Babylon's Bankers

IN THE WAKE OF BANKRUPTCY: DETROIT, AND MORTGAGE FRAUD?

In the wake of the Detroit bankruptcy, old financial demons may be rising again, or in this instance, perhaps the only thing rising is my "suspicion meter," and the needle is in the red zone.  Poor Detroit! It used to symbolize American manufacturing and industry. Now it is bankrupt.  And in the middle of all of this, a story emerges about government-built houses being demolished.

Consider this one:

New Detroit-Area Homes Demolished as Housing Project Goes Awry

I hope you caught the significant paragraph:

"But Koresky says the inspector confirmed that the homes had to come down by order of the state. Not because of mold. Not because of bad soil. Not because of chemical contamination. But, according to news reports, because of alleged mismanagement of funds and poor planning. It turned out that not many people wanted to spend $150,000 on a 1,100-square-foot home in a distressed community. Then at least one of the financiers behind the project in Highland Park -- an incorporated city essentially surrounded by Detroit -- was charged with conspiracy and money laundering in connection with real estate deals in Ohio. And the state official running Highland Park's financial affairs also ran into legal trouble."

Money laundering in a housing scheme that was destined to fail? Say it isn't so!

Detroit at least had the benefit of actual homes being built - apparently poorly and sloppily, well get back to that. In some cases of government mortgage fraud, there simply were no homes, no buildings, no nothing. Just vacant lots. So what happened to all that money?  The black budget happened...

Which is what I ultimately suspect happened here, though there's no evidence to indicate it. Throw up a few poorly constructed houses, pay off local inspectors "not to notice", and voila, you make yourself look good for whatever community you're pretending to "help," while the real money is laundered through the project, the black budget gets more, and a few friends are paid off along the way.

Then, we read at the end of the article, this:

"'Essentially, you and I are paying for the demolition with taxes,' said Koresky in his phone interview with AOL Real Estate. 'Parts of the homes at least could have been donated. Given to Habitat for Humanity. Big money was just being thrown away.'"

Maybe. But it's always necessary, when in on a scam, to destroy the evidence that might raise inconvenient questions, like too many houses prone to flooding, poor materials, and so on. And that's what I think may be going on here.

See you on the flip side.

19 thoughts on “IN THE WAKE OF BANKRUPTCY: DETROIT, AND MORTGAGE FRAUD?”

  1. Speaking of more $$ shenanigans:
    http://www.zerohedge.com/contributed/2013-07-25/fed-economist-fired-investigating-suspicious-9-11-cash-transfers-and-steve-ke

    Would you be surprised to learn that tens of billions in cold, hard cash was shuffled around just prior to 9-11 by none other than the Fed itself? Probably not. Here’s a graph, illustrating the change in USD currency production over a ten week period prior to 9-11 compared to the average over the five years prior (which, by the way, includes the Y2K money printing orgy in the year 2000 itself, which skews the average higher)…

  2. you know in sinister circles this is seen as progress, like what happened too Rhodesia, South Africa….pre commie Russia. Seems getting rid of the elite/ trogolite difference in humanity is the end game.

    Detroits problem/ achievment is the type of people with/ without education.

    Welfare seems to be the code word for fare well, or gone with the wind Scarlett and frankly i dont give a dam…dads against materialism.

      1. into the darkness, the trogs wanted more food, the unions provided it and voila…..game over.

        throw in some good ole lie vision with oprah and the mike douglas show and it was a grande ole time.

  3. With regard to “oil, automotive industry and environmental sustainability”, here’s some informations for consideration.

    “Major automakers accused of cutting corners with safety in developing world”
    http://rt.com/news/major-automakers-fail-safety-latinamerica-553/

    “Volkswagen recalls more cars with faulty gearbox”
    http://www.chinadaily.com.cn/business/motoring/2013-07/04/content_16728523.htm

    “Interior pollution problem in mass-market car brands”
    http://www.china.org.cn/business/2013-04/09/content_28485580.htm
    “China Takes Aim at Foreign Car Makers”
    http://online.wsj.com/article/SB10001424127887324373204578372303463711708.html

    “China Considers Plan to Force US Automakers to Hand Over EV Tech
    http://www.dailytech.com“/China+Considers+Plan+to+Force+US+Automakers+to+Hand+Over+EV+Tech/article19673.htm

    “China’s 12th Five-Year Plan (2011-2015)”
    http://www.kpmg.com/cn/en/issuesandinsights/articlespublications/publicationseries/5-years-plan/pages/default.aspx

    “China Shifts Gears: Automakers, Oil, Pollution, and Development”
    http://belfercenter.ksg.harvard.edu/publication/1978/china_shifts_gears.html

  4. Hey, I found out about Dr. Farrell thru an interview he did on the paid subscription service of Catherine Austin Fitts. The work of the two of them and others in the various interviews, certainly give a clearer picture of what’s going on behind the scenes. Very helpful.
    So , I learned this about what’s going behind the scenes in Detroit, and it makes total sense:
    1. Manufacturing is coming back to the USA because the high cost of energy is now low, ie, enormous natural gas deposits are being found and industry thrives on cheap energy like natural gas; natural gas is the next resource to exploit, as its abundant and cheap. Manufacturing now will be using it;

    2. Detroit was purposefully picked apart in order to disassemble the unions. It was a group feeding fest, involving the US government….well, like there’s a government anymore…better stated…involving THOSE GIVING ORDERS to Congress;

    3. The US Patent office last year opened up branch offices in 4 cities: Boston, Dallas, Silicon Valley, and….and…..DETROIT!!! Yup…

    4. So manufacturing is coming back to Detroit, but its using ROBOTICS. Robots don’t need unions. So the federal govt needed to bust up Detroit in order to rebuild it. And it is now being rebuild with money coming back to the US.

