Fraud: Washington State Bill SB5272

Non-technical special, from Karl Denninger:


In Washington State there is a bill pending, SB 5275, which has as its title "Protecting and assisting homeowners from unnecessary foreclosures." However, buried in the text of the bill is the following:

7 (a) That, for residential real estate property, before the notice of trustee's sale is recorded, transmitted, or served, the trustee shall have proof that the beneficiary (bank) is the owner of the promissory note or obligation secured by the deed of trust. A declaration by the beneficiary (bank) made under penalty of perjury stating that the beneficiary (bank) is the actual holder of the promissory note or other obligation secured by the deed of trust shall be sufficient proof as required under this subsection.

What's the significance of this section? Simple: No proof need be offered that the bank actually holds the note or obligation. A simple declaration that they are in possession is sufficient. If you're in possession of something as simple as a piece of paper, why would not present the actual paper to the court? There's only one reason to "declare" rather than "prove" - you don't have it.

This bill before the Washington State Legislature explicitly permits the filing of perjured documents and the ejecting of homeowners into the street through fraudulent foreclosures. That which has been bad will, if this bill passes, become even worse. Remember from the above: 150,000 counts of perjury, zero indictments. One can only assume that lying about having the loan document will be prosecuted just as often as lying about reading the papers one submits to the court. That is, never.


In summary, the banks have bundled up these deeds of homes into various investment vehicles and have sold them off numerous times. Banks can no longer track down the physical deeds that are required by law in the event of a foreclosure.

Glimpse of Reality ???

Will the people of the world continue to notice the implications of Global Insolvency this week? My guess is people will wake up to more chaos in poorer nations and that the problem may come home to roost in the US, with State Governments also becoming insolvent. What it does to the Global Economic Markets is left to be seen. God knows I am surprised they have held up this long!!!



Interesting actions in the futures and currency markets tonight, with a sell off in the futures and the EURO actions becoming violent. The Gold line that depics the 8 month trend still has yet to be broken. Stuff won't get too interesting until the 1300 marker is broken on the S&P, as marked by the oval. The gap down in the morning should at least make things interesting. I will keep my eye on Apple to see if the building is truly burning.