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EDITOR’S NOTE: The Times Editorial hits the nail on the head, but uses the wrong hammer. Jobs and growth of the middle class is the only thing that will stand between us sustaining ourselves as a world power or becoming a banana republic. Jobs and growth are not magical concepts that suddenly happen when you waive a wand.

Jobs are created when businesses start and grow. Businesses start and grow with capital. Wall Street, directly or indirectly is holding $3.5 TRILLION hostage in its effort to force Obama from office while it starves the economy and literally takes food of the plates of tens of millions of Americans. The capital held by Wall Street is NOT the capital of Wall Street, it is the money stolen from other people that Wall Street is holding.

That money was stolen in the world’s largest financial fraud of all time — something that will remain unequaled for decades, perhaps hundreds of  years. They did it with the sale of exotic instruments to investors, betting against those investments because they knew they had the power to torpedo the investments, and the tools of destruction were exotic mortgages where even the simplest looking transaction was based upon fraudulent appraisals, non-disclosure of important information required by law, and in particular using conduits as though they were lenders, thus achieving insulation from charges of predatory and fraudulent lending practices. In fact the entire mortgage mess was really just part of the larger scheme of the issuance of unregulated securities in fraudulent schemes to deprive investors, pension funds and homeowners of what little they had left to survive.

As with all crimes against society the only way to cover them up is with more fraud. More deception and more intimidation. So the paperwork is mostly fabricated, forged and unduly notarized documents pretending to attest to the authority and knowledge of signors. But the paperwork is a distraction from the fact that the the “mortgage” transactions were really part of the securities issuance. This actually makes the signing of the mortgage documents an integral part of the issuance of the mortgage bonds. That changes the character of the transaction and probably the laws that apply.

Applying existing laws without any changes to substantive law, procedure or the rules of evidence, the banks will lose, pure and simple. Every time a Judge takes a close look at some piece of paper that is

  • signed by “John Jones, as authorized signor (it doesn’t even say agent) [without any document showing agency authority],
  • on behalf of XYZ corporation, as attorney in fact (same defect),
  • as successor to ABC, as servicer (under a PSA in which the loan transfer requirements were never satisfied and therefore never completed),
  • for the DEF Trust (a non-existent trust that is actually a general partnership),
  • on behalf of JKL Corp. Trustee (a trustee of a Trust that never existed because it lacked the elements under New York State law to create a common law trust, and in which the powers of the trustee actually amount to nothing once you read the whole document purporting to describe the “trustee”)”
  • all out of the chain of title using some private system of keeping track of the owners thus depriving anyone of the knowledge as to who can sign a satisfaction of a mortgage that was obviously never perfected into a valid lien, even though ti was recorded —
  • every time the Judge really looks —- he/she decides this smells to high heaven and that the entire process is defective.
  • There is no lending institution in existence that would accept such a signature from an agent for a borrower.
  • That they accept it from each other as they treat the loan was though it was transferred even though it wasn’t is just a game without risk because nobody is paying anything for the loan and nobody funded the loan except the hapless pension fund whose money was taken for fees first and mortgage later.

Housing drives the economy directly and indirectly. So if we want to see a change we must bring the banks and big business to task, force them to act like good citizens and return the favor of special tax treatment and subsidies with growth money, start-up money and easier credit for consumers, who drive 70% of the economy. Ignore housing and you abandon hope of a solution. Ignore consumers and their jobs and earnings, and you have disrupted 70% of the economy with no prospects for improvement.

Somehow the banks continue to be heard on their spin that it is better to let them keep the proceeds from stealing the purse than to give it back to the consumers from whom they stole it. That is ending now with Occupy Wall Street. The OWLS are wise beyond their years.

More Bleak Job Numbers

It would take a lot of optimism to put a positive spin on the jobs report for September, released on Friday by the Labor Department.

Employers added 103,000 jobs last month, allaying fears, for now, of a double-dip recession. But even if the economy avoids another contraction, the numbers confirm that the job market is in a deep rut that is, for all purposes, indistinguishable from recession. There are still 14 million people officially unemployed, and nearly 12 million more who have given up actively looking for work or who are working part time but need full-time jobs.

Earlier this week, President Obama and the Federal Reserve chairman, Ben Bernanke, delivered bleak economic assessments, which demand a government response. The economy, already at a crawl, could well slow down further in response to economic setbacks in Europe and China or to homegrown problems like political gridlock that delay spending on job-creation efforts.

The economy is not producing enough jobs, and many of the ones created are lousy. Much of last month’s job growth came as 45,000 striking Verizon employees returned to work. Without that one-time boost, the economy added only 58,000 new positions in September, roughly in line with the slow pace of job creation over the past several months.

That is not nearly enough to lower the unemployment rate, which is at 9.1 percent and is almost certain to rise in the months ahead, barring an unexpected upsurge in economic activity.

The new jobs are generally in lower-paying fields, like home health care, and in part-time and temporary employment. These kinds of employment may be better than no work, but they are generally not the types of jobs that allow workers to get ahead.

The September report also shows the permanent scars caused by persistent joblessness. The share of workers who have been unemployed for more than six months increased from 42.9 percent to 44.6 percent, near its record high from early last year. That is likely to translate into irreversible reductions in the standard of living for millions of Americans because the longer one is unemployed, the harder it becomes to find new work, especially at previous pay levels.

Children will be among those most harmed by the jobs crisis. The Economic Policy Institute, using data from the September report, has calculated that 278,000 teachers and other public school employees have lost their jobs since the recession began in December 2007. Over the same period, 48,000 new teaching jobs were needed to keep up with the increased enrollments but were never created. In all, public schools are now short 326,000 jobs.

