Category Archives: Economy

Principal Reductions – Some Are Waking Up To What Could Be A Win Win Situation

Mortgage debt

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This is a must read story published in the NY Times by Joe Nocera of a breakfast meeting he had with Laurie Goodman, a senior managing director of Amherst Securities.

Enter Laurie Goodman. One of the country’s foremost authorities on mortgage-backed securities, she is also one of the most data-driven people I’ve ever met; at breakfast, she was constantly pointing me to one chart or another that backed up her claims. “She’s not into politics,” says my friend, and her client, Daniel Alpert of Westwood Capital. “She is using data to tell us the truth.”

It always seemed to me that in order to correct his crisis, writing down everyone’s principal would be the only solution.  For those that do not have mortgages on their homes and own them free and clear some sort of tax break would be in order to compensate them for the decline in the value of their home.

Values declined not because of the market, they declined because those very same banks who oppose these write downs created this mess by providing mortgages to almost anyone creating a housing boom that was destined to crash.  Yes, they know what they were doing but greed took control of corporate governance and patriotic spirit.  The attitude of  let’s rake in as much cash as we can then when it all fails we can take back all those homes and rake in even more cash for homes we have no investment in.

The housing crash was created by the banks unlike what New York City’s Mayor Bloomberg says.  He says blame it on Congress (and Fannie Mae who he says makes loans – wrong!).  Yes, while I believe it was a direct mandate from the White House beginning with Bill Clinton, the banks could have and should have used their better judgment and declined the push from above.  But GREED is a very dangerous intoxicant.   Given the green light by those high up in our political circles – the ones in charge – they quickly did what they believed was their patriotic duty to comply and fill their own pockets

The idea of helping struggling homeowners by writing down some principal on their mortgages — as opposed to reducing the interest or reconfiguring the terms to lower the monthly payments — is much in the air right now. Banks loathe the idea of principal reduction; they fear that people who are current on their mortgages will start defaulting just to get their principal reduced. They also don’t want the hit to their balance sheets.

Yes, of course banks would “loathe” the idea of reducing principal.  For one, the reduction of principal to real value would lower their net worth and show that many of them are actually insolvent.  Their solvency is basically falsified books whereby they keep real estate owned on their books at its value when they first financed it.  We all know that most of us will never see housing values come back to these artificially high values.

Second, the fact that most of the banks REO’s – real estate owned – is also a falsified book entry.  This is where my gripe continues with the greed and dishonesty of this entire industry.

The “bank” made a loan.  The “bank” SOLD the loan to a Wall Street firm who in turn packaged that loan with thousands of others into a security which they sold to investors around the world.  NOTE:  It is the security owned by thousands of investors who actually own the note – NOT THE BANK.

In addition, the bank taking all the action is NOT REALLY A BANK!  You see, the entity taking the foreclosure action is actually a servicing company – a collection agency if you will – that is owned by “the bank” but is not in itself a bank under any situation or charter be it federal, state or local.

The servicing company often uses the same name as “the bank” and lead everyone to believe that it IS “the bank”.  They have everyone convinced including the courts – judges and Clerks of the Courts as well.

When a servicing company like  – listen now – Bank of America Home Loans (not “the bank”) gets the court to award the foreclosure, the court just hands them the title because they are falsley led to belive that they are the bank, they own the mortgage note and therefore can claim the property without paying.

Once they take – no – STEAL the property, the non bank servicing company everyone thinks is the bank – which in the illustration above would be Bank of Amercia – then takes the property and gives it to “the bank” (illustratively Bank of America) who now owns the property free and clear on their books valued at an inflated artificial value.

Not only are the banks using these artificial values to bolster their books (fraudulently inflate their net worth) they are using stolen property to do so as well.

Of course they do not want to write down mortgages.  Actually they CAN’T.  Neither the bank nor the banks servicing company has the authority to do so.  Only the investors who own a share of the bond issue that the mortgage note resides in have the authority to do so.  In fact, only these same bondholders (and it would take 100% of them to do so) can initiate a court action to foreclose.  They are the true owners who along with the rest of American have been swindled – a milder term the screwed – out of their money by “the banks”.

But the states’ attorneys general who sued over the robo-signing scandal have made principal reduction the central plank of the settlement they are close to completing. The settlement will force the big banks to begin a sustained program of principal reduction, and will heavily penalize banks that don’t comply. From what I hear, the goal of the states is to prove to the banks that principal reduction will not cause the sky to fall — and is, ultimately, less damaging to bank profits than foreclosures.

In spite of all I say above, I feel forcing the write downs is a positive.  Not only will it stop the bleeding of continued declining values due to continued massive foreclosures, it will right the wrongs to many of the investors worldwide.  By writing down the mortgages thus allowing homeowners to continue living in their homes and making payments – albeit lower payments – it is a win – win situation for everyone.

The homeowner wins for obvious reasons.  The neighborhood wins as there will no longer be vacant and unattended deteriorating homes.  The investors win as they will get some return of their investment which is better then the zero they are getting now.  The economy wins as it will begin to turn the entire housing market around.  America wins as we can then begin to move forward again and make the American Dream of homeownership possible once again.  And we all know if the housing market is moving the economy moves.

