OBAMA: BAD FORECLOSURES ARE GOOD FOR THE ECONOMY

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

HOW CAN A MAN OF SUPERIOR INTELLECT GET IT SO WRONG?

How can a really popular President become a one-term president? It’s easy. Just side with fat-cat bankers who have raped and pillaged the country. The administration is taking its message from “Government Sachs.” Hardly a day goes by without another economist, government analyst, or investigative reporter showing all roads of the recession, unemployment and financial meltdown lead to the mortgage mess, the foreclosure mess and the inability of the system to deal with it. Yet the administration and the leaders of congress continue to step around the problem like they are either in favor of the foreclosures, the bad mortgages, the title problems, the outright theft, or they are willing to allow it because of monetary contributions to their campaigns and however that money gets into their personal pockets. The people have already decided: the government is not doing anything right with the economy. And now the experts agree. What more do you need to change course?

  • We now know without any doubt that 90% of excess unemployment — 10-12% of the workforce unemployed and another 10% underemployed, is directly tied to the mortgage meltdown.
  • We now know without any doubt that the recession will continue as long as Wall Street gets to keep what it sucked out of the pockets of consumers and businesses. Allowing it to suck still more out through bad foreclosures obviously SUCKS.
  • We now know without any doubt that the foreclosures and sales conducted to date — millions of them — are fatally flawed and are either void or voidable, thus creating a mountainous title problem that will haunt us for decades, removing the one thing that all commerce depends upon: confidence that when you buy something, you get to own it.
  • Promoting more of the same is insane. It can ONLY be coming from Government Sachs and other members of the club who just don’t care what happens to the country or our future. They are not satisfied with taking all the money. They are not satisfied with having virtually all the power. They want a lock on the status quo such that our country is turned into a de facto totalitarian regime with the real control coming from Wall Street. And like other times in history in  our country and other places, the more people resist the unfair use of power , wealth and privilege to oppress the rest of the people, the more repressive those in power become.
  • It can now be fairly said that Wall Street not only controls the narrative, it controls the action.
  • We now know without any doubt that the securitized mortgages were fatally flawed, legally, economically, ethically and morally. Promoting a policy of platitudes and pacification of populist anger will take us further and further away from the keystones of our nation — ideals of fairness, justice, government of laws not of men, and checks and balances to make sure that in the long run it all works out.
  • We now know where the money went — straight to Wall Street where profits and bonuses have never been higher while the rest of the country continues to decline. Don’t believe those growth figures. They are an illusion created by the so-called Wall Street profits that now make up such a large percentage of our GDP that removing the trading of the same paper back and forth between investors and investment houses, would reveal that our economy is really half the size of what we say it is.

So if you want to be a one-term or lame duck congressman or senator or president, here’s the plan. Stay the course, you are on the right track.

LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

Learning to Love Foreclosures?

NY Times Editorial, November 5, 2010.

In the most recent mortgage mess, the Obama administration has — oddly and disturbingly — been arguing that foreclosures are, in effect, good for the economy and should proceed apace as banks get their snarled paperwork in order.

Phyllis Caldwell, chief of the Treasury Department’s Homeownership Preservation Office, recently told a Congressional panel that the administration was making progress on preventing foreclosures — a claim disputed by some panelists. She also said that “an important part of assuring long-term stability in the market is to enable properties to be resold to families who can afford to purchase them.”

The trouble with her statements, which echo those of other officials, is that they gloss over the question of whether families who were foreclosed upon were given a fair shot at keeping their homes.

Some Americans, no matter what, cannot afford to keep their house. But mass foreclosures are a huge drain on the economy, crushing home values for everyone. In September, 347,420 homeowners received a foreclosure notice, up nearly 3 percent from the previous month, according to data from RealtyTrac, a marketer of foreclosed properties. Before resorting to foreclosures, banks need to make a much more serious, transparent and timely effort to work out new loan terms.

We assume the White House’s stance is an attempt to keep the markets calm in the face of ongoing revelations of chaos in the foreclosure process. That would make sense if the White House had a more aggressive policy to prevent foreclosures. But in a year and a half, its signature antiforeclosure effort has permanently modified fewer than 500,000 loans. That’s far short of the need — 4.2 million loans are now in or near foreclosure.

