The credit crisis, Goldman Sachs and the role of STATE regulators

I've been subscribing to Carl Herman's articles at the Examiner for a few months.  The first article I read was  about Iran and the alleged nuclear threat and it was so well-researched and documented, I was impressed and decided to subscribe. 

Today I read his post about Goldman Sachs:

Goldman Sachs sold sub-prime junk as "no risk AAA" then gambled for prices to tank

November 14, 1:08 PMLA County Nonpartisan ExaminerCarl Herman

Goldman Sachs was at the heart of the sub-prime market, which was the impetus that began this financial crisis. Here’s what GS did: they promoted and sold sub-prime junk as “zero risk AAA” investments, then they bet the value of those very same investments would plunge (here and here). When the payor of GS’ gamble, AIG, couldn’t pay, we taxpayers bailed-out GS’ gamble through AIG.
Goldman Sachs (GS) “trades” like Enron “traded.” Neither produced life-supporting wealth. Bailout overseer Elizabeth Warren calls this gambling “reckless.” Trend forecaster Gerald Celente calls it “mafia-style looting.” And we taxpayers are transferring unprecedented amounts of our labor to these financial parasites. This only occurs through collusion with “leadership” of both political parties in our duopoly and the five corporations who control information in the so-called mainstream media. As you may know, GS CEOs have had a revolving door through the highest offices of the US Treasury Department. ...

I was going to submit a comment to Carl's blog, but I quickly exceeded the character limit and decided to post here instead.

I agree that people have to learn how money is created by the bankers and I'm convinced that Goldman Sachs and the financial industry planned this take-over.

HOWEVER, Carl fails to mention the role of STATE regulators, refusing to investigate complaints about lenders LYING to borrowers about  mortgage rates and terms

I used to be a California real estate and mortgage broker and I quit in 1995 in part because I could not compete with mortgage brokers who lied to the borrowers about the rates.

Additionally, FICO scores became mandatory for most mortgages in the mid 90s and I documented over and over that the credit scoring formulas are buggy and not only that, but Fair Isaac deliberately bases the scores on late payments that are not even reported by the credit bureaus. 

Fair Isaac and the credit bureaus are SO powerful, I posted the screenshots and documentation PROVING that they create late payments and they simply ignored me and to date haven't even bothered to fix this one of many "bugs."   And I'm so disillusioned and out of time and money, I can't get myself to file more complaints with corrupt organizations like the FTC.

In 2003 I filed my first federal lawsuit (I'm NOT an attorney) to try to bring attention to the MANY problems with FICO scoring and credit reporting.  I named the FTC, the Federal Reserve Board of Richmond and its VP James McAfee -- erroneously thinking that they would finally require Capital One to report the credit limits for its over 50 million credit cards. 

The missing credit limits forced millions into subprime loans NOT because they failed to pay their bills, but because they had Capital One credit cards.   Of course the regulators were dismissed, but I just couldn't believe it when McAfee sent me his letter stating that he would not investigate my complaint about Capital One.

In 2005 I wrote about the California regulators' REFUSAL to stop the mortgage lenders' lies:

I was going to write a book about my litigation and the REAL reasons for the credit crisis last winter, but I didn't have time then and it's unlikely that I'll have time soon, if ever.  Nor am I sure that it would make a difference, we all know that it all sucks.

While I'm in the process of leaving this corrupt system (building and growing food off the grid in the AZ high desert), I also think that everybody should know that it's not just the bankers and Washington DC, but the root of the problem is with the states. 

And my reason for wanting to bring this to Carl's attention is that he is in California and maybe he has some info he hasn't posted yet or maybe he has time to look into WHY California does so little to stop fraud.   Southern California is the nation's mortgage cess pool as those lying thugs originate loans nationwide.  While many of those scummy outfits went out of business, the mortgage FRAUD continues!

California (credit bureau Experian owned) is STILL engaging in false and deceptive mortgage lead generation.  When you see an ad encouraging you to refi your mortgage, chances are it's a ad. ALL these ads falsely claim that borrowers will get "offers" from lenders.  That's totally false.  They sell the suckers' info to the highest bidding lender.  It's called "lead generation."  My complaint to the California Department of Real Estate was entirely ignored.

Are the feds threatening to withdraw funds or did California decide that it is necessary to provide jobs for liars and thieves? 

Lack of funds is not an excuse as the criminals have to PAY for the investigations and litigation.

The mortgage broker lies to borrowers have NOT stopped and nobody is doing ANYTHING to stop them.

And I recently talked to somebody at the California AG's office about an ongoing FDRS fraud and these "fraud investigators" are either dumb as rocks or ....?  People are ripped off by "debt eliminators" and pay literally THOUSANDS of dollars for these programs that do absolutely nothing and many victims are eventually sued by the creditors.   The California AG received many complaints and does NOTHING to stop the fraud, to freeze bank accounts and put the criminals in jail.

Well, I don't want to write my book here, I'll post this link for Carl and if he or anyone else would like some more info, I'll be glad to provide it.  There's nothing we can do about the feds and the bankers, that's why I started the Trado.  But at least we should be able to stop the corruption on the STATE level.  And if that can't be done, I might as well focus on doing my local thing here.

I should have added about 10 links to pages / sites relevant to the post as Carl often does.  It just takes so much time.  And I'll be starting a NEW site with multiple blogs dedicated to EACH one of my (and maybe your) DOCUMENTED gripes.  While I still make a living working with people trying to improve their credit rating or to avoid bankruptcy, I can't ignore the fraud and deception everywhere I look.