Read Joe Nocera’s entire article To Fix Housing, See the DataPublished: November 4, 2011…click here

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Loan Modifications…Just Window Dressing

I have long maintained that Loan Modifications offered by “the” banks are no more then ‘window dressing’.  Propaganda by our “too big to fail” financial institutions who have profited and continue to profit through foreclosures.  They have no real interest – or intent – on helping the public out of the crisis they created.

There should be more main stream media coverage and exposure like the one in the

In a recent story published in, the “voice of the Mid-Columbia/kennewick, Pasco and Richland, Washington”, they tell real stories of real people who have suffered this deceit.  Herein lies the truth of loan modifications.  Stories that are all to familiar.

Homeowners tell how banks failed to modify mortgages
by Kevin G. Hall.

Nearly three years into the deepest U.S. housing slump in generations, lenders are modifying only a small number of problem mortgages, and rising foreclosures are restraining the economy’s recovery.

The administration thinks that about 2.7 million U.S. homeowners are at least two months behind on their mortgage payments, roughly equal to the population of Kansas. Yet only 9 percent of eligible borrowers had been offered trial loan modifications through June. (emphasis added)

Through emails and calls received by McClatchy’s Washington Bureau and other interviews they evidently conducted there emerged a common theme;

Virtually all say they were encouraged, directly or indirectly, by their lenders to fall behind on their mortgage payments in order to qualify for loan modifications. Then the modifications never came.(emphasis added)

Continue reading

Homeowners Are Drowning…And So Is The Nation

To all of you who are facing or in foreclosure you are not alone.  In fact, you may be in the majority.  No this is not meant to make you feel better.  On the contrary, it is meant to possibly anger you so that you fight and speak out more.  What we need a vocal population verbalizing what is right and what is wrong.  A population that does not just sit by and let “them” take advantage.  Let’s get mad as hell and not take it anymore.

For those of you who are sitting back thinking that help is on the way and that as many are saying things are bottoming out and will begin to get better soon, read on.

With nearly half the mortgages in the U.S. expected to be under water when the recession ends, things look pretty bleak for mortgage servicers and investors, let alone consumers.

So begins the story by Glenn McCullom in National Mortgage News – a publication you may want to subscribe to.

Mr. McCullom refers to a report by Karen Weaver Ying Shen, an analysit in New York at Deutsche Bank.  McCullom says that in her report she says that “The percentage of “underwater” loans may rise to 48%, or 25 million homes, as prices drop through the first quarter of 2011…”

This is an interesting analysis and one which I believe.  There are those that aree saying that we have “bottomed out” to which I reply, I don’t think so.  If Ms. Ying Shen is correct then the worst has yet to come.  There can be no recovery without real estate recoverning and certainly not without unemployement decreasing.  Neither of these important factors are occurring or look like they will in the near future.

More of the negative impact to our economy – and us – is further told by Ms. Ying Shen’s report.  McCulom further says that according to Deutsche Bank the share of homes mortgaged for more then their value was 36% at the end of March.  he continues by

Further deterioration will depress consumer spending and boost defaults by borrowers who face unemployment, divorce, disability or other financial challenges, the securitization analysts said.

Even more frightening is his comment on seven real estate markets in the U.S. which had the “fastest appreciation during the five year housing boom”.  Those markets he says are, Fort Lauderdale , Miami, Merced and Modesto, CA and Las Vegas.  (I would have to assume that these markets cover the majority of the counties they are situated in).  He says that these markets my have as many as 90% of borrowers underwater according to the Deutsche Bank report.

It is important to note that the latter comment deals with borrowers who are underwater not the number of homes but it is safe to assume that the vast majority of homes purchased during the boom years were financed.

Already, servicers are grappling with a delinquency tsunami. According to figures compiled by National Mortgage News and the Quarterly Data Report, 34% of all subprime loans — or $320 billion worth of loans — are in some stage of delinquency.

It appears as if we are drowning economically and no rescue appears to be on the horizon.  I don’t even see a flotation device anywher in sight either.  We seem to be having an endless cycle of downturns which in turn feed more downturns which feed even more downturns.

As said earlier, without a recovery in real estate and employment – both of which feed on each other and continue the cycle – there can be little in the way of economic recovery on a national scale.

Help, as promised by the current and past administrations, have not come to the people.  The help that was made available – trillions of dollars – has certainly had a positive and lucrative affect on our “too big to fail” financial institutions.  They seem to be reporting profits and higher returns and increasing stock values.  All this while the general population is drowning.  Could it be that these “too big to fail” institutions that “you” have sent financial aid to own all the life vests and flotation devices and holding them instead of using them?  I think so.  These guys are living the good life, getting a better life – if that is possible with the money they already have – and don’t give a dam about the rest of us.

We are busy being distracted by conversation of health care reform – and it is only conversation at this point as there is no definitive proposals on the table yet.  This distraction, while a valid topic is purposeful to detract our attention from drowning.  Are the members of our Administration and Congress that stupid to believe that we think it is ok to drown knowing that maybe somewhere down the road a national health care program will bring us back to life?  We need a healthcare program but we need to eat to.  With no food, no health care program will benefit us.

