Tag: banksters

Who’s To Blame?

Jay Bookman wants to know a few things:

Who rejected “the comprehensive fiscal consolidation program,” with cuts to entitlements accompanied by higher revenues, producing a debt reduction of $4 trillion, proposed by President Obama? That would have produced twice the debt reduction promised in the deal that was finally accepted.

Who rejected the very notion of compromise, making “the differences between political parties … extraordinarily difficult to bridge,” with one side announcing that only total capitulation by the other side would be accepted?

Who embraced the policy of political brinksmanship that pushed the country so perilously close to default? Who publicly embraced the threat of default as “a hostage that’s worth ransoming,” announcing that the tactic would be used every time the debt-ceiling issue arises from now on?

To hear any of these questions, much less any of their answers, one would be well advised not to even bother with the MSM. They are in full on “pox on both houses” mode. This is an entirely self-inflicted, politically motivated wound. Why won’t anyone ask the GOP why they thought it best to bring ‘em on?

Who’s To Blame?

This Is Why

Standard and Poors to downgrade US credit rating:

A source says Republicans [steadfast refusal] to accept any tax increases as part of a larger [deficit] deal will be part of the reason cited [for the historic downgrade].

How do you imagine the radical Socialist Obama administration plans to respond on behalf of The Democrat?

[An administration] official says that S&P made a “serious mistake” in its analysis, “based on flawed math and assumptions,” so the Obama administration is pushing back.

This is why they fail.

This Is Why

Annals of the Memory Hole: Anyone Remember that Crazy Housing Bubble?

Tom Coburn: Any honest view of our debt, deficits, size of government and demographic challenges shows we must make major changes if we are going to pass on the American way of life to our children. Each week seems to bring new warning signs: slower-than-expected growth (already as much as 25 to 33 percent every year, some estimate), higher-than-expected unemployment numbers.
Dean Baker: Actually the current period of high unemployment and slow growth has nothing to do with the budget deficit. It is the result of the collapse of the $8 trillion housing bubble. Unfortunately, Federal Reserve Board chairs Alan Greenspan, Ben Bernanke and other policymakers overlooked this enormous bubble as it was growing. Apparently, Mr. Coburn has not noticed the bubble even now that its collapse has wrecked the economy. […] the housing bubble was [also] probably the most predictable economic crisis in history. Unfortunately, almost no one in a policy position was able to predict it. Contrary to Mr. Coburn’s assertion at the beginning of his [article quoted above], any honest view of the debt, deficits, size of government and demographic challenges shows that we have to fix our health care system. If per person health care expenditures were comparable to what they are in Germany, Canada, or any other wealthy country with a longer life expectancy than the United States we would be looking at budget surpluses, not deficits.

Ideal Framework

Ygleisas dares to dream about the “ideal negotiating framework” for the debt ceiling:

White House demands clean debt ceiling increase, House majority demands big spending cuts, Senate majority demands partial repeal of Bush tax cuts, and we all compromise on just doing the damn debt increase.

That would be nice. But it would also require non-feckless Democrats in the Senate. Which, so far as I can tell, do not exist.

But, since the plutocrats and banksters seem to realize they’ve got skin in this game, maybe we can just cut some insanely rich people’s taxes, raise the debt ceiling, start a fourth war (I’m thinking Spain is due), and call it a day.

Tax Increases and Giveaways to Big Banks

Ryan’s view of an ideal America on the Path to Prosperity really is a winning combination; aside from the top line items of eliminating Medicare, Medicaid, and (ultimately) Social Security, the GOP Vision of an America they want to live in includes:

…lurking in the plan is a giant giveaway to Wall Street […]. Specifically, Ryan wants to repeal two key provisions of the Dodd-Frank financial regulation bill that allow regulators to identify systemically important financial institutions and unwind them if they go bankrupt. This means that in a future financial crisis, regulators will face a Hobson’s choice between letting the financial system collapse and replaying the ad hoc and unjust bailouts of 2008.

[…]

[Ryan’s plan also] promises to raise the same quantity of tax revenue as the government got during the George W Bush years, but he wants to push marginal tax rates on the rich even lower than they were at that time. He doesn’t spell out how, exactly, he plans to make up the lost revenue and that’s because he wants to obscure the fact that it’ll have to come from the middle class.

Who can possibly argue with that entirely sensible approach? Why, unemployment will be almost certainly be at negative eleventy percent by 2014 under policies like those.

Tax Increases and Giveaways to Big Banks

Years ago I remember a lot of moderate liberals talking about how the Bush era radicalized them. For me, it was the economic collapse of 2008 that did it. The financial industry almost literally came within a hair’s breadth of destroying the world, but even so it took only a few short months for them to close ranks with Republicans and the rich to prevent anything serious being done to rein them in. Profits are back up, new regulations are barely more than window dressing, nothing was done to help underwater homeowners, bonuses are as obscene as ever, unemployment remains sky high, and the public has somehow been convinced that this was all their own fault — or perhaps the fault of big government, or big deficits, or something. But the finance industry has escaped almost entirely unscathed. It’s mind boggling. If this doesn’t change your view of who really runs the world, I don’t know what would.

