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SYNDICATED COLUMN: Another Obama Sellout

Thursday, February 23rd, 2012 by Ted Rall

Mortgage Settlement a Sad Joke

Joe Nocera, the columnist currently challenging Tom Friedman for the title of Hackiest Militant Centrist Hack—it’s a tough job that just about everyone on The New York Times op-ed page has to do—loves the robo-signing settlement announced last week between the Obama Administration, 49 states and the five biggest mortgage banks. “Two cheers!” shouts Nocera.

Too busy to follow the news? Read Nocera. If he likes something, it’s probably stupid, evil, or both.

As penance for their sins—securitizing fraudulent mortgages, using forged deeds to foreclose on millions of Americans and oh, yeah, borking the entire world economy—Ally Financial, Bank of America, Citibank, JPMorgan Chase and Wells Fargo have agreed to fork over $5 billion in cash. Under the terms of the new agreement they’re supposed to reduce the principal of loans to homeowners who are “underwater” on their mortgages—i.e. they owe more than their house is worth—by $17 billion.

Some homeowners will qualify for $3 billion in interest refinancing, something the banks have resisted since the ongoing depression began in late 2008.

What about those who got kicked out of their homes illegally? They split a pool of $1.5 billion.

Sounds impressive. It’s not. Mark Zuckerberg is worth $45 billion.

“That probably nets out to less than $2,000 a person,” notes The Times. “There’s no doubt that the banks are happy with this deal. You would be, too, if your bill for lying to courts and end-running the law came to less than $2,000 per loan file.”

Readers will recall that I paid more than that for a speeding ticket. 68 in a 55.

This is the latest sellout by a corrupt system that would rather line the pockets of felonious bankers than put them where they belong: prison.

Remember TARP, the initial bailout? Democrats and Republicans, George W. Bush and Barack Obama agreed to dole out $700 billion in public—plus $7.7 trillion funneled secretly through the Fed—to the big banks so they could “increase their lending in order to loosen credit markets,” in the words of Senator Olympia Snowe, a Maine Republican.

Never happened.

Three years after TARP “tight home loan credit is affecting everything from home sales to household finances,” USA Today reported. “Many borrowers are struggling to qualify for loans to buy homes…Those who can get loans need higher credit scores and bigger down payments than they would have in recent years. They face more demands to prove their incomes, verify assets, show steady employment and explain things such as new credit cards and small bank account deposits. Even then, they may not qualify for the lowest interest rates.”

Financial experts aren’t surprised. TARP was a no-strings-attached deal devoid of any requirement that banks increase lending. You can hardly blame the bankers for taking advantage. They used the cash—money that might have been used to help distressed homeowners—to grow income on their overnight “float” and issue record raises to their CEOs.

Next came Obama’s “Home Affordable Modification Program” farce. Another toothless “voluntary” program, HAMP asked banks to do the same things they’ve just agreed to under the robo-signing settlement: allow homeowners who are struggling to refinance and possibly reduce their principals to reflect the collapse of housing prices in most markets.

Voluntary = worthless.

CNN reported on January 24th: “The HAMP program, which was designed to lower troubled borrowers’ mortgage rates to no more than 31% of their monthly income, ran into problems almost immediately. Many lenders lost documents, and many borrowers didn’t qualify. Three years later, it has helped a scant 910,000 homeowners—a far cry from the promised 4 million.”

Or the 15 million who needed help.

As usual, state-controlled media is too kind. Banks didn’t “lose” documents. They threw them away.

One hopes they recycled.

I wrote about my experience with HAMP: Chase Home Mortgage repeatedly asked for, received, confirmed receiving, then requested the same documents. They elevated the runaround to an art. My favorite part was how Chase wouldn’t respond to queries for a month, then request the bank statement for that month. They did this over and over. The final result: losing half my income “did not represent income loss.”

It’s simple math: in 67 percent of cases, banks make more money through foreclosure than working to keep families in their homes.

This time is different, claims the White House. “No more lost paperwork, no more excuses, no more runaround,” HUD secretary Shaun Donovan said February 9th. The new standards will “force the banks to clean up their acts.”

