it states although it is accepted almost all of the previous political one has taken exception to that. i'll come back here's a recap of the main stories we're covering today on our team libya's national transitional council is given to see about the after the security council adopts a new resolution which also eases sanctions imposed during the office regime but who lives in new authorities are still fighting for control over some cities including gadhafi hometown of syria. meanwhile there's another bit for us recognition with a palestinian president and prowling for launch a bid for statehood despite a u.s. promise to veto it that's the southern israeli west bank settlers say they're ready

to leave the area of their government will not. put. out a growing tension a service border with breakaway kossovo with a standoff that disputed checkpoints balwyn their seizure by cost of the police held by nato and e.u. forces local service of law the roads leading to crossings a protest against what they called a unilateral action of course of those albanians. and the cars the report is next to max and stacey looking at both the u.s. government knew about mortgage fraud before the entire house of cards fell down that's up next. maximizer this is the guy's report stacey herbert so my little those are slower tell me everything max the french banks are on fire alex say for

noted artist earning banks you need to get here to pink stuff that's right you know moody's has downgraded stock jan and credit agricole and the banks are on fire here but that brings me to this headline here max and this is from glenn beck's web site the police dot com and it's an author who goes by the name of buck sexton who says he's been in the u.s. intelligence community for six years and he writes anticapitalist artist makes big bucks off the laming banks and he first the kaiser report and its guest alex schaefer who for one los angeles based painter scenes of anticapitalist anarchy have really paid off yes well these so-called intelligence agents worker seems to have got it all wrong. well of course these are the same sort of people who complain about big government and he himself work for big government and he's talking about these fantasies of the left wing of

burning banks. neglecting to the fact that alex shaffer mentioned in his own interview that it's not about people burning down the banks but the banks burning the infrastructure of our banking system of burning our money into strong our money and also the other thing he points out he alludes to the fact that because the police visited alex shaffer this is proof that he's anti-capitalist and kept on pointing out that the police visited alex shaffer to discuss this art that was so disturbing and it reminded me of a story that pablo picasso told about his famous our work guernica guernica being of course the town in boss country spain which was carpet bombed by the italians and germans at the behest of the fascists in spain a few years later he was in paris and he was visited by the nazi occupying officers and pointing to a poster of guernica the nazi officer said did you do that publicly caso responded

no you did it. is the american banking. or there's a collaborator with american tourists and his ratings are crashing but again this this point that pablo picasso the artist made to the fascist nazis it's not me that is. what is what is depicted in my artwork it's you alex shaper is saying the bankers did this i didn't do it i am just depicting what i see but this is what happens when you have a country that takes was in the bible literally here's a sea of painting which is art which is metaphorical which is representative which is a symbolic gesture and they can't help but take it literally because they simply are low information population that doesn't have the mental faculties to think above that kind of general i.q. level of a gnat. max the bank reference in the painting about bio schaefer is j.p.

morgan chase which as we pointed out here on the kaiser report jamie diamond their c.e.o. said he only took twenty five billion dollars from the government as his patriotic duty so one wonders if alex shaffer would now be referred to as a patriot how do you accepted government bailouts right if the cops in twenty five billion dollars on the spot that would make him a patriot the fact he's calling attention to fascism in america something glenn beck never does it in the center and the american and the biggest proof that this guy glenn beck site blaze dot com gets it all wrong is he mentions that the buyer of alec shaffer's art for big bucks at twenty five thousand two hundred dollars is a german art collector that's if anybody in america could afford a nice piece of art when you get sixty million of them in america on food stamps more than one hundred twenty million that are below the poverty line nobody in

america for art anymore it's a luxury for people with functioning democratic state like people in germany but the reason why they can't afford it is because they do not have capitalism the thing that this guy buck sexton claims is capitalism and all of them barking is the opposite of capitalism it doesn't exist the only person that could afford to buy this artwork at twenty five thousand dollars for big bucks is a guy who is an economy that still creates a lot. of germany still creates wealth through manufacturing in export ing but you know there's some new artwork that alex shaffer is working on and so he was outside another chase bank out in pasadena people were stopping him all over because they recognized him from our television show he said that a banker stopped and said one guy who said he works in finance and is a self described capitalist pig gave me the biggest kudos of all them access me think of another capitalist society which is china and that you had workers at these apple stores all across china who actually thought they were working at an

