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A newly surfaced memo from banking giant JPMorgan Chase provides a rare glimpse into the mentality that fueled the mortgage crisis.
The memos title says it all: Zippy Cheats & Tricks.
It is a primer on how to get risky mortgage loans approved by Zippy, Chases in-house automated loan underwriting system. The secret to approval? Inflate the borrowers income or otherwise falsify their loan application.
"an end to boom and bust" is not an impossibility, it just can't be done if you leave gargantuan, destructive freebie in the economy in the shape of private profits from rising land prices.
The UK property boom was crazy. Gordon "There will be no boom bust Safe Pair of Hands" presided as Chancellor during the biggest property bubble. He must be held responsible especially when he had someone of this calibre warning him. A lot of public knew things were not right with the property market the bubble was obvious and preventable.I foresee the downturn being deep and long leading to a massive drop in the relative status of the UK and US to the rest of the world.Thanks Brown.
The necessary solutions are land value taxation, elimination of taxes on labor and capital and adoption of an honest monetary system perhaps with, God forbid, the involvement of gold. Harrison and others have been recommending the land speculation solution for a very long time so it is not like we weren't warned. If it takes total collapse and having our lunch eaten by other more enlightened countries before we even consider these things, so be it.
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The memos title says it all: Zippy Cheats & Tricks.
It is a primer on how to get risky mortgage loans approved by Zippy, Chases in-house automated loan underwriting system. The secret to approval? Inflate the borrowers income or otherwise falsify their loan application.