Comments
10 years ago
Uncle Sam and I have no bones to pick:-- I still work with him; he was bribed in the Congress, and the corporate greed mongers behind it all handcuffed me and millions of other Americans 4-point to the brass bed, and fed us to the sharks, without condom.My life went into the toilet in 2007, and the following year, so did the rest of the US economy. Our government had already lost $5 trillion to 9l11l2001, and the mortgage portfolios underwritten by FICO scoring and put into the Freddie Mac and Fannie Mae bond portfolios saw default rates blossom. Once the first and fourth largest privately vested corporate entities in the WORLD, both went belly-up~~ as did many of this country’s largest banks. FDIC and AIG combined could not cover contractual breaches of another $8 trillion. Our government was faced with one of two alternatives; default on its obligations, or raise the debt ceiling to continue borrowing from itself and other constituents, foreign or domestic, to prevent insolvency. This happened in 2008, and Hollywood produced a movie about the whole debacle, most of which is very accurate.So long as the dollar remains the international “gold standard” currency throughout the world, we can keep printing them off~~ the rest of the world knows what we’re doing, but none are willing, much less able to confront this fact, because today a collapse of the American dollar will destroy the entire global economic infrastructure. It makes me very proud of the C- I earned from Harvard in Economics 101 in 1997.Once upon a time, our paper currency was backed by precious metals. We went off the gold standard in 1933, primarily as a consequence of the greed leading up to the stock market crash of 1929, and the ensuing decade of poverty and blight preceding the onset of WWII. The silver standard was abolished in 1971, only because precious metal content of US coinage exceeded face value......I’m not up for a discourse on the Federal Reserve:-- it’s a tiered system of borrowing, which works just fine so long as the ratio of performance to default can maintain it. All was fine until 1999, when the aggregate worthiness of mortgage backed bonds once designated to experienced analysts, was arbitrarily ascribed to median FICO scores. I was stuffed into subprime mortgage loans, while one of my tenants going to MIT and working part time for $12/hour could have bought out the entire building I owned, with a federally endorsed loan that I could not procure, income, LTV ratios notwithstanding.FICO is anacronym for “Fair Isaac,” the California company who authored computer algorithms into which Congress was bribed, er...... I mean,,,, lobbied, into ascribing a total defacto control of all the lending industries in this country. Workings of this black box system were state secret, statutorily exempt from legal action of any kind. I had a pack of the finest lawyers money could buy; I filed suit under Massachusetts Chapter 93A consumer protection, and approached the state’s Attorney General to follow with me. Their office told me that all jurisdiction they might possibly exercise was precluded by federal statute. We considered federal court, and were similarly rebuked. I sued on my own under the Freedom of Information Act, trying to oblige FICO to divulge to me the exact parameters of the “credit scoring” algorithms that made it impossible for me to procure plain vanilla, conventionally underwritten loans on my properties. Loan to value rarely approacehed 80%, it was often 60% or less. I took back statements in to prospective lenders showing gross annual income running between $280,000 up to nearly $400,000. FIFTEEN YEARS OF FLAWLESS CREDIT HISTORY, not one late payment to anyone, EVER. I long since weeded the mistakes off my credit reports.The Federal Reserve is now bankrupt, and has been for several years. Equities we see in stock markets throughout the world are values perceived, and so long as the global economies perceive those values to be real, they shall remain so.Emotion rules over logic, and perception is more important than fact. This is all that matters in human affairs.....That is all