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Freedom Fighters Dunstan Prial, Lynn Parramore, and Nicole Neily on why Ben Bernanke’s attempt to centrally plan the recovery may be in for a rude a...
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That's it finally nailed down a deal with the nation's five largest mortgage processors leaving them on the -- to cough up a cool you ready for this.
25 billion dollars as punishment for alleged robo signing a foreclosure documents.
Government officials are telling Nebraska -- -- the settlement was service punishment for the banks and resurrect some of the nation's hardest hit neighborhoods we will see.
Here not to discuss -- my freedom fighters Fox Business senior correspondent and my colleague -- trial.
Live Barrymore all turned net senior editor and Nicole -- -- from the independent women's forum where she is the senior fellow.
What the -- this -- this maintenance and judge who we were left and we could do the whole show one slept on and inserted it isn't it where and where you Begin you didn't give me the shorting next.
Well yes it's crazy it's it's almost surreal.
You start with the idea is is.
Robo signing was it a 26 billion dollar scandal.
Or was it an unfortunate full out from the bursting of the housing bubble for years ago when you get to the 26 billion dollars it's a great headline figure.
It doesn't really help that many people you're talking about 2000 dollar checks to large number of people and maybe 20000 dollars in reducing of of people's mortgages.
OK so robo signing occurs where people forget to summon enough copies of documents they did -- the house they did borrow the money they did agree to pay it back.
And they did stop paying -- back but the copy of the documents -- the bank has doesn't have their signature on the signature exists somewhere.
Is -- that they had that the banks stamped original sign that's what these stamps said it was a forgery was a stamp saying the original signed.
Well I I think that's a problem fed.
And I think that's a problem but -- that the loans that were made to people under false pretense is has also been a problem that's not what this is -- -- now in it it's what it should be about -- and frankly I think there was some cases in which you could argue that for three occurred and I -- -- to -- I'm going to -- you have to pay my -- I am not gonna get off -- -- only get a lot of get out of jail free -- So the call -- isn't this going to encourage.
More of the same reckless behavior for people who will say while Barack Obama might not be the president but Weber as the president will.
Bail me out just -- bailed me out when my house one underwater this time.
Yeah at -- -- for this situation moral hazard we are basically telling people that have their irresponsible will fix that Uncle Sam will step in and help solve their problem.
Meanwhile what we're doing is we're actually penalizing future borrowers because.
Who wind up paying for that the -- have left capital well actually have less money to lend to borrowers who actually are responsible so.
This is generally redistribution scheme -- you Jabbar is -- this.
Dumpster and why do the bank's cave like these five banks in the fifties sit here in court you proved to would surely.
That this robo signing was worth 25 billion well I guess there's a couple of reasons -- reasons they -- gave it is because they've got this huge inventory of foreclosed homes sitting in their back -- they need to get this.
Settled so they can get those foreclosed -- get this matter closed and get those out on the market another reason is I feel they wanted to get rid of it.
Two was sort of cover up the fact that they work with some serious crimes that occurred five years before.
They -- we're happy to sell 25 billion on this rather than be accountable for some of the shenanigans that aren't -- -- so the day after the bank's cost of the 25 billion what happens the same federal government to whom they quote of the twenty fed believes that we're gonna see you again.
Because you sold mortgage backed securities without telling people what their true value was -- gone after all the banks that once they might kind of cooped up 25 billion -- -- on a second lawsuit was coming.
Yeah I think this settlement is that on so many different levels and I think that people should be going to jail and I think that this is a slap on the wrist today tell because that much money people comparing it to the tobacco settlement that was 250 billion efforts are.
-- -- switching -- you know all of it thank you all of the major stock indices have been on -- -- so far this year.
With the Dow the NASDAQ and S&P 500 all up over 5% since January 1.
Gold is up 11% today.
Fears rippling along Wall Street this week at the -- of the stocks is nothing more than investor desperation to make a buck.
In a low yield environment centrally planned by everyone's favorite central planner and uncle and Ben Bernanke that it is -- a classic case of unintended consequences.
Good mr.
Bernanke's pledge to keep interest rates at near zero.
Through 2014.
Actually bring on a massive market correction -- even if who's gonna do this.
Even if you believe in the Fed even if you think he should have -- to -- it.
Why would he say.
So far in advance interest I'll never gonna change the pledges a strong word it's not really pledging to forecast -- make clear in his last press conference a week or two ago that we are forecasting.
That given the circumstances of our economy right now we will need to keep interest rates at this rate until 2014 he -- straight up if we need to raise them before then we will -- market forces Nicole possibly detained by central bankers have a we'd learned the lesson that that's simply cannot happen.
Obviously we have not learned the lesson this is just another example in serial Huber as the fifth.
People think -- the masters of the universe outsmarting market unfortunately it's like leaving ample time.
And they're just you know we're gonna -- out a way around it so it's not surprising but it's unfortunate do you like this.
Public be great Milton Friedman was very can Wear them and then when you Barrymore is quoting I don't I glance like me quoting I don't -- happy he realize that the Fed didn't act quickly enough.
In the Great Depression two you know ease money into the Sargent -- so you didn't Bernanke learned that -- and and that's why he's doing that and and what good has come from Ben Bernanke adding trillions into the market well -- is one could argue that it prevent this from going into -- Great Depression now I believe that in addition to monetary policy we have serious problems with our fiscal policy in the central -- and the.
Those and those banks that came to the feds yesterday they love this up because that cash flows through that well I mean that your -- Capitalist the people you're concerned about -- right as we said.
There are trillions of dollars sitting on the silent it was afraid that it's going to be a major correction that Europe is gonna wonder I'm not so concerned about that there is trillions about sitting on the sidelines that's gonna keep stock market's moving along at a rather healthy pace -- the foreseeable future we'll this madness never end the -- nearly no matter who's president -- it's Ron Paul.
You can't because I think -- -- Harry Johnson I think they're the ones you'll actually take a step back and say we can't do that we need to let.
We need to let the markets are signaling -- myself without us intervening.
Now we have -- -- -- wanna see how far can push you should we audit the Fed should we don't truly what uncle that is doing actually let them do whatever it wants and let the cash prop -- where we're pop yes while we did needed central bank and Brittany earthquake in Japan -- that it -- Central Bank is money into the system prevent Iran banks that yes the way are fed is run.
We need to audit it needs to be restructured absolutely -- -- -- so when liberals Democrats conservative Republicans progressives and libertarians agree.
Why isn't like you don't have to answer that Nicole I'm nearly done some profits that are more it's a pleasure guys thank you very much for joining us --