I say to our Congressmen, you are all members of the human race and Americans.  You enjoy stable and high incomes, benefits and perks and THE BEST HEALTH CARE PROGRAM IN THE NATION.  In your comfort and as OUR representatives you should be working first and foremost on rescuing us from certain drowning.

To read the full article in National Mortage News…click here


Emergency Banking Act

Is another “Bank Holiday” coming to America? Frankly, few people – this writer included – never knew what a Bank Holiday meant until receiving an email referencing and quoting Bob Chapman’s THE INTERNATIONAL FORECASTER.

I never heard of Bob Chapman either so I looked him up. He seems like he knows what he is talking about and from his bio has many, many years of experience in investment banking specializing in gold. If you view his web site above you can read all about him.

I did find the article interesting but it required some research. First I needed to get the meaning of and the background of “Bank Holiday” since the post began…

Bank Holiday Coming? Prepare?

In my research I found this same article posted on several sites and blogs. I have just picked one that I have linked above since I found the comments very interesting.(you should read them). In addition, the article references Harry Schultz who also seems to have credibility so to make your research easy I have linked his name to the bing search engine page where you can read about him as well.

This blog’s effort is to uncover the truth and report it as well as offer my own thoughts and opinions, let’s be clear about one thing and that is that just because it is on the internet it is not necessarily so. However, I believe there can be validity to this as I feel – as does Bob Chapman and Harry Schultz – that the worst is yet to come. I base this on information, research and knowledge of the mortgage industry as it relates to the banking industry.

So I offer all this up to you and you can form your own opinion. To be well informed is a necessity for our survival in what I have always maintained will be the most disastrous economic times in the history of our country.

Now to the basis of this story. Take a moment and go to the link below which details the Emergency Banking Act established under President Franklin D. Roosevelt, who our current President holds in very high regard and partially models his administration after his.

Emergency Banking Act – Wikipedia, the free encyclopedia

Here is the beginning of the outline of this Act.

The Emergency Banking Act (the official title of which was the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. It was passed on March 9, 1933. The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive. In summary, the provisions of the act were as follows:

Title I, Section 1. To affirm any orders or regulations the President or Secretary of the Treasury had given since March 4, 1933.

Title I, Section 2. To give the President the ability to declare a national emergency and have absolute control over the national finances and foreign exchange of the United States in the event of such an emergency.

Title I, Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States to deliver any gold that they possess or have custody of to the Treasury in return for “any other form of coin or currency coined or issued under the laws of the United States”.

Title I, Section 4. To make it illegal for a bank to do business during a national emergency (per section 2) without the approval of the President.

Title II. To enable the Comptroller of the Currency (a post in the US Treasury) to take complete control of and operate any bank in the United States or its territories and to establish the terms and conditions under which bank is administered.

Title III. To allow banks to disown their debts with the permission of the Comptroller of the Currency and a majority vote of their stockholders.

Title IV, Section 401. To allow Federal Reserve banks to convert any US debt obligation (such as a bond) into cash at par value and any check, draft, banker acceptance, etc, into cash at 90% of its apparent value.

To read complete summary of the ACT please go to the link above

Basically it allows the President to declare a “bank holiday”, close the banks nationwide and then determine which ones can or will reopen. It was also the

Act that enabled the Treasury to remove gold bullion held by citizens.

Armed with this brief explanation of a Bank Holiday here is the Bob Chapman story. You can also view this article on BBS RADIO/The Original TNT Bulletin Board.

Sunday, June 21, 2009

Bank Holiday Coming? Prepare?

From Harry Schultz:

Dear Bob:

Bob Chapman’s Int’l Forecaster newsletter revealed (5/20) this startling intelligence (from within US State Dept & embassies):

”Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.”

Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.”

Harry Schultz, dean of newsletter writers, has quoted the Chapman letter of May 30 regarding US embassies being sent large amounts of cash with which to buy local *currencies, to last them a year. Here is Harry’s remarkable take on the situation:

“My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite length, perhaps very soon, to let the insiders sort-out the bank mess which is getting more out of their control every day.*Insiders want/need to impose new bank rules. Widespread nationalization could result, already under way. It could also lead to a formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of currencies (which seems more likely)—& much in the news recently. Any kind of bank holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario of letting the $ fall. Such a fall would get the devaluation they want without having to declare it. In sum, the insiders want more bank & system control, fewer banks & a lower US$. A bank holiday would suit all their needs.

Obviously, U can’t open safeboxes if the banks are closed, so plan accordingly. All this is speculation, but we have to go with what we’ve got, scraps of info that point to certain possibilities. In any case such a closure will, IMO, come sooner or later, as the worst of the embedded derivatives are still to be faced. We are years away from solving them because the controllers don’t want to; their fingerprints are all over them. ***

PS: during the FDR bank holiday, thousands of banks never reopened; it was a face-saving way of shutting them down. I would guess the same would occur today; thousands have little or no net value, loaded with debt, bad mortgages.

••• *PPS: A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do.

I believe that our banks are still insolvent even though we are being told they are not. Wells Fargo and it new acquisition – Wachovia – are broke. CitiBank is broke, Fifth/Third Bank is broke, Bank of America is broke and the list goes on. We must ask the question concerning their solvency and we should get an answer.