apple store but there were fake apple stores and this guy who says he works in finance and is therefore a capitalist pig he really thinks he's working at a capitalist organization well exactly he believes his job working in the bank is commensurate with something called capitalism he doesn't really want to admit that he's in the counterfeiting business alex your first corroding of creating a regional works of art banks counterfeit money or nike or anyone in the banking business is just a just an out of control rogue counterfeiting make and short selling weasel well alex shaffer is responding in his art to the burnt out economy around him so this takes me to another headline by another murdoch organization dow jones massive defaults is the best way to fix the economy this is a commentary from parents and he's saying that the fault chapter eleven massive

default across the entire us is the way to fix the economy he said because it isn't too much government or too little government that has caused their problem it isn't red tape high taxes low taxes the growing divide between the rich and poor too much government debt too little government that corporations poor people greed socialism china greece or the legalization of gay marriage in short it's debt too much debt there's thirteen point three trillion in consumer debt and you've got to get rid of it well that's true. they simply created more debt than they will ever be able to pay and there will be some kind of structural default the reorganization of bretton woods type agreement where the world's currencies are recalibrated and the us dollar will be devalued by at least fifty percent everything in america will double in price and the tragedy like the people working in the nine eleven towers who were told that they were on the front line of a financial war the tragedy is that americans are not being told that they're about to have their clocks cleaned by the global bankers and he points out that many

americans probably driven on by his master rupert murdoch say we can't ever allow people to default that is not an option that doesn't exist it's that you that would be letting them get away with it but he said at the moment by not letting these people defaults we're letting the banks get away with a bad decisions the banks are supposed to be heroes of capitalism they're patriotic patriots who received twenty five billion from the government in order to be patriots and he's saying that's part of capitalism these guys there has to be risk because without risk then there can't be reward so you mentioned jamie diamond earlier and in the context of who's breaking the law jamie dimon the c.e.o. of j.p. morgan came out this weekend saying that we should just walk away from the basil three agreements which is the global requirement for minimum capital in a bank and i know and anyone in the banking industry knows and i can say definitively right here without fear of any retribution that jamie diamond and j.p. morgan have broken the law consistently every quarter for the past ten years by

failing to meet those requirements that's against the law he breaks the contract every single minute of every single day he breathes air jamie diamond breaks many laws that's just one and we can mean twenty laws the fact that he's not in jail is the riddle of the. you know max i think it shows you the power of the zone being there is the banks everywhere i mean. our world and i want to do a little quick headline here that shows you that the high cost of maintaining zombies cost of dying rises above seven thousand pounds a survey in the u.k. shows that funeral costs have risen by sixty one percent over the past seven years this is a direct result of all the zombie banks being supported by the fed all the counterfeiting that you talked about zombies being kept alive japan of course zombie country for twenty years the banks should have been allowed to fail twenty years ago the been

pumped up with cheap money in their banks american banks goldman sachs j.p. morgan they should have failed long ago because they took terrible decisions and they are should bankrupt their insolvent are technically insolvent but they were kept alive with. plasma and to become a zombies walking the face of the earth the french banks are so general b.n.p. the walking dead and then here is another sign of just how wrong glenn beck's website is about whether or not america or those against the bankers are the anti capitalist corporations tailoring product lines to reflect growing income inequality so as of twenty ten the richest twenty percent of the us population control eighty four percent of the wealth and the four hundred richest americans have a higher net worth than the full fifty percent of households after bottom because of this. but there is no middle to which these corporations can even sell things

they just don't exist so they're only tailoring things to you know the diamond and platinum and gold and silver crowd or the people who can even afford walmart they have to put these things on layaway. you know america has slavery then they almost every but in this place where the jim crow laws colors only whites only then the banks convolved and they have financial jim crow laws if you're black and living in the ghetto you are charged forty fifty sixty percent of our money if you're white and you work on wall street you're charging negative five percent that's a financial jim crow law it goes down color lines now the big corporations are realize america is becoming a new plantation of slaves they're saying forget it we don't even make a pretense that there's a middle class here is a product for those living on the plantation and here's the product for the man living in the big house the article goes on to point out that while corporations are now even for high and low end only the trend of this widening income gap in the absence of the middle class goes back to they say the seventy's because one wages

and productivity rose in tandon during the fifty's sixty's and seventy's they became decoupled in about nineteen eighty as productivity continued to climb all way just long and then recovered only modestly what happened in one thousand medium hats off to gold standard and also deregulation of the banking sector right which was made possible by no tethering just something that you could actually have an accounting of which is gold so you just had the beginning of this pyramid of fraud which has resulted now in slavery once again in america and finally here on this story proof that it's not a capitalist society in america and point to the gini coefficient index in america as being point four six eight and zero being perfect equality everybody has equal wealth one hundred would have been one person owned all the wealth so they're saying that other new. asians that have had gini coefficient similar to the united states include the philippines ecuador and rwanda remember america they hate you