    Robotics will create a growing population of people to be unemployed, starting with the fast food industry. I just hope they can get the robots to speak clearly into the ordering speaker when they say “do you want fries with that?”

    1. Hi Urban Gal,

      many thanks for your provided info- very insightful- I don’t subscribe to anything costing money via PayPal (I don’t trust it) so I was unaware of Fitt’s/Frarrell’s combined expoundings although Dr. Farrell has given us some brief highlights-

      but, hey, Urban Gal, you need to read ALL of Dr. Farrell’s books- boy, are they humdingers (understatement)- and welcome to the club- I certainly can’t speak for all but I think all of us (except for the occaisional shill) are here to be given a very valid other perspective via Dr. Farrell and to debate other ideas shared between us- it’s a great forum- I’ve already learned so much more (I consider myself to be the “eternal student” and the world’s foremost expert on nothing)-

      as I once stated I just think it’s so wonderful that more women are contributing to this website- gives a really healthy counter-balance to sometimes overloaded male gonads 🙂

      stay well- regards-

      Larry in SW Germany

  5. Should we be surprised the USA and all of the fiefdoms of the Americas have been kleptocracies from the beginning. Since our elites are strong believers in end times why not line their pockets before the deluge. Thieves are Us stuck again always blaming their victims for the disasters they have created no shame at all. By the way your post for today didn’t appear in my inbox and had to go online to read and respond to it.

  6. This is by no means an unseen event. This is happening by design. It is “crisis by design”.
    The 2008 meltdown & the 1929 crash were by design. WWI & WWII were by design. A broad stroke brush where the details were just-in-time touches, to fill in the gaps of illusionary “chance”. But if you put on your “deep evets” glasses, the illusions of chance disappear into the reality of: cold-blooded-ice-intent.

      1. everything is by design…..although some of the end products might have corrupt BINARY code, ie not divisable by 8. The 8th letter being H…light c house, the antioch,…….if you could read my mind, what a story I could tell.
        That would be those missing links, or would it?

        1. The famous missing link.
          Or perhaps a red herring, by another name?
          Still, if one were to find such a “link”,
          he or she would then, when followed,
          find another, & another, ad infinitum.
          It is, indeed, not only tangled,
          but endlessly so.

          1. thats the ghost that you see in me….its in a paperback novel, that any drug store sells.

            I know that clearly I am insane, my only hope is, that being aware of it, might be the last few bricks in my load to put me back on the right road.

            There they go ringing that dinner bell again….and they have stopped accepting credit.

          2. the bet in trading places and all for a dollar, with a short on orange futures…. where there are winners there are losers…..all though in my research a fellow is selling racoon burgers meat and making a living in the residue……..

            your enemies fighting your enemies…….fun times.

  7. if one is interested just a tid-bit:

    the first-ever major American city to file for bankruptcy (in 1976) was Cleveland, Ohio and Cleveland’s mayor at the time (youngest mayor in Cleveland’s history) was…

    Dennis Kucinich

    I spent my teenaged yrs. living in a SW suburb of CLE (airline jargon) shortly before all of this broke but as this was all enfolding I was being “edumacated” at a ‘Uniperversity’ (was just about to “rap up Graduate Skool,” mind you) and remember the bungled assassination attempt against DK because he was trying to prevent a monopoly take-over of the Muni Light Plant just before the bankruptcy filing-

    NE Ohio has been hit hard with housing foreclosures as well- housing foreclosures seem to be the most frequent in former steel mega-manufacturing areas- Detroit and Pittsburgh aside, CLE/Youngstown/Lorain (all NE OH- the “steel belt”) were first decimated by the collaps of the steel industry and now housing foreclosures- me thinks Detroit can’t hold a candle to NE Ohio- it’s just the latest news while the equally dire situation in NE Ohio was never, ever publicised-

    stay well all- regards-

    Larry

  8. Seems like an inefficient way to move what can’t have been more than a few tens of millions of dollars into a secret budget doing other things.

    (Perhaps if those other things are really cheap. I guess the Detroit thing could be some kind of hidden pay off to a banker or firm doing something else with a lot more monies.)

    Detroit only represented US manufacturing until short sighted business men decided it was better to move the auto plants to first small city rural America and then Mexico and later China. (Pays better short term dividends and boosts the stock price for a few years. But doesn’t make better cars that people want to buy.)

    1. True, this one case is ‘only’ 10mil or whatever it comes to, but how many of these operations are going on around the US and other parts of the world? Some are bigger than others. I’d imagine other tricks, like having mortgage insurance (or fire insurance) on these poorly built places too. If AIG gets bailed out after providing bazillions of PMI insurance, who’s that benefiting? And they probably sold derivatives bets to stupid (or complicit) state/local pension funds that were the other side to their bets. This patient is going to be bled from every possible locale…

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