syria says that. the regime has failed but the opposition is still seems to be waiting for. the us. continue to buy iranian oil. with.

flying. exposure this is the cause the report attention attention this is your captain speaking stacey herbert. to mean this is your captain freaking. bonzai news exclusive pilot goes bird watching jim cramer there and pressing the print button is ben bernanke you of course and he is in charge of our global economy i thought it was a good analogy to compare this to the jet blue pilot that went a little bit bizarre on the flight to las vegas yes well what happened he burst out

of the cockpit running down the aisle they did look in first peanuts well max passengers subdue screaming jet blue captain as mid-air rant diverts flight a jet blue flight captain had to be tackled by passengers today after you ran up and down a path flight screaming about terrorism and al qaeda and a terrifying mid-air outburst he was shouting say your prayers but it is very similar to how the guy in charge of our global financial monetary system is doing the same thing and yet the passengers are not tackling the captain as it were but they're sitting there calmly as if the plane isn't out of control you know if it is the pilot of the american economy then he's not reading the instruments very well that informed him about what the economy is doing the gauge there this is wages is crashing but he's not doing anything about it they gave that shows inflation and stuff like energy and food is zooming up to danger right and bernanke he's

not doing the batteries blinded henri's with the stewardess or talk about cheap they're just guys got chicks there he's running around there's something about looking for peanuts although you know exactly max because when a pilot in charge of the plane. when they're flying through a storm they're supposed to look just at the gauges and those are telling them the truth because their instinct is telling them something else and yet part of the problem is they keep tweaking the gauges to try to tell them the thing they want to hear are not used to flying the economic plane of america and when the gauges are showing him what he should be doing making some adjustments or flops or doing something correct to actually sustain economic flight he's just basically taking black pain and you know spraying it over that gauges so i don't see that gauge he goes in front of congress to say don't look at. just saying and of course he just is there to promote the agenda of the central banking authority and the club talk

arcee and as a result we got economic armageddon in response to this jet blue situation we have this headline jet blue's c.e.o. barger pilot is a consummate professional so course you talk about the pilots a consummate professional a showman cocked always like a strange thing. but of course he's trying to make sure that the passengers continue to fly jet blue and the same thing you see with the financial sector or the mainstream media they keep on tell you oh it's all fine yes man ben bernanke you running up and down the aisle saying everything is ok you know in fact it is all ok but when the ninety's meds wear off he's going to be like that coney guy calling twenty twelve guy running down the street buck naked slapping the ground like a gorilla so i'm not going to do what this is about his goal that he looks going to get a relatively old you know alpha gorilla sitting there you know farting. but

that's all he does he goes in front of congress and he farts anyway and you know they say oh you're farting sounds like we're all in great shape thank you professor let's look at some of the headlines that betrayed the everything is ok bernanke is a consummate professional he's a hero sort of stuff shock slowdown in u.k. growth as g.d.p. contracts point three percent so britain's economy contract had more than expected in the last three months of two thousand and eleven shrinking point three percent as a country's dominant services sector weakens and meanwhile household incomes fell one point two percent and the savings ratio eased to seven point seven percent right they've got austerity in the u.k. and as a result the economy's crashing and the g.d.p. is crashing and the people that live there are suffering financial repression they're suffering horrible economic calamity and george osborne in mervyn king zimmerman king is ben bernanke is equivalent to the bank of england and he likes to

sit back he doesn't have a clutchless problem he's got a gastrointestinal problem that's his contribution to monetary policy around the world and he blabs a few things to some so i can but he's basically in the financial repression game he's interest rates artificially low so that grannies you know the new george osborne budget it takes more money five billion pounds more from retirees and pensioners and puts it into the pockets of kleptocrats in the city that's on top of the forty five billion pounds that almost boring cameron engineer the theft from pensioners and grannies into the pockets of speculators who if you're a park leader h.s.b.c. or the old lehman brothers all are doing is buying cocaine and shoving it up their nose that's all they do a friday or saturday night go to the people and to see plenty of bankers on their back make it snorting cocaine well let's look at these facts here because the fact is here you have the pilot of the economy of the financial sector in the united kingdom and they've blacked out the gate that. tells them that there is widespread