for your freedoms all right ses never thank so much for being on the cause report thank you max don't go away much more coming your way so stay right there. pretty free. free. free free. free. free. free. videos for your media project a free media. bug

to magnetize report imax keyser time now to go to atlanta georgia and speak with erin crown and implode dot com otherwise known as mortgage lender implode over meter where you can track the number of mortgage lenders that adam plotted so far a total of three hundred and eighty seven plug ins sense two thousand and six air and water the kaiser report max great to be here ok aaron last thought mortgage fraud the only major convention on the mortgage crisis has been that taylor being whitacre c.e.o. . marcus tell us about the company and their collapse and also about your tipoff to the f a s f a a year before the company collapsed taylor being was committing a variety of fraud started by lee farkas and in the genesis of that was to cover up . a bank overdraft that they he created with their partner bank loan bank

and it's a very sordid affair but basically he saw as a right opportunity would be to. malta police the same mortgages or that are mortgages with the same assets backing them or sensually no assets backing some of them and into pre pre-funded via freddie mac. for mortgages they hadn't been sold yet which is of course you know beagle so a variety of these things went on for years and years years and. and a year before the two thousand and nine collapse of colonial bank a whistleblower went to us and we research they were it was essentially about the freddie mac. and i suspect of the fraud and we researched it and checked it out and so we reported it. essentially f.h. effaced sat on it and did nothing and we recently confirmed that you know it was our to that it had been referred to in a inspector general report for f.h. f.a.a.

that said hey you know the complaint procedure is that if if they are totally messed up because this is an example of you know a glaring whistleblower report that was was essentially ignored ira crowley recently interviewed the former u.s. assistant secretary to housing catherine austin fitts see said that when she tried to clean up the mortgage lending fraud she essentially became an enemy of the state and was driven out of town have things changed so much i could say no because there's been no real there's been no sunshine effort and no effort for reform i'm very familiar with katherine fitz's work and the more i delved into that recently the more the things with. taylor being an f.h.a. started to make sense let me give you an example we're also engaged in a frivolous lawsuit battle with a company that specializes in getting people out of their f.h.a.

mortgage downpayment requirement if they had a minimal downpayment requirement of three percent and there was a whole cottage industry of companies that were set up to essentially launder money from the builders and the other sellers to make it look like a charitable donation towards that three percent down payment and we one of our bloggers wrote about one of these scams where they laundered the money through an indian tribe of all things and they sued us and the funny thing is they sued us for libel after. congress had passed along two thousand and eight that only ambiguously outlawed as you know there's no question about it they're shutting down their own business but there are so self-conscious about somebody noticing this scam which is running through f.h.a. . they sued us to try to silence us and my subsequent digging and filed some freedom of information act requests and things like that it's about one hundred billion dollar racket and probably unappreciated in the extent that it contributed

to both inflating and popping the housing bubble so that's the kind of thing that's at stake here that's the kind of. you know size of these scams if you know at least minimally questionable activities running through government backed mortgage an asset backed programs you know so this is you know right right on with what catherine fitts had been finding and was trying to ring the bell on you know what i don't understand people ask the government how come you're not following up on the these frauds that are eventually identified by a regulatory agency. but there is a lot of foot dragging and no convictions the government will say well we're understaffed or of oracular some of the money for it and yet when all this research is being provided pro bono by independent analysts like yourself effectively cutting the cost out of the government from having to do this like work the

conclusion what has to have is that the government is complicit in fraud directly which you disagree about you know actually it goes a lot deeper it's not just an implied thing but we knew there were there were cases where the fraud was brought to them and they knew about it at the highest levels and they essentially chose not to to do the right thing which is to refer it to the justice department for prosecution and that's not necessarily an expensive thing especially when all the research is done like you said put a few targeted lawsuits that attack this kind of fundamental fraud. that's both inflating the market and wasting taxpayer resources are not expensive to do and would have been amazing to turn effect but they did not do it and the more i've researched this the more it seems clear that the reason they did not do it one there was for the officials involved such as cuomo we're looking to build a stable of people who contribute to their campaigns in the future to this aspect

