to market shorter dot com j.p. morgan besieged on several fronts silver wiki leaks lawsuits for closure gate so they're chronicling foreclosure gayton you know all these bad debts that they own and wiki leaks then they say quote to make matters worse the company isn't battled in several legal suits and other allegations of fraud including market manipulation of silver contracts front running exchanges and of course the robo signing fiasco then the new grassroots silver squeeze campaign against the bank could lead to serious repercussions that's right the very campaign that we've talked about on the show times a report by silver crash j.p. morgan has now gone international is being covered by the international press well speaking of a face and a name part of the object of this is jamie diamond well i'm going to turn to a video that this market shorter dot com article links to diamonds troubled world

let's talk about the sore spots in china diamonds purple you know and then we'll get to the fact that this was the guy we thought walked on water you thought he walked on water we know he's got financial leprosy well that's why he has the sore spot. so then she goes back to asking the question a cycle the sore spots many of the sore spots right now really is his mortgage portfolio a lot of people don't realize this but eighty percent j.p. morgan's mortgage portfolio is either credit impaired from the washington mutual acquisition from its subprime or are or option arms it's kind of these are not very good assets according to analysts yeah eighty percent impaired that's not good he's got financial going to jamie diamond. and that's probably why he has all those sore spots they keep getting him you know you know silver is good at the subject as well but the mortgage crisis doesn't end there next to. line reads gasper reno bank of

america is worried next wiki leaks dump will contain evidence of fraudulent countrywide loans so this is charles gasparino talking on fox business news and here's what he had to say and here's the problem for bank america they have they bought countrywide financial which was one of those purveyors of subprime loans to high risk people and if those loans have been you know are deemed to be fraudulent if these gigabytes of memos you know basically show that those those are fraudulent . loans that were given particular journey housing bubble bank of america could be on the hook for billions of dollars and that's what the stats what the big fear is in bank america that's right billions of dollars on top of billions of dollars on top of trillions of dollars and because let's talk serious for a moment come closer because obama and bernanke and geithner are not actually putting these guys in jail or introducing any serious financial reform but instead dealing with the contagion of financial leprosy and gone urrea by issuing

multi-trillion dollar u.s. dollar bundles of nonsense it's a guarantee on gold and silver going to the moon because obama is and we need jellyfish. precious metals go higher i don't see obama growing a spine any time soon therefore there's no hurry to selling my precious metals as a matter of fact amo buyer well also at the same time genotype a kohli in the past week spoke before the federal housing finance agency and she gave a presentation called repairing the damage of fraud as a business model talking about this very situation that we just saw. well bank of america is living in fear that they can have to buy back all these bad fraudulent debts from countrywide and also j.p. morgan's causing sore spots and jamie diamond's whatever but one of her cards reads many c.d.o. and virtually every c.d.o.

squared or more fraud to cover up fraud ponzi scheme look a collateralized debt obligation or c.d.o. is a fictitious nonsensical piece of paper cooked up by quantz on crack who live in a dorm room next to wall street while they're stealing old ladies pension money a c.d.o. square is just that fraud squared ok it's just it's just exponentially more fraud to cover up bad fraud i mean imagine remember that movie boys from brazil where they cloned hitler that's what a c.d.o. square it is they're cloning fraud well jetted to have a call explain that like this to bart finance c.d.o. whole wawa you bury my losses i'll bury yours right well jonah to have a goal is a reaching deep into the current vernacular to come up with foobar which you can look up on google and find out what that stands for but yeah i agree with her and she also makes the note that this is fraud as a business model it's an assembly line of fraud america is fraud they should just replaced all stars and stripes with some facsimile of a stars and stripes make it

a banana republic make it like pineapples and fake zirconium gemstone but it's a complete farce well of course she's talking about how to undo the damage caused by fraud as. a business model for america and an integral part of that of course is the department of justice one would think that arresting a few of these bankers who pushed these fraudulent mortgages upon the population and then sold these fraudulent mortgages to our pension funds would you know the department of justice would be going after the no no no headline reads department of justice crackdown on wall street is just a p.r. stunt targeting small time crooks so this is about operation broken trust and this is attorney general eric holder is going after a collection of ponzi schemes foreign currency frauds investment scams and other market cons so there are three hundred forty three defendants facing criminal

charges one hundred eighty nine facing civil charges for a sum total of eight point three billion in investment scam say operated who. how outrageous we're going to look the five trillion in scams go by the wayside well actually this article on zero hedge cites andrew ross sorkin in the new york times he says something similar to that in his article pulling back the curtain on fraud inquiries he says but fraud at big corporations surely dwarfs by orders of magnitude the shareholders losses of eight billion that mr holder highlighted if the government spent half the time trying to ferret out fraud at major companies that it does tracking pump and dump schemes we might have been able to stop the financial crisis while the rest of the world is not fooled you know the rest the world is getting out of really the focal point of all this fraud which is the us

