Category Archives: Mortgages

President Obama’s Saturday YouTube Address 02/13/10

white house gov logoWhiteHouse.gov—The President, having just signed the “Pay As You Go” law, discusses the importance of this fundamental rule to getting budget deficits in check. Ensuring that new spending and tax cuts are offset was a important factor in creating the budget surplus of the late 1990’s.
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Republicans Stand by Their Man: Fat Cat The Banker

Posted by: LibbyShaw

Meet Fat Cat the Banker

Meet Fat Cat the Banker

Who would have thought? In its true and hypocritical form The Party of No and Obstruction opposes President Obama’s proposed fees on banks.

Dick Cheney must be hard at work at that printing press in his undisclosed basement.

Prominent Republicans are coming out in opposition to President Barack Obama’s proposal for a $90-billion fee on large banks that took bailout money, a move that political observers say could force the GOP to choose between their traditional anti-tax position and populist anger over the bailout.

On Thursday, GOP Chairman Michael Steele declared that the bank fee — which would be levied only on banks that took bailout money and have more than $50 billion in assets — is “another tax on the American public.”

The GOP is standing by fat cat the banker in yet another effort to oppose President Obama. Republicans demonstrate time and time again that they are willing to put politics ahead of working on solutions to solve the daunting challenges that we face on local, state and national levels.

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All of the Republican’s ranting and raving about the federal bailout is nothing but ginned up rhetoric. Apparently GOP lawmakers hate the bailout and yet they love the banks so much that they do not believe Wall St., aka gambling casinos that put Las Vegas to shame, should have to make reparations to the taxpayers for squandering and stealing our money. God forbid should the big banks have to pay fines for its appallingly irresponsible and over the top reckless behavior that annihilated the U.S. and global economy.

The financial services industry lobbied for the repeal of the Glass Steagall Act in 1999. That allowed banks to use their custodial power over your money to assume huge risks in investment markets.

They also lobbied for the Commodity Futures Modernization Act of 2000, which allowed banks to trade their crooked insurance in secret and exempted from all supervisory authority.

And to help grow the hurricane, then CEO of Goldman Sachs Hank Paulson made a personal plea to the SEC to allow banks to leverage more money against their capital. As much as $4,000 for every $100 in capital they held.

Wall Street may claim this was caused by a perfect storm, but the only thing perfect about it was their ability to line their pockets at the expense of our country.

Republicans apparently think it is a good idea for the banks to return to its wild, careless and out of control gambling practices that all but destroyed our financial security.

The proposed tax would apply to bank, thrift and insurance companies with more than $50 billion in assets and would start after June 30. It would not apply to certain holdings, like customers’ insured savings, but to assets in risk-taking operations. The levy would raise an estimated $90 billion over 10 years, according to the White House.

But it would remain in force longer if all losses to the bailout fund, the Troubled Asset Relief Program, were not recovered after a decade. The Treasury now projects that the losses from the $700 billion loan program, which was created in October 2008, could reach $117 billion, about a third of the loss that it projected last summer — an improved forecast that reflected the renewed strength on Wall Street.

After all, last week during the Texas Republican gubernatorial debate Senator Kay Bailey Hutchison said she and John Cornyn hated voting for the bank bail out. But, alas, they did so only because then President G.W. Bush instructed them to do so in order to save the U.S. and global economy from a complete melt down.

A glimpse at a Texas Republican clown show.

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In their twisted logic Republican politicians insist they hated saving the banks but now they hate imposing punitive fees on the banks’ biggest gamblers.

I suppose now that Sarah Palin has been hired as a professional analyst by FOX, the Propaganda Arm for the RNC, all of the GOP’s verbal inconsistencies and contradictions will soon be fully explained.

Republican lawmakers will howl like possessed banshees about terrorism and the profound urgency for our national security. They also routinely cry for border fences, racial profiling and full body scanners at all airports. And yet when it comes to safeguarding our financial and economic security, Republicans, it appears, are not in the least bit concerned. For them Fat Cat the Banker can do no wrong.

According to an article written by Mr. Frank Rich of the New York Times:

The Other Plot to Wreck America

Americans might be fluent in global terror and the horrors of terrorism but we are woefully uninformed about our domestic financial weapons of mass destruction.

Americans must be told the full story of how Wall Street gamed and inflated the housing bubble, made out like bandits, and then left millions of households in ruin. Without that reckoning, there will be no public clamor for serious reform of a financial system that was as cunningly breached as airline security at the Amsterdam airport. And without reform, another massive attack on our economic security is guaranteed. Now that it can count on government bailouts, Wall Street has more incentive than ever to pump up its risks — secure that it can keep the bonanzas while we get stuck with the losses.

