Please welcome Foreclosure Crisis Weekly, a new publication by Charles Hugh Smith, dedicated to documenting the often-amazing foreclosure crisis. Since we can expect the crisis to unfold for years to come, the Weekly will undoubtedly have a reliable source of material for quite some time.

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from Charles Hugh Smith

Category: Foreclosures

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

25 Responses to “Foreclosure Crisis Weekly”

  1. Petey Wheatstraw says:

    In order to reconcile fraudulently securities created out of tranches of loans, BoA announced it is giving holders of securities newly created titles to tranches of actual houses. A typical but randomly selected tranch includes titles to 22 shingles from a house in Chicago, the water heater from a home in Las Vegas, linoleum from a condo in NC, and some decking from a SFH in Atlanta.

  2. Gatsby says:

    Awesome, it’s like the Onion, but it makes me cry…

  3. TakBak04 says:

    Here’s what I just read from Charles Hugh Smith. … and it’s dogged me all day as to what an incredible read it is!

    I’m probably going over “excerpt” for Copyright…but I couldn’t snip it harsh enough to not try to get folks to read this one from him. If he objects then ….please have the BP Gremlins shorten my post.

    It was such a revealing read…made so succinctly and that link he has to Simon Johnson’s “old article” is a Gem of a find..since it’s more relevant today than it was way back..

    ————

    The Stealth Coup D’Etat: U.S.A. 2008-2010 (October 28, 2010)

    The Stealth Coup D’Etat in the U.S. (called “The Quiet Coup” by Simon Johnson) was begun long ago, but the takeover reached fruition in the 2008-2010 timeframe.

    Please read these brief excerpts from the 1968 classic Coup d’État: A Practical Handbook (by Edward Luttwak) and see if they don’t remind you of the United States, circa 2008-2010:

    Insurrection, the classic vehicle of revolution, is obsolete. The security apparatus of the modern state, with its professional personnel, with its diversified means of transport and communications, and with its extensive sources of information, cannot be defeated by civilian agitation, however intense and prolonged.

    (CHS note: Luttwak referred to the May 1968 general strike in France as an example; by coincidence, the failure of today’s general strikes in France to change Central State policy offers a more current example from the same nation.

    Any attempt on the part of civilians to to use direct violence with improvised means will always be neutralized by the efficiency of modern automatic weapons; a general strike, ont he other hand, will temporarily swamp the system, but cannot permanently damage it, since in the modern economic setting, the civilians will run out of food and fuel well before the military, the police and allied organizations.

    (CHS note: Napoleon famously dissipated a civilian uprising with “a whiff of grapeshot” long before modern automatic weaponry. Organized violence always has an advantage over informally organized violence.)

    If a coup does not make use of the masses, or of warfare, what instrument of power will enable it to seize control of the state? The short answer is that the power will come from the state itself.

    A coup consists of the infiltration of a small but critical segment of the state apparatus, which is then used to displace the government from its control of the remainder.

    Luttwak’s first point about the futility of direct insurrection informed my own Survival+ critique, which concludes that the only effective means to weaken the Financial Power Elites who have partnered with State Elites is to opt out and assemble voluntary non-privileged parallel structures which are independent of the Central State and its Power Elites.

    As I have sharpened the Survival+ critique (with an eye on a future revision), I have come to see that the term coup d’etat is not cheap theatrics or an analogy for the capture of the Central State by Financial Power Elites, but the accurate description of a long, stealthy infiltration and dominance of the key ministries of the United States government.

    In the popular view, a coup d’etat is a sudden event, over in a few hours or at most days, a drama played out in impoverished Third World nations. The stealth coup which has occurred in the U.S. is an entirely different kind of coup–one that has operated in stealth mode for the most part, a process of gradual infiltration and opportunistic grasping of key levers of dependence and control.

    Simon Johnson, co-author of the recent book 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, also wrote the May 2009 article “The Quiet Coup”. Here are a few key excerpts:

    But these various policies–lightweight regulation, cheap money, the unwritten Chinese-American economic alliance, the promotion of homeownership–had something in common. Even though some are traditionally associated with Democrats and some with Republicans, they all benefited the financial sector. Policy changes that might have forestalled the crisis but would have limited the financial sector’s profits–such as Brooksley Born’s now-famous attempts to regulate credit-default swaps at the Commodity Futures Trading Commission, in 1998–were ignored or swept aside.