dollar so you've got russia china doing deals outside of the dollar everyone is dumping the dollar nobody wants the dollar and some point they're going to roll the dollar completely out of existence into some roll up with something as d.-r. nonsensical currency there want to take a fifty percent haircut on their prices in the us and food and energy is going to double or triple in price overnight and it talking about instantaneous twenty million people now in the poverty rolls to join the already fifty million people in the poverty rolls to join the already record number of people on food stamps to join the record number of people that health care to join the record number of people want to employ to join what is basically an economy in depression to join what is essentially the depression part to america is finished well actually max that's in my very final headline down from the pedestal according to a new allstate national journal heartland monitor poll one in five americans said the u.s. economy is the world's strongest but nearly half picked china it's the strongest smelling the u.s.

economy is the strongest smelling economy well only twenty percent of americans think the u.s. economy is the strongest fifty percent think china is so they already see themselves as sliding down the scales and they're just giving up their. should i think the first step toward in the grieving process is to just let go i mean forget about the country is gone the manere get up to create a new country look around and you know think a country that you think is a good country model yourself after like maybe chile or something like that or brazil you know start all over again start from scratch because this experiment the american experiment was less to hundred thirty years or so is finished i took my own poll i call people on the phone last night i asked people in america given the choice between having barack obama as your president for the second term or max cars or nine out of ten people selected barack obama so which one of those ten people in your family didn't want us president well right they don't see the call

you love it right now just wait until things shake out a little bit more and i'm going along with max you know so they've given up on the u.s. economy and the american consumer as we see here that used to be citizens remember and now consumers so they see china as the strongest one so i think as they're drowning however they're trying to take the strong one with them americans plunge deeper into debt contrary to the perception that consumers are diligently paying what they owe americans are actually plunging deeper into debt americans accumulated six point five billion in credit card debt between july and september of this year according to a study from card hub dot com between april in september the study says consumers increased their debt by eleven percent over the same period last year so the misperception is that americans are paying down the debt and the reason given for

that is that in fact credit card debt decreased by ten point three billion due to all of these banks as we were talking about earlier wiping out all their bad debts they marked down sixteen point eight billion in bad debts. american consumers then added six point five billion more well this brings up an interesting point is that it's all about accounting fraud there's no actual underlying productive economy people don't go to work manufacture something and sell it abroad and pocket a few dollars and save that money and have a growing economy what they do engage in is accounting fraud everybody in america thinks that they're hedge fund manager and they think that by putting money in the this credit card into that credit card and switching out of this credit card they think they're george soros in their head and they're becoming they're living like billionaires but in fact they're just going into like a degenerate casino backlot scum cycle where they wake up in a pool their own vomit and they want to how the heck did we end up here. wait wait go. all right stay there with us all the time for we have

this portion of the kaiser report thanks so much for being here again thank you max all right now when we come back i'll be going to new york city to speak with michael w. hudson about his new book almost. a live only next to the border. but also on the border of peace and war. they're responsible not only for themselves. but also for their loved ones . they're ready to take any risk. to the streets.

i welcome back to the kaiser report oh all right any time to go to new york and talk with award winning journalist michael w. hudson michael is the author of a new book the monster how we gang of predatory lenders and wall street bankers fleeced america and spawned a global crisis michael hudson welcome to the kaiser report thanks for having me on max it sounds like a horror film what is the monster name the book the monster partly in recognition that this this tiny little marginal market the subprime mortgage business grew you know from the late from the early one nine hundred ninety s. grew into this this monster that was capable of crashing the economy and causing a global crisis the monster is also. the name of a sales pitch that one of the companies that investigated first. alliance mortgage which was closely associated with lehman brothers used to pull the wool over the

eyes of homeowners the the monster actually was was a two hour sales presentation most of which didn't even deal with a loan most of it was sort of like a psychological encounter session where the loan officers asked the homeowners lots of questions about their hopes and fears and dreams they call it finding the pain and if you could find the pain. and get people to cry often the managers would would give the loan officers of bonuses for. for getting people to break down in tears if you could do that then you could pretty much tell them anything and that's where the monster came in which was a real sort of mathematical. song and dance which actually persuaded pretty smart people that paying a higher interest rate would save them money in the long run and you would find people who would end up getting stuck paying twenty upfront points twenty thousand dollars and from points on one hundred thousand dollars loan yeah now you're

