max kaiser this is the kaiser report stacey herbert so my little deserts lower tell me everything max the french banks are on fire alex say for noted artist burning banks you need to get here to paint this stuff that's right you know moody's has downgraded janet 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 blaze 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 the 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 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. 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 alec schaefer 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 i reminded me of a story that pablo picasso told about his famous or 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. oh your back is american banking fascist sympathizer he's a collaborator with american banking fascists and his ratings were crashing but again this this point that public 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 shafer 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 dimon their c.e.o. said he only took twenty five billion dollars from the government as his patriotic duty so one wonders if out shaffer 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 the fact that he's calling attention to fascism in america something glenn beck member does this to the center 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 want to get sixty million on him in america on food stamps more than one hundred twenty million at or below the poverty line nobody in there 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 that because they do not have capitalism the thing that this guy buck sexton claims is capitalism is all the darky 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 well. if germany still creates wealth through manufacturing and export ing but you know there's a 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 some excess made 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 working in the bank. that is commensurate with something called capitalism he doesn't really want to admit that he's in the counterfeiting business alex your first creating a creating a regional works of our banks counterfeit money bernanke the guy or anyone in the banking business is just a is just an out of control rogue counterfeiting make of 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 brett aaron's and he saying that default 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 is that 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 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 default we're letting the banks get away with a bad. decisions the banks are supposed to be heroes of capitalism the 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 well you mentioned damien diamond earlier and in the context of who's breaking the law jamie dimon c.e.o. of j.p.

morgan came out this weekend saying that we should just walk away from the battle 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 is no max i think it shows you the power of the zombie banks everywhere and they rule our world and i want to do a little quick headline here that shows you that the high cost of maintaining the 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 they've 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 they're technically insolvent but they were kept alive with plasma. the become zombies walking the face of the earth the french banks aside 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 either the diamond platinum and gold and silver crowd or the people who can't even afford walmart they have to put these things on layaway won't slavery you know america had slavery then they almost leverage but in this place where the jim crow laws colors only whites only then the banks got involved 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 to borrow money that's a financial jim crow law that 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 there's a product for those living on the plantation and there's a product for the men and women 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 this 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 to continue to climb all way just slumped and then recovered only modestly what happened in one thousand nine hundred x. 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 saw 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 owned all the wealth so they're saying that other in. issues that have had gini coefficient similar to the united states include philippines ecuador and rwanda remember america they hate you for your freedoms all right stacy ever thank so much for being on the kaiser report thank you don't go away much more coming your way so stay right there.

to the latest in something instancing. from. the future of coverage. welcome back to the kaiser report i'm max kaiser time now to go to atlanta georgia and speak with aaron crown and implode dot com otherwise known as mortgage lender implode oh meter where you can track the number of mortgage lenders that

adam plotted so far a total of three hundred and eighty seven implosions cents two thousand and six air and water the kaiser report max straight to be here ok let's talk mortgage fraud the only major conviction of the mortgage crisis has been that. c.e.o. farkas tell us about the company and their collapse and also about your tip off to the f f a 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 the partner bank loan 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 that are mortgages with the same assets backing them or sensually no assets backing some of them and to pre get pre-funded via freddie mac.

for mortgages that hadn't been sold yet which is of course the legal so these things went on for years and years and years and so a year before the two thousand and nine collapse of colonial bank a whistleblower went to us and we researched their tip they were the tip was essentially about the freddie mac. aspect of the fraud and we researched it and checked out and so we reported it. essentially 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 procedures 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 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 was driven out of town have things changed that much i would say no because there's been no real. there's been no sunshine effort and no effort for reform and i'm very familiar with katherine fitz his work and the more i delved into that recently the more 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 a law in 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 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

a government backed mortgage an asset backed programs you know 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 people ask the government how come you're not following up on these fraud. 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 i 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 of a cutting the cost out of the government from having to do this like work that conclusion what has to have is 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 but 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 they're looking to to build a stable of people who contribute to their campaigns in the future to this aspect of their 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 were 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 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's direct knowledge and complicity that is is that. totally an ambiguous crowd 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 f.h.a. launderers 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 racketeer 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 blog or other media source especially independent media starts

talking about it in 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 in trial because the facts are against them or at minimum the 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 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 being 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 and 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 merrill lynch acquired by bank. 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 mozilo poster child for mortgage fraud were received today sparingly 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 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. 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 for these companies and doesn't really change the modus operandi so that it 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 the potential takeover of course you know no 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 off this 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 getting short end of the stick it in 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. and all the fraud abuse goes by on jacked on prosecuted if not lionized by the administration to give 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 that's what's at stake is this for a cause or not american to continue to disenfranchise and impoverished america going forward it doesn't look good centrally the policies the government has implemented in reaction to 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 wonders who were and entrapped 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 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 value 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

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 thousand 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 and that there's no path for them to resolve this crisis they're ending up on the street in the gutter starving to death sin make make sure that bankers don't look bad and get a good 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 our thank my guest aaron crowne if you want to send me an e-mail please do so at kaiser reported r.t. t.v. that are you until next time this is a nice guy to say well you know. gadhafi

loyalists to continue to put up a strong resistance and claim nato has killed hundreds of civilians in recent bombing raids this comes as libya's former rebels are granted a seat at the u.n. to move towards a post-war reconstruction. staying within the un palestine is preparing to become a full member despite washington promising to veto through the security council. some israeli settlers on the west bank say that they are ready to go but claims that they were forced to stay against their will. kosovo a standoff continues between police and local ethnic serbs angry that pristina has taken control of two border posts blocking serbian imports.