fraud and money laundering and toxic derivatives that have destroyed their economy so because of that he doesn't see it in fact the solution offered is the figures could reignite expectations the bank of england may need to add additional stimulus to bolster growth now isn't this the same exact thing that actually has caused us problems yes it is it's more debt it's not cash it's debt because the bank of england has no cash all they do is they lower the reserve requirement for the entire system globally which means that they increase the debt load which means more repression which means more debt service which means more necessity to move billions from the pockets of those who thought they were getting any kind of return in their pension account into the pockets of the speculators exactly so when the pilot does not know and understand and trust his gauges he often causes

a stall mid-air as that air france flight from brazil to paris that crash it was caused by pilot error when they stole the plane by doing the exact opposite of what they were supposed to do they pulled up sharp when they should have been to wherever they were going right and the people in the u.k. or the u.s. who are suffering as a result they need to understand that the suffering is being organized by urban king in the u k. rick in the u.s. mario draghi and the e.c.b. . but they are there to understand what's going on here but the the enemy is not al qaida it's not. it's not anything except central bankers it's not an enemy it's what we're saying is these guys are too arranged they're going they are running up and down our financial economic and monetary aisles they must be tackled and stopped we the passengers on this plane will not stop our

central bankers from destroying our economy let's look at the result of us sitting there like toads you know with nothing to do and letting these guys run amok the rich get even richer new statistics show an ever more startling divergence between the fortunes of the wealthy and everybody else and the desperate need to address this wrenching problem even in a country that sometimes seems or near to income inequality these takeaways are truly stunning so remember just like above we saw stunning shocking oh we keep on being shocked how surprised why because we've blacked out the gauges so you're suggesting that these central bankers they need to be tackled they need to be stopped rising not because we can't just sit there like passive toads waiting for the plane to go down so when the it comes out of the letter system in washington almost all the way the office of the federal reserve bank with little briefcase is just and somebody. put in the strait jacket and got him off to the insane asylum

this is an analogy and i think you know you strap on a parachute and get off that guy's planning and if it means buying silver or buying gold or doing something not to be subject to the mad zork pilots piloting are putting. so in two thousand and ten as the united states continue to recover from the recession a dizzying ninety three percent of the additional income created in the country that year. compared to two thousand and nine a whole two hundred eighty eight billion went to the top one percent of taxpayers those with at least three hundred fifty two thousand income so to compare this and the clinton era expansion forty five percent of the total income gains went to the top one percent and the bush recovery the figure was sixty five percent and now it's ninety three percent so you see here is ben bernanke he he's in control of the system what do they do they put zero percent who does that go to the rich people because essentially you've got to think of it like this there are some of us there

in a lighter fluid business they burn down a house and the solution is to burn down ten times more of that number of houses and by the way they've got to buy a lot of fluid from the same people sold a lot of solar to begin with that's wall street so of course are going to make more money. and then finally max here's another example of how the government the guys in charge of flying our global economic plane how they help impoverished the bottom ninety nine percent f.h.a. bailout risk the looming larger after guarantee binge mortgages so the federal housing administration won't be able to earn its way to financial health this year increasing the chance it will need a taxpayer bailout based on an updated forecast from moody's analytics which provides the agency's housing market analysis the us government mortgage insurer which guarantees one point one trillion in home loans had been counting on robust growth and home prices to help rebuild this insurance fund after paying out thirty

seven billion dollars to cover defaults the past three years according to an annual report to congress well the thing is and he touched on it already is that if the entire globe is the leveraging of the entire globe is in recession its last impression then the f.h.a. what i'm talking about here they're going to be bailing out themselves or some ancillary institution based on the aggregation of more deaths you say they talk about reserves on the balance sheets they talk about assets on the balance sheet they're talking about debt and every time they talk about a restructuring or a bailout they're talking about increasing the debt over the assets which of course are completely impaired people at m.f. global realize this their assets were impaired they had no assets it was a joke and more of this is happening as you seem deeper down into the muck of realisation of its non existence you come to this do you hear it or did you hear

that i did that's called gold at the very bottom of this entire posy scheme are about thirty thousand tons of gold in the hands of central bankers and there's about one hundred sixty thousand tons of gold in the globe in toto that's where we're going and the rest of the world understands it that's why the central banks are buying it and that's why countries like iran china russia are trading it with each other to get out of the ponzi scheme that is the u.s. dollars. well max exactly and as this story shows the reason the rich got richer in a deflationary environment was because they were able to transform their bad assets to a passenger sitting there like toads on the freaking economic bad they pass about assets to the banks of the banks passed to the central banks the central banks are passed on to us through austerity measures and then those are working so they're passing it on back to the banks or that passed it on back to the central banks and that

every time you go around the circle you make a cd so that money goes up to the banker the terrorist at the top like jamie diamond terrorist. and the cycle continues until you get to a little gold and this is a movable as night follows day states are with thanks much being present thank you max we'll go a much more coming i want to say whether. something good what is happening with snow is you know about to poison very well parts of the gulf however i totally disagree i don't think the point to be done. we're still waiting for the actual resolution to how.

