PUMP AND DUMP 2.0

Remember the whole derivatives mortgage-fraud pump-and-dump scheme that made the banksters lots of money, until the housing pricing bubble burst, and the too-big-to-fail banks were bailed out by the too-cowardly-to-jail Congress? If you don't, then you haven't been paying attention, and especially haven't been paying attention to Catherine Austin Fitts, who has been writing, talking, and warning about this method of deep-state fraud and theft for years. For us, this has represented one aspect of the whole financial mechanism for a vast deep state black projects and covert operations apparatus.

And its real-world operation has been grounded in housing and mortgage fraud market manipulation, all accomplished by robo-signing, document fraud, asset fraud, ledger manipulations, you name it, it's there.

But I've often wondered, if we're looking at the whole picture... after all, housing is, for most of us, our biggest life purchase.

But what is the second biggest?

Our automobiles (which, in some cases, a new one costs almost as much as an older house, so there's no much difference).

And that, of course, raises the question, why not use easy credit, pump-and-dump and foreclose and resell methods on automobile loans as well? Granted it won't be nearly as big an income and fee-generator as mortgages, but, what the heck, if you're a bankster, then just throw those auto-loans into the derivative bundles along with credit default swaps on mortages, and voila, you've just expanded your money-harvesting mechanism tremendously. And if you're a deep state finance and funding person shuffling money to this or that hidden project or covert op, you need all you can get, so why not?

Now, until this week, I kept these high octane speculations to myself, because I didn't see any evidence that something like this might indeed be going on...

...until, that is, Mr. D.S.M. sent me this little gem from our friends at Zero Hedge:

UBS Hints At Rampant Auto Lending Fraud; "It’s Not Just Smoke And Mirrors Anymore"

Before we get into this article, please note that UBS is, of course, the Union Bank of Switzerland, which readers here will recognize as one of those banks having some alleged dubious associations.  So, as they say, consider the source.

With that in mind, consider the first four paragraphs of the article, and particularly the second one:

For months we've written about the imminently doomed auto bubble in the U.S., spurred in no small part by an unprecedented relaxation of underwriting standards by banks that would put even the shenanigans of the 2008 mortgage crisis to shame.  From stretched out lending terms to promotional interest rates, auto lenders have increasingly played every trick necessary to get those incremental new car buyers into the most expensive car their monthly budgets could possibly absorb.

That said, in recent weeks there has been growing concern that consumers, auto dealers and/or banks have been going beyond simply relaxing underwriting standards and have instead been forced to commit outright fraud in order to attract that incremental auto volume growth.  As UBS Strategist Matthew Mish told Bloomberg, “something is definitely going on under the hood...it’s not just smoke and mirrors anymore.”

The evidence is growing. First, the explosion of technology makes gaining access to information to improve credit scores very simple. Internet searches for 'credit score' are at record levels. Second, our survey finds 21% of auto loan borrowers admitted to some form of inaccuracy in their loan applications. Third, there is growing concern reported among auto lenders around fraud, which is the extreme case of this behavior.

Overall, the explosion and adoption of technology makes gaining access to "proven" methods for improving credit scores extremely simple. To this point, the popularity of internet searches for "credit score" has been rising consistently and is near peak post-crisis levels (Figure 7). Similarly, our survey finds that 21% of auto loan borrowers admitted to some inaccuracy in their application for non-mortgage related debt (auto, student or credit card loan). More concerning, this trend may be systemic as 29% of other consumer loan (i.e., student loan, credit card) borrowers acknowledged some form of inaccuracy in their applications (Figure 8).

As I speculated prior to quoting these paragraphs, throw in this auto-loan fraud into the mix of derivatives bundles and one has the makings of another financial crisis which, by Zero Hedge's lights, could be almost as big as the mortgage-housing price collapse of 2007-2008. In a certain sense, this could be far worse, since auto dealers, RV dealers, and so on, carry millions of dollars of inventory on their lots, and, as an overhead expense, insurance and in many cases, security.

Now imagine sudden falling prices as the bubble bursts, at the same time as a lack of cash and... well, you get the idea.

But there's something lurking in the middle of all of this that I find profoundly disturbing, and it's at the center of today's high octane speculation. Notice how much of the fraud is being enabled, not so much by the internet, as by internet-derived or -sourced or -manipulated information. Imagine, now, for a moment, this is combined with hacking activities. A customer comes into an auto-dealer, asks for financing on a brand shiny new Mercedes or Cadillac SUV, but has already manipulated his or her credit score, and even managed (if they're really good) to post a few extra thousand dollar blips into their bank account for good measure. The bank or auto-dealer then uses the same internet to verify or corroborate the application information. In short, the electronic market - from finance to loans - has(as Catherine Fitts has so often said) no integrity, and being thus utterly divorced from human reality, is subject to potentially massive corruption, while at the same time distorting price(to the buyer) and risk (to the seller or loan-originator), the most fundamental information in any economy or single transaction. (In this regard, ask yourself, why should today's modern new car cost almost as much as an older house? Answer: you're paying for all that fraud, and extra overhead it requires the automakers and dealers to carry.) Now, extend this corruption to wide-spread scale, and pretend you're an auto-maker, or auto-dealer: would you rather do business with electronic blips, or with someone who walks in, and puts actual cash into your hands for a full payment, or partial down payment?

