Some Things Never Change

This still seems to apply today.  I first published it under the title "What to Expect from Congress" on September 22, 2008.  It does not sound as though anything ever changes in Washington
I just saw the Barney Frank, Nancy Pelosi news conference and was not surprised to hear they are already trying to cover their back sides if whatever they sign into law does not help the economy. It is as if they have no identity. The very people we count on to take responsibility and to look out for us, the American public, are afraid to commit to anything that may just have a chance to help a lot of people survive the credit crunch. I think that I have heard it all and then they come out and say something this childish. The truth of the matter is that we have a congress full of lawyers, many who have never practiced law, lifetime politicians, a few military personal, and no economists. The committees that do deal with finance are not headed by economists or financial brain children. They are usually guided by those with most seniority that lust for the most power. Anything to do with financing in our government is power and the lobbyist spare no expense to influence those with power. I am sure there is no place on earth, except possibly in the palace of the Queen of England, where more shallow deferential platitudes are bantered about as much as Hawaiians say aloha. Our politicians have become power and attention seekers with little expertise in economics or global markets. They want all the accolades of a superstar without having to take any responsibility for their actions. It has become almost comical.

Fools on the Hill/Everything You Need to Know About Politics You Can Learn from the Capitol Steps
A Fool's Paradise: A Story Of Fashionable Life In Washington ..
Heroes, Hacks, and Fools: Memories from the Political Inside

Housing haunted by shadow inventory in 2011 Video

There is good information in this video on the state of housing.  Still seems the MSM is blaming Fannie and Freddie and letting the bankers off the hook for their role in the debacle.  Unless we get the root causes of this meltdown out in the open we could struggle for years to get the confidence back that will get the housing market going again.  The shadow inventory of foreclosures could double the current amount of foreclosures the market in the near future.  There is no way for these large amounts of inventory to be absorbed into the market without weighing down home prices.  If the government does hold the banks accountable and push for a legitimate re structuring of mortgage debt the country will end up on the 10 year recovery plan that still may not work. 
The administration sided with the banks and allowed them to use the hold and hope plan so they could avoid taking losses but all this did was prolong the agony for many people who burned through their savings and 401 k funds to try and ride out the recession.  Very few people can ride out a 5 year recession if they have any job instability and others who have seen 50% drops in housing values are doubting a recovery more and more the longer we see stagnate and declining prices. 
There is system debt restructuring that needs to occur for the country to get back on its feet.  The clock is ticking while we are digging deeper and deeper into housing abyss.  It is not a moral hazard issue anymore because everyone stands to lose if we continue down this path. 


Good Video on shadow housing inventory and prospects for 2011



The Housing Boom and Bust

Housing Boom and Bust: Owner Occupation, Government Regulation and the Credit Crunch

Ron Paul Right On Regarding National Wealth

In the December 16, 2010 in the New York Times article "Ron Paul Appears Poised to Irk the Fed Chief"  Floyd Norris references last years writing by the Texas Congressman.
Ron Paul summed things up perfectly when he spoke of the need to abolish the fed. " If the Fed were abolished, he wrote last year, “the national wealth would no longer be hostage to the whims of a handful of appointed bureaucrats whose interests are equally divided between serving the banking cartel and serving the most powerful politicians in Washington.”
The Revolution: A Manifesto
This is why we can get no resolution with the housing crisis and the reason no one tried to stop Wall Street from over leveraging.  Everyone looked the other way because these politicians are owned by Wall Street.  It is extremely troubling to see how willing the government is to let the elite control the flow of money and the generation of wealth as long as they pay off the politicians.
End The Fed
I am not sure that eliminating the Fed would abolish the issues regarding inequality of national wealth but his explanation on the method of operation for the banks, Wall Street, and the politicians is right on the money. 

Read more on who is running the country here.  
Read more on the fearless banks here.

politics as usual. Pork still number one ingredient used in Washington

Politics as usual. 

A nice Christmas present for all you die hard voters revealed as so gullible every election. 