The Director of the Financial Crisis Commission intends to shed some light on the big banks and its financial practices (greed, hubris, stupidity – gosh, why this sounds like a typical old home week of the W. Administration of arrogance and incompetence) over the last several years.

He wants to examine the financial sector’s “greed, stupidity, hubris and outright corruption” — from traders on the ground to the board room. “It’s important that we deliver new information,” he said. “We can’t just rehash what we’ve known to date.” He understands that if he fails to make news or to tell the story in a way that is comprehensible and compelling enough to arouse Americans to demand action, Wall Street and Washington will both keep moving on, unchallenged and unchastened.

Maybe the W. Administration and all of its lackeys including Senators John Cornyn and Kay Bailey Hutchison were far too distracted by non-existent WMD’s in Iraq and no bid contracts to the military/industrial complex to worry much about Wall St.

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Filed under Bailout, Banking, Barack Obama, Capitalism, Creepy right-wing antics, Economy, Greed, Media and Entertainment, Money, Mortgages, MSNBC, News, Partisan Politics, Politics, Presidents, Republicans, RNC, Small Business, The Morning Meeting w/Dylan Ratagan, Video/YouTube, Washington, DC

Republicans Delivered the Worst Decade in Modern U.S. History

posted by: LibbyShaw

Republicans ruled for 80% of the last decade, 60% of which Republicans were in total control

At least when W. ran his companies into the ground Daddy’s friends would step up and bail junior out. But Daddy’s buddies are nowhere to be found now that W. and his GOP drove the country straight to hell. Tragically for the American taxpayers, we, our children, our grandchildren and great grandchildren will have to clean up the squalor. It will take generations to undo the GOP’s financial carnage.

A recent article published in the Washington Post reveals that the American worker lost big time during the past decade.

This news should come as no surprise to any hard working middle class American. We have been living the pain for 10 long years.

The past decade was the worst for the U.S. economy in modern times, a sharp reversal from a long period of prosperity that is leading economists and policymakers to fundamentally rethink the underpinnings of the nation’s growth.

It was, according to a wide range of data, a lost decade for American workers. The decade began in a moment of triumphalism — there was a current of thought among economists in 1999 that recessions were a thing of the past. By the end, there were two, bookends to a debt-driven expansion that was neither robust nor sustainable.

The Washington Post also reveals that there has been zero net job creation since December 1999. Conditions have not been this grim for decades. Essentially, the American worker has not had a raise in a very long time.

Middle-income households made less in 2008, when adjusted for inflation, than they did in 1999 — and the number is sure to have declined further during a difficult 2009. The Aughts were the first decade of falling median incomes since figures were first compiled in the 1960s.

Click to enlarge

As we well know, our home values have declined as have our retirement and savings accounts.

What happened?

Economists attribute the decline to economic stagnation, an out of control housing bubble, too much risk and too much debt. Money was invested in mini mansions instead of business investments that would have created jobs and economic growth.

The housing bubble both caused, and was enabled by, a boom in indebtedness. Total household debt rose 117 percent from 1999 to its peak in early 2008, according to Federal Reserve data, as Americans borrowed to buy ever more expensive homes and to support consumption more generally.

An experiment called an unbridled free market economy ended very badly for we the people.

The first decade of the new century was an experiment in what happens when an economy comes to rely heavily on borrowed money.

A big part of what happened this decade was that people engaged in excessively risky behavior without realizing the risks associated,” said Karen Dynan, co-director of economic studies at the Brookings Institution. “It’s true not just among consumers but among regulators, financial institutions, lenders, everyone.”

The experiment has ended badly. While the stock market bubble that popped in 2000 caused only a mild recession, the housing and credit bubble has had a much greater punch — driving the unemployment rate to a high, so far, of 10.2 percent, compared with a peak of 6.3 percent following the last such downturn.

In short, the big banks, enabled by Republican free market ideology, gambled with our money and they lost it. And they lost it big time. As we know we the taxpayer had to step up and bail out the banks so there would not be a complete and thoroughly devastating global economic melt down.

The G.W. Bush era was one in which the GOP rewarded every one of its fat cat sugar daddies, including Halliburton with its no bid contracts for a ginned up war called Iraq.

We the people are dearly paying the price for the Bush era’s unforgivable mistakes.

