Mortgage fraud! Say it ain’t so!

December 26, 2007

When the stock market was bubbling way back in the last half of the ’90’s there were lots of rumors being squleched (that’s how you know that they’re true) about the greedy fingers of organized crime busily pumping and dumping one stock after another. That would be in addition to the ‘legitimate’ criminals pumping out IPO’s for companies with pretty shiny business plans but no tangible business. I think the Sopranos even had an episode about that (when a tv show brings forth something that the mainstream sources of news fail to deliver on, it kind of dilutes the reality of it and everybody just sort of learns to accept it, which is good for the mainstream because then they don’t have to report on the reality of the country being sold out and risk being shot as the messenger).

After it all played out and the market farted out the bad gas that had been expanding the balloon, it was amazing to see how nobody went to jail, nothing significant really changed, and we grudgingly learned we had no choice but to accept this as the status quo. (The smarter kids tried to figure out how they could join in the next time and still keep out of jail.)

And I do recall some goomba calling in to Howard Stern’s radio show and, attempting to talk about it, got cut short while the conversation was steered away to a different kind of boob.

So it would be a stretch to presume that the black hand hasn’t gotten garlicky smears on more than a few “financially engineered for your convenience” mortgages, wouldn’t it?

Nobody’s coming right out and saying so though [NYT].

This article tells us enforcement for this type crime is difficult. And the reports all across the country are legion. So in some innocuous way the media is communicating to US we should not expect justice to prevail, and we should get used to the idea that the bad guys will generally get away with it.

I would add that since nearly everyone is doing it (i.e. committing fraud), many folks might start realize if there is little-to-no-risk of getting caught and/or incarceration why not me too?

Hellfire, why should anyone care anymore if it is even illegal if the law does not get enforced? Where is the downside exactly?

Rampant fraud- the subtext in this article is IMHO, how did mortgage fraud become so widespread and prevalent in nearly every real estate market across the nation (if not the globe- see Spain, Ireland, Bosnia)?

These crimes were apparently very well organized. What should we call that?

Well now that door of opportunity to this particular wave of crime is closing. But with the next ‘bubble crime wave‘ one might expect to have even more participants. And why not I ask you?  If the risk of getting caught is so low. I cannot imagine what the next bubble opportunity will be- but then I never realized this particlar ‘home-based-business‘ was going on in all of our neightborhoods, behind our collective backs. Very few of us had noses with such a highly honed sense of smell we could recognize the stench of fraud. Not that anyone was listening to those who did and proceeded to wave a red flag. Many of them were branded freaks, banished from the mainstream of society as being alarmist.

And of course enforcement, most commonly by the FBI, has been weak because of a lack of resources. Many agents have been re-assigned to chasing bin laden’s shadow– but this is vitally important for ‘national security,’ no? And of course getting stripped searched for carrying a bottle of shampoo in your luggage or for being a middle aged white male, has been proven by the government to be very effective way to deter terrorism.

Church is a place in which gentlemen who have never been to heaven brag about it to persons who will never get there.   – H. L. Mencken