Is Fraud Closure About To Claim Its First Victim - First Horizon Plunges

Is Fraudclosure About To Claim Its First Victim: First Horizon Plunges After Subpoena Disclosed As FHFA Announces No Reserve
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Investors in FHN are not very happy after it was just announced
Username: * that the the bank has been subpoenaed by the FHFA, conservator
for the GSE, in connection to ongoing probe; and further allegations
that it may be unable to determine probable loss, and that no
Password: * reserve was established. Oops. And here we were thinking that the
recent subpoenas disclosed as launched by the FHFA (which also
target JPM among others, and obviously First Horizon) would result
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was the SEC sacrificial lamb in regards to HFT, so FHN may be
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From the just released 10-Q:
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may or may not result in claims based on
representations and warranties. Since the The Zero Hedge Team
investigation is neither a repurchase claim nor litigation,
the associated loans are not considered part of the Tyler Durden - Founder
repurchase pipeline and FHN is unable to estimate any Marla Singer - Foil
www.GoSolarUSA.com liability for this matter. At the time this report is filed, Travis - Author
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FHN was a defendant in lawsuits by three investors Cornelius - Author
in securitizations which claim that the offering Sacrilege - Senior Researcher
Zero Hedge Reads documents under which certificates were sold to
them were materially deficient. Although these suits
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are in very early stages, FHN intends to defend itself
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vigorously. These lawsuit matters have been analyzed
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and treated as litigation matters under applicable
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loss due to the uncertainty related to these matters Inquiries.
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and no reserve had been established. Similar claims abuse [ at ] zerohedge [ dot ] com - Abuse /
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may be pursued by other investors. Infringement Issues
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fraud or negligence in the underwriting or origination of
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typically provide the investors with a right to +41 43 501 6717
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Investing Contrarian closed. Investors generally are required to coordinate
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Market Folly of the voting rights in certificates issued by the trust to
pursue claims for breach of representations and
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warranties through the trustee under the applicable trust
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agreement, and generally are required to indemnify the
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trustee for it’s costs related to repurchase actions taken.
Naked Capitalism GSEs were among the purchasers of certificates in
Of Two Minds securitizations. As such they are covered by the same
OilPrice.com representations and warranties as other investors.
Pension Pulse However, GSEs acting through their conservator,
Shanky's TechBlog under federal law are permitted to pursue such
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claims independently of the other investors.
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Also unlike loans sold to GSEs, interests in

Trader
securitized loans were sold as securities under
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prospectuses or other disclosure documents subject
The Technical Take to the disclosure requirements of applicable federal
The Underground and state securities laws. As an alternative to
Investor pursuing a claim for breach of representations and
Wall St. Cheat Sheet warranties through the trustee as mentioned above,
Washington's Blog investors could pursue a claim alleging that the
Wealth.net prospectus or other offering documents were deficient by
When Genius Prevailed containing materially false or misleading information or
by omitting material information. Claims for such
disclosure deficiencies typically could be brought
under applicable federal or state securities statutes,
and the statutory remedies typically could include
rescission of the investment or monetary damages
measured in relation to the original investment
made. If a plaintiff properly made and proved its
allegations, the plaintiff might attempt to claim that
damages could include loss of market value on the
investment even if there were little or no credit loss in
the underlying loans. Claims based on alleged disclosure
deficiencies also could be brought as traditional fraud or
negligence claims with a wider scope of damages
possible. Each investor could bring such a claim
individually, without acting through the trustee to pursue
a claim for breach of representations and warranties,
and investors could attempt joint claims or attempt to
pursue claims on a class-action basis. Claims of this
sort are likely to be resolved in a litigation context
in most cases, unlike most of the GSE repurchase
requests. The analysis of loss content and
establishment of appropriate reserves in those cases
would follow principles and practices associated with
litigation matters, including an analysis of available
procedural and substantive defenses in each particular
case and an estimation of the probability of ultimate
loss, if any. FHN expects most litigation claims to
take much longer to resolve than repurchase
requests typically have taken.
At September 30, 2010, the repurchase request pipeline

contained no repurchase requests related to securitized
loans based on claims related to breaches of
representations and warranties. FHN has been
subpoenaed by the FHFA, Conservator for Fannie
Mae and Freddie Mac, related to investments made
by the two GSEs in six proprietary securitizations
issued in 2005 and early 2006 in connection with an
ongoing investigation which may or may not result
in claims based on representations and warranties.
The original and current (as of September 30, 2010)
combined certificate balances related to Fannie Mae
investments were $443.2 million and $194.0 million,
respectively. The original and current (as of September
30, 2010) combined certificate balances related to
Freddie Mac investments were $842.0 million and
$402.1 million, respectively. Since the investigation is
neither a repurchase claim nor litigation, the associated
loans are not considered part of the repurchase pipeline
and FHN is unable to estimate any liability for this
matter.
At the time this report is filed, FHN was a defendant in

lawsuits by three investors in securitizations which claim
that the offering documents under which certificates
were sold to them were materially deficient. Although
these suits are in very early stages, FHN intends to
defend itself vigorously. These lawsuit matters have been
analyzed and treated as litigation matters under
applicable accounting standards. As of September 30,
2010 and at the time this report was filed, FHN is unable
to determine a probable loss or estimate a range of loss
due to the uncertainty related to these matters and,
accordingly, no reserve had been established. Similar
claims may be pursued by other investors.

