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L. Randall Wray
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Entries by L. Randall Wray

Setting the Record Straight: BofA's Rebecca Mairone Found Liable for Fraud

(17) Comments | Posted October 24, 2013 | 10:14 AM

Now here's poetic justice. Back in the fall of 2010, Bill Black and I wrote a two part essay for the Huffington Post calling on Washington to go after the foreclosure fraudsters. Specifically, we pointed our fingers at the serial fraudsters at Bank of America. See here, and...

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Romney: The Little People Don't Pay Taxes

(14) Comments | Posted September 20, 2012 | 11:32 AM

Everyone recalls the quip by Leona Helmsley: "We don't pay taxes. Only the little people pay taxes..." By "we", of course, she meant the likes of Mitt Romney. By little people, she meant Romney's 47% -- those not worth the bother. As President, the Mitt made clear, he will not...

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The $7 Trillion Question That Haunts Banks

(251) Comments | Posted March 16, 2012 | 5:09 PM

I've been writing about the MERS monster since 2010. Here is one of my early pieces.

I suppose it is now safe to reveal that a staffer of Representative Marcy Kaptur put me on the trail of this fraud -- in dollar terms it has to be the...

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Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

(13) Comments | Posted March 15, 2012 | 11:53 AM

No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing:

  1. Bankers make NINJA loans, securitize them, and sell on to government GSEs

  2. Bankers destroy all the loan documents and begin random and fraudulent foreclosures, throwing millions of innocent victims out on the street

  3. GSEs...

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Let's Make a Deal: The Bail-Out of Wall Street in Unusual and Exigent Circumstances

(20) Comments | Posted February 16, 2012 | 5:11 PM

It has been recognized for well over a century that the central bank must intervene as "lender of last resort" in a crisis. In the 1870s Walter Bagehot explained this as a policy of stopping a run on banks by lending without limit, against good collateral, at a penalty interest...

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Bernanke's Obfuscation Continues: The Fed's $29 Trillion Bail-Out Of Wall Street

(55) Comments | Posted December 14, 2011 | 9:07 AM

Since the global financial crisis began in 2007, Chairman Bernanke has striven to save Wall Street's biggest banks while concealing his actions from Congress by a thick veil of secrecy. It literally took an act of Congress plus a Freedom of Information Act lawsuit by Bloomberg to get him to...

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Krugman Taken to the Modern Money Cleaners

(128) Comments | Posted August 14, 2011 | 8:29 PM

Last week Paul Krugman again attempted to take-on Modern Money Theory (MMT), in his piece "Franc Thoughts on Long Run Issues."

He complained that he is being "harassed" by those who adopt the approach to money that has been labeled MMT. He conceded that on many issues he...

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Budgetary Impasse: Is There an Alternative to Hoovernomics?

(2) Comments | Posted April 7, 2011 | 5:09 PM

I don't know if I can stomach much more of the posturing in Washington. We know it is all about politics. And Congressman Ryan has yet again said that budget cutting is about "morality", not economics. The possibility that a sovereign government might be shut-down this weekend because its elected...

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The Perfect Fiscal Storm: Causes, Consequences, Solutions

(33) Comments | Posted April 1, 2011 | 1:33 PM

Approximately a decade ago I wrote a paper with a similar title, announcing that forces were aligned to produce the perfect fiscal storm. What I was talking about was a budget crisis at the state and local government levels. I had recognized that the economy of the time was in...

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Deficit Impasse: What Should We Cut?

(176) Comments | Posted March 3, 2011 | 1:23 PM

It looks like Washington will grant a two week reprieve, allowing Congress and the president time to identify spending areas where it can cut to "rein in" its "runaway" budget deficits. Let us take a look at budget realities.

First, it is useful to examine current spending by the...

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Representative Paul Ryan Blows the Cover on the Deficit Hawks

(29) Comments | Posted February 23, 2011 | 2:56 PM

In the depths of the Great Depression, President Roosevelt warned Americans that we have nothing to fear but fear itself. Our great nation has at its disposal the means to ensure recovery. But a pernicious fear has yet again wormed its way into the public consciousness. We are told that...

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New York's U.S. Bankruptcy Court Rules MERS's Business Model Is Illegal

(23) Comments | Posted February 16, 2011 | 3:00 PM

United States Bankruptcy Judge Robert Grossman has ruled that MERS's business practices are unlawful. He explicitly acknowledged that this ruling sets a precedent that has far-reaching implications for half of the mortgages in this country. MERS is dead. The banks are in big trouble. And all foreclosures should be stopped...

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Liberal Fallacies: Protecting Social Security from its 'Friends'

(16) Comments | Posted February 11, 2011 | 10:13 AM

Cross-posted from New Deal 2.0.

The Center for American Progress's Matt Miller has argued that liberals can learn a valuable lesson from NY Governor Andrew Cuomo's proposed budget. With his state facing a fiscal crisis, the Governor has proposed to cap growth of state spending on...

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The Good, The Bad, and The Ugly in the President's State of the Union Address

(13) Comments | Posted January 27, 2011 | 10:13 AM

President Obama gave a serious and subdued message that relied heavily on an American "can do" spirit by invoking the image of "our generation's Sputnik moment". He spoke of the domestic and international challenges facing our nation as we turn from fighting a deep downturn toward recovery. While I think...

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Requiem for MERS (and the Banks That Created the Frankenstein Monster)

(28) Comments | Posted January 24, 2011 | 9:01 AM

It is now widely recognized that MERS facilitated fraud by lenders, servicers, foreclosers and securitizers. Even on the most charitable interpretation it is very difficult to believe that MERS was not fraudulent by design. So much of the story has already been told that we do not need to rehash...

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Nightmare on Wall Street

(39) Comments | Posted January 12, 2011 | 10:30 AM

In a ruling that could be historic, the Supreme Judicial Court of Massachusetts ruled against two fraudster banks, US Bancorp and Wells Fargo, who illegally foreclosed on homes. In short, the two banks stole homes to which they had no legal claim.

This rattled stock markets, causing the broad-based...

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Why Mortgage-Backed Securities Aren't (Backed by Securities): How MERS Toasted the Banks

(89) Comments | Posted December 30, 2010 | 8:35 AM

In a series of pieces I have argued that MERS, a creation of the mortgage banking industry, has effectively destroyed the institution of private property in America. Ironically, MERS was created to facilitate quick and easy and cheap securitization of mortgages -- what are called mortgage-backed securities. In...

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Reality Check: Why Truth Will Protect Social Security

(152) Comments | Posted December 20, 2010 | 10:39 AM

It is clear from the comments on our last piece that we might have raised more questions than we answered. Above all, we want to make clear that when we discuss the funding aspects of the Social Security program, we are doing so in a way that is...

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Cut the Payroll Tax to Save Social Security

(140) Comments | Posted December 16, 2010 | 1:32 PM

One of the highlights of the president's compromise on the tax bill is a temporary payroll tax "holiday" -- something we have long advocated for along with others such as James K. Galbraith and Warren Mosler. The proposed deal would cut the tax by two percentage points from...

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Anatomy of Mortgage Fraud, Part III: MERS'S Role in Facilitating the Mother of All Frauds

(79) Comments | Posted December 16, 2010 | 9:29 AM

This is the final in a three-part series. Read Part 1 here and Part II here.

In the previous two parts of this series I have recounted the multiple frauds perpetrated by MERS: it defrauded counties out of billions of dollars of reporting fees, it defrauded...

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