Feed on

Handing over the keys

Does anyone ever say noto the banks?

Here’s yet another form of hidden bailout the federal government doles out to our big banks, without the public having much of a clue.

This is from the WSJ this morning:

Some of the biggest names on Wall Street are lining up to become landlords to cash-strapped Americans by bidding on pools of foreclosed properties being sold by Fannie Mae…

While the current approach of selling homes one-by-one has its own high costs and is sometimes inefficient, selling properties in bulk to large investors could require Fannie Mae to sell at a big discount, leading to larger initial costs.

In con artistry parlance, they call this the “reload.” That’s when you hit the same mark twice – typically with a second scam designed to “fix” the damage caused by the first scam. Someone robs your house, then comes by the next day and sells you a fancy alarm system, that’s the reload.

In this case, banks pumped up the real estate market by creating huge volumes of subprime loans, then dumped a lot of them on, among others, Fannie and Freddie, the ever-ready enthusiastic state customer. Now the loans have crashed in value, yet the GSEs (Government Sponsored Enterprises) are still out there feeding the banks money through two continuous bailouts.

One, they continue to buy mortgages from the big banks (until recently, even from Bank of America, whom the GSEs were already suing for sales of toxic MBS), giving the banks a permanent market for home loans.

And secondly, they conduct these quiet bulk sales of mortgages, in which huge packets of home loans are sold to banks at a “big discount.”


The Catholic Church and the right wing. Go read:

The near-disappearance of economic justice as a priority for American Catholic bishops is an aberration, both historically and in the current global context. Though rarely mentioned by current U.S. bishops, “Economic Justice For All” was very much in keeping with orthodox Catholic theology and practice, and leaders and laypeople were integral to the early progressive movement.


Can it be that in addition to chard, I am also allergic to kale? I’m having the example same swollen-sinuses reaction to this morning’s juice: Cucumbers, carrots, apple and kale.

Medical malpractice

A new law in PA requires physicians to keep their mouths shut about the health effects of fracking liquids. Thanks, Tom Corbett!

Sh#t lobbyists say

by Susie

Oh goody

by Susie
I’m always so excited when Paul Ryan unveils another budget proposal. It’s so much fun, guessing which helpless and vulnerable segment of the electorate he’s going to shaft next!

What are the odds

by Susie
That they do anything?

Goldman Sachs Group Inc. (GS)’s directors must investigate a former employee’s allegations about a change in the firm’s culture, Jacki Zehner, who was a partner when she left the company in 2002, wrote on her blog.

Zehner said she doesn’t know Greg Smith, the derivatives salesman whose New York Timesop-ed piece blamed Chief Executive Officer Lloyd C. Blankfein and President Gary D. Cohn for fostering a “toxic and destructive” environment, causing Smith to quit last week. Zehner, who worked at Goldman Sachs for 14 years, wrote that she’s heard from “many people” in the past few years that the firm is emphasizing profits over character.

“These are very serious accusations from a credible person in my view and I hope it does indeed provide a ‘wake-up’ call to the board of directors,” wrote Zehner, who was the first female trader promoted to partner and is married to a former partner. She is now CEO and president of Women Moving Millions, a non- profit supporting the advancement of women and girls worldwide.

“It is the board that is accountable to shareholders and before they take another paycheck I hope they ask a heck of a lot of questions and get honest answers,” Zehner, 47, wrote in her March 16 commentary.


by Susie

This is so wrong, so heartbreaking that I can’t even talk about it. Just go read about it.

How America can create jobs

by Susie
Intel’s former chief on how we can bring jobs back.

Busting bagpipers, OWS

Call the music police!

Why the violence? Maybe because NYC’s Little Caesar, Michael Bloomberg, simply wanted to remind the world that his Praetorian Guard is ready to resume kicking ass and ignoring Constitutional rights. More here.

« Newer Posts - Older Posts »