    The financial industry has not always enjoyed such favored treatment. But for the past 25 years or so, finance has boomed, becoming ever more powerful. The boom began with the Reagan years, and it only gained strength with the deregulatory policies of the Clinton and George W. Bush administrations. Several other factors helped fuel the financial industry’s ascent. Paul Volcker’s monetary policy in the 1980s, and the increased volatility in interest rates that accompanied it, made bond trading much more lucrative.

    The invention of securitization, interest-rate swaps, and credit-default swaps greatly increased the volume of transactions that bankers could make money on. And an aging and increasingly wealthy population invested more and more money in securities, helped by the invention of the IRA and the 401(k) plan. Together, these developments vastly increased the profit opportunities in financial services. Not surprisingly, Wall Street ran with these opportunities. From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent.

    The great wealth that the financial sector created and concentrated gave bankers enormous political weight—a weight not seen in the U.S. since the era of J.P. Morgan (the man). In that period, the banking panic of 1907 could be stopped only by coordination among private-sector bankers: no government entity was able to offer an effective response. But that first age of banking oligarchs came to an end with the passage of significant banking regulation in response to the Great Depression; the reemergence of an American financial oligarchy is quite recent.

    Looking just at the financial crisis (and leaving aside some problems of the larger economy), we face at least two major, interrelated problems. The first is a desperately ill banking sector that threatens to choke off any incipient recovery that the fiscal stimulus might generate. The second is a political balance of power that gives the financial sector a veto over public policy, even as that sector loses popular support.

    Though incisive, Johnson’s critique fails to grasp several critical features of the Stealth Coup D’Etat:

    http://www.oftwominds.com/blogoct10/stealth-coup10-10.html

  4. JimRino says:

    Remember, November 2 YOU can vote for MORE Wall Street and Insurance Industry FRAUD, And MORE Oil and Coal POLLUTION by voting REPUBLICAN.

  5. JimRino says:

    Republicans will also Kill Social Security. At least that’s what they say they want to do.

  6. RR111 says:

    Jim – I think that you forgot to add on “or Democrat” to the end of your first post. That was just a small detail that I thought I would do the service of pointing out for you.

  7. RR111,

    in a Sense, NFK~!

    JimR,

    yes, U2 can be a, “Hope”(-lessly) deluded, and, thereby, denuded, *Soul..

    and, really, beyond your previous ‘points’, Why shouldn’t SocSec (a “Pay as They went”, massive inter-Generational transfer of Wealth, from the Future, to the Past–*Voted for by the recipients–Ponzi Scheme) not be killed off (to be replaced by a sustainable, de minimus, net–available to all comers)?

  8. TakBak04 says:

    JimRino Says:
    October 29th, 2010 at 7:06 pm

    Remember, November 2. YOU can vote for MORE Wall Street and Insurance Industry FRAUD, And MORE Oil and Coal POLLUTION by voting REPUBLICAN.

    —————-

    AFTER THIS ONE…can WE PLEASE DO THIRD PARTY! …Oh..but, I Know, THIRD PARTY IS LOSER it takes votes AWAY from the Front Runner…and allows some scurrilous EDJETT to GET IN POWER!

    Well.. if we can’t vote “THIRD” after Dems Left us in the Dust with Road Burns from Wall Street HACKS they EMPOWERED…then WHAT THE “COJONES” are we ALL EXPECTED TO DO HERE with VOTES?

    TELL ME!…. WHAT THE HELL ARE WE SUPPOSED TO DO?

  9. Jack says:

    @takbak: Nader, where art thou?

  10. whskyjack says:

    A tale from a small town banker friend.
    His rural MO bank was working with Wells Fargo. They were approving a loan of 130% on a double wide trailer house. So the fema trailers aren’t that far of a stretch.
    The problem with parody any more is keeping ahead of reality.