Don’t bet on it. The Administration promises “a robust enforcement mechanism”—i.e. an independent monitor. Such an agency, which would supervise the handling of million of distressed homeowners, won’t be able to handle the workload according to mortgage experts. Anyway, it’s not like there isn’t already a law. Law Professor Alan White of Valparaiso University notes: “Much of this [agreement] is restating obligations loan servicers already have.”

Finally, there’s the issue of fairness. “Underwater” is a scary, headline-grabbing word. But it doesn’t tell the whole story.

Tens of millions of homeowners have seen the value of their homes plummet since the housing crash. (The average home price fell from $270,000 in 2006 to $165,000 in 2011.) Those who are underwater tended not to have had much equity in their homes in the first place, having put down low downpayments. Why single them out for special assistance? Shouldn’t people who owned their homes free and clear and those who had significant equity at the beginning of crisis get as much help as those who lost less in the first place? What about renters? Why should people who were well-off enough to afford to buy a home get a payoff ahead of poor renters?

The biggest fairness issue of all, of course, is one of simple justice. If you steal someone’s house, you should go to jail. If your crimes are company policy, that company should be nationalized or forced out of business.

Your victim should get his or her house back, plus interest and penalties.

You shouldn’t pay less than a speeding ticket for stealing a house.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

Posted in Alan White, Ally Financial, Bank of America, Banking, Banksters, Blog, Citibank, Columns, credit markets, Evictions, Foreclosures, Forgery, HAMP program, Homeowners, housing bubble, housing collapse, HUD, Joe Nocera, JPMorgan Chase, Mark Zuckerberg, Mortgage crisis, New York Times, obama, Occupy Wall Street, Olympia Snowe, refinancing, robo-signing, Shaun Donovan, subprime mortgages, TARP, underwater, usa today, Wells Fargo | Comment

SYNDICATED COLUMN: 7-7-7

Thursday, December 1st, 2011 by Ted Rall

Jobless? Face It: Obama’s Not That Into You

Forget Herman Cain’s 9-9-9. The battle cry for every American ought to be 7-7-7.

7-7-7: for the $7.7 trillion the Bush and Obama Administrations secretly funneled to the banksters.

Remember the $700 billion bailout that prompted rage from right to left? Which inspired millions to join the Tea Party and the Occupy movements? Turns out that that was a mere drop in the bucket, less than a tenth of what the Federal Reserve Bank doled out to the big banks.

Bloomberg Markets Magazine reports a shocking story that emerged from tens of thousands of documents released under the Freedom of Information Act: by March 2009, the Fed shelled out $7.77 trillion “to rescuing the financial system, more than half the value of everything produced in the U.S. that year.”

The U.S. national debt is currently a record $14 trillion.

We knew that the Fed and the White House were pawns of Wall Street. What’s new is the scale of the conspiracy.

Even the most jaded financial reporters were stunned at the extent of collusion: “The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates.”

Citigroup earned an extra $1.8 billion by reinvesting the Fed’s below-market loans. Bank of America made $1.5 billion.

Bear in mind, that’s only through March 2009.

“Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure,” wrote Representative Elijah Cummings, a ranking member of the House Committee on Oversight and Government Reform who is demanding an investigation.

Indeed we are.

This stinks. It’s terrible economics. And it’s unbelievably cruel.

First the economics. The bank bailouts were supposed to loosen credit in order to encourage lending, investment, job creation and ultimately consumer spending. It didn’t work. Banks and corporations alike are hoarding cash. President Obama, who promised 4 million net new jobs by earlier this year, has been reduced to claiming that unemployment would have been even higher without the bailouts.

Ask any business executive why nobody is hiring and they’ll blame the lack of consumer demand. If the ultimate goal is to put more money into people’s pockets, why not just, you know, put more money into people’s pockets?

Bank executives used federal taxdollars to pay themselves tens of billions in bonuses and renovate their corporate headquarters. We the people got 0-0-0. What if we’d gotten 7-7-7 instead?

Every man, woman in child in the United States would have received $24,000.

A family of four would have gotten $96,000.

And that’s without an income test.

New data from the U.S. Census Bureau shows that 100 million American citizens—one of out of three—subsists below or just above the official poverty line. Demographers, statisticians and economists were stunned. “These numbers are higher than we anticipated,” Trudi J. Renwick, the bureau’s chief poverty statistician, told The New York Times. “There are more people struggling than the official numbers show.”

