A Fast Way out of the Mortgage Crisis

November 17, 2011 mcwiner 10 comments

Being foreclosed on? No worries if you follow the example of Jerome Daly, a lawyer and political activist of sorts, who successfully had his mortgage declared null and void.

In order for a mortgage agreement to be legal, the bank must put up legal ‘consideration’. That’s a fancy lawyer word for ‘money’ or some such other tangible asset. The Federal Reserve System creates money for lending as bookkeeping entries and as such, the bank fails to provide any real consideration in the contract. As a result, the whole thing is null and void and you can’t be foreclosed upon.

Don’t believe me? Read it for yourself here:

http://www.lawlibrary.state.mn.us/CreditRiver/1968-12-09judgmentanddecree.pdf

This decision has never been overturned and Daly was able to keep his house.

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Business, Economy, History, Law, Politics, Uncategorized Federal Reserve, Federal Reserve System, Jerome Daly

#1 | Written by martin about 3 years ago.

does this also include private mortgage lenders?
#2 | Written by mwiner about 3 years ago.

Private lenders, outside the Federal Reserve system must put up actual funds. Thus it does NOT apply.
#3 | Written by martin about 3 years ago.

I see. this is all very interesting.
Just out of curiosity- where do they get their funds to lend?
#4 | Written by Scott about 3 years ago.

Martin, watch the ‘Zeitgeist addendum’ parts 2/13 and 3/13 to answer your question. They can be seen on youtube or you can download the whole movie from the Zeitgeist website. I highly recommend watchinmg the whole movie.
#5 | Written by michelle about 3 years ago.

as I understand it private lenders have a “warehousing line of revolving CREDIT” with commercial banks – so- where is the CONSIDERATION??
#6 | Written by Mike about 3 years ago.

Does this apply to credit card companies? Or solely mortgages?
#7 | Written by mwiner about 3 years ago.

Mortgages are issued out of fractional reserve funds. I don’t think this would apply to credit card holders. Undoubtedly though the credit card companies get loans for cash flow. Those loans are likely conjured from thin air using the fractional reserve banking system.
#8 | Written by jeff about 3 years ago.

where can i obtain a certified copy of the decision?
#9 | Written by mwiner about 3 years ago.

The cited pdf is from the law library of the state of Minnesota. That should be sufficiently official. If not, perhaps contact them directly.
#10 | Written by FutureRob about 2 years ago.

Insightful but what are the chances of success today? Most people who are in need of this argument lack the funds to pursue such a case against the lender.

And, from this layman’s point of view, I don’t see a judge wanting to side with the homeowner. The whole house of cards is built around the status quo.