If in fact, as Chqpman, Schultz and I believe, they are then it is iminent that the government will have to act to prevent a run on the banks. A run would certainly cause the demise of most banks as those banks do not have sufficient cash 0 nor are they required to have sufficient cash to cover everyone’s withdrawals. THE GOVERNMENT WOULD HAVE TO ACT which is what makes this story both believable and alarming.

Another reference to this letter I found intersting is the reference to PPS qupted from a Bob Chapman subscriber…

A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do.

I find some believability to this even though there is no evidence to verify it. I can believe this because FEMA is a National Federal Police Agency not a disaster emergency aid agency. It is believed that they are prepared for any civil unrest with the ability to act quickly and swiftly to put down any mass public activity. In fact, they have already termed civil unrest as low level terrorism giving them the power to arrest in mass. Detention centers are already in place around the country in a program called REX 84. These detention centers – mainly abandoned military bases are manned and equipped. It is also believed that FEMA has a contract with Wackenhut to provide prison buses to cart these masses to these detention centers.

There is even a story (rumor?) that these buses are driving around Phoenix, AZ as a test and training.

Does all this seem outrageous? Perhaps it does. but on the other hand, if you really take a look at what is happening, the transfer of wealth, the diversionary tactics by the government to lead us to believe things are getting better, that we are going to get health care and that the recession is almost over. None of which are happening. Most independant economists will tell you the same.

Conditions are worseningn. Commercial credit is in default and can be the next “meltdown” like the mortgage meltdown that seems to have precipitated this economic crisis. Consumer credit is defaulting by leaps and bounds and foreclosures are increasing.

Unemployment will hit double digits and is already much higher then the 9.5% being reported. In fact, a recent report indicated that we have had more unemployed in the past 16 months then in the past 8 years – well over 5 million people including professionals, white collar and blue collar employees not to mention the millions of recent college grads looking for work and finding it difficult to do so which will lead to a massive amount of student loan defaults..another down for the economy.

Believe it or not, that is up to you. But we must all be aware and be cautioned for as I have said many times in the past two years, “fasten your seat belts, this is going to be a long, rough ride”.

Be aware and be prepared for the worst. You owe it to yourself and your families. If the worst never comes so much the better but if it just might come then better to have been prepared then not prepared at all.

Is another “Bank Holiday” coming to America?

Loan Modifications…Fact or Fiction

To Modify or To Defend? That is the question. « The Foreclosure Detonator

The link above is a post I just made in TheForeclosureDetonatorFORUM the sister blog to this publication.  In this story I talk about the lies and deceptions used by our financial institutions.

Loan Modifications are one of the major deceptions and lies being used against an already depressed people and society.  One must ask why our so called noble institutions are doing this to us in our nation?

The answer could be as simple as greed and profit.  But it is not that simple.  While greed and profit certainly create the desire to strip this nation’s people of their assets and wealth an underlying destruction of corporate morality is certainly the root of this evil.

Corporate morality.  What is it?  What should it be? 

Our system of capitalism certainly provides the basis and opportunity to thrive and succeed economically.  Throughout our history small companies have become large international giants providing jobs and benefits to a vast majority of people.  Some even provided and created their own cities to accommodate their employees like Hershey, PA, home to Hershey chocolates. 

But not all corporations were so civic minded and had actual corporate feelings for their employees or the customers to whom they provided a product at a fair price earning a fair profit.

Historically, companies such as the early railroads took advantage of and destroyed lives and took property to further their own interests creating and building personal and corporate empires of extremely wealthy people. 

Capitalism in its raw state created a class system and a form of nobility with no official titles or designations other then the balance in their bank accounts.  (Each year Forbes Magazine publishes their list of the wealthiest people in this country).  We have no Lords or Baron’s, no Sheiks, Prince’s or Princesses.  We have simply the super wealthy.   A new class of monied people who earned their fortunes not by inventing or creating anything of value to the world but by running corporations.  They gain and profit even if the company they are in charge of does not.    Yes, wealth created by failure, deception, illusion and criminal activity. 

A class of people for whom all are losers except for themselves and all are fair game in their game of enrichment.  Big oil for instance.  Their executives are well paid for creating record quarterly profits even though consumption is reduced.  Even when the price for a barrel of oil went back down to the mid thirties the price per gallon of oil did not come down to the level it was the last time the cost of a barrel of oil was that same price.  How?  By raising prices to the consumer hence expanding the economic hardships of the already victimized populous even more.  Where is the corporate morality in this example?  When is greed and profit taking enough?  Where is their responsibility to the customers that depend on them to feed themselves and their families?  Corporate morality…NONE!

Where is the corporate morality in the Consumer credit industry run by our dear friends the bankers?  They were giving out their creidt cards to anyone – even high school students – then charged interest rates above 30%, a rate at which most will never pay off their principal balances.  But as a result, paper profits and even stock vallues are up as those executives get paid more and more while their customers make and have less and less. 

What ever happened to the usury laws, the law that said no one could ever be charged more then 18% per annum for any type of credit?  Is that law still on the books just not enforced?  Legislated somewhat out of morality, I believe, as anything above that was considered harmful and even illegal (remember, anything above 18% was considered loan sharking) to the population at large.  A morality and sound behavior now gone.