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I am with Dylan Ratigan on this one. The banks should pay the taxpayers back with interest. Why on earth did Hank Paulson give away our money with no strings attached? What was he thinking?

So next time we hear about the virtues of an unbridled free market economy we need to say no way in hell. Any politician who embraces this voodoo notion of economic devastation should be run out of office on a rail for they are unfit to serve the people.

Speaking of unfitness to serve, why is that Republicans have to blame their short comings on others? Why can’t Republicans ever step up and take responsibility for their mistakes?

Republicans are obviously inept at running the economy and they are also incompetent at keeping our nation safe whether from terrorist attacks or national disasters like Hurricane Katrina. It seems that the only thing Republicans are good at is playing the blame game.

A coordinated, successful attack, with sufficient warning, carried out by 19 terrorists, killing 2,973 people, on the 234th day of an administration… that’s completely and totally and absolutely and so gosh-durn’t the fault of the previous President… who happened to be a Democrat.

HOWEVER, an unsuccessful attack, attempted by 1 terrorist, killing absolutely no one on the 339th day of an administration… that’s completely and totally and absolutely and so gosh-durn’t the fault of the current President… who happens to be a Democrat.

SIMILARLY, a complete and total meltdown of the financial system, including a stock market collapse and levels of bankruptcy/foreclosure not seen since the Great Depression on, or around, the 2415th day of an administration… that’s completely and totally and absolutely and so gosh-durn’t the fault of the previous President (and Congress)… who created Acorn, and just happened to be Democrats.

BUT, 10% unemployment and lackluster job growth on the 215th day of an administration… that’s completely and totally and absolutely and so gosh-durn’t the fault of the current President (and Congress)… who want to institute socialism (in the form of Acorn) and happen to be Democrats.

NOW, making a statement from your “brush farm” 144 hours after a dude with bad facial hair is prevented from blowing up an airplane… that’s fighting some serious war on the baddies.

AND YET, making a statement from the beach 72 hours after a dude with bad genital burns is prevented from blowing up an airplane… that’s “pretending the war on terror doesn’t exist“.

If folks really have a desire to destroy what is left of their financial security, go ahead and continue to vote for Republicans. Hopefully most of us won’t have this death wish in November.

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Federal Stimulus Program is Not Working… Except That It Is

Posted by LibbyShaw

VP Joseph Biden greets construction workers after delivering a speech in Kalamazoo, Michigan

The Republicans and their water carrying blustering blowhards in the conventional wisdom alternative universe bubble have been frantically working 24/7 to fabricate the perception that the federal stimulus program is not working.

Those Americans who reside outside the Republican and conventional “wisdom” bubble, i.e. Joe, Jose, Jane, Yolanda, Chen, Hui, Omar and Laqueesha (to name a handful) have a far different view of the federal stimulus program.

It seems that Republicans and the Party’s blowhards ignored the recently released Congressional Budget Office report. Or perhaps the Republicans and its tools did not like what they read. Yikes, this stimulus can’t work or we are dead. Change the message! If the government works we lose! No matter what, kill off any good news about the stimulus program! Who cares what happens to the average Jane and Joe Americans? WTF are they?! This is all about us and our ability to stockpile as much money for ourselves as we can! Heaven help us! Change the bleeping bleepity bleep message! Jeeze oh Pete – gin up a freaking war if need be!

The nonpartisan Congressional Budget Office said the $787 billion stimulus package approved in February lowered the nation’s unemployment rate by between 0.3 and 0.9 percentage points while boosting the economy by between 1.2 percent and 3.2 percent. The analysis also found that three-quarters of the money provided in the stimulus had yet to be funneled into the economy by the end of September.

The report is a boost for the administration, which faced renewed questions last month over how many jobs the stimulus has produced after the Government Accountability Office said it found “significant” problems with the White House’s tally. The administration has estimated the stimulus created or saved 640,329 jobs through October.

The report released yesterday “leaves no doubt that the economy would be in much worse shape if the recovery act had not been implemented,” said House Education and Labor Committee Chairman George Miller, a California Democrat. “As the Obama administration and Congress continue to explore additional strategies to create jobs and build a foundation for long-term economic growth, it is critical to acknowledge the progress that has already been made.”

But Republicans, especially Texas Republicans and their propagandists at FOX seem to have a problem with facts that the party and its spin meisters do not manufacture.