I think it is time to make a case for not voting unless you have a truly reforming candidate.  After all the bravado and chest pumping that took place after the election it is clear no one in congress really cares about the country or the people.  The people don't end up in politics because they want to do what their voters ask of them.  They end up in congress because of the power, the perks and the great health care.  Does anyone know of  a better gig for a middle aged person who may have had some success in the private sector?  I don't. 
Does anyone know of such great opportunity for someone who has had no success in the private sector and typically no experience in anything related to writing bills or effective public speaking?   I don't. 
If it isn't clear that the great majority of Congress is not in the least bit interested in doing what is right for the country. 
I have never forgotten a statement made by one of my political science graduate assistant as he lectured on the psychology of politicians.  He was very clear in making this important point to the class. 
He said "Item number one on the agenda of politicians is getting re elected.  Once they are in office 99% of They quickly change alliances and renege on their statements promising reform and a return to government for the people and by the people. 
The right to vote is becoming meaningless because of the power afforded to Wall Street and the financial institutions.  Who came to the White House for a summit this week?   It wasn't the little guy or the small business owner.  It was the bank executives and J Immelt.  As if they are trying to give credibility to the ponzi scheme run by these perpetrators in order to help them pull off the stunt again. 

Republicans and Democrats are no different.  They all love the camera and would never pass up the opportunity to say something idiotic into a microphone. 
It looks like all of you that voted for change in 08 and then for new change in 2010 have been duped by the smooth talking snake oil salesmen of congress. 
Decision Points
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you have to read this book if you want the true story of the mortgage meltdown

Get a Kindle and download Econned before we become victims of another fraudulent scam headed by the banks and the treasury. 

Treasury says possibility of lower housing prices at congressional hearing

The treasury seemed to be the first in the administration to try send out a test balloon before the public actually finds out the truth about the banks their part in "foreclosuregate".  The Bush and Obama administrations, the banks and the main stream media have all had a hand in trying to hide the real causes of the housing meltdown.  It seems like many people are getting a little nervous now thousands of fraudulent transactions have been put in the spotlight. 
The full article can be found at this link:

http://www.nytimes.com/2010/10/28/business/28housing.html?_r=1&ref=todayspaper

--Revelations about paperwork shortcuts and so-called robo-signed affidavits, as well as the likelihood of protracted legal battles by homeowners and inquiries by state and federal officials, will hinder foreclosure proceedings and discourage prospective buyers, a Treasury Department official said.
“Together, these two factors may exert downward pressure on overall housing prices both in the short and long run,” said the official, Phyllis R. Caldwell, chief of the home ownership preservation office at the Treasury"---
Sage Software Peachtree 2011 Complete Accounting Reference for Windows
It is become more and more clear that they government and the banks were on a mission to change the rules to favor the financial institutions regardless of the law.  It has been going on for a few years now.  The banks have been in total control of policy since the Tarp.  The banks set up a scenario that struck fear into congress, who were willing to do anything to keep the banks on their side or to buy votes. 

The banks fooled them all into giving up billions of dollars that was supposed to save the world banking system and our country from the 2nd great depression.  All that really happened with the billions of dollars was to keep the banks functioning.  It actually took a few accounting tricks, billions of dollars and the media unwilling to out the banks,  to give the an appearance of solvency for the financial institutions.

There is still little direct talk of holding the banks accountable for the mess they have created and now added to by their lack of honesty.  They all wanted to push the foreclosures through as quickly as they could and try to get housing values back up.  They seemed to think that it was ok to break the law as long as it would turn the economy around.  It might have been true if they hadn't created a system that was destined to collapse. 

Maybe the  too big to fail banks will be held accountable for their behavior now that people are seeing the gravity of the situation. 
Pocket Quicken V2.0 for Palm Os 2.0 Or Higher (DVD Style Box)

Barney Frank doesn't remember his own lies about housing industry

Liberalism is a Mental Disorder: Savage Solutions

I heard a great piece on the radio yesterday that had Barney Frank talking out of both sides of his mouth.  I know hearing him talk out of both sides of his mouth  will come as no surprise but it did reveal a monumental flip flop. 
It was on the Michel Savage Show. http://www.michaelsavage.wnd.com/
They  played his comments during the housing boom and then played some of his more recent comments regarding who was at fault for the current collapse of housing. 

It was just like clock work with him first saying that there was little risk of major losses in real estate and that he would continue to push for more and more home ownership through programs and policy.  He was really a major player in the attempt to push home ownership in the United States over 70%.  For years he would push his agenda and what he thought that it was best for the government to insure more loans on more and more borrowers with less and less resources with less strict rules on qualification standards.

Now he is say that he never thought promoting home ownership was a good idea.  He went on to say that he was totally against any home affordability programs and that the government should have been involved in creating affordable rental property for lower income citizens. 

I was a complete 180 degree turn around from what his original position was a few years ago.  If he would have said after seeing what happened recently I have changed my position I could accept his flip flop.  However, trying to lie about it, or having that bad of a memory that you can remember what your own policies are then I think you should not be in congress decided the fate of millions of Americans.

