FHA: The new sub-prime

But the Cugnos are very much staying in business. While Premier’s bankruptcy proceedings continue in Tampa, members of the family are employing essentially the same model with their new company, Paramount. Only this time they are stressing federally guaranteed FHA loans. Paramount charges branches $1,625 a month to use its name, FHA license, and software. On its Web site, it tells brokers that FHA loans are “the new subprime.”

U.S. District Judge Richard Alan Enslen in Kalamazoo, Mich., began a June 2007 written opinion about Premier’s practices with this observation: “The crooks in prison-wear (orange jump suits) are easy to spot. Those in business-wear are not, though they do no less harm to their unsuspecting victims.”

[Spiegel]

The gummint has been handing out riches to those few that learned how to really milk the system for, well, forever.

Now, their fraud comes with gummint guarantee.

That is, YOU, Mr. Taxpayer, are on the hook for it.

All of this hot fraud economic action courtesy of the 1 2 3 4 5 6 7 8-Trillion dollar Paulson Bailout package.

Enjoy it!

Marc Faber video [Bloomie]

“All obeservers think that to do something is the best option… nobody has asked if to do nothing is the best option.”

“If you drop from $100/share to 2, it is very easy to go back up to $10, before you go to zero.”

“Central banks have turned into insane asylums.”

“The global economy is imploding– repeat: IMPLODING. You have got to be out of the equity markets by no later than March. There is not going to be a recovery.”


“Remember the rule: businesses which actually create tangible products, as opposed to selling fraudulent securities, are not worthy of being ‘bailed out’.”

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