Sigh. Oh, how we tragically know all about the GOP and its fiscal irresponsibility with its tax cuts for the 1 or 2% of the wealthy, the deregulation of the financial and energy sectors, while waging war on two fronts. Tell us about a war of choice vs. one of necessity. Tell us why we took our eye off of Afghanistan to go looking for Al-Qaeda and WMD’s that did not exist in Iraq? Thanks, too, Louie and Sean, for leaving both wars on the back of a new Administration. And please do accept our deep and heartfelt thanks for your leaving both wars on the backs of the American people, our children, grandchildren and generations of our great grandchildren to come.

Reality check on the federal stimulus program.

Where Texas is concerned we have been awarded $10,680,470,000 in stimulus funding. So far we have received $1,826,240,000.

Jobs created so far: 19,572.

Check out the facts of the American Recovery and Reinvestment Act.

The so-called conventional wisdom sounds like a bunch of conventional self-serving lying and hysterical stupidity to me.

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President Obama Announces Initiatives For Small Banks/ Businesses, Pay Cuts for Execs

Oct. 21 (Bloomberg) — President Barack Obama plans to announce new measures to open up credit for small businesses, including capital injections for community banks to spur lending, the administration said.

Community banks with less than $1 billion in assets will be eligible for lower-cost capital if they submit a small business lending plan and document their lending in quarterly reports, according to a White House fact sheet.

If approved by regulators, these banks would pay the government an initial 3 percent dividend on the injection, instead of the previous 5 percent rate.

Obama also will seek legislation raising the limits for Small Business Administration loans from $2 million to $5 million and as much as $5.5 million for manufacturing.

The president will visit a small business in Maryland this afternoon to make the announcement, White House press secretary Robert Gibbs said.
Full Story Here:

Obama Announces Help for Small Businesses

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US to Order Steep Pay Cuts at Firms That Got Most Aid

WASHINGTON — Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in federal bailouts, the Obama administration will order the companies that received the most aid to deeply slash the compensation to their highest paid executives, an official involved in the decision said on
Wednesday.

Under the plan, which will be announced in the next few days by the Treasury Department, the seven companies that received the most assistance will have to cut the cash payouts to their 25 best-paid executives by an average of about 90 percent from last year. For many of the executives, the cash they would have received will be replaced by stock that they will be restricted from selling immediately.

And for all executives the total compensation, which includes bonuses, will drop, on average, by about 50 percent.

The companies are Citigroup, Bank of America, the American International Group, General Motors, Chrysler and the financing arms of the two automakers.
More Here: New York Times

MSNBC Reports on Executive Pay Cuts:

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Federal plan to spur small-business lending unveiled

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Tavis Smiley Named In Racial Wells Fargo Loan Scheme

Posted by Audiegrl

Tavis Smiley @ State Of The Black Union.  Check out the logos behind Tavis.

Tavis Smiley @ State Of The Black Union. Check out the logos behind Tavis.

The Root/The Buzz—Uh oh.

A suit filed by the attorney general of Illinois claims Tavis Smiley and others were used to okey doke folks into high-risk Wells Fargo loans. From the Washington Independent:

As the housing market began booming in mid-2000, Wells Fargo & Co. teamed up with prominent African American commentator and PBS talk show host Tavis Smiley and financial author Kelvin Boston, the host of “Moneywise,” a multicultural financial affairs show, to host something called “Wealth Building” seminars in black neighborhoods.

Smiley was the keynote speaker, and the big draw, according to Boston and Keith Corbett, executive vice president of the Center for Responsible Lending, who attended two of the seminars. Smiley would charge up the audience — and rattle the Wells Fargo executives in attendance — by launching into a story about how he hated banks, and how they used to refuse to lend him money for his real estate projects in Compton, Calif., and elsewhere. After Hurricane Katrina, Smiley also emphasized the importance of building assets and wealth, saying those who had done so were able to leave New Orleans, while people with nothing had to stay behind, Boston said.

Read more…

You can also read a piece @ Jack and Jill Politics by The Christian Progressive Liberal entitled The “Outing” of Tavis Smiley

***Update: Prominent author, commentator and PBS talk show host Tavis Smiley has announced that he’s cutting all business ties to Wells Fargo & Co. The move comes in the wake of a TWI story last week about Wells Fargo “Wealth Building” seminars held in black neighborhoods starting in 2005, headlined by Smiley, which a recent lawsuit filed by the Illinois attorney general charged were nothing more than sales pitches for high-rate subprime loans.

Richard Prince reported Friday in his “Journal-isms” column that Smiley said he would sever all ties with Wells Fargo until charges that the company steered minorities into higher-rate loans are resolved.

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