How about the case of a corporate CEO that almost destroyed the company he worked for, was fired then was hired as the CEO for a major auto manufacturer – that has failed and we wonder why.  This caused many harm but only some sort of morality considers harm in the decision making process.

No, there is no corporate morality anymore.  In fact, morality gets no rewards.  It seems that some have found a way to enrich themselves personally as heads of companies while knowingly stripping the population of their meager wealth.  The poor are poorer, the lower middle class gone, the middle class all but gone – both can be classified as the Poor. and the upper middle class being attacked as the war continues to be waged against anyone with no seat at the table who has any measure of wealth. 

Yes, there is a domestic war going on.  We feel the affects of it as it has touched just about everyone in this nation and other nations as well.  A war against capitalist, democratic rights and privileges.  A war being fought by corporate America – specifically our financial industry which includes The Federal Reserve and The U.S. Treasury – while our elected officials and appointed regulators turn the other way. 

Democrat or Republican it matters not.  These two major parties – which at times in the process seem to be the only two authorized parties – are all part of this war against the people.  They talk, they meet in committees as mentioned in TheForeclosoureDetonatorFORUM‘s post, they talk and begin to legislate legislation but to no avail.  Nothing is really happening – not for the masses onlly for the classes.

Even now, there is talk about a national health care program.  The big news tonight is that the debates so far have reduced the spending for a badly needed program to $900 billion.  The debate in both houses will continue and no vote will be taken prior to the Congressional recess.  Imagine all this debate and talk and disagreement over funding a national health care program to help the people.  Yet, when it came time to help our Barons of Corporations, they – the government –  quickly and with no discussion, debate or oversight – created and gave them $700 billion (amply called TARP funds as a TARP is a temporary cover one puts over something to keep the water out).  When a Baron of Insurance needed some fast cash – on top of the billions it already had – we, sorry, they quickly gave them over $148 billion. 

And let’s not forget that auto giant GM, the largest bankruptcy in our nations history who emerged from their reorganization BK in 40, yes, 40 days with a little help of the $60 billion our government so readily is giving them.  No debate, no discussion.  Where is the morality in this when the people are so needy.  Would not all these billions so quickly given out be put to better moral uses then this?

All these billions – no debate and no discussion – helping who but do the same for let’s say national health care – no way.  Why where would the benefit be for the Barons of Deceit?

Millions unemployed, millions hungry, millions homeless and millions about to be homeless.  Hungry, disparate with no shelter – the emerging third world nation.

Some will put morality in a religious context.  I do not.  To me morality is simply the act of recognizing the needs and pains of a fellow human being.  There seems to be more moral injustice talked about and advertised on television concerning animals then towards human beings – the citizens and the people that make everything possible.

Of course all this is just my opinion, what’s yours?

Executive Compensation…The Greed Is Still There…The "Elite" Ride On

Here is the latest email notice I received from the HOUSE COMMITTEE ON FINANCIAL SERVICES Chaired by Rep. Barney Frank.

For Immediate Release:
July 16, 2009

Frank Statement on Executive Compensation

Washington, DC – Financial Services Committee Chairman Barney Frank (D-MA) issued the following statement today on executive compensation:

The recent news of compensation on Wall Street shows that some financial leaders yearn for the stirring return of yesteryear and demonstrates the need to adopt legislation on executive pay. It’s a question of empowering the shareholders to decide the appropriate level because it’s their money and giving regulators the ability to prevent compensation incentives that encourage taking inappropriate and excessive risk. We do not know the specifics, but recently reported bonus pools do suggest that there may be a return to the old ways which caused such damage to our economy. It reinforces our determination to adopt a reasonable set of legislative goals.

“The Financial Services Committee will be marking up legislation next week to give shareholders a say on pay for top executives, which is similar to legislation the House passed in 2007. In addition, we will consider legislation to empower federal regulators to proscribe inappropriate or imprudent compensation practices as part of solvency regulation of all financial firms. The committee is acting because of a broad consensus of leading national and international finance experts including Paul Volcker and the Group of 30 and Lord Turner of the United Kingdom who believe that compensation structures were a factor in the financial crisis. Both the United Kingdom and the European Union are contemplating similar rules.”

What a sad commentary on our society as a whole where once our corporate citizens were patriotic and sympathetic to the country and the people.

How much money is enough? Many of these high flying corporate “bankster” exec’s have more money then they, their children and grandchildren can spend in their collective lifetimes. If they earned nothing from this point on they could maintain thier lifestyles of the “Rich and Famous” for decades.

They all must know – in their heart of hearts – what they have done to not only this, their country but to the world.

They are all conspirators and co conspirators in the largest and greatest fraud of all time. Bernie Madoff is a small fry in their company yet he has been singled out to take the heat for all of them while they continue to rob, lie and de fraud everyone.

We have a new gangster here that even Elliot Ness of the Untouchables would have a difficult time bringing down. The Mafia and other forms of organized crime we have seen in the past don’t come close to this new breed of well dressed, well educated and well compensated group of thugs.

As I see it, we have a say in the way things operate especially since it is our money they are operating with and taking as their compensation. We made it possible for them to exist and continue.

We – which includes our kids, their kids and unborn kids will be paying for this for quite some time to come therefore, it is up to us to STAND UP and BE HEARD.