At September 30, 2010, FHN had not reserved for

exposure for repurchase of loans arising from
claims that FHN breached its representations and
warranties made at closing, nor for exposure for
investment rescission or damages arising from
claims by investors that the offering documents
under which the loans were securitized were
materially deficient.
You read that right: complete lack of preparedness for

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by bugs_
on Mon, 11/01/2010 - 12:28
#691031
shredding party tonight!!
Login or register to post comments
by Comrade de Chaos
on Mon, 11/01/2010 - 12:46
#691084
tonight might be too late...
wonder how many executives of.. were trick or shreding the other
night.
by cdskiller
on Mon, 11/01/2010 - 12:52
#691100
Let's do it at my place! I've got a 52 inch plasma. We'll watch some

Monday Night Football, snort some coke, squirt shredder lube all over
the hookers, it'll be great!
by Fish Gone Bad

on Mon, 11/01/2010 - 22:21
#692357
+1 That made me laugh.
by Bigger Dickus
on Mon, 11/01/2010 - 12:29
#691035
Next to go: Wells Fargo.
Fuck you Warren "Mr Magoo" Buffet and the horse you rode in on.
by johngaltfla

on Mon, 11/01/2010 - 13:10

#691153
HSBC isn't exactly sitting pretty either. Then again, if you could see
the empty buildings down here that I lovingly call "RF's AAA
Portfolio" it woudl blow your mind.
Wilmington Trust though was the first to duck and cover....
by Bigger Dickus
on Mon, 11/01/2010 - 13:15
#691168
where is "down here"?
by johngaltfla
on Mon, 11/01/2010 - 13:17
#691174
Florida: From north of Tampa to Marco Island (Naples).....the

banks are still holding them at 100% of original valuations
on the books. Houses though are being liquidated at 55-75%
off original first lien issuance.
by aerojet
on Mon, 11/01/2010 - 13:38
#691255
God damn, I hope so! Those fuckers have been lying that their shit
don't stink for too long.
by Cognitive Dissonance
on Mon, 11/01/2010 - 12:32
#691038
Very interesting that I've been asking First Horizon to "Show me the
Note" for the last 6 weeks without any substantial reply.
Where's the beef?
http://www.youtube.com/watch?v=Ug75diEyiA0
"Hey, where's the beef? I don't think there's anybody back there."
by centerline
on Mon, 11/01/2010 - 12:35
#691053
CD, my mortgage was bought by FHN and sold off a few years later
to another company. Guessing my paperwork is in the same black
hole (or a neighboring black hole). Please keep us posted of
anything new on your "show me the note" story. Thanks.
on Mon, 11/01/2010 - 12:44
#691079
It appears that the FHFA might get some answers faster that I'll
be able to. So much the better........I hope.
Unfortunately I still think that, once the elections are behind us

and the markets are deliberately tanked to create panic and the

political need to "do something", the lame ducks will roll out a
political solution.
I don't want this to happen, but it fits the Modus Operandi of the
Ponzi.
http://en.wikipedia.org/wiki/Modus_operandi
by centerline
on Mon, 11/01/2010 - 12:48
#691089
Wouldn't be surprised. Unfortunately.
by Mr Lennon Hendrix
on Mon, 11/01/2010 - 13:02
#691125
Some desperate act will be measured.
by Rick64
on Mon, 11/01/2010 - 12:43
#691076
You might have to give them some more time, I think they are
going to be really busy for a while.
on Mon, 11/01/2010 - 12:47
#691086
I've begun to deposit the mortgage payment funds, beginning

with the one due Friday, in an escrow account along with an
extra 15% for various "fees" they will insist on collecting. I
consider the 15% my "entertainment" expenses.
I'm willing to go to the wire on this one.
by Rick64
on Mon, 11/01/2010 - 13:02
#691129
Best of luck to you, but I side with you on your above post
that after the elections it will be resolved in a pro-
establishment resolution.
by aerojet
on Mon, 11/01/2010 - 14:22
#691363
Exactly. Economics means you get screwed.
by MachoMan
on Mon, 11/01/2010 - 13:47
#691287
Did you arrive at this decision through legal advice? Are you
planning on selling your home/in the process of selling?
Have you combed through (spaceballs) your note and
mortgage documents for your rights regarding determining

the holder of your note/mortgage? Do you have a state

statutory scheme that will award you damages for when your
bank does this? Do you think that you are not being
provided credit for your principal payments or are otherwise
being defrauded by a person/entity pretending to be the
servicer of your note/mortgage? Just curious at how you
arrived to go that route.
on Mon, 11/01/2010 - 14:24
#691362
Just curious at how you arrived to go that