talking my language i work that shearson lehman brothers and of course all the high pressure sales techniques from the lehman brothers of the eighty's with marty shafir often and his book and stewie travis was a legendary high pitch salesman on the phone at that time and you're right that's the technique if you get people emotionally involved you can steal money from them a lot quicker lehman brothers was an expert at it and they spread out all over wall street they took that technique to all these farms and then when the stock market crashed in two thousand the dot com they went they took this to the real estate brokerage markets here you've got all these phone salesmen and salesman using this technique of emotionally torturing people really it's the same way you torture people you get them softened up and you steal their money to get a big fat commission and it's beautiful it's america's the american dream to rape and pillage your fellow americans using this advanced sales technique so i understand i'm. request was also a company that's kind of like a. you know the. financial rapist tells about america west right ameriquest started

. its corporate forebear was a small savings alone in orange county california long beach s n l and. a guy named rowan our knowledge was an immigrant from france came to america got his start selling eggs door to door with his brother in the fifty's started selling flowers on the street corner and in l.a. and eventually came a real estate developer and then started as a savings and loan with the idea of just bankrolling his own development projects in and around los angeles but in the late eighty's as the s. and l. business was starting to crash and burn he realized that the real money was in making subprime mortgages and he grew his company from from a pretty small player into the largest subprime lender by two thousand and four two thousand and five the largest in the u.s.

he became a billionaire three times over he was president bush's largest source of financial cash in the two thousand and four election cycle and bush nominated him as the u.s. ambassador to the netherlands writes out a financial right pace big and it takes a the proceeds from financially raping people in america and it is that to fund the political campaigns of particularly the republicans but the democrats are not shy about this with clinton and robert rubin direct beneficiaries of the the troops on wall street and around the country just digging into people's net worth in their bank accounts extracting their net worth and really causing unbelievable damage now i understand that j.p. morgan is under investigation for all kinds of stuff including silver manipulation all over the world eighty percent of their portfolio they have it now listed as impaired of course they a court acquired. a washington mutual which was one of these bucket shops. similar to the missoula shop a country why credit these are just bucket shops you know if you read this three

wall street is replete with these stories of these famous bucket shops of and the term comes from salesmen actually wearing a bucket on their head because they're spac so tightly into these little enclaves on wall street to you know sell snake oil and garbage to people so what's going on with j.p. morgan eighty percent of the portfolio isn't pair i soon that there's a balance sheet risk that's never going to have to be realized by the company are they going to force on the taxpayer as they've done so far i haven't dug that deeply and to where j.p. morgan is now i do know that part of the problem with washing mutual which you know the problem that j.p. morgan has now inherited had to do with we go back to roe are no he split his company in the late ninety's into two pieces one was long beach mortgage and the other was ameriquest he kept ameriquest he spun loan big long beach mortgage off and then eventually washington mutual bought long beach mortgage and a lot of the problem loans that washington mutual ended up making were done

through. the long beach mortgage arm right and of course all the tentacles of the octopus are connected through the central bank and outbreak is on t.v. being openly mocked by folks all over the country for it is that double speak and open mendacity the recent sixty minutes interview where he just openly lied and it was a horribly embarrassing for america rumor has it that wiki leaks will release documents bank of america relate to countrywide mortgage fraud if wiki leaks releases these documents michael lots and what should we look for how will this play out well i mean i promise we don't know what the documents are going to be if they are as you say related to countrywide there's a lot of interesting stuff there. countrywide. because you know angelo mozilo and in this sort of. in his early years was distrustful of subprime he didn't he didn't want to get his company into it too deeply but once he saw where

the market was going and folks like rowan own ameriquest were making so much money countrywide kind of came in with a vengeance and as the biggest as the biggest lender of any any stripe it was really able to to do a lot of damage and there's lots of allegations about countrywide loan salesman doing bain so it's salesmanship kind of posing i think the california attorney general lawsuit allege that. countrywide loan officers basically salesman were posing as as financial advisors they were trying to portray themselves as as you know helping people plan their finances as they were getting these mortgages yeah i just have a call he wrote a great piece on having been post this past week fraud as a business model and my work on wall street in my observation of ossie for twenty five years is that fraud is the model and there's nothing that's not every single

piece of the entire industry is completely saturated in fraud and them is still of course was caught committing fraud and yet it discords part of its profits so what is that how this generation you know steal as much as you can if you get caught up a few pennies and you're ok you know it's interesting with mizuho basically by my calculation he paid it up paying about sixteen cents on the dollar for every dollar that the government a claim that there were ill gotten gains when once he settled out of his own pocket well that's a that's a heck of a deterrent i think the they call that moral hazard. on the street but i don't think anyone has any compunction about committing this these types of crimes anymore michael hudson you talked about the mortgage surprises what about fannie mae and freddie mac. what do you see there are still big problems and looks like the taxpayers are going to be on the hook for. lots and lots of money. to to keep fannie and freddie. on life support. you know my reporting showed that fannie and freddie probably were