For four decades progressive economists have warned that the middle-class was being eroded, that the United States would become a Third World country if income inequality continued to expand. They can stop. We’re there.

These poor and “near poor” Americans comprise the vast majority of the uninsured, un- and underemployed, and foreclosure victims. If Bush-Obama’s 7-7-7 Plan had gone to each one of these 100 million misérables instead of Citigroup and Bank of America, the IRS would have mailed out 100 million checks for $77,700 each.

This would have paid off a lot of credit cards. Kept millions in their homes, protecting neighborhood property values. Allowed millions to see a doctor. Paid for food.

A lot of the money would have been “wasted” on new cars, Xboxes—maybe even a renovation or two. All of which would have created a buttload of consumer demand.

If you’re a “99er”—one of millions who have run out of unemployment benefits—Obama’s plan for you is 0-0-0.

If you’re one of the roughly 20 million homeowners who have lost or are about to lose your house to foreclosure—most likely to a bank using fraudulent loan documents—you get 0-0-0.

If you’re a teacher asking for a raise, or a parent caring for a sick child or parent, or just an ordinary worker hobbling to work on an old car that needs to be replaced, all you’ll get is 0-0-0.

There isn’t any money to help you.

We don’t have the budget.

We’re broke.

You can’t get the bank to call you back about refinancing, much less the attention of your Congressman.

But not if you’re a banker.

Bankers get their calls returned. They get anything they want.

There’s always a budget for them.

They get 7-7-7.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

Posted in 0-0-0, 7-7-7, Bank Bailouts, Bank of America, Banksters, Blog, Bloomerg Markets magazine, Budget Priorities, Census Bureau, Citibank, Citigroup, Class Warfare, Columns, Deficits, Education, Elijah Cummings, Fed, Federal Reserve Bank, FOIA, Foreclosures, Freedom of Information Act, healthcare, herman cain, National Debt, near poor, New York Times, obama, Occupy movement, Poor, poverty, tea party, teachers, Trudi Renwick, Underemployment, unemoployment | Comment

SYNDICATED COLUMN: Fight the Powerlessness

Tuesday, September 6th, 2011 by Ted Rall

The Left’s Case for Boycotting Obama in November 2012

Three years in, it’s obvious to all but the most willfully obtuse liberals and progressives that their 2008 votes for Obama have not paid off.

The president blames obstructionist Republicans for his lack of action on, well, everything. His blame-the-GOP argument would be plausible if not for one thing: Before the Republicans swept the 2010 midterms, Obama had enormous political capital, a supportive media and Democratic control of both houses of Congress.

Had Obama wanted, he could have governed to the left. Far to the left. To the left of FDR.

Remember how scared we were? The economy was in freefall. We lost 600,000 jobs the month he took office. We would have gone along with anything he asked for, including a new WPA program and permanent jobless benefits.

He didn’t ask.

Obama didn’t govern like a liberal because he didn’t want to. He didn’t want to because he’s not a liberal.

Many progressives are angry. They want to send Obama and his fellow phony Democrats a message next November. But they don’t know how to counter the central argument of the two-party trap.

It goes like this:

“Voting for Obama sucks. He’s just going to do more stuff I hate, like bailing out banksters and starting more wars while ignoring the terrible economy. But what else can I do? I can’t vote for some science-denying, Bible-thumping Republican ignoramus who’d be even worse.

“Not voting? That’s almost as bad as voting Republican. With so much at stake, there’s no choice but to hold my nose and vote Democratic.”

This powerful argument has kept liberals in the Democratic fold since 1976, when Jimmy Carter pushed the party to the right with his huge defense build-up.

Fear of a GOP nation drove them to vote for Bill Clinton, even though his major accomplishments—welfare reform, NAFTA and the WTO—were right-wing.

There’s always something at stake. Every election is “one of the most important elections of our lifetimes.” As a result, there hasn’t been a liberal presidential nominee for 40 years. Mainly, this is because liberal voters are willing to vote for right-wing Democrats.

A lot of liberals, feeling even more conned than usual, are asking me how to counter the two-party trap argument.

