So what about the new foreclosure crap.... who cares!!!

Here we are dancing above 11k on the DOW, and the talk of Golden Crosses (50 day moving average breaking through the 200 day MVA) well if it ain't Scottish it's CRRRRRAAAAAAAPPP!!!

Here is the point where the DOW 4500 20 Year Head and Shoulders is fulfilled.  In my view we are at the right shoulder top right now... a double top at that!

It has been over a year that I have been tracking this one particular indicator and watching the news events track it's development.  Recently this new item about banks having to stop foreclosures, because they don't have proper title is what I believe will cause the right shoulder.

It makes sense that the banks probably knew this some months ago and the folks in their houses not paying a dime have been doing the broader market a favor by buying electronics and consumer goods and saving$$$!!!  This time I guess the banks can't be bailed out, so that leaves big hulking masses of debt holes that will act like economic black holes and suck everything within proximity into it's hungry MAW.  Including stocks!

   

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Now for the other shoe...who owns the title? Here is a hint... the bank doesn't.

SELL!  SELL! SELL! This example x 2Million Homes...ouch! 

Meet Danielle And Jim Plus 9: The Squatters Who "Reclaimed" Their Foreclosed Home Over The Weekend

Unfortunately, surreal stories like this will very soon become daily news. As was pointed out yesterday, Simi Valley has just seen the first case of a forced reclamation of a foreclosed home, after Jim and Danielle Earl took their nine (9!) children, ages 9-23, and a locksmith and broke into the six-bedroom house that had been foreclosed upon for lack of payment, and on which the couple owed $880,000! And where would such brilliant advice originate from? Why, the couple's lawyer of course, who will one day be seen as the prophetic visionary who stole the bankers wealth from underneath them and handed it out to America's millions of starving lawyers, one billing sheet at a time: "The move was recommended by their lawyer" as the WSJ suggests. Already in process: millions of cases identical to this one, billions in legal fees, and hundreds of billions in lost market value of associated equity and credit instrument, not to mention very unpleasant days for LPs in "Recovery" funds.

More on the family:

The Earls paid $500,000 for the house in 2001 and then refinanced to pull out cash. They fell behind on their mortgage and at the time of their eviction they owed about $880,000 on a no-interest mortgage.

Investors at Conejo Capital bought the house for $697,000 at a lender’s trustee sale and put $40,000 of work into a remodel, replacing carpeting and appliances, as well as upgrading the kitchen. They flipped it to new buyers for $800,000. Those buyers were supposed to move in this week; those plans are on hold.

The Earls claim that they were working with GRP Financial Services to catch up on payments, but discovered a $25,000 difference between what they believed they owed and what the bank said they owed. They then stopped making payments.

“This is only the beginning of this,” the Earls’ attorney, Michael Pines tells KABC News. “I chose this family because we needed to get back in before the investor and the real-estate broker defrauded a new family by having them move in, which would have created a bigger mess. (The Earls) have done absolutely nothing wrong.”

So there you have it: people who owe $880,000 on their mortgage believe it is their right to reclaim homes. We will avoid any ethical commentary on this, suffice to say that it is the bankers who in the greed and stupidity have managed to dig themselves into what could be a hole so deep not even TARP 2-XXX can dig them out of.

For a clip of this surreal harbinger of things to come, click below.

 
 

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