Big Shitpile

Mike the Mad Biologist

Category archives for Big Shitpile

I’ve written before about how the housing fiasco required fraud and perjury. Well, there’s no end in sight for the damage done by Big Shitpile. The latest chapter involves foreclosing on homeowners who not only are able to make their payments, but have actually done so. How does this Kafkaesque nightmare happen? Yves Smith explains:…

Keep in mind that this GE plant primarily makes parts for defense contracts–these jobs are provided by a guaranteed contract: General Electric Co. has made an unusual offer to the state: Give us $25 million in tax credits, and we won’t cut any more than 150 positions at our aircraft engine plant in Lynn. The…

Our Pro-Bank Policies Are Losing the Elite

They’re almost there. The NY Times’ Joe Nocera on Foreclosuregate: The lawsuit uncovered a raft of similar examples — case after case where the loan officers not only knew that fraud was being committed, but were actively engaged in committing it. “By about 2006,” says the lawsuit, “Countrywide’s internal risk assessors knew that in a…

“Looking Back” Is Good Policy

Once again, Obama has decided to inflict post-partisan depression on us. Here’s our latest installment in “Looking Forward, Not Back” (italics mine): “Where any homeowner has been defrauded or denied the basic protections or rights they have under law, we will take actions to make sure the banks make them whole, and their rights will…

Why Big Sh-tpile Required Fraud on the Court

Have no doubt, despite the claims of propagandists, the foreclosure documentation crisis is not nitpicking. Providing the court with affidavits with unverified information is fraud: were you or I to do this, we would go to jail. One of Yves Smith’s commenters describes this in more detail: An affidavit is a legal document which can…

So it turns out that Obama isn’t completely tone deaf. To his credit, he has essentially* vetoed a bill that would have forced courts to recognize out of state foreclosure-related documents. Given the wide-scale fraud in forclosure-related documentation–to the point where it’s not clear who actually holds the title or liens for millions of homes–this…

When I’m writing about politics, I’ve been regularly discussing the legal problems related to the collapse of Big Shitpile (the foreclosure crisis). At Naked Capitalism, Yves Smith lays out why this matters (so I don’t have to stumble my way through this): Make no mistake about it: the nature and scale of these frauds cut…

I remember, back in the 1980s, there was a conservative school of thought that believed many of our problems could be blamed on poor, single, often non-white mothers who refused to ‘take personal responsibility’ (e.g., welfare queens, Murphy Brown! ZOMG!). I never quite understand how anyone could believe that the most powerless Americans would be…

Why, yes, I did. For a while now, I’ve been writing about how improper paperwork could completely screw up the foreclosure process. While I’ve never thought foreclosure was the way to go (I wanted subsidized cramdowns), we can’t even get foreclosure to happen, which is a huge drain on the economy: Lawyers for distressed homeowners…

Cramdown and Why We Need Managed Default

Paul Krugman is absolutely correct about deleveraging: In the end, I’d argue, what must happen is an effective default on a significant part of debt, one way or another. The default could be implicit, via a period of moderate inflation that reduces the real burden of debt; that’s how World War II cured the depression.…