Here’s what I tell them:

First and foremost, your vote (or lack thereof) cannot and will not put Rick Perry or Mitt Romney or Sarah Palin in the White House. It’s simple statistics. By definition you can only change one vote: your own. And no state’s electoral votes have ever come down to a single vote.

No election in U.S. history has ever come down to one vote. Not even a local one.

Even in Florida in 2000, the outcome hinged on about 150 ballots. I don’t care how big your family or circle of friends is—you are not going to change 75 or more votes one way or the other. Mathematically speaking, your vote is purely symbolic.

Point two: Democratic Party strategists take liberal voters for granted. Don’t take my word for it; check out books by Washington insiders like former Clinton pollster Dick Morris and “The Political Brain” author Drew Westen. Democratic leaders obsess over “Reagan Democrats,” “soccer moms,” “security moms” or whatever catchphrase equates to “swing voter” during a given year—people who might vote Republican one election, Democratic the next. That’s why “Democrats” run as—and govern like—Republicans.

As for liberals, progressives and leftists, Democrats ask: Where else are they going to go?

Refusing to vote for Obama answers their question: If you don’t stop taking us for granted, we will take our votes elsewhere—whether to the Republicans, a third party, or limbo, boycotting the process altogether.

Point three: Voting for immoral leaders makes you immoral.

It’s one thing to be duped, as liberals were by Carter in 1976. It’s another to knowingly vote for a politician you know or at least strongly suspect will promulgate policies you believe are wrong—which is exactly what most liberals did when they voted for Obama in 2008.

Most Americans and the vast majority of lefties were against the U.S. occupation of Afghanistan. During the campaign Obama pledged to send even more troops there. From a moral standpoint, the blood of every Afghan wounded or killed after January 2009 is on the hands of those of us who pulled a lever, pushed a button or punched a chad for Barack Obama. (That includes me.)

Obama lied about other issues. He promised to close Gitmo, to push for a real healthcare plan (one with a public option), and to withdraw from Iraq. Now, however, we know that he lied.

Knowing what you know now, a vote for Obama in 2012 would be an enthusiastic vote of support for torture, extrajudicial assassinations, drone attacks, corporate healthcare, doing nothing about jobs and staying in Iraq. Your eyes are open. A liberal who votes for Obama would be directly responsible for the torture, the killings, and the suicides of the desperately unemployed.

The two-party trap is the sort of sick game that sadistic concentration camp guards like to play.

“I’m going to shoot this old man or this little boy. You decide which. If you refuse to choose, I’ll shoot both.”

There is only way to deal with ideological terrorists:

Don’t.

Let evil scum do what they like. You can’t stop them anyway. If the guard shoots both the man and the boy, it’s a terrible crime—but the blood is all on his hands.

For a progressive, voting for Obama is like asking the camp guard to shoot one person rather than two. In the short run, it seems like the right decision. In the long run, the man and the boy die—and it’ll partly be your fault,

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

Posted in 2012 presidential election, afghanistan, Apathy, Assassinations, Banksters, Bill Clinton, Blog, centrism, Columns, concentration camp guards, Democrats, depression, dick morris, drew westen, fdr, gitmo, ideological terrorism, iraq, jimmy carter, leftists, Liberals, mitt romney, nafta, obama, political brain, progressives, Reagan democrats, rick perry, Sarah Palin, sick game, Swing Voters, torture, Two-Party Trap, Unemployment, vote boycott, voting, welfare reform, wpa, wto | Comment

Heckuva Job, Barry

Friday, March 18th, 2011 by Ted Rall

The US government opens its wallet to help victims of the Japanese tsunami while millions of Americans who lost their homes to foreclosure get nothing.

Posted in Address, Banksters, cartoons, criminal bankers, depression, Desk, disaster relief, donations, Earthquake, Economic Collapse, economy, fema, Foreclosures, form, forms, Help, japan, line, now serving, obama, recession, tsunami | Comment

NEW WEBISODE: “Disposable” Episode #2

Monday, February 14th, 2011 by Ted Rall

It’s out! The second official webisode (animated cartoon) by David Essman and yours truly about the downward slide of a typical American family living during the Obama Depression.

This time: Dan and Sarah attempt to hang on to their home.