Tuesday, October 19, 2010

The Weapon Shops Of Isher

The Weapon Shops of Isher By A.E. Van Vogt is one of my all time favorite science fiction books. It tells of a shadowy organization "The Weapon Shops" designed to redress the grievances of a corrupt galactic empire.

It was brought to mind by a story Instapundit linked to about the breakdown in the mortgage market. Middle Class Anarchy. And what a story it is.

On Saturday October 9th the Earls and their attorney followed thru with their previous threats and took the law into their own hands. They hired a locksmith to break into the Mustang home. They had arranged to have t.v. news cameras filming their actions, and then proceeded to hold a press conference stating that they were within their rights and that we (Conejo Capital Partners) had somehow violated the law. All along the Simi Valley Police Department sat idle and refused to get involved no matter how much proof was offered supporting our legal rights and position. We were told that we needed to resolve it in front of a judge even though it had already been decided.
That is the "bank's" side of the story from a news report.

The story asks a very important question. Where did the lawlessness originate? The banks. And despite admitted fraud no one at the banks, or those who were contracted by the banks is being prosecuted. (Just so you know - I'm using "banks" as a sort of generic term for the money movers. Loan arrangers as it were.)

Evidently there is a problem with the law. To wit: judges unaware of the existance of the Constitution.
If the foreclosure was unlawful and initiated with "robosigned" and bogus documents then it was. The Earls apparently attempted to demand a jury trial on the facts (including these facts) and were told to go to hell. Someone hasn't read their Constitution lately - it says that for all controversies exceeding $20, you have a right to a trial by jury (7th Amendment). It doesn't say that if it's inconvenient for a bank and might expose criminal fraud for which bank officers could be imprisoned the judge can tell you to pound sand. That, standing alone, broke the chain of lawful behavior in the instant case.

This is where lawlessness leads us - to more lawlessness. Once you commit a lawless act against someone and are not punished for it you have invited them to retaliate with complete disregard for the law in their response. You are only required to deal ethically and morally with an ethical and moral entity across the table - one who ignores the law loses their right to demand that respect in return.

This mess begins with the securitization and sale of these mortgages in the first instance. It begins with whether or not the original banks actually transferred the notes at all (there's plenty of evidence they did not) and whether the representations and warranties were complied with when these securities were sold to investors (we know in many cases - if not all - they were not, from FCIC sworn testimony.)
A very hard rain is going to fall. In fact I predict 20 ton (metric) blocks of hail.

The article closes with:
We are not far away from a complete and total breakdown of lawful behavior among the population of this nation. If it happens, it will not be because of people like the Earls. While I cannot recommend a lawless response to any insult suffered by people like them I will understand what has happened and why - and who's to blame.

This has and will in the future occur because the government has refused to enforce long-standing laws against "favored people", allowing the general public to be asset-stripped mercilessly through various connivances and frauds, even though such conduct is blatantly unlawful - and the people have simply had enough of being treated like a turkey drumstick at an amusement park.

The blame for this incident and those like it rests squarely with Mr. Holder, President Obama, Tim Geithner, Ben Bernanke, President Bush, Hank Paulson and the 50 States Attorneys General who have all refused, collectively, to prosecute the rampant lawlessness in our financial system for the previous two decades - and are still refusing today.
You know. This sort of thing is enough to turn elections. And if that doesn't cure the problem we should consider ourselves lucky that America has plenty of trees. And matches (well lighters mostly these days). And fire arms. Fortunately only a moderately enraged populace so far.

I am definitely in favor of seeing this mess solved without violence, arson, or any of the other of the Devil's tricks. But that means the devils who caused this mess must be constrained and then banished. Because unrestrained deviltry breeds more Deviltry.

Cross Posted at Classical Values


Nick said...

I don't know if you've seen this today:


It's funny that banking system is starting to eat itself. I've been laughing at all the news commentary that we shouldn't have a moratorium on foreclosures because it will hurt the banks. What are they trying to hide? It's becoming common knowledge that the banks had absolutely no underwriting standards on the front end and then committed fraud on the back end. It's almost like the system is due for a hard reset.

M. Simon said...

Here is Nick's link:

Federal Home Loan Bank of Chicago sues B of A, others

Kind of reminds me of the market turmoil in '08.