Foreclosure Crisis

  • Aired:  10/07/10
  •  | Views: 228,028

The banks admit to not reading the fine print on the crappy mortgages the American taxpayers now own. (7:07)

EVEN CHANGED MY SUIT APPARENTLY.

SPEAKING OF A KNEE TO THE GROIN,

REMEMBER A COUPLE OF YEARS AGO

RIGHT AROUND THIS TIME OF YEAR

ACTUALLY WHEN THEN PRESIDENT

BUSH CAME TO THE COUNTRY AND

SAID, WE'VE BEEN TALKING A LOT

ABOUT HOW TO PROSECUTE THE WAR

ON TERROR, WHETHER OR NOT THE

PATRIOT ACT IS LEGAL AND WHILE

WE WERE TALKING, LOOKS LIKE OUR

ECONOMY IS ABOUT TO COLLAPSE.

[LAUGHTER]

JUST BOOM.

[LAUGHTER]

I BELIEVE ADDING HE, HE, HE OR

MILLION IS LIKE THAT.

-- SOMETHING LIKE THAT I CAN'T

REMEMBER HOW THAT GOES.

ANYWAY, IT TURNS OUT THAT OUR

BIG BANKS, JP MORGAN CHASE,

CITIGROUP, BANK OF AMERICA MADE

A BUNCH OF (bleep) MORTGAGE

LOANS AND BUNDLED THEM INTO

BAILS OF (bleep) LOANS THAT

COMPANIES SOLD BACK AND FORTH TO

ONE ANOTHER AT EVER INCREASING

PRICES UNTIL ONE PERSON REALIZED

WE'RE JUST SHOVELING (bleep)

BACK AND FORTH, RIGHT?

AT WHICH POINT THE COMPANIES

CAME TO US AND SAID IF YOU DON'T

GIVE US $700 BILLION EVERYTHING

YOU LOVE AND HOLD DEAR IN THIS

WORLD WILL TURN TO TANG, THE

ORANGE JUICE SUBSTITUTE ONCE

DRUNK BY ASTRONAUTS.

J.P. MORGAN GOT $25 BILLION,

GMAC GOT $16 BILLION.

IN RETURN FOR THIS IN NO WAY

RANSOM MONEY, THE AMERICAN

PEOPLE WOULD NOW BE THE PROUD

OWNER OF THESE BAILS OF

(bleep).

[LAUGHTER]

SORRY TROUBLED ASSETS.

[LAUGHTER]

WE WOULD NOW BEAR THE RISK OF

OWNING THESE MORTGAGES AND THE

BANKS, THE GUYS WHO GOT RICH

ORIGINALLY SELLING THE LOANS

WOULD STEP AWAY.

[LAUGHTER]

MERELY JUST SERVE US THE

PAPERWORK, HANDLE THE DRY

ADMINISTRATIVE ASPECT OF IT.

WHAT COULD GO WRANG.

DID I SAY THAT? I MEANT WRONG.

>> WRONG SIGNATURES, FALSE

DOCUMENTS, FALSE USE OF NOTARY

PUBLICS.

>> ONE ADMITTED TO BLINDING

SIGNING 10,000 FORECLOSURE

AFFIDAVITS A MONTH.

>> THERE'S QUESTIONS ABOUT

WHETHER WORKERS RUSHED THROUGH

THE PAPERWORK FOR THOUSANDS OF

HOMEOWNERS WITHOUT READING THE

DOCUMENTS.

>> Jon: WHAT THE -- WHAT,

WAIT -- WHAT?

THE BANKSS WEREN'T READING THE

FINE PRINT.

YOU ARE THE PEOPLE WHO CAME UP

WITH IT IN THE FIRST PLACE.

WE NEVER READ THE FINE PRINT.

[CHEERS AND APPLAUSE]

WE DON'T READ THE FINE PRINT ON

ANYTHING.

HAVE YOU EVER SEEN THE LENGTH OF

AN iTUNES CONTRACT?

YOU THINK I'M GOING TO WADE TO

52 PAGES OF CRAP TO GET TO MY

KATY PERRY SONGS.

DR. MR. JOBS, I'VE RETURNED THIS

WILL MARKUPPED iTUNES

CONTRACT.

SUBSECTION 15B CLEARLY VIOLATES

THE COMMERCE CLAUSE.

YOU CLICK ACCEPT AND YOU GET

YOUR (bleep) SONG.

SO FOR GOD SAKE WHAT'S IS IN THE

FINEPRINT?

WHAT IS IN THE FINEPRINT

AFFIDAVITS AND SUCH?

>> THESE AFFIDAVITS ATTEMPT TO

TWO VERY IMPORTANT THINGS.