you know took less risk and were less reckless than some of the wall street bankrolled private lenders but still they took a lot of chances and especially the end as they were trying to catch up market share trying to regain some of their market clout you know they bankrolled a lot of risky loans and now the taxpayers are on the hook for and there are a lot of homeowners who are suffering because they ended up in bad deals bank of america they are now looking to be on the hook for these put backs of these mortgages people are talking about a multi-billion dollar problem there is that what you're seeing folks on wall street and in the mortgage industry you know set up this this machine where there wasn't a lot of accountability. a small lender or mortgage broker makes a loan and and then pushes it up the line to another another player who pushes up

another player and on and on and on and so there are all these layers and if someone said oh you know i was defrauded i was taken advantage of. the people at the top could say oh no that was an that was some little that was a little lender a little mortgage broker but of course by and by that time the the small lender or the mortgage broker had gone out of business or had moved to another state or was operating under and. under a different name which you know left the. homeowner in the cold in terms of have anybody to sue now that's come back to bite the big players like bank of america because when they try to push these loans back and hold accountable there's no one for them to push the loans back on and they get stuck they get stuck with what the responsibility what kind of size liability we're talking about some of estimated it's going to it's a size six trillion which would be bigger than the fannie mae. problem you know max i'm bad at predicting when you start getting that many zeros at the end of

a number it sort of makes my head spin so i'm not really sure how big it's going to be it's definitely a problem and it's something that i think bank of america officials the media and you know top people in government really need to to dig into and understandings michael isn't it seems that every time these banks are caught breaking the law they simply change the law and in the case of these fraudulent four mortgage papers in particular the law about interstate notary requirements member obama simply put a pocket veto in is in his pocket to avoid having to confront that issue but presumably when it's convenient they will modify the law so that the banks don't have to again they don't have to comply with the law because they're constantly modifying the law so out how to how does that work in other words the bankers can just break the law whenever they want and when they get caught they change the law

is that pretty much what happens does often seem to be the case and you know even with the new laws passed such as the the dodd frank financial reform bill you know that doesn't mean that that. you know it's going to be be inforced. alan greenspan there were laws on the books that allowed and that would have allowed alan greenspan and the fed to intervene in the mortgage market and go a long way toward reining in many of the bad practices but they didn't force a law so now we're in a battle we passed this financial reform legislation earlier this year now we're going to have just as big a battle just as better just just as much lobbying just as much back room arm twisting on the implementation of the law on the rule making and on the enforcement ok so they don't they don't comply with the law. such time as they get caught blatantly breaking the law then they try to change the law. so you just have no respect for the rule of law it's not going to have a country when you're the biggest component of the economy which is the banking and

banking services component is just just flagrantly violates the law as of as as a business model of what kind of country is that you know we have a problem with accountability right now we don't have a system where our political players big financial players are being held accountable for their actions ok mike lots of thanks again for being on the kaiser report great thanks max all righty and that's going to do it for this edition of the khans the report with me max kaiser and stacy herbert i want to thank my guest michael hudson if you want to send me an e-mail please do so at kaiser report at r t t v are you until next time this is my guys are saying go.

in india oh geez availability in the movie the joint the hotel rooms a movie that's a great way to go to the grand imperial truly told us to. you can a letter to. say don't need to go and. read this in the kernel was her job as

a retreat. no christmas break for the u.s. senate until the nuclear cuts treaty is ratified that's as democrats wrestle to harness republican support and one of president obama's most crucial foreign policy deals also this hour. the biggest naval forward deal between russia and a nato member state is on the horizon as moscow looks set to buy a helicopter carrier from frogs. and the wiki leaks founder is in court to see if hell make bail out head of finding out if he's to be sent to sweden on sex charges but his supporters insist it's a cover for the u.s. to get their hands on the whistleblower. for another of the royal. approach to record poised to bring you the latest figures in the business in twenty minutes.

hello and welcome live from our headquarters in central moscow this is our team with me and he said now it's four pm here in the russian capital eight am in washington where the white house is confident the u.s. senate won't our german for christmas until the nuclear cuts treaty with russia is ratified democrats are confident they will get nine republican votes to win the necessary majority but as art is going to stick can reports with the vote expected on wednesday it seems some are still trying to stall the deal. in terms of substance there is nothing that can stop the new start from being routed fight key questions concerns whatever senators had to ring the course of the past eight months of hearings were all addressed i do think that we have as i mentioned done our homework with regard to the new start treaty and that.