In a recent article published, a staggering statistic was announced about the Gross Domestic Product (GDP) in the United States. Let me preface this by stating that twenty years ago, the financial services industry only contributed 16% of the GDP, while manufacturing, goods and services comprised the bulk of the GDP for the U.S. Meaning that goods were being manufactured, services were rendered and the economy is flourishing because of work product that actually produces something that is consumed, or services that are performed to promote the sale of goods. When money moves through the system, the system is healthy and grows. Conversely, when the system is stagnant and money stalls, the system tries to bury its head and consumers suffer all forms of malady.
Fast forward to today’s reality. The financial services industry now contributes 48% of our nations’ total GDP! Nearly half of what we are “worth” as a nation is derived from an intangible, non-product industry. Let’s examine the cause and effect of this crippling statistic. When Banks and lenders like Washington Mutual, World Savings, Countrywide and their ilk began using Wall St. profits from the sale of AAA rated mortgage-backed securities, then allegedly pooled them into REMIC Trust entities for reporting purposes, a dragon was released with an insatiable appetite for more, more, more.
Homeowner Takes Goldman Sachs to Task and Gets a Favorable Loan Modification in Bankruptcy
By Daniel Edstrom
DTC Systems, Inc.
This bankruptcy case is a few years old (bankruptcy filed on 6/11/2007 and loan mod dated approx. 2009). The Homeowners fight to find the identity of MTGLQ Investors, LP – a Goldman Sachs subsidiary. They end up forcing Goldman Sachs to abandon foreclosure and accept a loan modification. This is a complex case and the debtors acted as their own attorney.
asset purchases via pomo
New York Branch of the Federal Reserve