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Posts Tagged ‘commercial mortgages’

You and Me

April 16, 2013 Leave a comment

You and me

We’ve got all the time

In the world

‘Cause life is long

It goes on and on. © 2013

It’s time to break up the big banks

February 8, 2013 Leave a comment

[Now that the banks are healthy again] “let’s break these suckers up…so we can actually have justice for all, including bankers.” Go to minute 1:00 of the Daily Show interview to hear Neil Barofsky speak the words inside quotation marks.

[* My idea in brackets]

http://www.thedailyshow.com/watch/thu-february-7-2013/exclusive—neil-barofsky-extended-interview-pt–2

The $700 billion TARP (Troubled Asset Relief Program) bailed out Citigroup, Goldman Sachs, JPMorgan, and on and on. President George W. Bush and ex-Goldman Sachs CEO turned U.S. Secretary of the Treasury, Hank Paulson, said TARP would be used to buy up bad mortgages and help underwater homeowners in order to clear the “toxic assets” from the real estate industry and free up consumer credit again. Nope, didn’t happen that way. That’s why you always have to remember: Republicans and Conservatives will lie, cheat and steal.

source: http://www.nytimes.com/2010/12/02/business/economy/02fed.html

EXCERPT:

“At home, from March 2008 to May 2009, the Fed extended a cumulative total of nearly $9 trillion in short-term loans to 18 financial institutions under a credit program….

Even bedrock corporations like Caterpillar, Harley-Davidson, General Electric, McDonald’s, Toyota and Verizon relied on a Fed program that supported the market for commercial paper….

So did the California Public Employees Retirement System, the nation’s largest public pension fund, and several insurers and university endowments.”

Read more:

http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html

http://www.nytimes.com/packages/html/national/200904_CREDITCRISIS/recipients.html

http://www.guardian.co.uk/business/2009/oct/15/goldman-sachs-record-bonus-pot

Picture source: http://www.amazon.com/Bailout-ebook/dp/B00818J57W

Bailout

Everything Under the Sun by Justin Bass

October 19, 2012 Leave a comment

End This Depression Now! by Paul Krugman

August 6, 2012 Leave a comment

EXCERPT from End This Depression Now! by Paul Krugman, pages 64-66; W.W. Norton & Company 2012:

 

“The Big Lie

 

I hear your complaints. Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp. Now, I’m not saying I’m sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn’t have gotten them without that.

But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks because it’s one target, it’s easy to blame them and Congress certainly isn’t going to blame themselves. At the same time, Congress is trying to pressure banks to loosen their lending standards to make more loans. This is exactly the same speech they criticized them for.

–Michael Bloomberg, mayor of New York, on the Occupy Wall Street protests

The story I have just told about complacency and deregulation is, in fact, what happened in the run-up to the crisis. But you may have heard a different story—the one told by Michael Bloomberg in the quotation above. According to this story, debt growth was caused by liberal do-gooders and government agencies, which forced banks to lend to minority homebuyers and subsidized dubious mortgages. This alternative story, which says that it’s all the government’s fault, is dogma on the right. From the point of view of most, indeed virtually all, Republicans, it’s an unquestioned truth.

It isn’t true, of course. The fund manager and blogger Barry Ritholtz, who isn’t especially political but has a keen eye for flimflam, calls it the Big Lie of the financial crisis.

How do we know that the Big Lie is, in fact, not true? There are two main kinds of evidence.

First, any explanation that blames the U.S. Congress, with its supposed desire to see low-income families own homes, for the explosion of credit must confront the awkward fact that the credit boom and the housing bubble were very widespread, including many markets and assets that had nothing to do with low-income borrowers. There were housing bubbles and credit booms in Europe; there was a price surge, followed by defaults and losses after the bubble popped, in commercial real estate; within the United States, the biggest booms and busts weren’t in inner-city areas but rather in suburbs and exurbs.

Second, the great bulk of risky lending was undertaken by private lenders—and loosely regulated private lenders, at that. In particular, subprime loans—mortgage loans to borrowers who didn’t qualify according to normal prudential standards—were overwhelmingly made by private firms that were neither covered by the Community Reinvestment Act, which was supposed to encourage loans to members of minority groups, nor supervised by Fannie Mae and Freddie Mac, the government-sponsored agencies charged with encouraging home lending. In fact, during most of the housing bubble Fannie and Freddie were rapidly losing market share, because private lenders would take on borrowers the government-sponsored agencies wouldn’t. Freddie Mac did start buying subprime mortgages from loan originators late in the game, but it was clearly a follower, not a leader.

