There is no Plan B. - Chris Martenson
First Principals: In the US, housing is central to the economy, to the financial system, and to the society. It has failed. And with it the consumer economy has lost its main support, so, too, have employment, taxation, the social contract and governance. The replacement, in each case, is fear. And not far behind the fear is the gathering recognition that doom, that collapse is just off stage, waiting.
There is no rational way to discuss one aspect or another of the hydra facing us. Yes, fraudulent affidavits were used to keep foreclosure mills running. Why not? The mortgages were frauds at inception – deceitful loans made to deceitful buyers. The fraudulent mortgages were quickly passed on to the slice and dice middle-men who knew what they were cutting up was fraudulent but didn't care as long as they could pass it on – nudge, nudge, wink, wink – as MBS given fraudulently high ratings by firms that were no better than houses of prostitution. A “service” industry grew up that was designed to keep all the players fat, dumb and happy until they were starved, very unhappy, but still greedy, still dumb.
The housing market has disappeared into the hated federal government – no one else would lend money into such a market, nor offer MBS stuffed with fraudulent documents and backed by no-loss covenants. All the banks do is collect fees and distribute bonuses.
The rule of law disappeared along with the magic of deregulation – what are laws except inconvenient constraints on profits? Common sense left town years ago. Readers ask why I've not written about the 'foreclosure fraud', this is why: It is too big to grasp. We are living in a world made by fraud and it cannot but all fall down. Anyone who thinks this is all trivial technicalities is wrong.
I truly thought our doom would flow from the increasing decline in petroleum production, years from now. I was wrong.