route.
I flipped my highest quality Gold Eagle in a best 5 out of

9 series a la the SCOTUS. Heads I won, tails they lost.
Obviously I won and based upon my "research" I decided
to go to the mattresses. :>)
In fact I spent serious coin seeking legal counsel. After

much discussion and research, I made the decision. It
doesn't get really serious for a few months so I can
always chicken out. :>)
Do you think that you are not being

provided credit for your principal payments
or are otherwise being defrauded by a
person/entity pretending to be the servicer
of your note/mortgage?
Actually I do. I've been having problems getting proper

mortgage interest paid tax documents since the first
time the mortgage was sold. It got so bad that last year
I was audited because the IRS was receiving conflicting
info from multiple mortgage companies. So obviously the
IRS decided I was defrauding them because mortgage
companies never ever make any mistakes or perpetuate
fraud.
Both my attorney and I suspect my mortgage was sold

multiple times to multiple parties at the same time.
by MachoMan
on Mon, 11/01/2010 - 15:30
#691541
Sounds like that in and of itself is enough of a

justiciable issue to not get you thrown out on your
face... my big issue for so many people wanting to
know where their notes are, where are your
damages? Harassment/defamation/etc. from the
IRS is enough to get a judge or jury to feel your
pain... practically speaking, that's probably all you
need.
Best of luck. Always interested to hear stories from

the trenches. I'm about to get fed up too...
although I doubt my employer will allow me to
pursue the case, given the obvious considerations,
against our city... for being fuckwits on city
employee retirement obligations... (at best).
on Mon, 11/01/2010 - 17:11
#691771

my big issue for so many people

wanting to know where their notes
are, where are your damages?
See, this proves to me you really are an

attorney. Because I talked to three attorneys
(plus my attorney sister, so call it 4. I did not
retain my sister in case you are wondering) and
they all said the same thing. You must show
damages or you will be dumped quick by an
impatient judge. Yet this is the last thing the
layman thinks about because we laymen just
think about justice for the good guys. We don't
understand that it's always about damages.
Harassment/defamation/etc. from
the IRS is enough to get a judge or
jury to feel your pain... practically
speaking, that's probably all you
need.
And that has been documented very well be the

IRS. BTW after the audit they owed me $1400
additional because I had been conservation in
expense recognition and during the audit I
pushed through some stuff I didn't originally
take on the original 1040. That was last year
and they still haven't sent me my money. My
lawyer has that. They will now be paying the
legal collection fees if at all possible.
by MachoMan
on Mon, 11/01/2010 - 17:26
#691792
The good attorneys will tell you to your face

you don't have a claim and will not take
your money just to play with the train set
for a while... have to do this all day, every
day. I see so many attorneys (a helluva lot
on the other side unfortunately) who just
milk the shit out of clients in loser cases...
they don't have a damn prayer of winning
except their clients don't know it... they
make a good enough appearance and all to
thwart malpractice/other claims, but the end
was pretty much certain from the start. I
prefer to weed out the stinkers on the front
end. Also, helps to have clients for many
years (i'm a scrub, but my employer has
been successful at this) because you know
whether their recollections are correct or
subject to crawfishing on the stand.
by RockyRacoon
on Mon, 11/01/2010 - 16:47
#691730
You realize, of course, CD that a few of the folks in

the ZH peanut gallery will now place you in the
"dead beat" category. I say, "Eff 'em!". I had a
second mtg with FHN that is now paid off. It was a
15 year balloon and I paid them an extra $500
monthly often to pay it down and avoid a balloon. It
is paid off 7 years early. I have yet to hear a peep
from them and have gotten no satisfied wet note to
file at my Court House. My current mtg is a 1st with
Wells Fargo and I have asked for the requisite
documents on my loan.

We'll see!
on Mon, 11/01/2010 - 17:01
#691758
You realize, of course, CD that a few

of the folks in the ZH peanut gallery
will now place you in the "dead beat"
category.
Alas, I've been called worse here. But even I

can't hit the qualifications of "dead beat" since
I'm placing the money in an escrow account that
needs my signature, that of my attorney and the
mortgage company to release the funds. Wish I
could spend it on iPhones, iPads and 48" LCD
TVs. :>)
I have yet to hear a peep from

them and have gotten no satisfied
wet note to file at my Court House.
It's my understanding that Raccoon's like

everything "wet", so maybe it's you RR and not
your 2nd Mtg holder that's the problem. :>)
by Fish Gone Bad

on Mon, 11/01/2010 - 22:30
#692377
I wouldn't use the name deadbeat, I am

thinking clever. This is actually following
rule #3 - Plan ahead.
by RockyRacoon
on Mon, 11/01/2010 - 23:26
#692450
The dead beat cognomen is applied by those

holier-than-thou types who will trash you for
any infraction.
by Milestones
on Mon, 11/01/2010 - 17:51
#691836
COOL!!! Out here in the west--Put your nmoney where your

mouth is!! The snowball is starting to roll. Five thumbs up
Cog. Milestones
by Admiral Bolitho
on Mon, 11/01/2010 - 21:16
#692219
Pretty risky entertainment. The common law usually sides

with the lien-holder despite "technical" issues. My bet is the
banks will win in the courts on this one---equity will demand
it!