I have always said, “Two wrongs don’t make a right” and “The law is the law for everyone”.

It is up to us to come out, be not afraid and be vocal on this and many other issues that are affecting our daily lives and will affect the daily lives of generations to come.


Where’s The Help? Government Bailout Programs Are For Who?

From where I sit, the economy is bleak and getting bleaker everyday. There is still a lot of talk about a recovery coming soon – but mostly by those who are paid by an industry to make those evaluations. Even President Obama continues to say it will take some time to get out of this mess.

Yet those optimistic reports continue to flow as if it will wash away the actual situation. Come on, the public is not that stupid. How can you convince those struggling to survive, to eat, to pay rent that things are not so bad?

The ranks of the unemployed are growing. The homeless population is growing with many more families homeless then was ever visible before. Yes visible. I don’t have statistics on homeless but just look around your city, you will see them – a new breed of homeless who know that things are not better.

How about all of those people whose retirement plans were wiped out? Those that should have retired or would be retiring now looking for work just to survive. They don’t see the pending recovery all of those “paid” optimists are reporting.

Each day I encounter more and more people that are affected by what we are still calling a Recession. To so many this economic crisis feels like and lives like a full blown Depression.

Let’s look at some real numbers and statistics.

U.S. Food-Stamp Recipients Reached Record 33.8 Million in April as reported in

Fed: Unemployment rate will top 10% in 2009 as reported in the Denver Business Journal

…”In April, the Federal Reserve predicted that unemployment would top out between 9.2 to 9.6 percent this year, but the rate already reached 9.5 percent in June – a 26-year high.

Can we believe the Fed? They seem to be wrong so perhaps they are wrong again and those figures will be higher then 10%. I certainly hope not but only time will tell.

Reports and Articles From

Unemployment rate unchanged at 12.2 percent

Oregon’s unemployment rate remains a record-high 12.2 percent, state officials said Monday.

Unemployment rising, but companies still hiring

The national unemployment rate is on the brink of double digits, job fairs are mobbed and layoffs continue.

Georgia unemployment claims jump 95% in June

The Georgia Department of Labor reported Thursday evening that 88,756 laid-off workers filed first-time claims for state unemployment insurance benefits in June — up 94.8 percent from
June 2008.

Minority unemployment almost double white joblessness

The National Council of La Raza on Tuesday reported June unemployment figures, noting minority workers have been disproportionately affected by the recession.

Report: Charlotte-area unemployment to average 12.6%

The area’s jobless rate will average 12.6 percent this year, up from 6.6 percent in 2008, say the report by N.C. State economics professor Michael Walden

Unemployment continues to rise, Arizonalags national average

Nearly one third of the 372 metropolitan areas surveyed have a jobless rate of more than 10 percent, up from just six regions in May 2008, according to the U.S. Labor Department. Fifteen cities have rates over 15 percent. May was the fifth month in a row that every major metro area saw its unemployment rate rise year-over-year.

Once again, Portland unemployment spike leads nation

For the second consecutive month, the Portland metro area recorded the highest annual jump in unemployment in the nation, according to new data from the U.S. Department of Labor’s Bureau of Labor Statistics.

The area’s 6.7 percent increase in unemployment in May was slightly higher than Detroit (6.6 percent).

Depressing as this may be – IT IS REALITY – and we must deal with the reality in order to survive. We cannot afford any false sense of hope or illusions as these would lead us all to total destruction.

Our leaders don’t seem to be doing the job – at least not for the majority. The banks seem to be flourishing as are their top executives. I am sure they do not feel this Recession Depression one bit.

Oh, I know, some of them are flying commercial instead of in their private corporate jets – but President Obama repeatedly says we all have to make sacrifices.

All of these so called bailout programs with all their acronyms (ie. TARP, which to me means a cover up such as when you put a TARP on the roof of your house after a storm) seem to be covering up the reality of what is really happening. It seems to me that there is a definite emergence of an “elite” class who are getting richer with these government bailout programs while the rest of us are getting hungrier.

Goldman Sachs reported a profit last quarter with a little help from the Government indirectly by way of AIG. JP Morgan Chase reported a profit last quarter thanks to TARP. Bank of America reported a profit last quarter again thanks to TARP even after the acquisition of TWO FAILED companies.

General Motors is emerging from Bankruptcy after only 40 days – with a little help from our government to the tune of $60 billion.

Again, I must ask, “What have you (The Government – whoever you may be) done for us down here on Main Street now called Foreclosure Alley?

A note to our “leaders”. This country is made up of us, the people and children, not “we” the corporations.

The most shocking statistic was recently published in MSM Money .

The headline read,

With 15 Million Kids Expected to Go Hungry This Summer, Boys & Girls Clubs of America Partners With Morgan Stanley to Launch ‘Million Meal Summer’ Program

June 12, 2009 9:30 AM ET

ATLANTA, June 12 /PRNewswire-USNewswire/ — In an effort to feed the millions of young people expected to miss meals or go hungry this summer, Morgan Stanley MS announced today a partnership with Boys & Girls Clubs of America (BGCA) to provide more than a million meals to children this summer

So, Mr. Obama, while you are flying your children around the world in your private jet provided and paid for by the people – other people’s children are going hungry – right here in your own country. Let me ask, how many children could we feed with the $60 billion you are giving General Motors? How many children could be feed with the money used to launch the shuttle yesterday? And how many children could be feed if every member of Congress and your Administration took a 10% pay cut?