the filmmaker. believed. the rector's culture was a real life. prison on charges. yes welcome back rack's kaiser is me this is the kaiser report let's go to las vegas and talk with erin crown of m. l. hyphen implode dot com where there have been three hundred eighty eight implosions since two thousand and six aaron welcome back to the kaiser report in mexico to be all right aaron in the first half of the show because of the story f h a housing bailout facing a bailout risk after guaranty binge tell us about the f.h.a.

and its role in facilitating fraud in the transfer of the costs that the fraud is to the taxpayer. you know f.h.a. was founded in the that's the depressions basically provide support to nailing housing market and like so many well meaning programs you know maybe medicine initial goals but stuck around and basically turned into a gigantic venue for private actors to to raid the government coffers and indirectly raid the taxpayers and the problem being that a sensibly f.h.a. self-supporting has its own insurance fund socially kind of deal like f.t. i see the problem being the actuarial assumptions and the underwriting so the question is you know what happened in this thing and the housing boom you know and potentially other periods like it where underwriting standards became shoddy if not criminal and these things go into. a program like f.h.a.

and begin to violate the actuarial some sions and therefore the solvency of this thing so people are starting to catch on that there's a big problem with f.h.a. in the way could be you latest housing bubble and the you know mortgage free for all and the housing market crash and i would i would certainly agree with that it's it's in big trouble and we're starting to see mainstream reports catching on to this in a potential need for a bailout there were two reports i believe just in the last six months alone one was from wharton and one was from george washington university and with these reports found basically if you do any sort of legitimate fundamental analysis of what's in if a cheese portfolio. is way worse then their official

assumptions and projections of their own solvency to the tune of fifty fifty billion plus ok so f.h.a. it's part of the securitization financialization of the economy of the banking sector which is there and the biggest piece of a con of me and it's been going on for decades and it's about taking the mortgages and re offering them and slicing and dicing repackaging them and it becomes a bloated middle of the america global economy what supposedly is backed up by assets these assets are the houses themselves or the mortgages or just a derivative of a house the house themselves both be at the bedrock of this thing but the house prices seem to be continuing to fall by your last vegas which is one of the biggest trouble spots in america house prices in las vegas are doing what now well they're continuing to decline and that's that's the case certainly in the worst bubble spots in the country and overall we're still seeing home price declines. and you

see you're seeing some of these reports starting to realize you can't pretend like f.h.a. didn't it's projections that you're going to get on price increases basically saving them and saving if it changed fun if you've got the opposite in reality which is continued declines so you know this is this is obviously reality coming in you know the read reality train crashing through. let me add one thing to what you just said so effigies a little different than most secure dies mortgages and that goes into a special securitization called ginnie mae which is explicitly government backed so if you can if you're a mortgage originator and you can manage to get an f.h.a. loan underwritten by f.h.a. . which could be a shoddy loan of some sort and it passes muster for at least an initial period of up to two years it goes into one of these ginnie mae securities and it becomes government backed explicitly so basically when she get in the gate with

a potentially. poorly written possibly fraudulently lindley underwritten loan into f.h.a. you basically home free unless the government gets its act together to come and see you for organized fraud which is starting to happen now right so as you point out once you get into the gates or in other words once you enter the ponzi scheme like a bernie made of these came it requires more people to go into what they call feeder funds to feed the ponzi scheme f.h.a. any day fannie backed freddie mac. fannie mae they're all besley bundled together in a huge ponzi scheme where the underlying asset is houses but the house prices are going to go down and if the economy continues to strike and as tax revenues continue to collapse because everyone is continuing to pick up part time jobs at least full time jobs then the bailouts continue but the payouts are based on more part money which means that the whole system becomes more unstable but hey the top

