Links 12/14/09 Posted on December 14, 2009 by Yves Smith Easy money could have a high price Financial Times Disaster and Denial Paul Krugman Christmas Comes Early Macro Man Winston Churchill Liveblogs World War II: December 13, 1939 Brad DeLong Antidote du jour: Post navigation ← Hospital Cleaners Are Worth More Than Bankers (and Quelle Surprise, Bankers Destroy Value!) Yes, Obama is Getting Serious About Banks. He is Now Calling Them Bad Names! → Subscribe to Post Comments 3 comments nowhereman December 14, 2009 at 11:22 am Krugman, man sometimes I think he misses the mark, but not this piece, brilliant. I wonder if he really has the ability to persuade. I hope so. charcad December 14, 2009 at 11:48 am This one is Monty Python caliber; A tale of fraudulent mortgages and drastically overpriced condos. The first twist is these deals were done in 2008-2009. All the fake mortgages were subsequently purchased by Citibank and JP Morgan. iow TARP money directed supported at least part of this. And there was further innovative financial engineering on on the foreign buyers’ side (if they even exist as discrete entities). They appear not to have made even one payment on any of these loans. “Flipping scheme” is a misnomer imo. This is plain old bank fraud. http://www.heraldtribune.com/article/20091213/ARTICLE/912131050/2416/NEWS?Title=Condo-buyers-allege-flipping-scheme A Herald-Tribune review of the 42 Waterside sales and related mortgages found that 28 involved Brazilian buyers who appear to have paid inflated prices when values were falling. From January 2008 to January 2009, those buyers paid $385,000, at least $35,000 more than any other unit in the complex had previously sold for and $90,000 higher than the average price paid. The value of the condos at the time was about $220,000, according to Wayne Furlong, a Port Charlotte real estate agent who had been trying unsuccessfully to sell the units before the Brazilian buyers appeared. Ina Pickle December 14, 2009 at 1:36 pm Will the mainstream press report that the banksters didn’t even bother to show up when summoned to the White House? I hope so, because it shows a disregard that would be politically damaging. Perhaps if they embarrass Obambi enough, he will have to suck it up and actually do something. They own him, and they know it: but flaunting it might just have an effect they aren’t prepared for. Where are the conservatives who shrieked about the sanctity and honor of the Office of the President? Why aren’t they all over the disregard the bankers are showing to the OFFICE, if not the man? Comments are closed. Tip Jar Please Donate or Subscribe!