The Fed Now Owns Your Foreclosed Property Under QE3 Purchases of Toxic Assets

Discussion in 'Politics' started by desi, Sep 20, 2012.

  1. desi Valued Senior Member


    Several points.

    "The Federal Housing Finance Administration (FHFA) recently announced that “strategic defaulters”, i.e. those homeowners who have abandoned their mortgage because they could not continue to make the monthly payments will be jailed for this “crime”...

    The American public will now be forced to serve time in debtor’s prison for purposefully abandoning a mortgage mess they were coerced into participating in by the very banks that are benefiting from the Fed’s purchase of mortgage-backed securities....

    Bernanke states that it is “the weak job market” that Americans should be focusing on. And while most who listen to the mainstream media may fall for this distraction, the Fed is quietly aqquiring massive amounts of property in the US through their purchase of mortgage-backed securities."

    I wonder if the FEMA camps are hiring guards yet.
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  3. joepistole Deacon Blues Valued Senior Member

    Uh, no! You as usual are wrong on all accounts. That is not what The Federal Reserve is doing. The Fed is buying mortgage backed securities - not toxic assets. At any time The Fed can reverse the purchase and sell those assets thus removing dollars it put into circulation from circulation. Two, debtors prisons are not being brought back - that is more right wing nut case magical fantasy thinking.
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  5. eyeswideshut Registered Senior Member

    Who would want to buy, looking forward to buy them then ?
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  7. Aqueous Id flat Earth skeptic Valued Senior Member

    No, you're confusing civil and criminal law. In any default on a contract, the worst that can happen is a judgment for payment. Obviously in a foreclosure, you simply lose title since the lender has equitable claim. Criminal penalties are reserved for specific violations of a statute.

    Of course if you're worried about people who commit fraud getting locked up, that's an entirely different matter. Never lie on a government document, or in any contract or anything you sign, and you won't have to worry about going to prison. Just don't blame the Fed for people getting punished if they do lie, cheat and steal, since that's where the criminal law kicks in.

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