The Market Ticker – Where Have I Seen Multiple Pledges Before?
(Reuters) – Chinese banks and companies looking to seize steel pledged as collateral by firms that have defaulted on loans are making an uncomfortable discovery: the metal was never in the warehouses in the first place.
China’s demand has faltered with the slowing economy, pushing steel prices to a three-year low and making it tough for mills and traders to keep up with payments on the $400 billion of debt they racked up during years of double-digit growth.
As defaults have risen in the world’s largest steel consumer, lenders have found that warehouse receipts for metal pledged as collateral do not always lead them to stacks of stored metal. Chinese authorities are investigating a number of cases in which steel documented in receipts was either not there, belonged to another company or had been pledged as collateral to multiple lenders, industry sources said.
So let’s see….
We pledge the same mortgage more than once, we in fact get paid for it more than once, we then basically steal the other instances of the money (other than one of them of course) and then when the entire pyramid scheme we constructed threatens to collapse (because there is no collateral behind what we did and our bets have gone bad) by cry poor-mouth and armageddon and threaten to blow up the financial world unless the Federal Government and Fed borrow, spend and QE to the moon to cover up the gaping hole in our balance sheet.
This sort of abject, outrageous fraud leads to zero indictments, zero prosecutions and zero incarcerations.
So then it’s done again, this time in China with a bunch of pledged steel that allegedly is there to cover loans written against that. Except just as in the case of mortgages the steel never exists either as it was pledged more than once or simply was invented out of whole cloth (instead of being invented out of iron ore and chromium!)
I’m impressed. No matter where I look, all I find is a Ponzi scheme complete with falsified documents (E.g. PFG Best, et.al.) whether it be warehouse receipts, allegedly-good “bonds” that are printed on toilet paper and are abject frauds, mortgages that are pledged, diced and sliced more than once effectively “multiplying” them (although there is in fact only one debt) and now we have steel that never really existed but there is a warehouse receipt for the illusory, invented, magical coil.
And we wonder why China is trying to gin up a war with Japan?
Maybe it’s because they’re teetering on the edge of financial collapse as virtually everything in their economic system is a fraud…….
Now there’s something to to think about, and it should be quite-sobering when you realize that we’re only marginally better in this regard than they are.
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“Whimsical” is the word that comes to mind with the post I just read from Robert Wade. Sure, we all want all those things but are they going to happen just by writing them down on paper? Obviously, NO. I just find that after reading the post leaves me with OK??? What now??? I’ve heard this all before. Do something…yes, join the revolution. Prosecutors are not going to dump anything since Wall Street runs the government and at the same time Wall Street has dominion over all political aspirations so none of the bad ones will be going anytime soon! I think it’s great that you have such an ambition to higher education but considering the current state of our children WITHOUT the proper education would it not be better to “donate” those $$$ spent to the educational system that would profit LOTS who don’t have the means by which you do? Just sayin’…. mtcw
When we bought (alledgedly)our first home we didn’t know how, so we hired a broker and actually had an atty present for so-called clWhat I discovered years later was (On a VA loan) the broker became the lender and assigned mers immediately. We were not privy to this as different papers were presented to us. I got our credit report and much to my surprise there were multible loans taken out at origination and not recorded at all as required by state statute. Broker claims they only have to keep paperwork for three yrs. Atty. at closing has no knowledge of what transpired but is willing to “make an appiontment to look over paperwork”, of course at our expence. So neither did their “Fudiciary Duty” and are subject to being sued, especially atty. for malpractice.Hence i am not surprised at anything at this point and the multiple pledging is just one more in a slew of practices to keep ponzi scheme afloat, soon it will collapse and these too big to fail and too big to jail will be exposed for what they are, INSOLVANT.
Their credit system is not a monetary system as the Constitution (the law) requires…but it is also insolvent because these WALL STREET CROOKS committed a quadrillion in fraud by overselling sham investments with our signatures, without our knowledge, This credit system IS A FRAUD…..IT IS Unconstitutional & Illegal. Thats what they are hiding. The WORLD BANK/FED/CENTRAL BANK IS A CREDIT RACKET AND IT IS CRIMINAL…
Romney’s comments, the real truth about a person is by his actions or (comments) so it seems to be business as usual in the land of plenty with the privelege gaining even more of a hand hold on the reins to guide America in to further darkness with no regard. To many good people are thrown to the wolves. If being responsible is knowing what is going on within the government than there is a lot of good people that would take up the challenge and go to work recovering this country to good health once again. Let the prosecutors do the job that they are skilled at and dump the garbage where it belongs in the dump. Let those that obey the law remain in place and the one’s that don’t will have to go. Restore law and order once again and start at the top.No more self-serving personalities with self-serving buddies to assist them while stepping on the lower ranks of good citizens that actually support this country. Good people must learn the law and take up the challenge through the law and not expect to have someone else to do it for them to succeed for the necessary change in this country. Do something about this mess.
Robert Wade (going to school).” At the age of 70. “