we'll. bring you the latest in science and technology from. the future coverage. around the world from central moscow this is our chief thanks for being with us for watching these are our top stories libya's former rebels now fishley represent the country as they get a u.n. see despite new civilian deaths and continuing battle for the last gadhafi stronghold. meantime as palestine prepares its prayed for you in recognition israeli west bank settlers who want to leave say their government just won't let them. a war of nerves on serbia's border with breakaway kosovo with a standoff at disputed checkpoints following this siege of by close of

a police despite warnings of pending violence. reports coming up next with maps and stacey looking tonight at what the u.s. government knew about mortgage fraud before the entire house of cards fell down it's coming up. great. you need. to. go. max kaiser this is the kaiser report stacey herbert so well that of those are slower tell me everything max the french banks are on fire i would say

for noted artist burning banks you need to get here to take the stuff that's right you know moody's has downgraded stop 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 bullies 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 laming banks and every 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 work or 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

worked for big government and he's talking about these fantasies of the left wing of burning banks. they've gotten 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 and destroying 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 come pointing out that the police visited alex schieffer to discuss this art that was so disturbing and i reminded me of a story that pablo picasso's told about his famous artwork 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's in paris and he's visited by the nazi occupying officers and

pointing to a poster of guernica the nazi officer said did you do that pablo picasso responded no you did it i don't call blow back is the american banking fascist or he's a collaborator with american banking fascists and his writings are russian but again this this point that public picasso the artist made to the fascist nazis it's not me that is. did what is depicted in my artwork it's you alex shaffer is saying the bankers did this i didn't do it i am just depicting what i see this is what happens when you have a country that takes what's in the bible literally here they see a 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 net max the bank referenced in the painting about by alex shaffer 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 out of shape or would now be referred to as a patriot had he accepted government bailouts right if the cops gave him twenty five billion dollars on the spot that would make him a patriot in fact he's calling attention to fascism in america something glenn beck never does is to the senate and say america and the biggest proof that this guy glenn beck site the 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 as 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 at or below the poverty line nobody in their can afford art anymore it's a luxury for people with functioning democratic states 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 it's all darkie it's the opposite of capitalism it doesn't exist the only person that could afford to buy this artwork at twenty five thousand dollars from big bucks is a guy who is an economy that still creates a lot. germany still creates wealth through manufacturing and export ing but you know this new artwork 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 so max this made me think of another capitalist society which is china and that you had workers at

these great apple stores all across china who actually thought they were working at an apple store but there were fake outlet 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 or first creating creating a regional works of our banks counterfeit money or nanki geitner anyone in the banking business is just a is just an out of control rule counterfeiting naked 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 errands and he's saying that default chapter eleven massive

default across the entire u.s. is the way to fix the economy he said because it isn't too much government or too little government that has caused the 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 debt 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 reorganization of grant and 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 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 it 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 bad decisions the banks are supposed to be heroes of capitalism they're patriotic patriots who receive 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 or you mentioned david gaiman 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 could name 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 zombie there is down be 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 right zombies being kept alive japan of course zombie country

for twenty years the banks should have been allowed to fail twenty years ago the pumped up with cheap money in their banks american banks promise of your mortgage mission a failed long ago because they took terrible decisions and they are should bankrupt or insolvent or totally insolvent but they were kept alive with the plasma of the become zombies walking the face of the earth the french bank society general b.n.p. the walking dead and then here's 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 two thousand and 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 at the bottom because

of this. 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 of platinum and gold and silver crowd or the people who can't even afford walmart pay for put these things on layaway oh slavery you know america has slavery then they are not slavery but in a place where the jim crow laws colors only whites only then the banks convolve and they have financial jim crow laws if you're black and living in the ghetto you are charged forty fifty sixty percent to borrow money if you're white and you work on wall street you're charging negative five percent of our money that's a financial jim crow law that goes down the color lines now the big corporations who 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 there's a product for those living on the plantation and here's a product for the man living in the big house the article goes on to point out that while corporations are now aiming 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 while wages and productivity rose in tandon during the fifty's sixty's and seventy's they became decoupled in about nineteen eighty as productivity continue to climb all wages slumped and then recovered only modestly what happened in one thousand medium acts off the 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 the story proof that it's not a capitalist society in america it points 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 and all the wealth so they're saying that other in. asians that have had to meet coefficients similar to the united

states include philippines ecuador and rwanda remember america they hate you for your freedoms all right ses never thank so much for being on the gaza report thank you don't go away much more coming your way so stay right there. he's telling. dynamic.

