Archive for the ‘bondholder ripoff’ Category

Here are the political/governmental poor decisions that led to the crash

Here’s How The Community Reinvestment Act Led To The Housing Bubble’s Lax Lending

The secularization of these, required by CRA, poison pill mortgages (needed to mitigate the banks’ risk incurred by making them) coupled with the repeal (1999) of the Glass Steagall Act made the crash almost inevitable. Both of these truly horrible decisions were made by politicians for “the greater good” of their constituents, either donors or stupid voters.

The Repeal Of The Glass Steagall Act and Its Contribution To The 2008/2009 Economic Crisis

The idiotic “derivatives” that were invented to shift more of the risk to investors and the “credit default swaps” designed to insure the investors in these instruments were actively encouraged by the SEC, which is a government agency charged with protecting the public not the banks.

Testimony of Annette L. Nazareth, Director Division of Market Regulation February 10, 2000

Certain Politicians who claimed responsibility for the CRA kept insisting that everything was working perfectly well while the system was snowballing down the hill.

Barney Frank and Chuck Schumer’s Role the Fannie Mae Failure

Rep. Barney Frank Admits to Helping Ex-Lover Land Job at Freddy Mac

Others were siding with the biggest bundler trying to capture control of the sub-prime market.

Dodd and Countrywide – WSJ.com

After the bust, the perpetraitors (sic) used it to turn on the small banks in order to protect the larger banks that had gambled and lost at the politicians urgings and assurances by constructing a huge barrier to entrance for new banks and onerous, costly reporting requirements the cost of which will cause many small banks to close. That will lead to larger banks being free to charge higher fees resulting in larger campaign donations or favors.

Dodd-Frank: 26,353 paper-pushers

Dodd-Frank helps big banks at expense of small ones …

 Now, I told you, that to tell you this,

http://www.bloomberg.com/news/2012-08-15/freddie-fannie-push-bank-bad-debt-cost-to-84-billion-mortgages.html

The problem is that the politicians forced bad loan origination on the banks in a ponzi like quota system and paid some Clintoonite bureaucrats some fantastic bonuses to flood Fannie Mae with bad loans.

Jamie Gorelick served as vice chairman of the Federal National Mortgage Association (Fannie Mae) when the government-sponsored enterprise began bundling subprime loans into securitized financial instruments. Her compensation was a salary of a little over $500,000 and $26,000,000 in bonuses. But Gorelick is perhaps best known for her 1995 memo, written when she was deputy attorney general for Clinton, that later became known as “Gorelick’s Wall,” a policy prescription limiting the flow of information between intelligence gatherers and criminal investigators that some believe helped allow the September 11, 2001 attacks on the World Trade Center to go unchallenged. (And often alleged to keep the FBI from learning what the CIA knew about Clintoon’s missile technology dealings with the Chinese.)


Franklin Raines the former chairman and chief executive officer of Fannie Mae, who served as White House budget director under President Bill Clinton. His Compensation was $700k salary, $50 million bonuses. He was specifically named in the Securities Exchange Commission’s lawsuit against Fannie Mae and settled for by paying the SEC $24.7 million, so he wound up in about the same financial position as the other Clintoonite.

Obama says he will do the same thing to other industries he did to the auto industry. So taxpayers will get fleeced, bondholders will get screwed and unions will get paid off. Oh joy, the communist Chinese model is coming to America!

Now can we call him a Marxist?

via Elephant in the Room ep. 3- Crony Capitalist in Chief – YouTube.

The Progressive Nightmare & The Conservative Solution

Posted: August 20, 2011 in 2012, 2nd amendment, 4th Amendment, academics, administration, agenda, agents, airport, arguing with idiots, audit the Fed, austrian, bankrupting america, banning american flag, Barack Obama, Barney Frank, bearded marxist, bernanke, Bernie Madow, Big Ed, big government, bondholder ripoff, Border Patrol, broke usa, budget, busybodies, cap and tax, carbon trading, climaquiddick, climategate, Cloward Pivens, congress, conservatism, conservative, conservatives, constitution, corruption, currency devaluations, DEA, debt, decision points, declaration of independence, deficit, deficits, democrat, democratic, democrats, dhimmicretins, Drug War, easing, east anglia, economic, economic liberty, economics, economy, education reform, election, elite, elitism, elitist, employment, entitlement, environmentalism, ethnic, euro, european monetary union, F. A. Hayek, federal healthcare, federal reserve, federalist papers, firearms, freedom, friedman, general electric, gerrymandering, global warming, government motors, government spending, guantitative easing, gun control, Herman Cain, homeland security, idiots, illegal immigration, international debt, international economics, international monetary fund, ipcc, job killer, John Keynes, JournoList, justice department, justice fraud, Lame-Stream Media, left, leftist, liberal, liberal gene, liberals, libertarian, libertarianism, liberty, lies, looters, Media Malpractice, Michelle Bachmann, Mitt Romney, monetary policy, moochers, nanny state, napolitano, natural law, Neo-Libertarian, Newt Gingrich, Obama, Politically incorrect, propaganda, rational basis test, reason, Rick Santorum, Ron Paul, Sarah Palin, Tim Pawlenty, weapons, Wesley Mouch, Zimbabwe School of Economics

The Progressive Nightmare

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The Conservative Solution

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I just saw a protestor screamjng, “Hands off my Medicare1”. OK I quess we can chalk that up to failures in our education system. At least FDR hid the Social Security Fraud as a type of insurance product in which your “contribution” was used to fund your retirement. Until they had to tell the truth and admit before the Supreme Court that it was just another tax (Heverling v. Davis 1937) and did not convey rights to the taxpayer.