if they're trying to pad their own numbers and not so much in the case of f.h.a. that they're looking to increase bonuses in their own payouts and it's like that but in the case of fannie and freddie that was that was certainly the case really not only wanted to hit minority homeownership numbers quote unquote homeownership but to also increase their own personal payouts and of course we know that was in the midst of a giant enron esque accounting scandal that was essentially nobody was punished you know frank raines left his golden parachute so it's absolutely a swamp and there's there's direct knowledge and complicity that is that is totally an ambiguous crowd what are sloppy. and what are the implications for a blogger that stands for strategic litigation against public participation and an example of that is the suit that i mentioned earlier by having the f.h.a. launderers against us and the motivation there is to basically silence the critic

here whistleblower someone who is ringing a bell on fraud and some sort of racket here politically patron does not want to be public you know a lot of times the information is out there for these sort of things but when a high profile blogger other media source especially independent media starts talking about it writing about it it raises the level of scrutiny so oftentimes you'll get the essentially frivolous libel or defamation suit and the plaintiff they know that they would not prevail and try. because the facts are against them or at minimum the person or a reporter blogger had a right to to say what they said in a pint as they did you know we have it nominally at least the general rights of free speech so you know that's the sort of people they don't expect to win a trial with they expect to do is either intimidate the person speaking into you being silent or to run them down with legal bills and you know we've we've always

chosen to protect our writers and lawyers in our sources and that is essentially cost us what would have been all the profit of our little fledgling media company and you know today and all implode is kind of reverted to a one man operation because of these costs but i do feel that it's a battle worth fighting ok so let's talk a little bit about angelo mozilo of course former c.e.o. of countrywide. along with merrill lynch acquired by bank of america bank of america once again rumored to be bankrupt needed emergency cash infusion from warren buffett still being talked about sort of being bankrupt but the seed of all this angelo mozilo poster child for mortgage fraud we're seeing today i spare really kicking back with with some. drinks on an island somewhere i mean you know

he got out with a wrist slap in the civil suit by the shareholders and there was there was nothing criminal essentially. you know this is this is a larger problem x. with with the way the government operates in the way the financial regulatory regime operates is there they're generally happy to go in. regardless of how steep the wrongdoing how clear it is go in and settle for a tiny fine which which sadly becomes just the cost of doing business for these companies doesn't really changed. modus operandi so that certainly applied to countrywide in spades well mozilla was there and now you know we see that bank of america has inherited that mess something we warned against when it was going on in two thousand and eight that a potential takeover of course you know the no you know a major bank in the country is going to pay attention so they went and took over this toxic waste dump they thought they were getting it cheap and they you know the

joke is on them mozilla's loftis this junk off to the bank of america but even bank of america is not large enough to. absorb all these toxic assets now let's talk a little bit about who's getting short end of the stick there your group and your work it's really you're fighting on behalf of my constituency which are people in america that are getting screwed in the housing market and. right now twenty five percent of the mortgage holders are still underwater so and all this fraud abuse goes by unchecked on prosecuted if not lionized by the administration it is immunity to mortgage fraud with wholesale legislation to completely exonerate hard core financial securities fraud in america now what about the housing market going forward because after all this is what we're talking

about this is what's at stake is this foreclosure nightmare going to continue to disenfranchise and impoverished america going forward it doesn't look good centrally the policies the government has implemented in reaction to the crisis has been to drag things out as long as possible and a number of the so-called foreclosure rescue efforts were completely ineffective in fact they were worse than ineffective until recently it was likely to just. you know delay a situation from a. some owners who were trapped into it. if not to actually put them in a foreclosure situation when they have been told they would get a loan modification recently things have gotten a little better with these programs because in some of the bad press these these outcomes we're getting but the scope of the problem is so big this is this is the core of it the banks inflated the property values so much in the bubble that they

created this gigantic overhang in in the mortgage securities and they centrally can't work through the foreclosures quickly enough to bring a quick resolution to this crisis and at the same time they can't give the scale of principal forgiveness that would be needed because it would wipe out most of the bank's capital for for you know a lot of the big five banks as well as beyond right so the banks are holding these mortgages on their books one hundred thousand of a dollar and they claim to have a book commensurate with that value they can't market down or the banks go bankrupt meanwhile the other side the home owner they're getting screwed and that there is no path for them to resolve this crisis they're ending up on the street in the gutter starving to death to make make sure that bankers don't look bad and get a christmas bonus well that's america for you ok aaron crown that's all the time we have for this week thanks so much for being on the kaiser report thanks max and

that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i thank my guests aaron crown if you want to send me an email please do so at kaiser recorded arts in t.v. that are you and so next time it's a night out as well you are.