one percent is. gets richer in providing the arson that is the economy now you are the victim of a slap suit as a p.p. as a result of your reporting on a case of mortgage lending fraught related f.h.a. loans tell us about yeah this was related to one of the most egregious scams as i mentioned there are people who had various ways or fraudulently getting these mortgages underwritten by f.h.a. and backed by the government and one of the most egregious scams was what is called seller funded down payment assistance and these operations are more than one of them would arrange to get the meager three percent down payment required by f.h.a. just so the borrower had some skin in the game but they figure out how to get around that by basically having a seller mark up the home typically as a home builder trying to move inventory have the mark up the price take the difference and donate it to

a nonprofit set up by these operations and then use that money to cover the down payment so essentially you end up with an inflated home loan backed by the government homeowner who never brought anything to the table and was probably recruited off the street and didn't know what the heck they were doing was not really educated as to what was going on usually deceived as to whether this so-called donation for the down payment was charitable so in effect you have a one hundred percent government backed home loan without the government being aware that this is a situation on my own basis probably without the borrower being aware and with the lender the private lender the builder or other seller and the broker and possibly a realtor making out like bandits through this transaction so there were a number of operations that did this the first was nehemiah corporation out of california and they got pretty brady started in the early ninety's and then

a fellow. name christopher russell out of gaithersburg maryland saw what they're doing and thought hey you know this is great i mean we can really make out like gangbusters here and his innovation was to market the scheme aggressively to the sell side so that simply you could have a builder that's sitting there has all this inventory they can move probably you know in late two thousand sixty thousand seven and attach one of these down payment schemes to it to basically move the inventory at any price and chuck chuck it as future toxic waste onto the books of f.h.a. so we wrote about one of these schemes russell's latest company was operations called the great america program and this was after an i.r.s. crackdown on the scheme and so to get around that he started laundering the money through an indian tribe so that it would be you'd be basically presented as

government funds so you could still see squeak in and pass muster. so you know sources there wasn't legitimate it was just a dodge but finally in two thousand in the housing bill congress itself woke up at the behest of hud and. explicitly outlawed these schemes they basically put a provision in that said you can't launder money to get around the f.h.a. downpayment requirement so they had to shut down but it wasn't till we wrote about that on our site and said hey this is what was going on could government reports in the i.r.s. ruling when they cracked down on it and said hey this is completely ridiculous that this was going on and it was only at that point that they sued us. so they tried to shut us down to get us to take the article down basically for for bringing visibility to the whole scheme and now this scheme is starting to be understood as a major problem with f.h.a. and if you look at the quantity of loans that went through these so are funded down

payment schemes. you get a number like a one hundred billion dollars or so of these as just as a d.p.a. link loons that are defaulting at rates i believe in something around thirty percent also talk about this lapse it's first second so far probably in terms of who uses the slapp suit it seems more like a fly by night so a lot writers than let's say it j.p. morgan or a goldman sachs trying to silence people yeah i tend to find this is the third shrivels libel suit that m.l. imploded and you know with and i tend to find it's the mid-level companies that such as predatory mortgage operations that i most cases have had to shut down but in some cases continued to try to push these lawsuits to try to save face but generally they are vulnerable to their wrongdoing coming out and becoming known when in the past and often cases they had run ins with the regulators and have have paid paid their protection fenians you know they paid little settlements or they've

pushed back on technicalities and lawsuits and things like that and socially been allowed to keep keep trucking so they don't like it when some you know snotty nosed blogger independent online reporter uncovers that there is actually something much more widespread and organized going on and that you know the government's not going to run in help such people because typically that the regulators have failed in these cases and there's going to be generally little sympathy from anyone else because you get allegations of oh it's just someone who's disgruntled or just picking on this upstanding company and it's paid its dues. so that's that's the kind of situation it's generally a mid-sized financial company against an independent journalist or a blogger someone who basically doesn't have their own in-house legal counsel or legal team that they know they can intimidate them with

a lawsuit and possibly just just bankrupt them or get them shut down by force all right so now finally you keep an eye on the mortgage lenders that's the next fraudulent practice we should look out for the big thing out there is people who are looking for help with low nods so there are a lot of scams out there with people who purporting to you friends are going to alice's or get your loan modified so you get to be careful about that generally you want to get a lawyer on your side when you're facing foreclosure and looking to get a loan not so that's that's the hot area for for basically right now oh right well maybe it'll be offered as a closed cross or a.t.f. on the york stock exchange a new way for people to buy and to fraud that is america dot com all right erin crowe thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i thank my guest aaron crowne from an al hyphen implode dot com does that

mean now please do sell at the reported r t t v dot are you and i'm actually either saying why are.