three broadcast quality video for your media project and a free video don carty dot com. live from moscow this is all to top stories now syria says all attempts to alice the regime a failed even as a u.s. led approach opposition group of nations meet with the aim of aiding the rebels cause. beijing levels criticism of washington ever it sanctions against countries that keep buying oil from iran the u.s. wants to stop the run of income in an attempt to make it abandon its nuclear program. and cities across the globe switch off the

lights for earth to do their bit for the environment moscow's among those plunged into darkness. and that's it for me and the news team for the moment thomas will be here in half an hour as the news continues in the meantime. is it really time to pay pray for the high flying american economy rapidly losing altitude or max keiser has all the answers to that next in a college report. oh my stars are this is the kaiser report of church of the church and this is your cap games stacey herbert max thank you mean this is your captain freaking. bongo news exclusive pilot goes berzerk watching jim cramer there and pressing the prince button is ben bernanke he 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 when a little bit bizarre on the flight to las vegas yet what happened the first time the cockpit running down the aisle make it look in first peanuts well max passengers do screaming jet blue captain is midair rant divert flight a jet blue flight captain had to be tackled by passengers today after you ran up and down a packed flight screaming about terrorism and al qaida in 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. 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 to gauge their this is wages is

crashing but he's not doing anything about it the games that shows inflation and stuff like energy and food is zooming up too dangerous and bernanke is not doing the batteries blinded henri's with the stewardess or talk about cheap fares this guy's got cheek there's he's running around the cheap saying out looking for peanuts although you know exactly max because when the pilots 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 but i think it is flying the economic plane of america and when the gauges are showing him what he should be doing making some adjustment to the flops or doing something correct to actually sustain economic flight he just basically taking black pain and you know spraying it over that gauge and saying oh see that gauge it

goes in front of congress and say go look at. just these big words thing and of course it just is there to promote the agenda of the central banking authority and because i talk r.c. 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 he shouldn't talk till we've got to strengthening. well 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 look when bernanke is meds where of he's going to be like connie guy connie twenty twelve guy running down the

street buck naked slapping the ground like a gorilla could do these are going to be sick of his bold dirty looks like a relatively old you know alpha gorilla sitting back there you know farting. really that's all he does he goes before the congress and he farts and he prays you know they say oh you're farting sounds like we're all in great shape thank you professor bernanke let's look at some of the headlines that betrayed the everything is ok bernanke he 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 contracted more than expected in the last three months of two thousand and eleven shrinking point three percent as the 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 is crashing and the g.d.p. is crashing and the people that live there are suffering financial repression are

suffering horrible economic calamity and george osborne and mervyn king saying we're in king is ben bernanke is equivalent of the bank of england and he likes to sit back he doesn't have a flatulence problem he's got a gastrointestinal problem that's his contribution to monetary policy around the world and he blabs a few things or some so i can but he's basically in the financial pressure 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 cliff the krauts in the city that's on top of the forty five billion pounds that almost born in cameron engineer the theft from pensioners and grannies into the pockets of speculators who if you're a barclays h.s.b.c. or the old lehman brothers all they're doing is buying cocaine and shoving it up their nose but all they do a friday or saturday night go to some people in the sea plenty bankers other back

making snorting cocaine well let's look at these facts here because the fact is here you have a pilot ulti economy of the financial sector in the united kingdom and they've blacked out the gates that. tells him that there is right spread 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 these 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 necessitate 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 crashed 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 dove into 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. ranking the u.s. wario draggy and the e.c.b. that's what they own them to understand what's going on here the the enemy is not al-qaeda it's not. it's not anything it's of central bankers it's not an enemy it's what we're saying is these guys are too arranged they're going

bizerk 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 a nearer to income inequality these takeaways are truly stunning so remember just like above we saw stunning shocking although we keep on being shocked how surprised why because we've blacked out the gauges all right so you're suggesting that these central bankers they need to be tackled they need to be stopped rising up that stuff we can't just sit there like passive toads waiting for the plane to go down

right ok so when they it comes out of the metro system in washington almost all the way at the office at the federal reserve bank with little briefcase suggesting somebody. with a straight jacket and got a lot of insane asylum this is an analogy and i think you know you strap on a parachute and get off that guy's plane and if it means buying silver buying gold or doing something not to be subject to the mad closer look pilot piloting are. 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 in income so to compare this and the clinton era expansion forty five percent of the total income gains when it's at the top one percent in the bush recovery the figure was sixty five percent and now it's ninety three percent so you see here is ben bernanke 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 don't think of it like this there are some of us there in the lighter fluid business they burn down a house and the solution is to burn down ten times more that number of houses and by the way they've got to buy a lot of fluid from the same people sold the lighter fluid to begin with that's wall street so of course going to make more money. and then finally max here's another example of how the government big guy some charge of flying our global economic plane how they helped impoverish the bottom ninety nine percent f.h.a. to bail out risk looming larger after guaranteed 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 u.s.

