you know so tell periodicals tomoko chose your buddies killed their ability to know and you're much toast. in serbia loosies available in most clubs and hyatt regency they are going to. put off your lists continue to put up strong resistance and claim nato have killed hundreds of civilians in recent bombing raids this comes as long as a former rebels are granted a seat of the un word talks move to post-war reconstruction. meanwhile there's another bid for recognition with palestine's president waiting for a u.n. vote on statehood despite a us promise to veto it that says some israeli west bank settlers say they're ready to leave the area but the government. and i didn't kosovo a standoff continues between police and government services angry the pristina has taken control of two border posts blocking should be enforced. there we can prise a report is next with max and stacey looking at what the u.s. government knew about mortgage fraud before the entire house of cards fell down.

my skies are this is the kaiser report stacey herbert so my little those are slower it's all everything rex the french banks are on fire alex shaffer noted artist burning banks you need to get here to paint this 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 awful aiming banks and every first the kaiser report and its guest alex

schaefer who for one los angeles based painter scenes of antic capital's anarchy have really paid off yes well the 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 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 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 kept on pointing out that the police visited alex schieffer to discuss this art that was so

disturbing and reminded me of a story that pablo picasso's told about his famous our work guernica guernica being of course the town boss country spain which was carpet bombed by the italians and germans at the behest of the fascists and spaying 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 part while that is american banking fascist or does a collaborator with american banking fascists and his writings are crashing but again this this points that pablo picasso the artist made to the fascist nazis it's not me that is. we 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 but

this is what happens when you have a country that thinks within 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 of that kind of general i q level of a gnat's max the bank referenced in the painting about biology first j.p. morgan chase which as we pointed out here on the kaiser report jamie dimon their c.e.o. said he only took twenty five billion dollars from the government as his taste riata duty so one wonders if alex shaffer will now be referred to as a patriot how do you accepted government bailouts right if the cops hear him 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 members as is the center anti american 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 but again sixty million on him in america on food stamps more than one hundred twenty million that are below the poverty line the only american for art anymore is 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 it's oligarchies the opposite of capitalism it does not 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 well. germany still creates wealth through manufacturing in export ing but you know there's

a new art work 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 the 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 some excess me think of another capitalist society which is china and that you had workers at these fake 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 of working in the bank is commensurate with something called capitalism he doesn't really want to admit that he's in the counterfeiting business. of creating a regional works of art banks counterfeit money. 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 default is the best way to fix the economy this is a commentary from errands and he's saying that the fault chapter eleven massive default across the entire us is the way to fix the economy he said crowds it isn't too much government or too little government that has caused our 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 the reorganization of bretton

woods type agreement where the world's currencies are recalibrated and the u.s. 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 there that would be letting them get away with it but he said at the moment by not letting these people default we're letting the banks get away with bad decisions the banks are supposed to be heroes of capitalism the 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 well you mentioned they mean diamond earlier in the context of who's breaking the law jamie diamond c.e.o. 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 dimon 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 zombie 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 and this is a direct result of all these don't be banks being supported by the bed all the counterfeiting that you talked about right zombies are being kept alive japan of course zombie country for twenty years the banks should have been allowed to fail twenty years ago they've been pumped up with cheap money in their banks american banks goldman sachs to do more going to have failed long ago because they took terrible decisions and they are bankrupt they're insolvent they're technically insolvent but they kept a lot of with. plasma had to become zombies walking the face of the earth the french banks aside general b.m.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 at the end

by 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. 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't even afford walmart they have to put these things on layaway. you know america has slavery then they outlaw slavery but in a place where the jim crow laws colors only whites only then the banks not involved 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 to borrow money that's

a financial jim crow law it goes down color lines and 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 there's a product for those living on the plantation and here's the problem 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 a middle class goes back to they say the seventy's because the wages and productivity rose in tandon during the fifty's sixty's and seventy's they became decoupled in about nineteen eighty as productivity to continue to climb all way just slumped in their recovered only modestly what happened in one thousand nine hundred x. off the gold standard and also do you regulate 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 have the beginning of this pyramid of fraud

which has resulted now in slavery once again in america and finally here on this story about proof that it's not a capitalist society in america at points of 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 and. patients that have had gini coefficient so over to the united states include philippines ecuador and rwanda remember america they hate you for your freedoms all right stacy our thanks so much for being on the gaza report thank you don't go away much more coming your way so stay right there. well. the latest in science and technology from.