In an attempt to refute this latter point, analysts at right-wing think tanks—notably Edward Pinto at the American Enterprise Institute—have produced data showing Fannie and Freddie underwriting a lot of ‘subprime and other high risk’ mortgages, lumping loans to borrowers without stellar credit scores in with loans to borrowers who failed strict lending criteria in other ways. This leads readers who don’t know better to think that Fannie and Freddie were actually deeply involved in promoting subprime lending. But they weren’t, and the ‘other high risk’ stuff turns out, on examination, to have been not especially high-risk, with default rates far below those on subprime loans.

I could go on, but you get the point. The attempt to blame government for the financial crisis falls apart in the face of even a cursory look at the facts, and the attempts to get around those facts smack of deliberate deception. This raises a question: why do conservatives want so badly to believe, and to get other people to believe, that the government did it?

The immediate answer is obvious: to believe anything else would be to admit that your political movement has been on the wrong track for decades. Modern conservatism is dedicated to the proposition that unfettered markets and the unrestricted pursuit of profit and personal gain are the keys to prosperity—and that the much-expanded role of government that emerged from the Great Depression did nothing but harm. Yet what we actually see is a story in which conservatives gained power, set about dismantling many of those Depression-era protections—and the economy plunged into a second depression, not as bad as the first, but bad enough. Conservatives badly need to explain this awkward history away, to tell a story that makes government, not lack of government, the villain.

But this in a way only pushes the question back a step. How did conservative ideology, the belief that government is always the problem, never the solution, come to have such a firm grip on our political discourse? That’s a slightly harder question to answer than you might think.”

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* I highly recommend the book by Paul Krugman, “Winner of the Nobel Prize in Economics.”

picture source: http://www.amazon.com/End-This-Depression-Paul-Krugman/dp/0393088774

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For lagniappe:

Minute 9:23…

Read more:

“Hell is empty, and all the devils are here.”–Shakespeare, The Tempest

http://www.amazon.com/All-Devils-Are-Here-Financial/dp/1591843634

FAH-Q Me!

March 6, 2012 Leave a comment

FAH-Q = For All to Hear & Question. ; )

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Advance to minute 2:20 of The New York Times’ “TimesCast” to see an example of an Ignorant Conservative/Ignorant Republican voter in Columbus, Ohio by the name of Isaac Shupe, who is susceptible to the rhetoric of campaign commercials and repeats those talking points in place of his own reasoning.

Today on TimesCast
The Times’s Jeff Zeleny previews Super Tuesday | The changed perspective of a Republican voter in Ohio.

http://video.nytimes.com/video/playlist/timescast/1247467375115/index.html?hp

Could The New York Times’ reporter and the editors of the video have taken Isaac Shupe’s words out of context? Yes! We do not know what Isaac Shupe said off camera, we only know what he said on camera. That is why it is necessary to keep questioning the sources of our information: campaign commercials, TV/Radio/Internet/Print News reports, your neighbor, me, everybody. For All to Hear & Question…that goes for everybody.

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Can you feel your soul? I can feel mine. Wishing people dead is not good for my soul. I can feel it. I still hold on to the hope that Fact & Evidence, Reason & Sense will win out over the people who lie, cheat and steal…and that We, the People, will V-O-T-E for the best ideas and the best solutions that benefit the majority of Americans. Maybe there is hope of changing the greedy, self-serving demagogues and sophists, like the Koch Brothers, Karl Rove and Dick Cheney?

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“Save the Rich”

March 1, 2012 Leave a comment

“Save the Rich” – Garfunkel and Oates with Weird Al Yankovic

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To everybody out there making it hard on others…

February 10, 2012 Leave a comment

That goes for the incompetent people who don’t think about anything past their own shoelaces. That goes for the greedy motherf*ckers out there working on Wall Street or in the financial services industry. That goes for the people on the freeway tailgating. That goes for the people butting in line wherever they go and not waiting in line like everybody else. That goes for those who lie, cheat and steal; and who never bother to stop what they’re doing, learn from their mistakes, and strive to do things right the next time. That goes for women who enable destructive bosses. That goes for Chinese manufacturers polluting the air and abusing their workers. That goes for George W. Bush and double for Dick Cheney. I am talking to you, people of planet Earth. Do better.

Click for larger image… http://justiceleagueunlimited.files.wordpress.com/2009/04/pyramid_lg.jpg

https://fandecande.files.wordpress.com/2009/10/johnwoodenpyramid.jpg?w=300

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A special FAH-Q to Apple (AAPL) for making crap computers and tablets, like the iPad, that restrict access to ESPN videos and make it difficult/frustrating/impossible to post what I want to on my own blog. FAH-Q = For All to Hear & Question. ; )

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 Free Your Mind and Think‘s photo.

Read more:

http://billmoyers.com/segment/jonathan-haidt-explains-our-contentious-culture/

http://dealbook.nytimes.com/2012/02/09/online-users-of-citibank-bill-pay-app-charged-twice/?hp

http://www.nytimes.com/2012/02/10/opinion/krugman-money-and-morals.html?hp

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