South Lorne Posted September 17, 2007 Share Posted September 17, 2007 Quite fascinating. According to the reserve ratios of the bulk of banks/BS for every 3 mortgages that cash changed hands for, 97 didn't. The bankers etc just said it had happened and crossed their fingers. How can you commit fraud on a transaction that never occured? Anyone? ...not sure of the context 3 to 97...the only thing I can think of is 'remortgaging'..i.e. MEWing... where cash does not exchange hands between two parties e.g. buyer and seller...but that ratio sounds a bit high ....?...anyone...? Quote Link to comment Share on other sites More sharing options...
South Lorne Posted September 17, 2007 Share Posted September 17, 2007 There should be mandatory lessons at all schools every month teaching pupils to be extremely wary of moneylenders.... ...yep from Rupert's NY news sheet: "I have great credit and relationships but none of it matters. The market isn't discriminating between me and every deadbeat, zero-down borrower." ...is this coming to a lender near you...? Quote Link to comment Share on other sites More sharing options...
Injin Posted September 17, 2007 Share Posted September 17, 2007 ...not sure of the context 3 to 97...the only thing I can think of is 'remortgaging'..i.e. MEWing... where cash does not exchange hands between two parties e.g. buyer and seller...but that ratio sounds a bit high ....?...anyone...? Oh. Because of fractional reserve lending no cash changes hands in 97 out of a 100 transactions. HSBC (for instance) tell you that they have given Halifax £200,000 or whatever, but no actual cash is ever involved at any point, just numbers on a PC. The higher the amount of money, the less likely that cash ever changed hands. For the bankers, saying that they have done something is the same as having done it...until it all goes Pete Tong and people start asking questions, which it just has. It's the same for most banking stuff these days. No one has ever been given any cash by a banks credit card department unless they have taken it out of an ATM, for ex. The system is 97% imaginary. SOooOOooo the question is how can the banks/BS go for fraud proceedings when what they are saying is easily proven as having never occured and is itself fraud? Quote Link to comment Share on other sites More sharing options...
steve99 Posted September 17, 2007 Share Posted September 17, 2007 Am I correct in thinking that anyone can set themselves up as a mortgage broker, and that just about anyone has in the last 10 years? At the time of the last HPC I knew a mortgage broker who'd just decided to do the job because she saw rich pickings. Didn't even bother with an office - worked from her home and car. She was arranging mortgages for people on the dole - that was when all mortgage interest was paid by housing benefit (or somesuch) from week 1 of a claim. I think the rules may have changed now. Anyway, she didn't blink an eyelid at inventing false self-cert accounts. Moreover, she made a fortune selling mortgages to dolees. I think the fallout from UK sub-prine (fraudulent) borrowers is going to be even worse this time round. But the fly-by-night brokers are the ones who fuelled the fire. They're the ones who manufacture the fraudulent salary claims and accounts. The borrowers were just sheep to the slaughter. The paralleles with pyramid selling are interesting, even at this level, though. This particular mortgage broker was trying to get me to go into the business - she'd have taken a rake-off from any of my sales. Tupperware/Amway mortgages! I politely declined. ''fly-by-night brokers are the ones who fuelled the fire'' Like every single broker in the back of every EAgents office in the UK? There should be mandatory lessons at all schools every month teaching pupils to be extremely wary of moneylenders.... What!? and kill the next generation of city bonuses and financial rip offs? will never happen. Quote Link to comment Share on other sites More sharing options...
nmarks Posted September 17, 2007 Share Posted September 17, 2007 (edited) Big thanks to Eric Pebble for posting the Money Programme links. I remember making a point of watching that programme when it first aired. It confirmed everything I suspected about the property bubble; that the financial system was being undermined by recklessness and criminal behaviour and it strengthened my resolve to remain a lone voice in the wind. I remember there was a repeat showing in the early hours of the morning a few days later and I watched that too, shaking my head in disbelief throughout. I have lost count the number of times I emailed HM Treasury pleading with them apply the brakes only to be rebuffed by some spin doctor's inane reply. They didn't want to hear then, they bloody well will now. The tragedy is that the forthcoming crash is going to affect all of us. I hope, post crash, there is a review of every mortgage application made in the last decade with a view to punishing those who conspired to obtain credit by deception. Edited September 17, 2007 by nmarks Quote Link to comment Share on other sites More sharing options...
nmarks Posted September 17, 2007 Share Posted September 17, 2007 What I seem to remember from history lessons is that WW2 was partly Germany's solution to the Great Depression, which was caused by a wall street crash, caused by excessive Hire-Purchase ... The message seems to go over peoples heads though doesn't it. everyones been carried away with the idea that rising house prices means free profit. You're right, it's a blatent pyramid scheme. Where do you place the blame though, the Lenders, or the people too eager to beleive you can make money out of thin air ... Today Big Al came out and agreed that the Iraq war was about oil. Interestingly, France rcently has been warning about a coming war with Iran. I wonder what the real reason for a war on Iran could possibly be? Oil? Surely not! Couldn't be, could it? (PS Presumably France is now acting as the US's mouthpiece in Europe as the UK is overstretched militarily and about to hit the economic buffers big time! Expect a UK pullout from Basra soon). Quote Link to comment Share on other sites More sharing options...
eric pebble Posted September 17, 2007 Author Share Posted September 17, 2007 Big thanks to Eric Pebble for posting the Money Programme links.I remember making a point of watching that programme when it first aired. It confirmed everything I suspected about the property bubble; that the financial system was being undermined by recklessness and criminal behaviour and it strengthened my resolve to remain a lone voice in the wind. I remember there was a repeat showing in the early hours of the morning a few days later and I watched that too, shaking my head in disbelief throughout. I have lost count the number of times I emailed HM Treasury pleading with them apply the brakes only to be rebuffed by some spin doctor's inane reply. They didn't want to hear then, they bloody well will now. The tragedy is that the forthcoming crash is going to affect all of us. I hope, post crash, there is a review of every mortgage application made in the last decade with a view to punishing those who conspired to obtain credit by deception. Thanks nmarks -- I think that programme SAID IT ALL --- it is a HUGELY IMPORTANT PROGRAMME that MUST NEVER BE FORGOTTEN... Quote Link to comment Share on other sites More sharing options...
bearORbullENIGMA Posted September 17, 2007 Share Posted September 17, 2007 There should be mandatory lessons at all schools every month teaching pupils to be extremely wary of moneylenders.... There isn't - nor is there lessons on the economy - for reasons I suspect you & I know; because it would stop the elite from raking back the money that they kindly 'lent' to the middle & working classes as 'wages'. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted September 17, 2007 Author Share Posted September 17, 2007 ''fly-by-night brokers are the ones who fuelled the fire''Like every single broker in the back of every EAgents office in the UK? What!? and kill the next generation of city bonuses and financial rip offs? will never happen. Will this be covered up.......... I bet it will -- the Moneylending Lobby will be working 24/7 right now on damage limitation exercise... Quote Link to comment Share on other sites More sharing options...
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