Which led to what was originally called the "Troubled Asset Relief Program", or TARP (which caused no little political turmoil) has now evidently morphed into "Troubled Relief Asset Program", or TRAP, which may cause even more troubled waters:
... if a Wall Street bank were to discover that, due to shoddily executed paperwork, it still owns millions of defaulted mortgages that it thought it sold off years ago, it could face billions of dollars in unexpected losses. To put in perspective the potential problem, the mortgage-backed securities market totals approximately $7.6 trillion, so irregularities that affect even a small percentage of this market could have dramatic effects on bank balance sheets - potentially posing risks to the very financial stability that the Troubled Asset Relief Program was designed to protect.(Congressional Oversight Committee, see Full Report, PDF). In other words the mortgage market was being managed by the plunder barons who were hiring the robber barons who were hiring unemployed McDonald's personnel to create the greatest McMortgage disaster in the nation's history.
Expect a storm of propaganda a la the great gulf of truth storm that happened in the Deepwater Horizon ecological disaster.
Yes, this next financial disaster puts the banksters in the same Deepwater of red ink the life in the Gulf of Mexico experienced from the oilsters of MOMCOM, and therefore some folks are going to hurt for a long, long time:
Borrowers may be unable to determine whether they are sending their monthly payments to the right people. Judges may block any effort to foreclose, even in cases where borrowers have failed to make regular payments. Multiple banks may attempt to foreclose upon the same property. Borrowers who have already suffered foreclosure may seek to regain title to their homes and force any new owners to move out. Would-be buyers and sellers could find themselves in limbo, unable to know with any certainty whether they can safely buy or sell a home.(ibid, Congressional Oversight Committee Report, linked above, emphasis added). I can't help but repeat the Dredd Blog mantra that national propaganda from officialdom leads to demented dishonesty, which trickles down to those MOMCOM considers to be "the great unwashed".