Thursday, February 9, 2012

Rightful Owners

$25 billion sounds like a lot of money, but when consider that there are individuals that could write a check for that amount, it’s not that much. Compared to the 150 billion in bonuses that Wall Street bankers take each year it’s really not much at all. Compared to the trillions in economic damage done by this grand conspiracy it’s just a rounding error.

Compared to the 4 million people who have lost their homes so far, do to the fraud of the Bush Crime Family, it works out to $6000 each. Enough to pay for a used car to live in, and really those people are only eligible for $1500 each, so it‘s just gas money for the “house“. The rest goes to write down mortgages, which means the money really goes to (wait for it) the banks.

The good news is that thanks to some of the state AGs holding out on the settlement, the immunity deal the banks got only applies to the illegal robo-signing scheme, homeowners can in theory still sue for damages. Robo signing was the practice of generating phony mortgage documents and hiring someone at minimum wage to sign and notarize them as if they were a bank vice-president. In the time it takes to scrawl a signature, they claimed to have carefully examined the “real” non-existent mortgage and certified that they had attempted to settle with the homeowner. Often the homeowner or rightful owner would be making reduced payments agreed to by a real bank representative, and still receive a foreclosure from one of these document mills.

The banks and the criminals that run them are still open to charges of securities fraud, stock fraud, bank fraud, tax fraud, wire fraud, and any other felonies that the AGs can come up with. Obama promised an investigation in the State of the Union speech, donations to his re-election from Wall Street have been notably absent.

Some could say cynically that Obama’s Super Pack will just get the money with no disclosure. Maybe, but the alternative is having Mitt Romney who would “speed up the foreclosure process and put the houses in the hands of investors”. Andrew Mellon, Sec of Treasury for all the Republican Presidents in the 20s, and one of the richest men to ever live, famously advised Hoover to “Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.” He also said, "in a depression assets return to their rightful owners”.

The Mellon apologists assert that Hoover didn’t follow Melon’s advice and this caused the Great Depression. Right wingers seem to have difficulty measuring the passage of time, Mellon was giving this advice because the Depression was already raging unabated. Of course they often claim the Depression didn’t really start until well into FDR’s Presidency, much as the Garden of Eden existed until the day Obama was sworn in.

The International Monetary Fund is fond of Mellon’s Liquidation Doctrine and has employed it many times in third world countries. Greece is currently being liquidated in just that manner as we speak. The right constantly screams that we are destined to become Greece because of our Welfare State and obscene pay we give teachers unions. They can’t wait to return all the assets to their rightful owners.


John said...

Isn't it reassuring that "homeowners can in theory still sue for damages"? I suppose they'll pay their attorneys with their whopping $600-$1500 awards ... IF they get news of the settlement in their new digs under the bridge.

So "Obama promised an investigation in the State of the Union speech." Wow.

That promise MAY have meant something if it had been delivered in the 2009 SOTU AND was fulfilled.

Now it is simply added to the long list of Obama promises, which (to paraphrase a Roman poet) may as well be written on running water.

Or, if one were cynical, one might consider such insulting utterance a mere campaign flourish ... based on human misery, the destruction of "the American Dream" not to mention the much hallowed (especially by the radical reich) "private property rights."

If government is unable/unwilling to try/convict such criminals then it is merely conspiring with them precisely, as pointed out in the post, as this particular settlement means further enrichment of the criminals AND, in general, as the government is always willing to shunt them taxpayer money whenever it is necessary to save them from their other failed criminal schemes.

John Puma

prairie2 said...

Pious liberals demand that democracy bend to their will and nothing less will be tolerated. The democratic process ignores them and grinds along just the same.

Dave said...

Apparently feudalism is the correct social order for humanity. The great mass of us were never intended by God, or is that G-O-H-D, to have anything of our own. The masters really are our superiors and we just need to stop all this silly self-determination nonsense once and for all!

Anonymous said...

"The democratic process ignores them and grinds along just the same."

America's democracy is now merely symbollic, as all substance long ago was removed for it.

Our only true hope now lies in what can be rebuilt after the facade inevitably collapses soon.

Anonymous said...

I can't easily condense what Yves Smith of said in her great 45 minute interview with Harry Shearer today about Obama's robo-deal, but she gave it an F. Seems it amounts to a free pass for past shenanigans, no real change, and just enough Populist frosting to make it palatable for the proles.