Chris Whalen on Foreclosuregate

Chris Whalen:

“Every time there is a foreclosure someone stops paying their property taxes.”

“Barack Obama is walking in Herbert Hoover’s shoes. They’re making the same mistakes, almost unconsciously.”

“We’re going to have state moratoria the way we did in the ’30’s. The governors of those states are going to say ‘folks stay in your homes, keep paying your property taxes, default on your mortgage. This is Washington’s problem.'”

“MBS holders are calling their lawyers.”

“There may not in fact be any collateral underneath these securities.”

“Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.” -advice of US Secretary Andrew Mellon gave to his President Herbert Hoover in 1931.


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