The Residential Mortgage Backed Security Business in America
Question: Is this business beneficial to America?
Pro -Dramatic increase in profitability of financial sector
Ability of Large Investors to make profits in previously inaccessible business segment of residential realestate.
Protection from investor loss due to poor individual decisions
Con -Unregulated profit taking activity has negatively affected
Unregulated profit taking activity has negatively affected
Portfolio failures have been more widespread than expected
The widespread failure of portfolios are inevitably expected
to negatively affect investors in the future.
These secutirties are widely held by long term funds such as
pensions and annuities, which should also be expected to failure
in the future.
Negatively affected individuals have been referred to as foam on
the runways by the US Treasury SEC officials, who are
Large Institutions have been protected from loss by the US Treasury
and Congressional Oversight, by printing large amounts of debt
Our answer is NO - This business is not beneficial to America
Question: Can this business be regulated in America?
Pro: -Congress has augmented the regulatory resources of the Department of
Justice by creating the CFPB and extensively rewriting RESPA
Con: -Extensive levels of corruption in both the executive and judicial
branches of government, and the people in those branches, have
been and are continually being exposed by grass roots organization
all over America
About 60% of the industry has paid record fines and assessments,
responsible for >75% of the income of the Department of Justice,
and responsible for <1/8% of the income of the large financial
institutons who do the work.
The smaller financial institutions who play too close to the edge
and naturally fail, are immediately absorbed by the larger
surviving institutions, who continue operations uninterrupted.
Our answer is NO. Not until we hire some regulators with some balls.
Our answer s YES. The American people have in the past shown they
are willing to do whatever is necessary to end corruption.