What's Behind the Foreclosure Crisis

By Numerian

"MERS acts as nominee in the county land records for the lender and servicer. Any loan registered on the MERS® System is inoculated against future assignments because MERS remains the nominal mortgagee no matter how many times servicing is traded. MERS as original mortgagee (MOM) is approved by Fannie Mae, Freddie Mac, Ginnie Mae, FHA and VA, California and Utah Housing Finance Agencies, as well as all of the major Wall Street rating agencies." About theMortgage Electronic Registration System, MERS

The foreclosure scandal surrounding the US financial industry is being portrayed by the banks as a technical problem which requires that some documentation errors be fixed. The White House has rejected the calls of many in the Congress for a nationwide moratorium on foreclosures on the grounds that there are quite a lot of them that are legitimate and should be processed. Government officials say it is going to take just a little bit of time to sort out these from the flawed foreclosures.

What is DeLeveraging?

swarmsAll of a sudden words are buzzing like flies over the carnage.   Swatted and flying in rapid succession from analysts everywhere is the term  DeLeveraging.   Now what kind of beige, innocuous glossing over term does that imply on what's really happening?    Seeking Alpha defines deleveraging as Feedback Loops Gone Wild.    Ok, so what does that mean?

Virtuous circles (and their accompanying animal spirits) give way to vicious cycles, in which lower prices beget write-downs, which beget lower prices

Zacks tells you it's when:

Money goes to money heaven