Jim’s Daily Rant. Rehypothecation – Why The Banks Must Collapse Now.

When I was 29, I was a Commercial Loan Officer in a bank. My predecessor made a commercial loan on a 35 foot Chris Craft yacht. I inherited it when it went past due and needed to repo it but couldn’t find it. I was contacted by a loan officer from another commercial bank wanting to team up in the hunt. She said her bank was in the first place mortgage position. That folks is known as “rehypothecation by fraud, the boat was pledged to two banks at the same time with each believing they are the first holder.

I dug through all the loan history and a good search was made to insure we were first. But in the meantime we teamed up, located it and stole it back under a dark moon. As luck would have it the other bank lost the finish line by two days in their recording.

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Five years later I was the General Accounting Manager for a large national computer sales company focused on CPA and Construction firms.

The two founders were recent college graduates that created the first real accounting software tailored for CPA firms. Digital Equipment Company was the third largest computer manufacturer in the US and we were their largest purchaser.

Needing more capital they sold out and each walked with a couple Million each.However, one stayed on as the CEO but non-salary. His compensation was based on a percentage of sales. The much larger company that purchased us screwed up by cutting such a deal. We ended up selling anything at any ridiculous price so CEO got is money, no matter if it drove the company into the ground. He stopped running the company as a going concern.

I suggest you read this article I wrote as it is most appropriate today.

    See: Humanity Awakens – Part II Digital Systems – A case Study.

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But the bottom line here is the Wall Street sales boys are rehypothecating everything they can and the big banks have all been part of these most profitable scams. They were getting their big money up front and could bail out anytime they needed.

This is why the global banking system must collapse. It can never be straightened out due to the massive fraud involved.

Read today’s headline: Creditors Of Bankrupt First Brands Say Billions "Simply Vanished" Amid Debt Rehypothecation Nightmare.