    Jack

  11. TakBak04 says:

    Jack Says:
    October 29th, 2010 at 8:36 pm

    @takbak: Nader, where art thou?

    ————

    Ahh.. I voted for Gore…I often WONDER what Might have Been! (If the “Supremes” hadn’t intervened in something that really wasn’t there TERRITORY!”

    Sigh… But, I got over it and Moved On….just like the rest of us…Yes? And, wasn’t Bush II a treat after those awful days of WONDERING…WHO WOULD BE PRESIDENT. ,,,,,,,,,,,, (SARCASM ALERT)

  12. whskyjack says:

    LOL

    Around here the choice is between dumb and dumber. It is not real clear which is which.
    When things are that bad voting only encourages them. I swear if either one proved they had a brain cell I’d vote for them. but as it is I will not chose between dumb and dumber.

    Jack

  13. TakBak04 says:

    whskyjack Says:
    October 29th, 2010 at 9:10 pm

    LOL

    Around here the choice is between dumb and dumber. It is not real clear which is which.
    When things are that bad voting only encourages them. I swear if either one proved they had a brain cell I’d vote for them. but as it is I will not chose between dumb and dumber.

    Jack

    ———

    Yeah…sometimes it seems like Lah..Lah Land.

    But, serious problems are ahead of us…and yet…WHAT CHOICES?

    Pick Boxes…and wait for “Jumping Jack” …just to pop out…. Who knows…just gotta try to parse it all and hope to do something that will be “somewhat” close to SOMETHING that you BELIEVE IN….

  14. Mike in Nola says:

    Speaking of FEMA trailers, when I made a 500mi round trip into central Louisiana Monday, I passed a large piece of land on which several hundred unoccupied trailers. Sign on the fence said they were to be auctioned tomorrow.

    Mark: Re Social Security. I think you’ve been listening to too much KTRH. The campaign against it is run by the very rich who pay little in taxes and are afraid the might have to cough up the same percentage most of us pay for Social Security. Exhibit #1 – Pete Peterson, hedge fund billionaire who pays a lower tax rate than most working people but who keeps explaining why old people need to learn to like dog food.

  15. TakBak04 says:

    Those Fema Trailers….Filled with formadehyde……..Probably “gassed out” by now …but FEMA has been trying to foist those Death Tralers on “unsuspecting folks” for every Tornado and EVENT since NOLA EVENT.

    They spent a lot of Big Bucks Fed Tax Payer Dollars to Southern States who manufactured them…so they gotta get back their EXPENSES.

    Parked them somewhere in Texas/Arizona ???? after the Hooplah…..about how they were making folks sick and their CHIDREN. Then they pulled them out and tried to foist them on Haiti…but the Hatians were having None of It!

    They are like the Death Zombies. Trailers from Hell waiting out there for the NEXT DISASTER…and when “memory fades” you and I might be the NEXT VICTISM of HALLOWEEN FEMA TRAILERS!

    (Sorry…much hyperbole here from me…..shame.)

  16. Andy T says:

    That’s a funny one for sure Barry…. the MBS backed by the FEMA trailers was the best.

  17. Republicans will also Kill Social Security. At least that’s what they say they want to do.

    That thing is already dead. Just not quite for this generation. Do you know what happens when you get in bed with a corpse?

  18. This is creepy:

    Don’t Want Google to Invade Your Privacy? Move to Mars.

    Google CEO Eric Schmidt says people concerned with their houses being photographed for Google Street View should “just move.” But…where?

    http://www.pcworld.com/article/208997/dont_want_google_to_invade_your_privacy_move_to_mars.html

    They love you folks. Just like the government. They are only concerned for your best interest. Then again, the stalker believes he loves you too.