welcome back to the kaiser report on nice keyser time now to go to atlanta georgia and speak with erin and implode dot com otherwise known as mortgage lender implode oh meter where you can track the number of mortgage lenders that adam floated so far a total of three hundred and eighty seven implosions cents two thousand and six aaron walker the kaiser report max three to be here ok aaron let's talk mortgage fraud the only major conviction of the mortgage crisis has been that taylor being whitacre c.e.o. farkas tell us about the company and their collapse and also about your took off to the f. h. f. a a year before the company collapsed taylor being was committing a variety of fraud started by the farkas and the genesis of that was to cover up. a bank overdraft that he created with a. partner bank loan or bank and it's

a very sordid affair but basically he saw as a ripe opportunity would be to. multiply sell the same mortgages or their 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 that hadn't been sold which is course you legal so these things went on for years and years and years and a year before the two thousand and nine collapse of colonial bank a whistleblower went to us and we researched there to see if they were the tip is essentially about the freddie macin aspect of the fraud and we researched it and checked 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 tippett it had been referred to in a inspector general report for

a french f.a.a. that said hey you know the complaint procedure is if it's if they are totally messed up because this is an example of you know a glaring whistleblower report it was was essentially ignored ira crowley recently interviewed former u.s. assistant secretary of housing catherine austin fits see said that when she tried to clean up the mortgage lending fraud she essentially became an enemy of the state and driven out of town have things changed that 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 his work in the more i delved into that recently the more the things with f.a. until or being an f.h.a. started to make sense and 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.

. ha mortgage down payment requirement she had a minimal downpayment requirement of three percent in 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 you we one of our bloggers wrote about one of the stands where they laundered the money through an indian tribe over 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 this 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. that they sued us to try to silence us and my subsequent leaving a filed some freedom of information act requests and things like that but 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 a government backed mortgage an asset backed programs and it's so this is you know right right on with what catherine fitts had been had been finding and was trying to ring the bell on you know what i don't understand when 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's a lot of foot dragging and no convictions and government all say well we're understaffed we just don't have the money for it and yet when all this research is being provided pro bono by independent analysts like yourself a fact about cutting the cost out of the government from having to do this like work they conclusion what has to have. that the government is complicit in fraud

directly. no actually it goes a lot deeper it's not just an implied thing but we know 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 do the right thing which is to refer it to the justice department for prosecution that's not necessarily an expensive thing especially when all the research is done like you said. 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 an amazing deterrent 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 who are looking to build a stable of people who will contribute to their campaigns in the future to this aspect if they're trying to pad their own numbers. not so much in the case of

f.h.a. that they're looking to increase bonuses in their own payouts and things like that but in the case of fannie and freddie that was that was certainly the case where they not only wanted to hit minority homeownership numbers or don't quote 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 with his golden parachute so it's absolutely a swamp and there is there's direct knowledge and complicity guidance that is totally an ambiguous i am proud of what our slops 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 the f.h.a. launderers against us and the motivation there is to basically silence the critic

here whistle. someone who's ringing the bell on friday that some sort of rackets here politically blessed 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 this actually frivolous libel or defamation suit and that plaintiff they know that they would not prevail in trial because the facts are against them or at minimum the person or a reporter blogger had a right to say what they said in a pint as they did you know we have a nominally at least the general rights of free speech so you know that's the set up that they don't expect to win a trial with they expect to do is either intimidate the the person speaking into the silent words to run them down with legal bills and you know we've we've always

chosen to protect our writers and bloggers and our sources and that is essentially cost us what would have been all the profit of our little a fledgling media company and you know today it's employed is kind of reverted to 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. countrywide. along with marilyn's 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 received today currently kicking back with with some thirty drinks on an island somewhere i mean you know he got out

. with the wrist slap in the civil suit by where 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 a 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 change the modus operandi so that that certainly applied to countrywide in spades zillow is 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 the potential takeover of course you know no you know major bank in the country isn't 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 slough this this chunk 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 the short end of the stick in your group in your work it's really you're fighting on behalf of a 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. all the fraud abuse goes by and checked on prosecuted if not lie lies by the administration it is unity to mortgage fraud with wholesale legislation to completely exonerate hard core financial securities fraud in america now and not about the housing market going forward because after all this is what works. about that's what's at stake is this for

a cause or not america to continue the disenfranchised and impoverished america going forward it doesn't look good since 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 the situation for most some owners who were injured entrapped into it. if not to actually put them in a foreclosure situation when they've been told they would get a loan modification recently things have gotten a little better with these programs because some of the bad press use these outcomes we're getting but the scope of the problem is so big and says 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 as 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 banks capital for for you know a lot of the big five banks as well as being on right so the banks are holding these mortgages on their books for a hundred pounds of the dollar and they claim to have a book value 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 in that there's 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 getting 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 and for with me max kaiser and stacy herbert our thank my guest alan crown if you want to send me an e-mail please do so at kaiser recorded arts that are you in so much time with the night at my off the bus. on.