The Enemy Within: Saving America from the Liberal Assault on Our Churches, Schools, and Military

Congress will let banks committ fraud after election

Yves here. This development reveals how this battle is likely to play out. Now that judges in some states are starting to take these dubious, potentially fraudulent measures seriously, the next line of attack is to get the more bought and paid for Federal government to intercede on behalf of the banks. As the e-mail by the Ohio Secretary shows, this is a state versus Federal rights issue. And the problem is that these solutions will be depicted as “efficient,” just as securitizations and other “innovations” were.


Please go to Naked Capitalism and check out Yves commentary on banking fraud and foreclosures.  If you want to learn what really is happening at the banks and how they are abusing their authority or lack thereof, to steamroll through the repossesion process in order claim property without legal title. 
Yves nails it again in his blog when covering the subject of Mers, chain of title and deceptive bank practices as these institutions claim to be acting out of a need for efficency rather than follow the law. 
From Naked Capitalism
----"And while efficiency in theory is a good thing, it must always be kept secondary to the overall integrity of the system; otherwise, you run the risk of breakdown. Using dubious arguments to overturn well settled law to get the banking industry out of a monster mess it created is a Faustian bargain. It makes it abundantly clear what is really at stake here, which is the rule of law. Banks that were quick to defend unjustifiable pay deals by invoking “sanctity of contract” have no inhibition about ignoring their own contracts to pad their bottom line, and ultimately, the wallets of top executives. "
Rather than deal with the considerable consequences of these abuses, the banks are prepared to bulldoze well settled state laws to give them an easy way out. And I’m not basing my view on this story alone; I had a conversation yesterday with a Congressional staffer who matter-of-factly said (but with little understanding of the underlying issues) that Congress would intervene on behalf of the industry, via its authority over national banks.
          The result is that we institutionalize kleptocracy while keeping largely gutted forms of due process as theater. The powers that be hope that the broad public will remain unaware of what is really at work."--------   

This is what is going on in our country and has bee since the Tarp program or scam, whichever you prefer, was passed.  The banks created an enormous mess with the CDOs and MBS as they chopped up mortgages while the tried to figure out a way to make them trading vehicles to be exploited by the street.  It could have been helpful but not without some oversight or at least a proper chain of title so when these housing issues started banks could have taken action on the small number of loans in default.  Instead they didn't know who had the rights to the paper or if they did know they might have had 30 people claiming and invested interest and they had no idea what to do.  I truly think they still have no idea what to do and will soon be holding a gun to the head of congress as the demand to be helped out again.  I would not be surprised if they wanted more money or more assurances from the government to protect the banks against their own idiotic behavior that they will claim zero responsibility.  Maybe this time congress won't run away scared and whimpering as they did when they were completely gutted--(a better term might possible be reamed,) -----by the threatening banks.  The congress of cowards and bank lovers.   It is abundantly clear that politicians can still be bought with a few dollars.

Raising the Estate Tax?

I thought this was America. A place where people could work hard, be productive, get ahead and build their wealth without having the government try to take it all from them. Why is it whining when the rich people complain about taxes but it is ok for the whiners who resent successful people???? I think it about time the government cuts the ridiculous spending. First and Foremost why doesn't B Obama give back the 400 k that he gets paid to be president? Just for starters.....then cut the salaries on all the senators by 12% and cut out their vouchers for flying back home every weekend and let the go back and stay for two weeks and then go back to DC in dc two weeks (one round trip ticket per month). After they make a few sacrifices they can all sit down and talk about raising taxes. The estate tax is un-American plan and simple. Remember there was revolution, a revolt partly again excessive taxation.

We have waited months for this Plan?

What took so long to put this ridiculous plan together? I Giethner was working on some brilliant plan that would save the world. We are not restructuring or cleaning up the banking system. We are funding a horribly faulted system without getting to the bottom of the mess. As we make up these crazy plans for foreclosure that will help very few people and refuse to hold the banks accountable for their own assets, the American people are losing more and more faith daily. How can you expect anyone to believe in our government when it is doing so many stupid things under the smoke screen of a world economic meltdown? Wonder how things would have gone if someone would have just asked the President what he would do to fix the economy? His standard answer was change because he had no idea what was going on or what to do to clean out the system and get money flowing.