It comes down to this: banks are paid incentives to modify mortgages so owners can hold on to their homes, but other incentives can trump timely modifications or make foreclosures look like a better financial deal for the banks. Dragging out a delinquency, for example, can allow banks to postpone acknowledging losses, while a foreclosure sale allows them to collect late fees and other charges applied to delinquent loans.

It doesn’t take a big leap of logic to conclude that homes are being lost that could be saved, but for the banks’ reluctance to rework bad loans. The Obama administration needs to do more.

21 Responses

  1. @Anon,
    You say it eloquently.
    I say it with expletives.

    Thank you for your support.

  2. usedkarguy,

    The TEA party is the cause of many blocks for aid to homeowners. Believe it was Rick Santelli – CNBC – who rallied the movement. This was probably around the same time Mr. Henry Paulson came to the studio lobby to guide CNBC on how to blame the homeowners.

    The TEA Party does not want any help for the homeowner victims – they want no government help for anyone. They believe that the market will correct all. I once believed in the “invisible hand” of markets – but when fraud is rampant and power lopsided – there are times that the government must step in to help the victims and investigate the fraud. Investigations coming now are too little and too late. The homeowners were not given the time of day while all others were bailed out.

    And, homeowners are taxpayers too. Very ironic that via taxes we indirectly fund our own foreclosure.

  3. HOW CAN A MAN OF SUPERIOR INTELLECT GET IT SO WRONG? The basis for that assumption is incorrect on both counts.
    1.) There is no evidence that he has superior intellect 2.) There is no evidence that his goal is to correct any problems with the economy.

  4. Any man who condones giving $24.5 Trillon in bailouts to banks, rather than just canceling $10 Trillion in bank mortgages for Fraud & Nullity, is not that smart.

    Simple Math or another agenda!

    Actually both.

  5. Karen, you’re sounding like a wing-nut.

    TEA =

    Taxed Enough Already

    don’t agree?

    Oh well.

    But Obama is the culmination of some evil intentions

  6. HR 3808 out there again? And to think it was only a couple of weeks ago when the Pres vitoed this bill we were sort of thinking, ok he did something good. He only knows how to lay down,play dead and make such stupid coments in public. I think the “deadbeats” are going to drum you out.

  7. You are fucking kidding me with insane talk of Obama being the “Anti-Christ”??? We as a group will seem more sane if we talk law rather than the Book of Revelation…….don’t look like a fucking tea-bagger……that will not help our cause.

  8. Obama is such a hypocrite, he gets on TV to tell America how disgraceful it is that gay teens get bullied at school at commit suicide, but says it’s A Okay to fraudlently rob American families of there homes and then bully them on Lame Stream Media to the point of them committing suicide. I think Obama may very well be the Anti-Christ.

    With all do respect, to all the famlies who have lost their loved ones to suicide for any reason.

  9. How can a man of superior intellect get it so wrong?

    Because he’s NOT a man of superior intellect. The public has been duped by suave talk and suits, Harvard, and the first man of color to make history. Ok. We’re over it now. He’s sold us out.

    Conniving intellect, maybe.

    To Phyllis Caldwell. If it’s so darn good to foreclose on the American public and throw them into the streets, then it must be even better to foreclose on the banks. Let’s get it over with and throw the bums out. Banks don’t work with us and it’s OUR fault. Typical blame game.

    Ms. Caldwell, you are one insulting, arrogant person.

    Can someone please tell us why Obama takes an entourage of 2,000-3,000 to India that purportedly costs two-hundred-million dollars a day???

    DO YOU KNOW HOW MANY MORTGAGES YOU COULD PAY OFF with that kind of money???

    Further, the 600-billion they just printed would go a long way to restore the mortgage and foreclosure mess.
    It’s obvious they have no interest in fixing the problem. In fact, the longer they keep it going, the more they benefit.

  10. .

    Let’s look at the bigger picture:

    If the ideology is to annihilate personal private property, through a parasitic, counterfeit based economy, everything is going according to plan, not so?

    This is not an accusation of course, only an observation of world history 🙂

    .