government workers 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 recessions last depression then the f.h.a. we're 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 balanchine 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 of m.f. global realize this their assets were a pair they had no assets it was

a joke and more of this is happening as you sink deeper down into the muck as a realization of its non existence you come to this here or did you hear that i did that's called gold at the very bottom of this entire posies scheme or 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 parties game that is the u.s. dollars. no 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 the passengers sitting there like toads on the freaking economic bad well that they tell us about assets to the banks of the banks passed to the something banks

of the central banks are passing it on to us through austerity measures and then those aren't working so they're passing it on back to the banks or then passed it on back to the central banks and every time you go around the circle you make a fee so that money goes up to the banker the terrorist at the top like jamie done terrorist. and the cycle continues until you get to the low goals and this is inevitable as night follows day states are thanks must be going faster thank you max i'm doing much more coming i want to stay right there. on. the. director's cut of real life. prison on march.

yes welcome back max kaiser is me this is the kaiser report most go to los vegas and talk with aaron crown of m l heisman includes dot com where there have been three hundred eighty eight implosions since two thousand and six and welcome back to the kaiser report. they max going to be all right art in the first half of the show we cover the story eight a housing bailout facing a bail out risk after guarantee been tell us about the f.h.a. and its role in facilitating fraud in the transfer of the costs at the fraud is to

the taxpayer. you know if it was founded in the depths of the depression to basically provide support to an ailing housing market and like so many well meaning programs you know maybe met its initial goals but stuck around and basically turned into a gigantic venue for private actors to raid the government coffers and indirectly raid the taxpayers and the problem being that extensively f.h.a. self-supporting has its own insurance fund socially kind of deal like half the i see the problem being the actuarial assumptions and the underwriting so the question is you know what happened to this thing and the housing boom you know and potentially other periods like it where underwriting standards it came 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 wake of the 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 and 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 rip. what's found is basically if you do any sort of legitimate fundamental analysis of what's in iffy cheese portfolio it 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 of financialization of the economy of the banking sector which is that the biggest piece of a economy it's been going on for decades and it's about taking the mortgages and re offering them and slicing them and bison repackaging them and it becomes this bloated middle of the american global economy what supposedly is backed up by assets these assets or the houses themselves or the mortgages or just a derivative of the house the house themselves both be at the bedrock of this thing but the house prices seem to be continuing to fall now year in las 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 so you're seeing some of these reports are going to realize you

can't pretend like f.h.a. didn't it's projections that you're going to get home price increases basically saving them and saving the f.h.a. insurance fund 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 real reality train crashing through. let me add one thing to what you just said so if she's 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 a fee. could be a shoddy loan of some sort and it passes muster for at least an initial period of up to two years and 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 for the lengthly and are written.

into f.h.a. you're basically home free unless the government gets its act together to come and sue 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 the bernie nato game it requires more people to go into what they called peter funds to feed the ponzi scheme f.h.a. ginnie mae fannie back freddie mac. fannie mae they're all besley bundled together in this huge ponzi scheme where the end all i doubt that is houses that house prices continue go down and if economy continues to strike and as tax revenues to to collapse because everyone is continuing to pick up part time jobs at least a full time jobs then the bailouts continue but of bailouts are based on more part money which means that the whole system becomes more unstable but hey the top one percent it 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 you know this was related to one of the most egregious scams as i mentioned there are people who had various ways are frauds only 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 a fake just so the borrower had some skin in the game. but they'd figure out how to get around that by basically having the seller mark up the home typically it was 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 this 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 downpayment 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 the lender the private lender the builder or other seller and the broker and possibly realtor making out like bandits is transaction so there were a number of operations that did this the first was nehemiah corporation out of california and they got pretty very disheartened early ninety's and then a fellow named 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 into the sell side so that simply you could have a builder and it'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. operation is called a 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 be presented as government funds so it could still see squeak in and pass muster. so you know

sources still wasn't legitimate it was just a dodge but finally in two thousand and eight 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 was until we wrote about that on our site and said hey this is what was going on coded government reports in the i.r.s. ruling when they crack down on it and say this is completely ridiculous that this was going on and there was only at that point if 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 solar funding downpayment schemes. you get a number like a one hundred billion dollars or so of these. loans that are defaulting at rates

i believe it's something around thirty percent also talk about the slaps it first second so to speak more broadly in terms of who uses the slapp suit that seems more like fly by night solo operator if then let's say a j.p. morgan or a goldman sachs trying to silence people yeah i tend to find this is the third of all this libel suit that emily employed has been there with and i tend to find it's the mid-level companies like such as predatory mortgage operations that in most cases have had to shut down but in some cases continue 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've had run ins with the regulators and have have paid paid their protection fees you know they've paid little settlements or they've pushed back on technicalities and lawsuits and

things like that and essentially been allowed to keep keep trucking so they don't like it when you know snotty nosed blogger independent online reporter uncovers that there's actually something much more widespread and organized going on and you know the government's not going to run and 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 that's that'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 blogger someone who basically doesn't have their own in-house legal counsel or a 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 close eye on the mortgage lenders what'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 are proposing to do forensic analysis or get your loan modified so just 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 long model so that's that's the hot area for for for fraud basically right now oh right well maybe it'll be offered as a closed end frost or a.t.f. on the new 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 because those other guys a reporter with me maximizer and stacy herbert i thank my guests aaron crowne from an l. ife and implode dot com got some e-mail please do so at kaiser reported on r t t v

dot are you and i climaxed guys are saying by all.