Three essential pieces from Karl Denninger on the accelerating collapse of the American mortgage and mortgage-backed securities industries, a/k/a "Foreclosuregate":
The "Nothingburger" Defense Gets Destroyed
Weekend Observations: The Question Nobody Is Asking
Class-Action Lawsuit Against Countrywide: California
Read each article in full, please. Money quote (get it?) from Janet Tavakoli in the first article:
This is the biggest fraud in the history of the capital markets.
Think about what that really means.
Now think about all of the downstream holders of all of that bad paper - pension funds, retirement systems, other institutional investors.
Think everyone's going to get paid what they are due?
What about the geezers who will lose everything they thought they had?
A nuclear explosion would be more merciful.