Too Good to be True, But This is True!

The Federal Reserve System and Wall Street, i.e, "Too Big to Fail Financial Institutions," have devised another real estate scam in which you, the American tax payer will be left holding the proverbial bag of toxic paper.  Their scam goes as follows: First, these financial institutions (Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley) buy a house, say for $100,000. Then sell the house to someone who has absolutely no money and only a marginal credit history, taking a loan of $120,000 in return.  In real estate terms, this is called a 120% LTV (loan-to-value).  Second, the Federal Reserve enters the picture to monetize the loan from the above mentioned financial institutions.  The Fed buys $45 billion of such mortgages at face value (LTV) every month.  These financial institutions just sell these mortgages in the example to the Fed for $120,000 and pocket a $20,000 profit, all with no risk.  The victim is the family who is paying interest on a 120% LTV loan on a house that may never be his unless the value appreciates by at least 20%.