So – Where’s the Help? When can we, the American people, expect to be bailed out directly before we bail out the ones that got us here to begin with. Mr. Obama, is teaching your children that you get rewarded for failing the lesson in life you want them to learn?


If you become “too big to fail”?

Another wrong message being sent.


Financial Services Committee to Examine “Too Big to Fail” Institutions

Washington, DC – Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, today announced the committee will hold a hearing titled “Systemic Risk: Are Some Institutions Too Big to Fail and If So, What Should We Do About It?” on Monday, July 13.

Let me see if I can help Rep. Barney Frank answer the question, “What Should We Do About It?” My answer and perhaps those of the majority of Americans today would be “LET THEM FAIL” give us the money so we can feed our children and ourselves.

The "Criminal" Elite Ride On

I follow an on line news service from SourceMedia on a daily basis. Specifically I read National Mortgage News where today I read an article:

Did Wells Steer Minorities Into Baltimore Subprime Loans? by Brian Collins

This is a report on how the City of Baltimore, Maryland is suing Wells Fargo for lost taxes on homes that were financed by Wells and now foreclosed and vacant. While I believe in the concept of “innocent until proven guilty” – which applies to criminal cases – I also believe in the civil proceedure of having to “prove” your innocence of any wrong doing as charged.

So let me remind you all that this case is just beginning, no hearings have been held yet and no real evidence produced other then a former loan officer for Wells Fargo verbalizing their wrong doing and willing, evidently, to speak openly about it. It is interesting to note that she made over $700,000 in commissions one year and over $550,000 another as reported in the article but not substantiated in any way.

Why am I writing about this? Because Wells Fargo was one of the first to blame independant mortgage brokers of bringing them bad deals and therefore stopped doing business with them. Maybe you can begin to see why. First, if they laid the blame off on others then they become the “good guys”. Second, by doing so they can now capture all the business by themselves for themselves controlling the files to perhaps “steer” more poeple into more bad loans keeping all the profit.

Independant mortgage brokers were the salvation for the people not the enemies as our illustrious financial institutions would have you believe. Sure there were a few bad apples but every tree has them.

We already know of other activities that Wells Fargo engaged in relative to mortgage securitizations. Did they really forge people’s names to loan documents so that they could have more inventory to securitize? Some people who were victims said so. Did they really sell the same mortgage to more then one security? Some people who have had more then one company try to collect from them said so.

Did Wells Fargo “steer” people into sub prime, higher interest rate loans when they could have given them FHA or lower interest rate conventional loans? Probably but the evidence will eventually disclose the truth. But here is a quote from the article:

“I was verbally reprimanded…for placing too many borrowers in FHA loans, when the company wanted me to refer them to a subprime loan officer,” his affidavit says. He was fired in 2007.

In response to the some of the allegations in the Baltimore lawsuit, Wells Fargo said it has policies, systems and controls in place to ensure race is not factor in the pricing or products it offers. “Our team members are instructed to give prime pricing options to all borrowers who qualify,” it said.

The former loan officers said the Wells Fargo implemented filters in 2004 to prevent steering — but it was “easy” to circumvent. “The filter did not work and everyone knew it,” Ms. Jacobson said.

What I do know is that the “banksters” as some now call them are still “gangstas”.

But here is more from the same source by reporter Paul Muolo who is one of the few who has investigated and exposed the truth about the mortgage industry. In fact he has written two books that should be required reading.

In his What We’re Hearing column of July 10th in National Mortgage News he talks about who has what company, issueing an IPO, buying up mortgage portfolios and most importantly where these corporate leaders came from.

Most, again, were high level executives of those same companies that created this mess to begin with – Countrywide and Impac – as examples. He says in the article,

“…Arch Bay Capital of Irvine being the winning bidder on the $600 million Wells Fargo non-performing subprime loan portfolio.”

“…many players in the non-performing loan market say that Arch Bay – a vulture fund originally grubstaked by once high-flying alt-A giant Impac Mortgage – likes to stay under the radar and out of the newspapers. Oh well…”

Very interesting since Impac Mortgage was a prime player in the Alt A industry and a prime participant in the mortgage meltdown. Paul goes on to say that “Joe Tomkinson and William Ashmore are still running the place.” In other words, Impac, still operated by the two who participated in creating our crisis, destroyed their company – which is still traded over the counter (OTC) as a penny stock in the pink sheets – are still out there openly not doing much but in disguise sending millions – where did they get the money and why if you fail can you just somehow start up a multi million dollar company to take advantage of the people you took advantage of previously?

OK, there is more in Paul’s article.

MORTGAGE PEOPLE: CRT Capital Group, Stamford, Conn., has named Ron KripalaniCredit Research and Trading LLC. Mr. Kripalani, a Wall Street veteran, was a mover and shaker at Countrywide Capital Markets where he served as CEO. That would be Angelo Mozilo‘s Countrywide.” its new CEO. “

Pennymac is another company formed by the failed leaders of another major player in the mortgage meltdown. They are also looking to buy non performing mortgage notes and go public. Companies like this and the ones above are called “vulture” funds…how appropriate. They don’t hide what they really are but we accept them as good business people helping our economy. Oh, boy!

