I have started writing a political pamphlet in an area of Law in which I have some expertise In a past Life I have acted for Business interests as a financial trouble shooter in my profession Chartered Surveying its what is known as a Law of Property Act Receiver.
The nuts and bolts and rights and wrongs of it was not something i had ever examined very deeply my Focus was always very matter of fact in fact I have never met anyone that originally owned the assets I have been a trouble-shooter on.
I have learned a tremendous amount about the Banking System in the past 4 years and an exponential amount in the past 2 months.
This paragraph from my notes which are on my blog is some simple arithmetic I wish I had known over 20 years ago now when I was a hired financial gun so to speak. ( I can however and I am doing something to make amends now.)
The idea that Banks have been caught out more than home owners is perverse. The Banks have created commitments for the borrowers to them and actually not given in return what the Borrowers largely believed I.E that their Mortgage is matched by and equal deposit/ saving of another bank customer. At best the banks have 1 tenth of this covered 10% and in many cases it is more like 1 fortieth 1/40 2.5% so on a mortgage of £100,000
the bank only has capital of at most £10k at risk and in all likely hood more probably £4k at risk. Therefore in distressed sales all on going mortgage payments made should be viewed accordingly and and distressed asset sale again viewed similarly.
I,e a mortgage holder with 25k negative equity on a mortgage of 100k still has an asset worth at least 7.5 x the capital reserve the bank allocated against making that loan. I.E the borrower remains in debt for 100k a new debt of 75k is created and and the bank gets all its basic capital back has had the interest in the meantime and will still milk the original borrower through the Bankruptcy process for a further 2 years representing further pure profit.
Heres an article I received in my mail box this morning I am Getting involved with a campaign called Positive money.org and The Public Finance institute in america as well as mobilising my old commercial legal team to help me with my pamphlet.
Dear Dr Haywood
Roger Lewis to mike
show details 12:51 (35 minutes ago)
I received your link to various crisis articles and share your concerns I am now an Ex Pat British Citizen living in Sweden.
I wanted to get involved with trying to get some reforms of the repossession laws in the UK. The states is worse their foreclosure laws are draconian our repossession laws are merely venial in comparison but inexcusable and criminal.
I did a blog of some of my notes/concepts areas of interest in Wikipedia articles etc.
I have some experience of the shitty end of the stick but I am still well off by most standards but I am very angry about the prospect of a whole class of hard working people having their savings represented in their home purchase being wiped out while the banks make a huge profit even on the fire sales.
Anyway if you can point in the direction of others working in this area I would be most grateful I am keen to put my shoulder to the wheel and show solidarity how ever I can. I have my London Solicitors looking into the concept and legal doctrine of Usufruct which I think is promising I have asked them to seek counsels opinion from Alan Maclean QC who has acted as counsel on two High Court actions in which I have been an instructing party( I used to be a successful business man). I know Alan personally as well and will be calling him when I have got my full set of facts together I do not want to trouble his Brilliant Mind with idle chatter ( he is though of and for the people which you will find if you look him up at Brick Lane Chambers.)
These days I'm a retired middle-aged Hippy enjoying my young family but this crisis is so heinous I have to get involved or I would never be able to say to my children that I had made an honest response to this new Fascism that potentially could cause so much harm.
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