  19. JerseyCynic says:

    one employee: Juan Valdez OH THAT’S RICH

    TakBak04 this CHS gentleman is something. We’ve been griping about ’04 for well, forEVER! I’m a Nadar’s Raider from way back (ct resident)

    I’ve been reading his articles all morning

    I’ve been screaming for a third party for years. I think it’s gonna happen by 2012 — the 2nd enlightenment?
    The serfs are close to admitting that deep down, they know how the game is played and that they know that
    they are the only ones who can turn things around. take the “state” back with our own local “Stealth Coup D’Etat”

    BUT FIRST we’ve got to come to the very very hard realization that WE are the poor stooges who have fed this so called democracy of ours. I really think these “elites/masters of the universe” set this whole country up as ONE BIG LAUNRDROMAT way back when (I’ve been following the money all the way back through history and am now consumed in the articles of confederation and the anti-federalists). The recent trip to Boston didn’t help either. I stared at this building for quite a while thinking about a lot of things. Now I know why it looks like a washboard http://www.waymarking.com/waymarks/WM9EW6_Federal_Reserve_Bank_Building_Boston_MA

    I think the quiet coup will take place locally over the next two years. It will become pretty obvious if the gop takes victory next week that 600-1 means nothing to these politicians. Now, 600 on a local level is huge. It’s a BIG start and it will quietly grow and grow and grow. But only once we stop feeding the machine.

    This is a good start — a very good video for anyone who REALLY does not get it (or is not willing to):

    A takeoff on “The House That Jack Built.”
    Who pays for the nuke Ahmadinejad might build?

    http://www.youtube.com/watch?v=LS-nuDL7Z2g&feature=player_embedded

    this is what will be the hardest thing to get people to realize, but it’s vital in getting this third party started

  20. JerseyCynic says:

    TakBak04

    another biggie — religion. I think the god scam has gone too far in politics

    I’m pretty sure that fox news is unaware that their campaign against muslims just might be what wakes a lot of the “faithful” up to the possibility that religion has played a big part in their (willful?) ignorance. At least I’m hoping anyway

    Oh man if we could just get past this religious bullshit — THE SKY’S THE LIMIT BABY!!

    http://www.secondenlightenment.org/second.htm
    “….At this very time, the “uncovering” (apocalypse) of official conspiratorial cover-ups, on the part of cardinals, bishops and priests, in sexually deviant matters (faith and morals), is rocking the institutional church and is shocking the faithful. The façade of Church inerrancy is rapidly evaporating from the minds of many of the faithful. Like never before, the ascendancy of lay influence within the Church is likely to happen, not because of any willful change on the part of Church and clergy, but because of public disclosures of clerical and hierarchical cover-ups, frauds and deceits. The internal collapse of ecclesial credibility is happening from within and due to institutional breaches of faith. If complete enlightenment did not yet come with the Peace of Westphalia, perhaps it will now come as a consequence of the uncovering of official Church wrongdoing-which uncovering may be but a mere introduction to a hidden history of institutional deceit and misdirection.”

  21. Greg0658 says:

    TakeBack2004 that was a read ** … 3rd Party – not without folks in mass thinking its not a throw away vote * .. and so a plus to the opposite .. we need a mechanism (a poll – uhh) to let folks know it isn’t that throw away … sorta why I’m playing in Facebook .. I sorta think maybe that mechanism exists for the poorboy

    a couple pictographs (and a Google 11th District map)
    http://www.facebook.com/profile.php?id=100000769882220#!/photo.php?fbid=155341941168134&set=a.130167067018955.10438.100000769882220

    * ie that Clinton1 yesterday in Florida Meek intervention for example

    pss – my original signup to Facebook was to understand it / as a possible Vote’g Machine
    (and an all in 1 blog’g signiture)

    ** MEH and I both know of the microwave tanks (subliminal ouchee)

  22. louis says:

    Eric Schmidt obviously doesn’t give a shit about most recent Supreme Court Rulings which say privacy is a basic human right. That anyone can get my house history and see the front of it is beyond an invasion of privacy. I suggest Google read the Bill of Rights and look closely and the 3 and 4 amendment. Common man is correct, OJ loved Nicole.

  23. Joe Friday says:

    How the Common Man Sees It,

    ‘Republicans will also Kill Social Security. At least that’s what they say they want to do.’

    “That thing is already dead. Just not quite for this generation.”

    Ah, no.

    Social Security is more financially sound today than it has been throughout most of its 75 year history.

