Chicken Little was right – “the sky IS falling”!

Remember Chicken Little and her warning, the sky is falling? I sometimes feel like a Chicken Little, with my repeated warnings that the sky is indeed falling and here’s another example.
Just last week I posted about my fellow Bank Whistlebowers United colleague Michael Winston’s interview with Gretchen Morgenson on the New York Times Facebook venue.
I’m still chilled by Michael’s description of Countrywide’s co-founder, former chairman of the board/CEO Angelo Mozilo’s funding strategy which Michael inadvertently stumbled upon after they had hired him to take their company to new heights. “Fund ’em” was the policy, regardless of their income (did they have any?), even if they had no assets. “Fund ’em” if they can fog a mirror.
Countrywide Financial Corp. wanted to be the “Goldman Sachs of the Pacific.” Instead their shoddy practices led to our 2008 financial meltdown and instead they became the face of risky lending practices, with Mozilo becoming the poster child for Wall Street greed.

4 responses to “Chicken Little was right – “the sky IS falling”!

  1. Focusing on sub prime and bad loans has the same effect of the boy who cried wolf. Whistleblowers, officials need to focus on the F R A U D and corruption of property and financial records of EVERY mortgage and every person’s debt. He’s a scum bag but he’s also pointing out the destruction of the economy by Wall St and Bush administration.

  2. I agree that Mozilo is the king of scum, but he is also smart man who wormed his way to connect with government officials and lawmakers for years that helped him to get out of his crimes. That’s why many of the lawmakers got the “Friends for Mozilo” mortgage loans. And I agree that subprime was one of the major factors in the financial crisis but not the major cause. And yes, the whistleblowers need to focus on the fraud especially the securitizations of the mortgage loans that was sold on the Wall Street. Majority of loans in this country whether it is a government backed loan or not was sold on Wall Street and which is why the banks has to continue to create fraudulent documents to record to the county as well as take to court. Majority of Countrywide loans were sold on Wall Street and MERS also had a role as being the destinated nominated appointee of the securitized trust of the mortgage. That is all in the county records.

    Lastly, in a book called Surviving the Perfect Recession by Dr. Steve Price, he listed 12 causes of the financial crisis which subprime is included:
    1. Securitization
    2. Subprime loan crisis
    3. Financial institutions deemed “too big to fail”
    4. Financial derivatives
    5. Housing bubble
    6. Commercial real estate bubble
    7. Politicians that stay in office
    8. Deregulation
    9. Globalization
    10. Consumer culture
    11. Rating agencies
    12. Former Fed Chairman Alan Greenspan

    • Great info and references as always.
      The list is very comprehensive but most of the factors are not covered by the mass media with any real analysis as part of the recession or the ongoing harm done to the economy and especially homeowners in foreclosure and more and more we are seeing, any consumer in any debt.
      Even so the fraud and corruption are implied but the money in our politics and government is at a crisis point from the experience of homeowners and the average person. This is from both ends of the political spectrum
      An example would be such as with securitization. Not only does it encourage reckless investing but a person’s mortgage information can be completely corrupted and result in counterfeit notes and false claims not only by an unlawful creditor but in false claims by the “respectable lender” against the government. Up to now we’ve seen investors and government “work it out”. But again the focus of DOJ/govt, media is on the quality of the loans i.e, sub prime and not the criminal acts of fraud and false claims unless it’s the little guy as William Black says or the borrowers.
      With the information you post, posts by homeowners and research I’m doing I’m seeing not only activist homeowners and advocates but average homeowners breaking away from the shame of foreclosure to question the blatant lies and fraud not only on their fake loans but on the supposed mitigation by lenders/servicers and government agencies. Homeowners that are NOT in foreclosure are now investigating their chain of title and the standing of whoever’s collecting their money.
      Keep up the great work and hopefully the true scope of the fraud and corruption will come out to hold anyone in office and whoever’s elected accountable and we will do our own EXIT FROM WALL ST!

  3. Hopefully my last reply posted. But again great info and references. Previous post was on the need to focus on fraud and corruption which is indirectly acknowledged on Dr. Price’s list and how homeowners are coming out of the shame of foreclosure to question the corruption of settlements and the courts. It seems to be more and more the average homeowner not the activist homeowner or advocate.
    I’ll repost if I can remember what I wrote!
    But another point I want to make is that I agree Mozilo is also a hypocrite with the “Friends of Mozilo” but Jamie Dimon and Chase are even more so still claiming to be victims and a “good” bank while they contaminate the globe with their greed and corruption. My case and others I am working with are evidence of corruption in government, courts, agencies and of ongoing fraud by the same “good” banks and their surrogates.

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