by Fish Gone Bad

on Mon, 11/01/2010 - 22:33
#692382
"Both my attorney and I suspect my

mortgage was sold multiple times to multiple
parties at the same time."
Using the escrow account shows good faith. The bank

can indeed win, but only one of them.
by RobD
on Mon, 11/01/2010 - 12:49
#691091
My mortgage payments used to go to FH and now go to Metlife so

my note may be doubly forked. LOL
on Mon, 11/01/2010 - 13:10
#691148
My 5 year old original mortgage has been "sold" 4 times, only

recently ending up in the lap of FH. So I'm pretty certain the
beef has been lost. None of the "sales" my mortgage has
experienced (and they were sales, not just change of servicers)
were ever recorded in the county where I live. In fact, as far as
the county is concerned, my mortgage is still where it started.
I had a conversation with the Clerk of the Court, who is

responsible for recording the "sales", and she says the county is
interested in "recovering" the lost fee income from all those non-
recorded "sales". And mine is not the only "sale" they suspect
hasn't been recorded. The county just allocated $250,000 for
legal fees to "investigate".
Oh good, someone else wants to party with me. :>)
by MachoMan
on Mon, 11/01/2010 - 14:14
#691341
It has been longstanding law here, and I suspect in virtually

all states, that a defective mortgage (unrecorded, improper
acknowledgment, etc.) may still be imposed upon the party
signing it... it just may not be recorded in its defective form
and given priority among lienholders...
I've said it once, I'll say it again, the big issue in all of this,
from a property law perspective (not securities), is priority of
lienholders. In the case of a transfer that does not pay the
requisite transfer tax, then the subsequent purchasers will
likely be divested of priority to those who properly paid their
tax... the only other possibility is to dump everything back
on the original mortgagee and pretend nothing happened
and hope you can rest on first priority (doubt a court buys
this one).
Regardless, J6P is still on the hook, the only question is who

gets to take whatever they can out of his house/land. My
guess is that the seconds and thirds of the world are more
valuable than presently thought... but, of course, these are
likely hopelessly underwater also, so it really doesn't matter.
Further, given the counties can't track down all the

subsequent transferees (they have no idea) and this
documentation will not be forthcoming, the counties are
going to attempt to tax the present owners, if anyone, for
the difference and let the present owners sue the banks/go

through discovery to try and get the money back. Taxing

authorities throw out "sky hooks" as my boss likes to call
them all the time... It's then up to the taxpayer to come up
with a defense. (obviously the present owner is going to
prevail unless all the transferees are turnips).
The biggest interest to me in all of this has always been the

local taxation of the land aspect... I still think that's the real
death blow waiting... especially considering the length of
time it presently takes for delinquent properties to be
certified to the state's land authority for auction... if this
process is sped up, the ~06-present vintage is going to be in
a world of hurt here for sure. No telling how many
properties are in the pipeline/should be referred for auction.
Add stuff like the transfer taxes onto the bill, and it's going
to be a large one...
on Mon, 11/01/2010 - 14:23
#691368
See my response above about the various mortgage

companies not properly recording or apportioning my
interest and principal payments. I suspect my mortgage
has been sold to multiple parties at the same time.
by chubbar
on Mon, 11/01/2010 - 14:53
#691446
I wonder if a properly recorded second mortgage,

arms length but a round trip "loan" so to speak
between friends, could result in a 1st position for
foreclosure purposes? The 1st mortgagors only have
themselves to blame for not properly recording the
transfer. It'd be an interesting loophole to
investigate. Let them argue who has first postion on
the foreclosure. A friend who "loaned" you the funds
may just let you live there rent free should a
foreclosure occur (hint hint). Just make sure the
loan amount is close to what the present market
value of the house is and let the chips fall where
they may.
by MachoMan
on Mon, 11/01/2010 - 15:42
#691584
Depends on whether you live in a deficiency

state... that deficiency judgment after the sale
(to you) would be a bitch... and would click off
at a significantly higher rate than present
mortgage rates... Further, just to be sure, you'd
need a third buddy waiting in the wind to
purchase at foreclosure sale... he should hold it
for at least a year, and then dump it back on
you. Now, whether or not the whole process
was fraudulent/intended to circumvent yada or
this or that is anyone's guess... the good part is
that sympathies are on your side.
This risk is precisely why you had foreclosure

moratoria... to protect the firsts in the
meantime... I've said it once, and I'll say it
again, I pray to christ these idiots fraudulently
foreclose on my house every day... I want it for
free and to get made for the rest of my life...
please, by all means, do it. If I was a second or
third right now, I'd be ramping up my
foreclosures if I knew my shit was in order...