As the corruption and fraud spread, so too will the revolt, and this, I suspect, is also the reason many states in the USA are now passing bullion depository legislation, and resolutions underlining that the only constitutional money authorized under the US constitution is that made by Congress whose value is regulated in bullion.

 

23 thoughts on “PUMP AND DUMP 2.0”

  1. Gertrude Coogan in 1930’s put out this excellent book on money creation and all the frauds. Gold Standard?
    https://archive.org/details/TheMoneyCreators pray tell me who owns the gold, and who can direct their tool FDR to confiscate people’s real gold in 1933? Heard of Libor gold fixing in London? She thought silver ,, which the US produced, if it had to be bullion backed.
    Ford said Gold was insufficient to back a modern economy.
    (sidenote, and one should not watch these shows but I do some of them , Dr Who S10E07 had an alien pyramid with a laser coming out of it doing gravitic manipulations on bombers, subs etc…. do they read these blogs?, ah yes, now they have shoved it into our faces (mind you, as fiction without proofs) they can do it to us and we must be asking for it. Even covered the consent to be ruled to save us from what they do to us. Problem, reaction , begging, solution. Wham, boom, thank you moom. (pommy accent) )

    1. Yes.
      In fact the Wizard of Oz was all about that. In Ellen Brown’s book, Web of Debt she tells of how the author was politically involved in the 1896 Silver Republican, William Jennings Bryan.
      Dorothy’s silver slippers
      Yellow Brick Road
      Use silver; not gold.

      1. ta, that one is there on archive.org (dont ask me how)…. I shall read it.
        also noting that Jim Stone (82.221.129.208) last year did the holographicmorphing universe and Star War’s C3PO’s new artificial/replacement leg turning from gold to silver (or the other way around)… one can also dance around a silver calf and ignore natural laws of basic morality and getting along.

    2. And shall we forget the massive “papered” precious metals leveraging going on just after 08’s bubble pop due to what they said was a lack of substance and a promise to produce by the good faith of the silver kings of speculation? The derivative scheme lessons learned bleached into that oh-so-pure golden standard to make it stink like the rot it became. I also remember the proposal in the 43rd state in ’10 to accept payment of (in)voluntary tribute in specially minted silver bull while everyone got shamed in useless paper for their precious labor time.

  2. There are countless Western deep state pump & dump frauds in process/and already processed. The Whole system is and has recently[1971 off Breton Wood’s gold standard] been so. Your either with the Frauds-R-US, or your against U.S.

  3. A pertinent article (although focused on education debt):
    michael-hudson dotcom/2017/05/are-students-a-class/

    “The middle class in America consists of the widening sector of the working class that qualifies for bank loans – not merely usurious short-term payday loans, but a lifetime of debt. So the middle class today is a debtor class.

    Shedding crocodile tears for the slow growth of U.S. employment in the post-2008 doldrums (the ‘permanent Obama economy’ in which only the banks were bailed out, not the economy), the financial class views the role industry and the economy at large as being to pay its employees enough so that they can take on an exponentially rising volume of debt.

    …more and more wage and consumer income is used not to buy goods and services, not to eat out in restaurants or buy the products of labor, but to pay the financial sector and its allied rentier class…

    …the middle class is a debtor class – so deep in debt that once they manage to get a job, they have no leeway to go on strike, much less to protest against bad working conditions.”

    IMHO, the car debt scheme is part of the overall Lilliputian-web of de-empowerment through debt. Use every emotional trick in the book to get you to buy an expensive car (read: go into yet-more debt), and then you will be a sheeple in order to keep the loan…

    (Keeping everyone at maximum debt levels [for maximum control] is also dangerous. Any highly-optimized system is at its peak level of instability…)

  4. I keep my old hoopty running because new cars BLOW, and I mean they blow HARD. Who would want to spend $40,000 on something the automakers say you can’t own because of the proprietary software inside? Who wants to spend that much money on something purposefully engineered to be commandeer-able by the DHS? Who would fork out 40 grand for something that does not have bumpers, but “crumple zones” stuffed with essential running gear which means the car is totalled in a collision that, in days of yore, simply meant unbolting the dented bumper and replacing it?
    Not to mention the fact that new car STYLING blows. There is none. Even the new Mustangs are being morphed into BMWs; in a few years you will not be able to discern the difference between the two.
    Camel-hump heads. High-rise intake manifolds. Center-dump exhaust manifolds. Quadrajets. Mechanical fuel pumps. And chrome bumpers so shiny they look like mirrors. Ahhh, these are a few of my favorite things.

  5. The whole financial house of cards is collapsing every brick and mortar department chain store in closing. Along with mom and pop stores everybody is broke in what dreamland do our oligarchs reside in who going to buy their goods and services. And these jerks believe the cashless economy will save them what are they ingesting they out of their minds read stupid.