Kevin Drum
Source: Mother Jones

[The GOP members of the Financial Crisis Inquiry Commission are issuing their own report, which will lay the entire financial crisis at the feet of] Fannie and Freddie, which somehow managed to cause housing bubbles in Ireland, Iceland, Latvia, and Spain as well as the United States; and the repo market had nothing to do with it.
And bear in mind that this wasn’t one Republican; it was all of them.
I really do wonder how this country can remain governable, when one party insists on creating its own reality. Next thing you know they’re going to reject the theory of evolution. Oh, wait …

Paul Krugman getting all shrill again while noting the invincible ignorance held in seemingly infinite supply by the GOP and their various political enablers.

What Anti-Foreclosure Deadbeats?

Today’s edition of What Atrios Said:

If Citi doesn’t own the mortgage then the woman doesn’t owe them any money. If Citi doesn’t own the mortgage then it isn’t the case that “perhaps” they shouldn’t foreclose on her, it’s the case that they have no legal right to foreclosure. Citi can’t just take possesion of a house, or decide someone owes them money, just because they say so.

And, yes, maybe one day Fannie will get around to a foreclosure process, but Citi cannot just assert control of the mortgage and the property on their say so.

[…] the [conventional wisdom] just seems to be “well, she deserves to lose her house so it doesn’t really matter who takes it from her.”

That this whole thing is so utterly small-c conservative just makes it all the more deadly to the GOP and their Tea Klan enablers. I mean it’s fundamental property rights, and a partial reason for the founding of the nation in the first place. It’s a political hydrogen bomb to use against the anti-modification crowd, which, not coincidentally is made up of the GOP establishment (but would be an issue that quite conveniently rends them from the arms of their anti-bank Tea Klanners) and the Blue Dogs that Rahm, back in his DCCC years, so lovingly forced down our throats without ever bothering to ensure they’d, you know, vote with leadership on key initiatives.
This is why you will never hear a Democratic candidate utter so much as a peep about it. It’s just too goddamned explosive. Wouldn’t want to get all shrill in a way that would make a few Blue Dogs uncomfortable, now would we? Once the GOP wins every available seat in the House and Senate, I’m sure they’ll be ready to work with the President on serious policy initiatives. And we certainly don’t want to irritate them prior to that coming to pass. Right?

What Anti-Foreclosure Deadbeats?

Banksters Own US, We Just Live Here

The investment banks didn’t mind buying up loans they knew were bad, because they considered themselves to be in the moving business rather than the storage business. They weren’t going to hold on to the loans: they were just going to package them up and sell them on to some buy-side sucker.

In fact, the banks had an incentive to buy loans they knew were bad. Because when the loans proved to be bad, the banks could go back to the originator and get a discount on the amount of money they were paying for the pool. And the less money they paid for the pool, the more profit they could make when they turned it into mortgage bonds and sold it off to investors.

Oh, and they withheld this information from the people and organizations they sold these products to.

I guess we’d better get together a blue ribbon commission. What, you think anyone will face trial over this? You think anyone will go to jail over this? You think any bank that sold these products will even have to pony up their own money to cover losses they created?

If you answered “yes” to any of those questions, you need to reassess just what country it is you live in and just who is in charge. Because it isn’t who you think.

Banksters Own US, We Just Live Here

The Existential Nature of Foreclosure Fraud

It is a legal impossibility for someone without a mortgage to be foreclosed upon. It is a legal impossibility for the wrong house to be foreclosed upon, It is a legal impossibility for the wrong bank to sue for foreclosure.

And yet, all of those things have occurred. The only way these errors could have occurred is if several people involved in the process committed criminal fraud. This is not a case of “Well, something slipped through the cracks.” In order for the process to fail, many people along the chain must commit fraud.

That it is being done for expediency and to save a few dollars on the process is why the full criminal prosecution must occur.

Excellent rundown on the current meltdown in foreclosures. That these excesses (and the ones that preceded them) should be prosecuted is obvious. That they won’t be is both obvious and the reason our Republic is crumbling by the day. The oligarchs and their political cronies have established themselves as above the law. Until that system utterly collapses or a political will to clean it up arises, nothing will change.

And, psst: Democrats. You’re looking for a unifying and message that gets people to the polls in big numbers? You could do a lot worse than this one. Of course, delivering it means you actually have to, you know, back it up with some legislative action. So I guess that’s out. Back to the witchcraft angle.

The Existential Nature of Foreclosure Fraud