Medicare was never sold to the public that way. It was promoted as our obligation to the elderly and funded by a payroll tax. Thus it became a direct transfer from the working to the retired. I would suggest that Medicare taxes should be sequestered in a separate fund that funds only Medicare . If it runs low, adjust benefits or tax level. It will be highly inteesting to see how much the children of the “Baby Boomer” will be willing to pay for their parents.

Hey maybe we can get a bunch of illegal aliens paying into the system to balance it oyt. /sarc

With the economy sliding deeper into a recession, panelists discuss whether it’s time to stop throwing our money into a massive pit out in the desert.

It would actually help if they did burn it instead of burning through it.. Not to worry, though. The Fed can create much more with just a few keystrokes. And of course the Treasury’s printing presses are running overtime. With enough inflation our debt will disappear, just ask Zimbabwe. They replaced the Rhodesian Dollar (which had a 1:1 exchange rate with US dollars in the mid ’70s, I know, I was there) on a one to one basis in 1980. When they finally got out of the money printing business they were printing Z$100 Trillion bills. On 8 November 2008 one of those bills was “officially” worth $147.50. Note that our debt is all in US dollars, does that give you any ideas? Can we /should we inflate our way out of debt? By the way, now in Zimbabwe they use a “basket of currencies” (sound familiar?) that includes the US dollar, South African Rand, Botswana Pula and the Pound Sterling. I wonder what our “basket” will consist of?

Courtesy of Onion News Network

I have been wondering about the seemingly incoherent policies propagating out of the District of Corruption and trying to develop a model of thinking and goals that would be consistent with the insanity. I have had to abandon any thought of citizen or taxpayer well-being or maintenance of American exceptionalism in order to come up with a somewhat consistent model.

The District of Corruption has become, in essence, a wholesale club sized Faculty Lounge that has developed a plan to run the country as a university focused on the welfare of the faculty over the students or the payers of the tuition.

First is the plan to get out of debt seems to be Quantitative Easing III, IV, V, VI, and however many more it takes to make all those outstanding Treasury Bills (and their interest obligations) worthless. The fact that it will impoverish the American citizenry is as Microsoft used to say, “not a bug, but a feature.” It will wipe out the rich as well as the successful and the thrifty, thus putting all citizens’ welfare in the hands of those best qualified to judge a persons worth (no not the free market, that is seen as cruel, unfair and idiotic to the insufficiently rewarded, it must be those with the wisdom of Solomon, the Tenured).

This destruction of the dollar not only gets us out of debt while punishing those so rude to have been more successful in the free market than the new masters, but also sets the stage for the resurgence of America as a “properly structured society.” In other words the serfs need to acknowledge their proper place in the presence of their accredited and credentialed betters.

That brings us to the master stroke. In claiming that the oil companies get a “tax incentive” by writing off business expenses such as depreciation, exploration, and the cost of failed production attempts (things that legitimate costs of doing business in every other business, just bigger numbers in the oil business), the stage is set for the DOE to revoke all leases and nationalize the oil fields. After the dollar has been destroyed and whether the new currency that purchases oil is a “basket of currencies” or the PetroBuck® the wealth in the oil fields of what was previously called the United States will be more than enough to support the proletariat in their virtual slavery while the masters party like Nero. Issuing decrees as the Gods from Olympus (you have to “properly guide” those serfs, dontcha know?).

I can’t understand how Trade Unions and others like the Mine Workers can stand with government unions. I have sent much of my like in “Right to Work” states and have specifically requested trade union sub-contractors for building projects because I have watched unions like the IBEW train, certify and produce exceptional tradesmen ofttimes working with less than “prime” candidates. To me someone who has gone through a trade union’s training is much preferred over someone simply “licensed” by government. The mining, seafaring and manufacturing unions whose primary objectives are the safety and just treatment of their members are also good organizations. This i not to say I believe in union protectionism. I believe that unions should have to sell their product to the members and their worth to their consumers. “Look for the union label” used to mean higher quality, and it still should.

Government unions (and now the UAW with their cozy relationship and funding running back and forth with corrupticrat politicians) are the ones that draw my ire and the following video sums it up in a nutshell. The Government Unions have become the way to make the taxpayer fund big government politicians at the expense of the taxpayers.