  6. Analogue computer is a closed system. It is impossible to create something that was not there from the beginning. Fleshed logos has free will of choice.

    Christianity shows the way: Quintessence is the light of the world: he that follows it shall not walk in swamp, but shall have the light of life. John 8:12

  7. I would imagine a total collapse in automobile prices brought about by a massive glut of new and used cars could soften the blow of a nationwide economic implosion. While many Americans will be thrown out of work, lose social service benefits, and even have trouble scrounging up food, they will be able to add to the number of automobiles they have in their driveway and this should make them feel wealthier than they used to be and probably happier, as few can deny the well-being that comes from feeling wealthy.

    Who can dispute that automobiles are one of the chief status symbols and measures of wealth in American society? Families that had only one or two cars could now own six or seven and I’m sure we all can picture those certain Americans, be they in the suburbs, ghettos, or trailer parks, using every bit of available space to line their homes with all their dream cars and trucks. Every neighborhood would like like one long used car dealership.

    While gasoline may also be scarce and hard to afford, this would almost be irrelevant after a while as just the prestige of having lots of cars in front of your home should suffice. It would be equivalent to the old days when wealth was measured by the number of cows one had in their field. Now it would be useless cars on their lawn. And government promises of abundant fuel in the near future could also keep these collectors perennially hopeful and may even put a damper on any instincts to revolt and riot. Instead they would be filled with dreams of one day actually driving their vehicles to the convenience store to buy beer and cigarettes. And how would they buy these life necessities? By bartering their cars and trucks. Vehicles would become the new form of currency.

    Suffice it to say, in all this doom and gloom of loan fraud and market collapse, there is a silver lining.

  8. In order to understand how the Babylonian “money magic” works, you need only examine the process to see where the fraud originates. At some point during the “loan” process, you place your signature on a “promissory note” which is then deposited into a “special account” at the bank, the bank then simply enters a number on their ledger as a “credit” thus creating the money out of thin air. They then issue a check on that “special account” to the person you’re purchasing from to pay for the item you’re purchasing. At that point everyone’s books are balanced. The fraud occurs when the bank requires you to repay, with interest, something which they never loaned you in the first place. It was your signature on the promissory note (a negotiable instrument) which created the funds; you were never “loaned” anything and they cannot validate the loan. You are essentially tricked into signing a contract to repay something you never received. The contract is invalid since your side of the contract received nothing of value.
    That 20 trillion dollar “national debt” we think we owe is all based on fraud. There is no “reserve”; the money comes from thin air; yet we are required to repay the interest with gold.

    1. slightly accurate though misleading down an empty rabbit hole – the “debt” is the credit side owed back to the people (your private Estate/the private side of the ledgers) my friend 🙂

      there is no usury on american land…but our seas – well let me see – the rivers intercourse the land forming banks where it deposits its silt and some times floods which gives you MORE silt (more raw ingredients)…u may see how the structure of our world is perfect if we get the f over our internal ego i wanna whine about what eye(s) sea in the mirror…

      hint: we are the mirror 🙂

  9. What? You mean Banks are once again stealing lying cheating and manipulating with money that doesnt even exist, nor belongs to them??.?

    I’m sure that Banks would have had a much moer glorious past if the Templers hadnt been stabbed in the back by Philippe le Bel. and the Venetian Nobles hadnt used the Jews in the Ghetto to crerate their hidden banks…

    1. I think you got it backwards, as usual. The “fair king” was far from being fair and got exactly what he deserved by his very painful death for attacking everybody in Europe. Also the totally corrupt pope was removed….. and the total take over of the catholic church is almost complete, thank god. France also lost their corrupt monarchy and will be eventually destroyed in my opinion. Good try though. db

  10. Personal household money is a touchy subject but this problem is not solely due to the fraudsters. People are eager to put themselves in grave danger for that “shiny bauble” and take no responsibility for it.

    I am old school and never will understand that credit card debt. I prefer Unreal paper money. Easy to track and gone = gone = no shiny baubles to buy = as simple as that.

    Sadly to say that that ghastly American habit of credit card debt finally has arrived onto Europe’s soil. The only debt I ever had was for my house all the rest, car included, you buy when you have the money. Ironically that was the woman’s responsibility in the old tradition marriage, seeing to it the money was there for the families which list without making debts.

    Modern families speak mostly of “entitlements” just like the elite.

  11. Banking fraud in Canada seems to be alive and well.

    “Former staff to blow whistle to MPs about bank practices”
    http://www.cbc.ca/news/politics/banks-finance-mps-sales-1.4140668

    “‘We are all doing it’: Employees at Canada’s 5 big banks speak out about pressure to dupe customers”
    http://www.cbc.ca/news/business/banks-upselling-go-public-1.4023575

    “Document forgery in financial industry more common than you’d think, past employees say”
    http://www.cbc.ca/news/business/financial-industry-employees-forge-documents-more-often-than-you-d-think-1.4138212

  12. Good point about car and consumer lending in general. And now there are those “bad, bad” German car sales. Not to mention the car insurance industry…

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