    The actuaries report that it is solvent through 2085, but then they only do 75-year projections:

    http://www.ssa.gov/OACT/TR/2009/lr4b3.html

  24. TakBak04 says:

    JerseyCynic Says:

    I’ve been screaming for a third party for years. I think it’s gonna happen by 2012 — the 2nd enlightenment?
    The serfs are close to admitting that deep down, they know how the game is played and that they know that
    they are the only ones who can turn things around. take the “state” back with our own local “Stealth Coup D’Etat”

    ———-

    Something might happen by 2012…..but, sadly, watching all this for years, tells me much longer…maybe two decades. We could fix much now to avoid some very bad stuff…but the will is not there.

    I’m thinking the “Crash & Burn” scenario more possibility than the hopeful (Wrongs will be Corrected and Regulation will be instituted to assure that).

    There just isn’t the will to do it when the Banksters/Corporatists are getting their way with the latest Supreme Court ruling allowing them to have full access to our Campaignes …AND…they don’t even need to disclose while I as a puny donor have to give my Name, Employment and sign an oath as to who I am employed by or if I’m not employed or self employed. How Can that Be?

    Transparency for the small donor but Opacity for the Pacs, Corporatists and Mega Rich to do what they want with THEIR MONEY…but MY MONEY is EXAMINED and has to be SWORN TO…so they can track me down.

    I understand about Nader…don’t hold him contempt for Selection 2000…. That all belongs to the Supremes and Florida Voting Machines. 500 VOTES! Just 500 VOTES.

  25. TakBak04 says:

    JerseyCynic Says:

    I’ve been screaming for a third party for years. I think it’s gonna happen by 2012 — the 2nd enlightenment?
    The serfs are close to admitting that deep down, they know how the game is played and that they know that
    they are the only ones who can turn things around. take the “state” back with our own local “Stealth Coup D’Etat”

    ———-

    Something might happen by 2012…..but, sadly, watching all this for years, tells me much longer…maybe two decades. We could fix much now to avoid some very bad stuff…but the will is not there.

    I’m thinking the “Crash & Burn” scenario more possibility than the hopeful (Wrongs will be Corrected and Regulation will be instituted to assure that).
    JerseyCynic Says:
    October 30th, 2010 at 8:10 am

    TakBak04

    another biggie — religion. I think the god scam has gone too far in politics

    I’m pretty sure that fox news is unaware that their campaign against muslims just might be what wakes a lot of the “faithful” up to the possibility that religion has played a big part in their (willful?) ignorance. At least I’m hoping anyway

    Oh man if we could just get past this religious bullshit — THE SKY’S THE LIMIT BABY!!

    —————

    Most of us are hear in the US because families escaped from some sort of repression…and most was Religious Oppression.

    What we are doing these days in other countries in the name of Religion (i.e. Spreading Democracy) is an abomination. Even a religious agnostic or unbeliever, must wonder about the destruction we do in the name of what now seems like EMPIRE! It’s as if everything we believed about our Constitution and Declaration of Independence , Bill of Rights has been turned around and reworked by those who distort it so…(and have a megaphone, through Media Control, to continue the distortions in broadcast to people who don’t know better….through lack of inquisitiveness or too much TV) that the country is obsessed by Religious Right and other Religious Zelotos to believe in the “American Exceptionalism.”

    American Exceptionalism? Can anyone think of a term that sounds more FASCIST in it’s coded intent.

    We need to have some sound minds fighting back against this craziness. Some try…but can’t get through the megaphone that keeps distortion going 24/7. How long can Blogosphere try to make up for the gap in our freedom of expression to have opposing views be put alongside Corporate/Banksters and the Think Tanks that dominate our culture.

    Something is going to have to give one way or the other…..but will take a long time…given the push back and power.

    (BTW…I’m an ordinary mainstream person….or used to be)…I sound quite harsh in my comments but life’s lessons and experience cause me to come to the conclusions I have and it’s heartening to see that there are others speaking up about what is going on…who have far more wisdom and better avenues of expression than I do… like Simon Johnson, Charles Hugh Smith and the others on the Financial Blogosphere writing their views …including this site and the others we all probably frequent seeking knowledge in these terrible times.)