ready to take out the first and/or reach a solid

settlement while everyone knew their pants
were down.
But yes, completely and totally all the banks'

dumbass fault... why the hell they did this I
have no idea, but it's hard to believe the
pervasive stupidity is not somehow designed...
on Mon, 11/01/2010 - 17:13
#691776
why the hell they did this I have

no idea, but it's hard to believe
the pervasive stupidity is not
somehow designed...
Bingo. I have my theories, but I want to do

more research before I open myself up
to 100 junks. Maybe some day soon.
by jeff montanye
on Tue, 11/02/2010 - 01:46
#692565
do i ever look forward to that post.

thanks to you and all who bring
expertise here.
by SheepDog-One
on Mon, 11/01/2010 - 12:31
#691040
Banks all droppin like flies on election eve...aw thats a shame.
by system failure
on Mon, 11/01/2010 - 12:36
#691048
Inflate the problem away Benny, try and inflate your problems away you
complete failure and ruiness disaster for modern civilation.....
by Oquities
on Mon, 11/01/2010 - 12:35
#691050
this next song goes out to my sugar daddy ben. it's inspired by The
Mamas and the Papas' California Dreamin'. fire up the karaoke and see if
it fits.
Quantative Easin'
All my stocks are up in my 401(k)
And my random walk, is still lookin' okay
I'm even safe with AMBAC muni bonds from L.A.
Quantative easin', takes my risk away.

Stopped into my bank, to pay my loan today
Well the banker takes my fiat, and we pretend I pay
You know that leech he wants my gold, but it's all squirrelled away
Quantative easin', boosts my silver play
My real estate is down, and my mood is gray
So I will just default - it's that easy they say
I'll give the house keys back, eighteen months from today
Quantative easin', makes my rent free today
Quantative easin', where politicians play
Quantative easin', is surely here to stay
thank ya ver much
by Max Hunter
on Mon, 11/01/2010 - 13:07
#691141
++.. Had to read it a couple times to match it up in my head... Love

it.. You should have put the back-up vocals in parenthesis.. LOL
by sourgrapesson
on Mon, 11/01/2010 - 13:29
#691222
Love that song!! BTW did Mama Cass really choke on a ham
sandwich?
by Cathartes Aura
on Mon, 11/01/2010 - 15:47
#691596
of course, if you really wanted to know the truth of her death, a

quick "search" would tell you it was from a heart attack (well
known user of pharma-drugs) - but much easier to infer "food
killed teh fattie!1!!". . .
Oquities, that was hilarious - good choice of karaoke backing

tune!
by Careless Whisper
on Mon, 11/01/2010 - 12:39
#691063
hmmm, trading below book value
by thesapein
on Mon, 11/01/2010 - 12:58
#691117
No reserves might imply a negative value. Hard to trade below that

unless you're on the other side.

by Cleanclog
on Mon, 11/01/2010 - 12:40
#691065
Banks have severely been under-reserving for this, and frankly all their
loans. In California, more than 50% of banks are operating under MOUs,
and not all banks have been visited by the regulating auditors in 2010, so
still under the 1/yr visit. More will be under MOUs soon. And then they
get the visit every 6 months and way more scrutiny.
It's all still gonna get worse. Move your banking activities to smaller,
community banks. The service is substantially better and they have a
much better handle on their actual health. Good luck!
by TheMonetaryRed
on Mon, 11/01/2010 - 12:43
#691069
Dear Tyler,
Our Algos are not understand what this is "fraudclosure"? Algos are
make price gone, not good orders.
Please explain.
Quickly.
Thank you.
Love,
Team Atari
by buzzsaw99
on Mon, 11/01/2010 - 12:41
#691070
Buy the dips bitchez!
by EscapeKey
on Mon, 11/01/2010 - 12:43
#691075
BusinessInsider (/PragmaticCapitalist) claim QE2 is all about bailing out

the banks, without going through congress:
http://www.businessinsider.com/qe2-is-not-a-recovery-plan-its-a-
stealthy...
by NotApplicable
on Mon, 11/01/2010 - 12:49
#691092
When you're running one of the biggest scams ever, there can be no
adequate putback preparedness, so why even bother faking it and thus
appearing liable? Especially when there's always gross imcompetence to
fall back on.
To me it is just the ultimate display of moral hazard that occurs once

politics escapes the legislative chambers, and makes its way into the
economic realm. As evidenced, it didn't work for Mussolini either.
by Mr Lennon Hendrix
on Mon, 11/01/2010 - 13:03

#691103
The eye of the storm, and the walls are thick. Circling is fraudclosure,
claims on silver, claims on gold, Iran for better and worse, China, China,
China, and of course, elections. Housing prices currently, given income
and spending levels, never mind the dollar's "worth", should be halved.
America is a great place to live, but only certain parts. Suburbs are done
post peak oil production, and half of houses in the US are in suburbs.
These houses are worth zero. Cannabis, if allowed to function as what it
is (a way of life for many just like coffee and alcohol for some) will rock
the market place...the real marketplace. The first move will be an
increase of supply, and then two fold increase in demand. Cannabis
would basically save the depression from becoming the Greatest
Depression by giving a whole new market. Grow shops, bars, etc, could
be the first inovative market to our culture since the internet.
Interestingly, half (approximately) of the oilgarchs do not want this
because they think it is best to keep their boot on the throat of the
plebs. After all, Cannabis has been "illegal" this long, why stop the fun
now? Besides, keeping it ilegal flooded the system with twice the
amount of monie that could have been made if it was legalized after
prohibition (the plan all along since alcohol has relatively no good side
effects, but cannabis does, and prescription pharma did not want another
contender, and pot coulda been somebody). It also maxed the prison
system.
If cannabis is made "legal" first it will give Californians more purchasing

