The Two Great Financial Mysteries of Our Time: Missing Money and Collateral Fraud

Whatever discrepancies existed between the official U.S. government financial statements and real debt outstanding before the housing bill, my guess is that such discrepancies are now suddenly much bigger after the housing bill. In other words, we are in the process of merging all outstanding mortgage fraud with existing U.S. government securities and collateral fraud. Add to that the assumption of the back-door liabilities protecting all of JP Morgan Chase and the New York Fed member banks’ positions on cleaning up Bear Stearns and maintaining large derivative positions, including in the mortgage and precious metals market. Now add to that whatever collateral fraud is embedded in the Fannie Mae and Freddie Mac portfolio plus significant increases in liabilities at FHA.