The problem with the banks was, that they just kept adding to houses worth. Like my home I got for 10k, my insurance kept adding to it price and never once looked at it. Then it went to 130k, I once got home damages for $3k from the insurance.
Then 9/11 happen and they lied and said I paid my insurance late always, and drop me and would not give me insurance again. I paid the agent by the due date every time, they claimed they had to have it by the due date. That was a lie the agent said it was fine, what happen was they paid out heavy for 9/11.
And had so many over priced homes insured, that they would not of had the funds to cover them all. So they start dropping anyone that collected any insurance from them, with in a time frame they had set to cut their liabilities. So they would not be shut down, my home was never worth 130k ever that a fact.
They drop many others as well, for made up reasons and would not give them insurance. By the time you went to get insurance from some place else, a red flag went up and they would not insure the home. They kept saying sorry, but we will not cover any home that left the insurance drop. In other wards you had to be insured already, or they will not insure your home.
Also home insurance went way way up, so here I sit still with no home owners insurance from after 9/11. I'm going to check into getting renters insurance, the bush admin knows this is a big problem and done nothing to help. Getting a home through a bank also over valued homes, but they will insure them through a bank loan no problem.
They done the same thing to doctors with insurance, doctors now paid 50% of their income to insurance. And some was dropped and then could not get any, they was forced to go to other states. So the bottom line is this, they put way to high of value on homes. When most of the homes have never been looked at, now the problem is banks took many homes.
And found out they could not sell them, at a price to even recover the cost they paid to take them back. They then started rising payments across the board, to make up for it then people could not make the payments. This is why bush told them to work some thing out, so people can keep their homes and be able to keep making payments.
Their are a few big banks, also bleeding the stock markets as well. The way it worked was they would cut deals, with big biz that owed billions right before they got done building out. Like flagtelecom they had built a fiber optic cable under the SEA's, the CEO said everything was going great and they got some new contracts. They was a few months from, getting done building out with funds to pay all the bills.
Well the CEO and the one bank setup a BK scam, the bank and some investors would take a big part of it. The CEO was to get a big bonus for it, anyway they stop paying the loan. The bank rush the BK and they claimed the fiber was not even worth junk price, stock holders was to get nothing and lose everything. At any rate us stock holder knew better, them fiber lines was worth big money.
We all pony up a few bucks and got a lawyer, the judge would not even pay the lawyer any mind. The only thing he done is did not give the CEO his bonus, flagtelecom said if we thought it was worth so much. Then stock holder can just buy stock in the new telecom, the judge signed onto that so they got a new name and sold stock for it, that new stock opening price was much higher then to old stocks highest price.
Proving the scam had worked just the way the bank set it up, the stock price being so high proved, they lied when the claim the fiber was not worth junk price. These few big banks, done that many times over and over. Ripping stock holder off each time, and getting a big part of the renamed biz. Every time the judge signed unto it again and again, these bank are also heavy into insurance inc as well.
So what does this have to do with Bear Stearns going down, well I bet if you checked the same happen here. Stock was at $172 in Jan 07, now being sold for $2 there is no way it devalued that much in that short of time. And the CEO said everything was fine then boom, just like that it's BK and being sold dirt cheap and stock holders lose everything. It's the same scam I'm pretty sure, they done this many times before. The banks are also heavy, invested in big insurance incs.