power. This would momentarily stop the dramatic failure of the State,
and maybe the dollar. This would last between 6 weeks and 3 months,
then the dollar would resume its complete collapse (which we have been
witnessing for several years. Drowning is an ugly thing because with the
gasps of air come time, and hope). Then the demand will increase once
people realize the only drawback to smoking is lame lungs (which can be
fixed by eating spicy foods and cardio work), not to mention THC is
digestible by the stomach. San Fransisco will turn into Amsterdam of the
West and pot farming will become a household hobby. The generation of
revenue could indeed close the State budget from widening to the point
of bankrupcy, (which it has already done by if it were marked correctly).
This isn't a fix all, but it could help the economy in a way that nothing
else will. Who knows, maybe soon we will be running cars off of hemp
oil? :)
I also will welcome the Feds to continue to raid shops, as the more they
do, the more upset the people will get. And I think a little ruckus will do
the trick.
by RiotActing
on Mon, 11/01/2010 - 13:40
#691268
I completely agree, but that prop isn't trending well. Neither is the
dispensary initiative up here in Oregon. The idiots on the right are
mobilized and I believe both of these will not pass unfortunately. The
idiots and willfully ignorant outnumber the progressive thinking
people of this country by more than people think. This ratio carries
over into the state level as well.
by Abiotic Oil
on Mon, 11/01/2010 - 14:12
#691337
There is a turd in the pool with cannabis legalization.
"Big Pharma" and Monsanto have quietly patented a lot of cannabis

genetics. If it becomes legal, many growers will suddenly realize
they don't own their genetics and Monsanto is there to litigate.
The Dutch are cracking down on breeders, eliminating one of the

last strongholds of genetics. Canada too.
Yes it is a perfect source of food, fiber, oil and recreation. Did

anyone think that escaped the PTB? Obviously it didn't as they have

made tax stamps unavailable for it for a hundred years.
The PTB love the sheep on cannabis. The Afghani society, so

influenced by Baba Ku and his deliverance of cannabis to the Afghani
people, stated it was not good for warriors to smoke it as it made
them meek and sheepish in battle.
OTOH if it becomes legal and the free market really pushes prices
down (as it is already doing) the profit of growing indoor hydro will
be vaporised, so to speak.
by Cathartes Aura
on Mon, 11/01/2010 - 16:33
#691696
Proposition 19, Monsanto, and Terminator

Cannabis
. . .The leading advocate for Proposition 19 is the

organization known as the Drug Policy Alliance
(DPA). The DPA is the leading organization
spearheading the reform of Cannabis policies in the
United States, and has been made up of some of the
most powerful and influential characters in today’s
global petro-bio-chemical-military-banking-industrial
complex.
Some of the Directors of DPA include the following:
Paul Adolph Volcker is an Honorary Director of the
Drug Policy Alliance (DPA) whose career is closely
associated with that of the Federal Reserve Bank. He
was president of the Federal Reserve Bank of New
York from 1975-1979, governing board member of
the Federal Reserve in 1979, and was Chairman of
the Federal Reserve from 1979-1987.
Volcker is believed to be a member of the Council on
Foreign Relations, and served as Undersecretary of
the Treasury from 1969-1974 before his time with
the Federal Reserve. Volcker is chairman of
Wolfensohn & Co. and has ties to Chase Manhattan
Bank. He is also linked to the Brookings Institute, as
well as being an Honorary Trustee at the Aspen
Institute, chairman of the Group of 30, and on the
board of the Institute for International Economics.
Frank Charles Carlucci III is an Honorary Director
of the Drug Policy Alliance (DPA) and has been a
member of the Council on Foreign Relations since at
least 1995. His government service included positions
as Deputy Secretary of Defense from 1980-1982 and
Deputy Director of the CIA from 1978-1980.
Carlucci is a director on United Defense Industries
(the United States' largest defense contractor), which
is owned by the Carlyle Group, a merchant bank
based in Washington, D.C., of which Carlucci is the
chairman. Carlucci joined Carlyle in 1989.
Before returning to Government service, Carlucci was
Chairman and CEO of Sears World Trade, a business
he joined in 1983. He was President Ronald Reagan's
National Security Advisor in 1987 and Secretary of
Defense from 1987 to 1988.
Nicholas Katzenbach is an Honorary Director of the
Drug Policy Alliance (DPA) and became General
Counsel of the IBM Corporation from 1969 until
1986.
Mathilde Krim is a standing Director of the Drug
Policy Alliance (DPA) and was a Trustee for the
Rockefeller Foundation in 1980.
George Soros is a standing Director of the Drug
Policy Alliance (DPA) and is Chairman of Soros Fund
Management. Soros was among the highest paid