At a time when more and better education is seen as crucial to economic dynamism and competitiveness, larger class sizes and fewer teachers are the last thing the nation needs. Staffing reductions also mean that schools are less able to respond to the needs of poor children, whose ranks have increased by 2.3 million from 2008 to 2010.

The situation calls out for swift passage of Mr. Obama’s jobs bill and even more far-reaching efforts to revive growth and employment. The alternative is lasting damage from a jobs crisis that has already done enormous harm to families and communities.

9 Responses

  1. Re Pat

    He is correct on the scale he is talking about—–a solid wall of rules–hurdles to overcome–called entry barriers

    thats why there such a thing as going concern value–but you others are also correct the big ones actually bebefit from high entry barreiers for competitors —make em—-and there is no doubt hat epa with co2 regulation is pointing the cannon down through the hull of its own ship and blowing the bottom out.

    but the most trsgic thing for pat–the joke is on him–only the suckers follow all those rules–the smart money ignores em and makes contributions—you are all correct from your diferent perspectives–

  2. “Jobs are created when businesses start and grow. Businesses start and grow with capital.” This tautology is meaningless.
    Businesses start and grow with customers, Neil, with their purchase orders for products and services. Purchase orders can be factored into cash. No jobs are “created” except under socialism or the like. When a business owner needs help without which he will lose an order he will risk hiring someone. If he was correct and delivery time is shortened resulting in more orders (for example) then a new job exists. What conditions are required for that employer to get those purchase orders that may result in a job for someone. It is the willingness of the purchase orderer to risk the purchase for his customers and his trust in the instant economy that buyers will be there when his purchase order is filled. The jabbering of fools about “job creation” broadcast their extreme ignorance of commerce with its successful incorporation into our culture. Acceptance of risk enables jobs. The fear of risk kills jobs.

  3. Pat what are you snorting?


  4. Taxed out of business, Pat?

    Last I heard, most large companies not only pay no taxes but they actually got refunds!!!

    Small businesse, yes. Taxed to the max. Large companies that do not create jobs with the money they don’t pay? Those Verizon, GE and others? Absolutely not! And banks… well, banks get hand outs. It’s called bailouts. By the truck loads. Whether we (the money payers) like it or not, it is shoved down our throat.

    What the hell is wrong with you?

  5. Blame Wall Street for withholding 3.5t to get Obama out of office?
    What have you been smoking?

    The problem for businesses hiring is simple. There is not enough demand for their products. You don’t hire, when there is no demand. If you do, you are simply giving your new hires welfare payments, and in the end, you will destroy your business.

    DC has screwed the country through their absurd taxes, regulations, and social entitlement programs. If you are an established business, then you are being taxed out of business.

    If you are a manufacturing business, then you can no longer afford regulatory costs, nor labor costs. Either you move out of country, or you close down. It is that simple.

    If you are a new start up company, you can’t even become profitable. Your first year is spent paying employees, abiding by government regulations,and trying to put food on your own table.

    Year two is spent paying employees, regulation compliance, putting food on the table, and trying to find the money to pay the last year’s taxes.

    Year three is spent in bk court, winding down the business, and trying to find employment with another business as a W-2 wage earner.

  6. In my opinion the second paragraph of Neil’s post in its entirety, is spot on. I have been thinking that for 11 months. Let them tell us where they are hiding the money and take it back from them. Waterboarding anyone….? after all we need a job.

  7. DCB…

    I am concerned you are right: we will see additional bailouts handed out to everyone except those in most dire need of help:us.

    Occupy Wall Street is a good thing but if bailouts keep being given without our having any say into it, what can we do to assure that the givers have no money to give? Should we stop paying taxes as we have stopped paying mortgages simply because we can’t trace back where our money is going ? it is our money.

    Wouldn’t simply stopping sending it to be squandered by irresponsibles be the best solution? Again, if everyone decides to do so, there won’t be any cops left to arrest anyone and any jails left to house anyone and maybe, just maybe, the message will be clearly received? How can we convey to our government that, for every dollar we send to the feds, we want 80 cents of investments in the country (infrastructures, education, environment, global warming, social programs worthy of that name, etc…) and less than 20% in administrative and operating costs?

    And. of course, no war we never signed up for…

  8. “That [$3.5 trillion] money was stolen in the world’s largest financial fraud of all time — something that will remain unequaled for decades”

    With all respect to the author, they already have bested that amount in europe. The FT yesterday indicated that the european bail out fund needs to be at least $4 trillion to cover part of the writedowns that are occuring as we speak as a result of predatory lending to nation-states involving bribery of govt officials etc. Goldman expressly named as a primary facilitator to Greek officials that engaged in excessively valued jumbo real estate deals and loans made to complete those deals that were forbidden by the Euro treaties.

    The problem with the $4 trillion is that it only covers part of the losses to Euro-zone banks—-and no losses on French bonds which are now also sinking along with French banks–and no losses to US holders of either sovereign EURO_ZONE debt [bonds]—–or euro-zone bankbonds. So we have another wave of bail outs coming within weeks perhaps—just in time to close the books for another round of eye-popping bonuses.

    But for those who just tuned in and would say “geez –even bankers would not be greedy enough to take bail out money to pay bonuses [and dividends] ” I say–sorry—look back at what they did with the TARP money which was authorized by Congress to help home-owners too———-way more went to bank bonuses that had accrued pre-crash [they said] than to homeowners–which if memory serves received nothing–except HAMP…..along with the shaft.

  9. careerbuilder is disabled this weekend did they go ut of business????

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