The last part of Paul’s column and other articles in other journals has to do with the talk and conversation of the government setting up a “new” agency called the Consumer Financial Protection Agency which is to protect – you guessed it – the consumer against banks and other lenders that may appear on the scene. While I do not want to get into a lengthy explanation of this I will reprint my comments to Paul’s article.

I continue to enjoy your reports of all the “old” insiders – movers and shakers – still moving and shaking with new companies, IPO’s and mortgage madness. They are the ones benefiting from the crisis “they” helped to create but this time they are being aided by the government’s unclear policies and investments.

The Consumer Financial Protection Agency. Don’t we have something called the Consumer Protection Agency now? Let me see if I get this right. A Consumer Protection Agency was/is there to protect CONSUMERS. Does not the Consumer Protection Agency which falls under the Federal Trade Commission protect consumers for credit issues now?

So if we get a Consumer Financial Protection Agency will it not be and do the same? Oh of course, it will try to determine how a bank or mortgage company can operate – I think. But cannot the current CPA create those same tyhpe of rules and regulations?

What is going on here? More agencies, more government, more duplication, but with power consolidation.

Uh oh, beware America.

Again Paul, great reporting to let the people know who is still thriving. Those of us just trying to survive or not surviving at all are just thrilled that these “elite” are still enjoying fine dining and jet flying while the rest of the nation – the “average” American – who they took advantage of, bankrupted and left out in the cold to dry – starve.

What a country! The prisons are full of people who smoked a little pot but these high flying criminals at the banks and other financial institutions are continuing to pillage and rape with the aid of government.

Is The Economy Getting Weaker? CNBC reports

Right click on Bloomberg TV on the left to stop broadcast and listen to CNBC.

Please take a few minutes and listen to this CNBC clip. Again it is a yes it is no it’s not report. The main points of this report are that a true indicator of improvement is an increase in jobs which we know is not happening. In addition it is mentioned that the number of hours worked in the month of June declined by .8% which, they say, is the equivalent of one million people losing their jobs for the month.

There are some other good points and ideas brought up here but all in all it just reaffirms my belief that not only is the economy not getting better it will get worse. Commercial real estate has yet to hit, more foreclosures are on the horizon and credit card defaults are on the rise.

This tells me there does not seem to be any discretionary money out there. More then no discretionary money there is not a sufficient supply of money for the population. All around me people from all walks of a previous life are hurting.

What does seem to be improving are the bottom line for the banks and other financial institutions that we have given billions upon billions to. The oil companies are also profiteering which in turn raises prices on food and overall transportation. It limits people’s ability to travel to work or even seek employment within what used to be an acceptable commuting distance.

Where are all of those jobs that were going to be created by improving our infrastructure? No money has yet trickled down to the street. We continue to give vast amounts of money to “those too big to fail” companies when it is basic economics that small business drives the economy.

We should be investing in small business. Small business creates more jobs then all of these high and mighty corporations led by grossly overpaid executives who create failure not success and are continually rewarded.

Is the economy getting weaker. I think it is. What do you think?

Another Blog’s Views…NationalAuditReview’s blog

From time to time I find other blogs that support and inform homeowners in or about to go into foreclosure.  After all, the purpose of this blog is to encourage people to defend themselves and to do so requires as much information as possible.

NationalAuditReview’s Blog is one of those I feel can help.  I encourage you to visit and bookmark this link.

Foreclosures Judge grapples with her discovery of 15,000 unserved foreclosure cases by Billy Shields

is a story worth reading as are many of the other posts on this site.  This particular post raises many questions even in the questions being raised by the judge herself.

It appears, to me at least, that more emphasis is being placed on speed and expediency then on upholding the law and the rules of engagment as the “law” requires.

If service is required then service is required.  If one cannot be served personaly then the law provides for “constructinve service” by notification in public media.  However, the point is made by some that this process takes too long.  Too long?!!! So is that a reason to bypass “The Law”?

Have our laws become just a sham to be used selectively by those and for those of an elite status not the common person for whom these laws were written.  Have we forgotten this is a government “for the people BY the people?

More and more the average American, you and me are being cast aside and taken advantage of by the new “elite” be they individuals of wealth and power or corporations taking power and control by those very individuals of wealth.

We bail out the banks who got us into this situation.  They are the culprits, those to blame for our economic crisis that is growing while “they” tell us it is getting better all the while stripping us of more of our money and homes leaving us destitute.

On this the eve of the Fourth of July – our independance day – let us continues the fight against oppression as our founding fathers and all their followers whopaid the ultimate price – death – in the fight for liberty and the pursuit of happiness for all and forever.  Let us honor them along with the many who serve our country today, sacraficing and fighting to “preserve” our freedom and liberty.

Please view this tribute to the Fourth of July created by who has allowed us to share it with you.

Happy Independence Day from

Happy Independence Day from

It is worth view

ON BEHALF OF TheForeclosureDetonator

may you have a safe and happy holiday

and continue to fight for what is just, right, legal and democratic in our republic.

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