hedge fund managers in 2009, taking home about

$3.3 billion. At the end of 2009, he owned about
$6.95 billion distributed among 697 stocks.
Soros’ top 5 investment shareholdings are in gold,
Petrobras petroleum company, Hess Corp petroleum
company, Monsanto corporation, Citigroup Inc., and
Suncor Energy Inc.(petroleum company).
That’s right, George Soros, who is famous for being
one of the most powerful and influential persons in
world economics and whose speculations alone are
said to have ‘broke the Bank of England‘, is one of
the key directors for the organization that is leading
the charge to regulate, control and tax Cannabis in
California. All the while George Soros is one of the
major shareholders in the worlds largest GM Seed
bio-technology corporation known as Monsanto.
The Monsanto corporation brought you things like
Agent Orange, Terminator Seeds, Monsantos Round-
up ready Herbicide, and Genetically Modified and
Patented Organisms made from Soybean, Corn, and
Cotton to name a few. Genetically engineered crops
entered the market in 1996 and to this day around
90% of all Soy, Corn, and Cotton grown in the U.S.
have been Genetically Engineered and patented by a
handful of bio-chemical corporations, with Monsanto
owning 90% of all GMO patents. . .
http://www.openureyes.org.nz/blog/?q=node/3219
by RockyRacoon
on Mon, 11/01/2010 - 17:53
#691837
The 1937 Marijuana Tax Act Pub. 238, 75th

Congress, 50 Stat. 551 (Aug. 2, 1937), was an
United States Act that placed a tax on the sale of
cannabis. The act was drafted by Harry Anslinger and
introduced by Rep. Robert L. Doughton of North
Carolina, on April 14, 1937. The Act is now
commonly referred to using the modern spelling as
the 1937 Marijuana Tax Act.
The Act levied a tax equaling roughly one dollar on
anyone who dealt commercially in cannabis, hemp, or
marijuana. The Act did not itself criminalize the
possession or usage of hemp, marijuana, or
cannabis. It did include penalty and enforcement
provisions to which marijuana, cannabis, or hemp
handlers were subject. Violation of these procedures
could result in a fine of up to $2000 and five years'
imprisonment.
Marihuana Tax Act of 1937 - Wikipedia
by Milestones
on Mon, 11/01/2010 - 20:20
#692109
Henry Anslinger was Herbert Hoover's "girlfriend" H.H. being

the head of the F.B.I. at the time. He named Henry as the
head of what would become the D.E.A. Henry did not even
know what M.J. was and was asked one innoculous question
before being confirmed.
I first seen "Reefer Madness" in the Tower Theatre in 1948 in

Pasadena Calif. and laughed my ass off watching it. I was 12
at the time and had just done my first joint a few days
earlier. Things happened faster in the L.A. area. Also the first
time I heard Charlie Parker. Both things blew my mind.
It's a bitch getting older; but then I know a few things

others don't. MIlestones

by RockyRacoon
on Mon, 11/01/2010 - 23:28
#692453
I was born in '48. I hear Robert Mitcham was arrested

for smoking reefer in a movie theater? What great days.
by jeff montanye
on Tue, 11/02/2010 - 02:33
#692578
clyde tolson (fbi associate director) was hoover's main

squeeze (and reputed to be in the photo that the mafia
and the kgb had that kept the fbi off them until his
death). not to say the little crossdresser was faithful...
by ZeroPower
on Mon, 11/01/2010 - 15:32
#691549
$>€
by thesapein
on Mon, 11/01/2010 - 12:56
#691108
An actual sacrificial lamb would've tasted better. Virgins are best.
Perhaps, this is more eliminating the competition since the new money of
elites club has been getting too crowded.
by John McCloy
on Mon, 11/01/2010 - 13:01
#691123
O perhaps now after Ambac today those brave investors are finally
realizing there is no shareholder equity even with mark to Leprachauns
accounting.
Oh well as Cramer would say, " the bears are wrong just buuuuyyyy a
little..just a taste"
What can possibly go wrong? I think I remember you saying AMBAC will
never go below a 1.00 Gentleman James..that correct?
by Vampyroteuthis ...
on Mon, 11/01/2010 - 13:12
#691160
It all comes down to the big boys investing in the securities. Do you
think they give a flying f*ck about Grandpa and Grandma they just
foreclosed on? Hell no! It is about those worthless MBS the big boy
investors have been accumulating over the years that are obviously now
worthless. The best lawyer and mafia hit men are going to win this one.
by orangedrinkandchips
on Mon, 11/01/2010 - 13:15
#691163
FHN in a death spiral now...will test that "gen low" they all claim we'll

never see again...but this bitch is starting it's death rattle....ooops is

right!
by Misean
on Mon, 11/01/2010 - 14:17
#691354
Shouldn't they rename the company Event Horizen, just to clear things
up and make it clear where we are in this mess?
by JmBob
on Mon, 11/01/2010 - 14:23
#691366
You know, I always knew that this shit would be caught up on when
those who had been sold crap suposed 'investments' started to claim
against the sellers but I just never thought how long it would take.
The failure of the orinators' internal systems people even to cover their
own backsides doesn't surprise me (incompetence being the norm in any
large organisation) but the apparent willingness of large pension funds /
foreign banks etc to eat the losses which were clearly the result of fraud
simply beggars the imagination.
Let's hope thay all get theirs!
by Misean
on Mon, 11/01/2010 - 14:29
#691385
"the apparent willingness of large pension funds / foreign banks etc

to eat the losses which were clearly the result of fraud simply
beggars the imagination."
Not at all. Makes complete sense. All the strategists, managers,

