Maxine Waters accuses banks of “fraud”; anyone in foreclosure must’ve been “tricked”

Maxine Waters accuses banks of fraud; anyone in foreclosure must’ve been “tricked” by the banks (they’re evil, of course) and the banks must be forced to re-modify the loans and take a financial loss. Nobody, you see, could possibly have purchased a home they couldn’t afford, and before the housing market tanked. The banks Maxine Waters helped to force into making loans, assuming the housing market would go up forever, are the ones who must lose;

Rep. Maxine Waters (D-Calif.), a senior member of the House Financial Services Committee, suggested the recent epidemic of foreclosures are a result of collusion in the banking industry.

“This is massive collusion and fraud,” she said during an appearance on CNBC.

“It’s proven by the fact that you have millions of people in foreclosure who should have never been in foreclosure,” she added. “This just didn’t happen because there were a lot of irresponsible people. Think about it, this is unprecedented that this many people, all of a sudden, would be in foreclosure.”

Waters is pushing for a national moratorium on foreclosures as Congress and state attorneys’ general look into whether banks have been sufficiently diligent in deciding how to lend and when to foreclose on mortgages.

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Mad Maxine was on CNBC, and actually detailed her “thoughts” on how these mortgages could be redone to favor those in default who don’t pay over those that do. Believe it or not, her staff posted her appearance on her own YouTube channel;

The video is translated by Moe Lane;

* Rep. Waters thinks that you can create a law requiring the banks to use alternatives to foreclosure in defaults and not mandate that somebody loses money in the process. This caused the first of many pauses in the interview.
* When asked whether people with underwater mortgages who are paying their mortgages anyway might be bugged at the notion that people who aren’t are going to get consideration, Rep. Waters… I don’t know; my nose started to bleed at that point and I lost consciousness.
* There is a horde of Attorney Generals just waiting for Rep. Waters to release them upon the bankers! OK, that one is sorta-kinda not completely and abjectly untrue.
* And, by the way, this entire foreclosure thing is the result of “massive collusion and fraud” by the banking industry.
* The CNBC guy – the CNBC woman did her best, but Rep. Waters apparently thinks ‘moral hazard’ is a golf term – made the mistake of pointing out that you can’t actually assume fraud as a default option, and there’s a lack of actual proof. Waters response? “It’s proven by the fact that you have millions of people in foreclosure who should have never been in foreclosure… This just didn’t happen because there were a lot of irresponsible people. Think about it, this is unprecedented that this many people, all of a sudden, would be in foreclosure.”
* The use of the term ‘collusion’ is the problematical thing for the Democrats, here. While fraud doesn’t necessarily require a conspiracy, collusion is the backbone of one.

So. Instead of the obvious – too obvious! – answer that our current foreclosure crisis was the result of the government foolishly encouraging people to take out mortgages that they couldn’t afford, compounded by a governmental willingness to stomp on any attempts to put the brakes on that policy, and further compounded by the willingness by both the government and the banks to keep kicking the problem down the road… we get a banker conspiracy. And all those poor government officials and legislators… well, their mistakes were of omission, not commission.

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Time to get Maxine Waters out of Congress, help Bruce Brown out as soon as you can.

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About Erick Brockway

Living in Camarillo, CA, about 45 miles North of LA. I have a son, and two daughters. Working two jobs (welcome to California life), plus a (now retired) reservist in the US Navy Seabees so life is busy!
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