the future avar. from steve. santagati. welcome back to the kaiser report imax keyser time now to go to atlanta georgia and speak with erin crown of am. dot com otherwise known as mortgage lender implode oh meter where you can track the number of mortgage lenders but adam plummeted so far a total of three hundred and eighty seven employed in this sense two thousand and

six aaron walker the kaiser report they've maxed great to be here ok aaron let's talk mortgage fraud the only major convention on the mortgage crisis has been that taylor being c.e.o. farkas tell us about the company and their collapse and also about your tip off duty after a after a year before the company collapsed taylor bean was committing a variety of fraud started by lee farkas and the genesis of that was to cover up. a bank overdraft that he created with a partner bank loan bank and it's a very sordid affair but basically he saw as a ripe opportunity would be to. multiply the same mortgages or mortgages with the same assets backing them or sensually no assets backing some of them and to get pre-funded via freddie mac.

for mortgages they hadn't been sold yet which is the course you can go so a variety of 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 it they were it was essentially about the freddie mac. aspect of the fraud and we researched it and checked it out and so we were reported it. essentially f.h. efface sat on it and did nothing and we recently confirmed that you know it was our tip 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 it if it's if they are totally messed up because this is an example of you know glaring whistleblower report that was was essentially ignored ira crowley recently interviewed the 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 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 were set up to essentially wonder 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 these scams where they wanted 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 this you know there's no question about it they're shutting down their own business but they 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 digging at 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 the least minimally questionable activities running through government backed mortgage an asset backed programs and it's so this is you know right right on with with

katherine fitz 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 these frauds that are eventually identified by a regulatory agency. but there's a lot of foot dragging and no convictions the government will say well we're understaffed because they're not 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 they conclusion what has to have is that the government is complicit in fraud directly which you disagree with that 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 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 but a few targeted lawsuits that attack. this kind of fundamental fraud let'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 and more it seems clear that the reason they did not do it one there was for the officials involved such as cuomo they're looking to build a stable of people who contribute to their campaigns in the future to this aspect that 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 and payouts and things like that but in the case of fannie and freddie that was that was certainly the case for they 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 task 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's there's direct knowledge and complicity that is that is totally an ambiguous ground what are slaps 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 the f.h.a. launderer is against us and the motivation there is to basically silence the critic here whistleblower someone who's ringing a bell on fraud and 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

get the essential a frivolous libel or defamation suit and the plaintiff they knew. no that they would not prevail in trial because the facts are against them or at minimum the person or the reporter blogger had a right to 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 person speaking into to be silent or to to run them down with legal bills and you know we've we've always chosen to protect our writers and bloggers 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 it's all employed 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. countrywide a lot of 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 in terms of being bankrupt but the seed of all this angelo mazola poster child for mortgage fraud we're seeing today. kicking back with with some fruity drinks on an island somewhere i mean you know he got out with the 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 max with with the way the government operates and the way the financial regulatory regime operates is they're they're generally happy to go in. regard lists of how steep the wrongdoing or how clear it is going and settle for

a tiny fine which which sadly becomes just the cost of doing business. these companies doesn't really change the modus operandi so that certainly applied to countrywide in spades well it was always 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 i know you know the 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 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 the short end of the stick here your group and 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 this fraud abuse goes by on shacked on prosecuted if 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 for a cause or not american to continue the disenfranchised 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 situation for most some owners who were injured and trapped into it if not to actually put them in a foreclosure situation when they've been told they would get a loan modification i recently things have gotten a little better with these programs because some of the bad press these these outcomes were 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 sensually can't work through the foreclosures quickly enough so you 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 you know and right so the banks are holding these mortgages on their books one hundred thousand a dollar and they claimed on a book value commensurate with that value they can't market down or the banks go bankrupt meanwhile on the other side the home owner they're getting screwed in 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 they'll 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 stacey herbert i thank my guest our uncrowned if you want to send me an email please do so at kaiser recorded arts in t.v. that are you until next time this is my other thing.