ONE THAT THEY OWN THE PROPERTY

AND THERE ARE HAD A RIGHT TO

FORECLOSURE AND TWO, THAT THE

PERSON THAT IS THE BORROWER WAS

IN DEFAULT.

>> THAT'S NOT EVEN THE -- YOU

ARE NOT READING THE REGULAR

PRINT.

I IMAGINE NOT KNOWING WHICH

HOUSES ARE ACTUALLY IN DEFAULT

COULD LEAD TO SOME PRETTY WACKY

MISHAPPENS.

>> AN ORANGE COUNTY HOMEOWNER

THOUGHT A BURGLAR WAS BREAKING

IN BUT IT WAS SOMEONE FROM THE

BANK.

>> A MAN FROM THE BANK WAS

REPLACING THE LOCK WHILE CUTTING

IT WHILE THE HOMEOWNER WAS

DIALING 911.

>> A SPOKESPERSON TOLD ME THE

BANK MADE A MISTAKE.

>> REALLY?

A MISTAKE?

SPOKESPERSON TOLD YOU THAT.

IT'S A MISTAKE TO CHANGE A LOCKS

ON THE HOUSE YOU WEREN'T

FORECLOSING ON.

JUST OUT OF CURIOSITY EVEN IF

FORECLOSURE WAS LEGIT YOU KNOW

YOU CAN'T LOCK SOMEONE OUT OF

THEIR HOUSE WHILE THEY ARE IN IT

UNLESS YOU ARE GOING TO CHANGE

THE LOCKS AND TURN THE HOUSE

INSIDE OUT.

[LAUGHTER]

WAS THAT THE IDEA?

LOCK HER IN AND THEN --

[LAUGHTER]

YOU KNOW SINCE WE THE AMERICAN

PEOPLE ARE NOW THE OWNER OF OVER

HALF OF THESE CRAPPY MORTGAGES,

WE CAN DEMAND A HALT TO THOSE

FORECLOSURES, TAKE A BREATH

UNTIL THE PAPERWORK IS

STRAIGHTENED OUT, UNTIL ORDER IS

RESTORED TO THE SYSTEM UNLESS

SOME TYPE OF WEIRD CATCH 22 HAS

BEEN IMPLANTED IN THE PAPERWORK

THAT CREATES A SOPHIE'S CHOICE

SITUATION.

>> IF YOU FREEZE FORECLOSURES

THEY CANNOT GET MONEY OUT OF

MORTGAGES THEY HOLD.

RESULT, WE THE TAXPAYER TAKE A

HIT.

>> IT DELAYS THE FORECLOSURE

PROCESS.

IT PHAOEPBSZ HOUSE PRICES WILL

BE WEAKER AND SO WILL THE

ECONOMY FOR LONGER.

>> Jon: HUH.

SO OUR CHOICES ARE?

WE CAN IMPROVE THE ECONOMY BY

THROWING MILLIONS OF FAMILIES

OUT OF THEIR HOUSES JUST IN TIME

FOR THE HOLIDAYS.

[LAUGHTER]

OR WE CAN LET THEM STAY IN THEIR

HOUSES AND CRASH THE REST OF THE

ECONOMY BECAUSE APPARENTLY NOW

WE HAVE A FORECLOSURE-BASED

ECONOMY.

WE ARE (bleep).

AND THE SAD PART IS RUBE

GOLDBERG HIMSELF COULD NOT HAVE

DESIGNED A MORE CONVOLUTED

METHOD TO IN FACT (bleep) US.

[CHEERS AND APPLAUSE]

THAT LITERALLY LOOKS LIKE A

GREEN CHIHUAHUA'S PENIS.

[LAUGHTER]

MAYBE CONGRESS CAN GET ON THE

CASE AND MAKE IT EASIER FOR

AMERICANS TO CHALLENGE THE

AUTHENTICITY OF TP *RBGZ AND

OTHER DOCUMENTS.

>> THE NEW LEGISLATION MAKING

COURTS ACCEPT DOCUMENTS MADE OUT

OF STATE.

THAT BILL QUIETLY PASSION

THROUGH THE SENATE LAST WEEK

WITHOUT PUBLIC DEBATE.

THAT'S HOW CONGRESS FIXES THE

PROBLEM BY PASSING A BILL THAT

SAYS --

[LAUGHTER]

IS ANYBODY -- IS ANYBODY PAYING

ATTENTION?

>> PRESIDENT OBAMA WILL NOT SIGN

INTO LAW AN OVERLOOKED PIECE OF

LEGISLATION THAT CRITICS WOULD

MAKE IT EASIER FOR BANKS AND

OTHERS TO PROCESS FORECLOSURE

PROCEEDINGS WITHOUT SIGNATURES.

>> Jon: THANK YOU, PRESIDENT

OBAMA.

IT'S CRAZY WH

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