MBA's, and Ebubblegnomists are trained in KeynsianMonetarism
hocus pocus. They got the downlow to sit tight, Unky Sugah gonna
do the bailout and flood the world with free fiat, everything gonna
turn around in 12-18, no sweat.
That that is obviously not happening, and the mess is pressing

margins, and fear of being able to meet future obligations etc. etc.
hits, the elites' camps and splitting, and wagons are a circling. The
real fight is just around the corner.
by JmBob
on Mon, 11/01/2010 - 19:13
#691989
You know, I always knew that this shit would be caught up on when
those who had been sold crap suposed 'investments' started to claim
against the sellers but I just never thought how long it would take.
The failure of the orinators' internal systems people even to cover their
own backsides doesn't surprise me (incompetence being the norm in any
large organisation) but the apparent willingness of large pension funds /
foreign banks etc to eat the losses which were clearly the result of fraud
simply beggars the imagination.
Let's hope thay all get theirs!

by Buck Johnson
on Mon, 11/01/2010 - 20:08
#692088
Definitely a shredding party tonight. This is a hole that is impossible to

get out of for the US economy and the big banks. Many investors are
getting ready to force these banks to buy back their bonds at full price,
and the banks don't have the money. As was stated in the article the
bonds sold to the GSE's may have had room for manouvering in regard
to the bank buying back the bonds, but in the public sector the
contractual language was such that if you didn't dot the eyes and cross
the tee's you would be in serious trouble. In essence it doesn't take alot
for them to force a buy back, and with the information coming out and
examples where different bond holders have the same collateral and such
it's starting to look like a red christmas for the stockmarket and the
banks.
by Andrew G
on Mon, 11/01/2010 - 21:25
#692232
I can feel the smell of tarpentine in the air...
by Grand Supercycle
on Mon, 11/01/2010 - 22:05
#692318
Updated DOW chart:
http://stockmarket618.wordpress.com
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Is Fraud Closure About To Claim Its First Victim - First Horizon Plunges

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Is Fraudclosure About To Claim Its First Victim: First Horizon Plunges After Subpoena Disclosed As FHFA Announces No Reserve

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11-02 09:01: Rogers Corp falls 7.3%

http://www.zerohedge.com/article/fraudclosure-about-claim-its-first-victim-first-horizon-plunges-after-subpoena-disclosed-fhf[11/2/2010 10:12:18 AM]

Also unlike loans sold to GSEs, interests in

At September 30, 2010, the repurchase request pipeline

At the time this report is filed, FHN was a defendant in

http://www.zerohedge.com/article/fraudclosure-about-claim-its-first-victim-first-horizon-plunges-after-subpoena-disclosed-fhf[11/2/2010 10:12:18 AM]

At September 30, 2010, FHN had not reserved for

You read that right: complete lack of preparedness for

Your rating: None Average: 5 (10 votes)

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shredding party tonight!!

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tonight might be too late...

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Let's do it at my place! I've got a 52 inch plasma. We'll watch some

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by Fish Gone Bad

+1 That made me laugh.

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Next to go: Wells Fargo.

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http://www.zerohedge.com/article/fraudclosure-about-claim-its-first-victim-first-horizon-plunges-after-subpoena-disclosed-fhf[11/2/2010 10:12:18 AM]

on Mon, 11/01/2010 - 13:10

Wilmington Trust though was the first to duck and cover....

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where is "down here"?

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Florida: From north of Tampa to Marco Island (Naples).....the

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Where's the beef?

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Unfortunately I still think that, once the elections are behind us

http://www.zerohedge.com/article/fraudclosure-about-claim-its-first-victim-first-horizon-plunges-after-subpoena-disclosed-fhf[11/2/2010 10:12:18 AM]

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Wouldn't be surprised. Unfortunately.

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Some desperate act will be measured.

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I've begun to deposit the mortgage payment funds, beginning

I'm willing to go to the wire on this one.

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Exactly. Economics means you get screwed.

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http://www.zerohedge.com/article/fraudclosure-about-claim-its-first-victim-first-horizon-plunges-after-subpoena-disclosed-fhf[11/2/2010 10:12:18 AM]

the holder of your note/mortgage? Do you have a state

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Just curious at how you arrived to go that

I flipped my highest quality Gold Eagle in a best 5 out of

In fact I spent serious coin seeking legal counsel. After

Do you think that you are not being