludes that one could plausibly infer that Defendants made material misrepresentations of fact to Plaintiff in the deeds of trust presented to the County for filing.” (p. 23)

So it’s kinda hilarious that a fake organization like MERS sued a couple of people two days ago for pretending to be MERS.  Here’s what happened, from the MERS complaint:

“On or about December 16, 2015, an individual purportedly named Jack Lyles filed Articles of Incorporation with the California Secretary of State for “MERS, INC.” On March 29, 2016, Mr. Lyles filed a Statement of Information with the California Secretary of State specifying that MERS, INC would be in the business of “loans.”

A certified copy of the Articles of Incorporation and Statement of Information for MERS, INC is attached hereto as Exhibit C. 16. In his application for MERS, INC, Mr. Lyles identified the corporate address as 248 3rd Street, #42, Oakland, California 94607.

A packing, shipping, printing, and mailbox rental service business named Jack London Mail is located at that address. According the owner of Jack London Mail, mailbox number 42 does not exist at the business. 17.

The owner of Jack London Mail has further confirmed that people confused into believing that MERS, INC is the same entity as, or associated with, the Plaintiffs have sent mail, including legal documents and documents associated with Plaintiffs’ mortgage registration services, to the address Mr. Lyles identifed for the corporation.

In addition, on information and belief, people have attempted to secure service of process on Plaintiffs and messenger delivery of materials to Plaintiffs at this address This mail is always returned to sender, and process servers and messengers are rejected.”

So MERS, the invisibility cloak of the banksters, whose very existence is designed to sow confusion into the land records, now has the vapors over someone who is trying to out-confuse them?  No sympathy here.  How this Jack Lyles character was able to register a business with the California Secretary of State using a non-existent address is itself something of a mystery.  But wait, there is another faker trying to spoof the fakers:

On or about December 16, 2015, an individual purportedly named Connie Vargas filed Articles of Incorporation with the California Secretary of State for “MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC. (MERS).”

On March 29, 2016, Ms. Vargas filed a Statement of Information with the California Secretary of State specifying that MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC. (MERS) would be in the business of “loans.” A certified copy of the Articles of Incorporation and Statement of Information for MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC. (MERS) is attached hereto as Exhibit D.

In her application for MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC. (MERS), Ms. Vargas identified the corporate address as 248 3rd Street, #429, Oakland, California 94607. As noted above, Jack London Mail is located at that address. According to the owner of Jack London Mail, mailbox number 429 is owned by someone unaffiliated with Defendants.

As confirmed by the owner of Jack London Mail, people confused into believing that MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC. (MERS) is the same entity as, or associated with, the Plaintiffs have sent mail, including legal documents and documents associated with Plaintiffs’ mortgage registration services, to the address Ms. Vargas identified for the corporation. In addition, on information and belief, people have attempted to secure service of process on Plaintiffs and messengers delivery of materials to Plaintiffs at this address. This mail is always returned to sender, and process servers and messengers are rejected.

Ha!  Not one but two fake MERS registrations at the same shipping center!  Filed on the same day!  This prankster is a pro, because in filing these documents with the Secretary of State, he/she (i.e., “Jack Lyles” or “Connie Vargas”) is mimicking EXACTLY what MERS does to homeowners.  See how it feels, MERS?  When people file fake documents purporting to do fake things or to be fake entities?  Not so pleasant, is it?  I doubt the irony of this is lost on the homeowners who have been fighting the banks and MERS for years.

And indeed, MERS now does have some idea of how what they’ve been doing to homeowners feels:

The facts that the Defendant corporations have confusingly similar names to Plaintiffs and have been registered to false addresses has caused substantial confusion, and damage and irreparable harm to Plaintiffs, and threaten to continue to irreparably harm Plaintiffs. Defendants’ unauthorized actions have caused, and are likely to further cause, confusion, mistake, and deception of Plaintiffs’ customers, potential customers, parties in lawsuits, as well as members of the general public.

If this is what it takes to piss off MERS, then my hat is off to Jack Lyles and Connie Vargas!  Because MERS is one of the main parties responsible for causing “substantial confusion, and damage and irreparable harm” to homeowners over the years.  This is one hell of prank, for sure, especially considering that MERS has been really slippery over the years about what they should properly be called, and which MERS is which.  I think all homeowners should keep their eyes on this one!

Posted in California, Foreclosure, Foreclosure fraud, MERS, Paper terrorism, Securitization Fail | Tagged , , , , , , , | 1 Comment