Geithner attack is unfounded

I don't understand the attack on Tim Geithner. Geithner seems to be no more than a puppet for Obama and appears to have very little say regarding policy. Confidence in this administration is fading in my opinion and if they don't get some policy that is more cohesive our economy will stall. Geithner is not making decisions as treasury secretary and although Obama has said he wants input from everyone, he is following his own policy. Geithner doesn't have a plan, and if he did the administration would do what they want anyway. We have a president who know very little about economics or politics. He is versed in one thing and that one thing is campaigning.

Eventually time will heal the economy but if we congress and administration weigh the system down with idiotic policy it will be a struggle to move ahead.

The Constitution is being dismantled by congress

Today is sad day in American history. Congress is trying to back track make Monday morning demands on companies that were given assistance. I don't think AIG should have been bailed out or given any money but after giving it to them with no strings attached we have taken a major step toward socialism. The people running a failing company don't deserve bonuses but the Constitution of the United States of America says you we have the right to privacy and no one has to reveal what they have been paid and the issue is between the employer, the IRS and the individual. End of Story. The constitution also says that we can not be taxed punitively. In other words the tax code can not be changed because someone in Washington doesn't like you. End of Story number 2. Congress failed in its duty to legislate properly and rushed to bail out many companies. Now they are trying to regain their reputation by defying the Constitution. It is anti American and goes completely against the very principals of our country.

The definition of Change-same as the old change

We then get "change" in the white house and they keep on spending. The ridiculous PR stunt of helping home owners with out reducing principal will waste another 75 million, which most will be used to administrate the program, because it is likely that any of the people who could have used the help are now will over the 105% LTV. You can yell about free markets and I am with you all the way but when the lenders go on the public dollar then things have to be changed for those on the other side of the trade. IE consumers holding notes from insolvent banks. I will not agree with you that when these notes have gone down to pennies on the dollar, that they can be sold with the buying party able to sting the borrower for full value. The banks have to base their paper on collateral value and when they "guess" wrong you can't let them walk away with billions in tarp funds and the rights to full future value of the note. It might not be fair to everyone but fairness is out the window when banks come crying for handout. (yes don't forget the perfect timing by the banks either.....right before the election when they knew they could manipulate and stare down the cowardly congress......because they were all pandering for votes....{there were more flip flops in Washington than in middle of July on south beach}...congress blinked and they have been caving every time the banks cry economic disaster. I don't want a penny from the bank or reduction in my mortgage. But there are people who should be getting mortgage reductions and the banks should be paying for their poor business models and poor business decisions. If this happened we would be a lot closer to a free market than we are today.

Schumer actually believes himself!

Schumer just said that there already has been earmark reform in congress. With so many delusional people in Washington and the spend o ramma congress we might see dow 1000 for crying out loud.

An exam for politicians?

You have to pass a test to sell securities, to be an appraiser, to sell real estate, to get a teaching degree, to be a doctor, a lawyer, a contractor, electrician or plumber. Why don't politicians have to pass a test that would evaluate their knowledge of economics, world politics, governmental processes and the constitution? Popularity has little to do with the qualification to govern. Before entering any race for congress or senate their should be an exam that must be past in order start a campaign. It would save millions if not billions of dollars spent on ridiculous hearings where congress asks the same stupid questions over and over again. This week's hearing could have been done by just having a video of Paulson and Bernake giving the same answers over and over again while all of congress had to sit there, watch and take notes. When voter turnout has dropped to 50% at times or below it is clear that main street America has lost faith in our elected officials maybe a test would help improve the quality of our public servants.

What to expect from Congress

I just saw the Barney Frank, Nancy Pelosi news conference and was not surprised to hear they are already trying to cover their back sides if whatever they sign into law does not help the economy. It is as if they have no identity. The very people we count on to take responsibility and to look out for us, the American public, are afraid to commit to anything that may just have a chance to help a lot of people survive the credit crunch. I think that I have heard it all and then they come out and say something this childish. The truth of the matter is that we have a congress full of lawyers, many who have never practiced law, lifetime politicians, a few military personal, and no economists. The committees that do deal with finance are not headed by economists or financial brain children. They are usually guided by those with most seniority that lust for the most power. Anything to do with financing in our government is power and the lobbyist spare no expense to influence those with power. I am sure there is no place on earth, except possibly in the palace of the Queen of England, where more shallow deferential platitudes are bantered about as much as Hawaiians say aloha. Our politicians have become power and attention seekers with little expertise in economics or global markets. They want all the accolades of a superstar without having to take any responsibility for their actions. It has become almost comical.