  11. Oh my God! THAT’S IT. I’VE POPPED MY CORK!

    THIS GUY IS, HAS BEEN, ALWAYS WILL BE, AN EMPTY SUIT. HE’S A MACHINE DEMOCRAT FROM CHICAGO (TOO PEJORATIVE?)! I CALLED HIM OUT A LONG TIME AGO. SORRY TO SAY I TOLD YOU SO. NOW LET’S TALK REPUBLICANS! TOO PEJORATIVE? SEE, THAT’S THE PROBLEM. YOU HAVE TO SEE THE SMOKE THROUGH THE TREES. NEITHER ONE OF THOSE “GROUPS” ARE ON YOUR SIDE. AT LEAST NOT UP UNTIL LAST TUESDAY. THE RULING CLASS WILL BE FORCED TO MAKE A DECISION. IT IS NO LONGER RIGHT OR LEFT, IT’S RIGHT AND WRONG!

    BECK HIT IT ON THE HEAD THIS MORNING. PRETTY SCARY THOUGHTS. IRAN IS READY TO GET THE BOMB. THE ONLY WAY TO STOP THAT FROM HAPPENING IS TO LEVEL THE GOVERNMENT, TAKE OUT THEIR MILITARY, AIR FORCE, NAVY, AND THEN LET THE “IRANIAN PEOPLE RESTRUCTURE THEIR GOVERNMENT”….THAT’S LINDSEY GRAHAMNESTY’S APPROACH. FRIGHTENING, FOR SURE. BUT THERE’S NO EASY ANSWER. LET THEM GET THE BOMB AND THEY START BLOWING UP CITIES INDESCRIMINATELY? THAT IS HOW TERRORISTS WORK. HOLY WAR? TOO PEJORATIVE?

    NOW TRY TO FATHOM THE THOUGHT OF THE UNITED STATES ENGAGING A WAR (MAYBE ON A SOUTHERN BORDER?), OR OVERSEAS, AND THE DOLLAR COLLAPSES. COUNTRIES DON’T “GO BANKRUPT”, SO TO SPEAK. THEY JUST PRINT MORE PAPER MONEY UNTIL THE MONEY NO LONGER HAS VALUE IN THE EYES OF THE WORLD. THAT IS WHERE WE ARE. ALL THIS TALK ABOUT GOING OFF THE DOLLAR. OIL IS PRICED IN DOLLARS. IN ORDER TO HAVE YOUR CURRENCY BE THE WORLDS’ “RESERVE CURRENCY”, COUNTRIES (IN THE PAST) USED THE AMERICAN DOLLAR TO HEDGE THEIR OWN CURRENCY.

    LONG STORY SHORT, IF THIS COUNTRY HAS TO DEFEND ITSELF AGAINST ALL ENEMIES FOREIGN AND DOMESTIC, AND NOBODY WILL SELL US THE MATERIALS BECAUSE OUR CURRENCY HAS BEEN DEBASED………THINK THE WORST. IT COULD HAPPEN.

    OH (HEAVY BREATHING), I’M EXHAUSTED NOW FROM ALL THIS SHOUTING.

    Now, back to Obama. Rules for Radicals calls for DISTRACTION, DISCTRACTION, DISCTRACTION, to keep the populace in the dark. If they can keep you distracted long enough they WILL circumvent the rule of law via resolution or the judiciary (HB3808, anyone? anyone? Beuhler? Keep your eye on the prize. The prize is the destruction of America. It’s just not fair that we are (were, and soon to be again) the world’s only superpower. It’s just not fair.

    Liberals want to be “fair”. Not good, not excellent, FAIR. Republicans used to represent the conservative point of view. Not anymore. They give you guys like McCain. Hardly a conservative.

    They want to call guys like Ron Paul and Rand Paul notbags. They get it, guys. And so do a lot of other people. Those people spoke last Tuesday. Make sure the message gets LOUDER.

  12. Nothing has changed since day one of this administration, despite what this article may be trying to say. It starts off with:

    In the most recent mortgage mess, the Obama administration has…..

    The most recent one? As opposed to which other one?

    Some Americans, no matter what, cannot afford to keep their house.

    That might be true under normal circumstances, prior to 2000, but these circumstances are far from normal. At the end of this securitization cluster****, if there is any fairness left in due process, which is doubtful at this point, it will/should be determined that a debt obligation only needs to be met once, whether or not it’s by this poor, hapless American who no matter what cannot afford his/her house, just possibly will.

    ….an attempt to keep the markets calm in the face of ongoing revelations of chaos in the foreclosure process.

    The last time I looked, the markets were calm, especially as they relate to the foreclosure crisis. As a matter of fact, the markets are downright giddy due to their further gift of free taxpayer money showering down from the fed. There doesn’t appear to be the least amount of anxiety by foreclosing banks who are convinced that their puppet strings are taught and working well.

    As to the ongoing revelations of chaos, one needs to seek out the nether reaches of the web to find articles relating to even the bare minimum of journalistic integrity concerning what’s really going on in the foreclosure world.

    A look at Google news this morning says that a new browser is about to be launched, Leno is trumping Conan by having Christine the Tea Partier on first, and Olbermann is being released from exile for donations. Oh and, Lohan wants to open her own rehab clinics. I guess she has the resume for it. Not ONE WORD about the so-called foreclosure revelations.

    The article ends with:

    The Obama administration needs to do more.

    You reckon’? Now if that’s not the understatement of this entire crisis, I don’t know what is. Actually, the truth of the matter is that it would probably be better if Obama did less, as what he’s doing is nothing short of treasonous as it relates to his citizenry being raped and pllaged at will and random by his friends who actually run the show…. with the president’s blessings.

    The only redeeming value of this article is that it’s in the MSM, and just might possibly make someone somewhere think about looking into the nether world for the truth. Because it’s real hard to find these days.

  13. Bruce McDonald has it right. There is talk among the insiders of taking him out. Possible article 4 25th amendment. The democrats suffered the worst beating in history. A White House insider is talking giving a picture of what this man is about. Reports are that he is nearly incompetent, obsessed with television reports, more interested in sports, and not interested in the job as president. Biden is reluctant to make the move, concerned about the impact on the nation.

    This is serious stuff.

    Not only that, but the insider has tipped the existence of a major scandal that will begin to break after Obama loses the protection of the House in January. No details but connected to Chicago, the Justice Department, and the usual cast of characters like Rahm Emanuel, Valerie Jarret.

    Powerful dems are now asking him nicely not to run. They need the way clear now to position a new democratic candidate and save the party.

  14. Neil,

    . Viewing in Calif., HR 3808 made the news by the next evening and John Stewarts- The Daily Show. We really should consider slamming the White House phone lines once again. This action reaches the public audience needed.

    Suggesting some strong sentences or a short summary that we all call the White House in a one volume message sending wall street the and lenders a Merry Middle Finger Christmas.

  15. How can a man of superior intellect state that anyone who would do what Obama has done is a man of superior intellect? Obama is not a man of superior intellect. He’s a pretty good performer. That’s about it. That’s why those in real power picked him for their front man. That’s why they pick all their cronies.

  16. I think that Obama may be a one-term president not because he is unlikeable, but because he lacks courage to look beyond his advisers. We voted for him, because we thought he would help the middle class. The middle class is being decimated by foreclosure fraud. The property rights we have under the Constitution are being trampled upon. It is doubtful that voting is going to be the way we get fair treatment. A more pro-active approach is going to be needed. I agree that we need to contact our reps and the White House constantly.

  17. At the mercy if the particular judge assigned to your case we are gonna be doing this one house at a time developing case law thing I’d fit every bad ruling and god knows there’s some abomniblr things going down in the court room that also provides caselaw thus continating our justice system making that system more toxic we cannot let this happen and all the while the banks and government officials and paid off agencies take the money I always have Bern amazed by the lack of respect for the law these foreclosure mills have just running over us and taking homes they have no fear because they know something we dont ….I pray for some kind if paradim shift
    what’s going on is evil no matter how they want to rationalize it’s down right wrong

  18. IMPEACH OBAMA NOW. WE NEED TO GO RICHARD NIXON ON HIM.

    FRAUDCLOSUREGATE.

  19. Perhaps the states can instead go after MERS and all the “lenders” for all the lost revenue recording mortgages that MERS enabled.

    See artcle in NY Times: Now in Power, G.O.P. Vows Cuts in State Budgets

    at

    http://www.nytimes.com/2010/11/08/us/politics/08govs.html?hp

  20. FULL COURT PRESS.

    We proved we could change the WH mind about 3808. Why are we not continuing the barrage of calls to the WH, NOW MORE THAN EVER???

    Call, PEOPLE!!! Demand a face-to-face meetign with your local legislators, your Senators, your Representatives. We need to be as big as the other side’s lobbying effort! Get off your couches!

  21. Obama might be smart man but lacks wisdom & courage . I knew it was game over once he appointed Summers & Geithner and reappointed Uncle Ben. Nothing is going to change no matter who is White House until we have a person who wants to be a leader of America not his party.

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