It’s always fun when the circus comes to town.
…except when it’s not.
In other words, Geithner did not have the remotest intention of avoiding foreclosures; quite the contrary. Because foreclosures—and delinquencies, and modifications, and just about any kind of mortgage that isn’t getting paid on time as usual—are such massive profit center for banks due to the gargantuan fees servicers reap off them, he fully intended to do whatever it took to keep the foreclosure boom booming!
All of a sudden, bits and pieces of conversations that I had had began to fall into place. Allison had used the phrase “helping them earn their way out of this” during part of a more extended conversation that summer about his worry that the banks could still collapse. HAMP was not separate from the bank bailouts; it was an essential part of them. From that perspective, it didn’t matter if the modifications failed after a year or so of trial payments or if struggling borrowers placed into doomed trial modifications ended up far worse off, as long as the banks were able to stretch out their plan until the profits returned.
Geithner’s revelation (he apparently similarly told bloggers in 2010 during an off-the-record conversation that HAMP had succeeded in extending out the foreclosure crisis) also helped explain one of the odder aspects of HAMP. For many borrowers, the modifications weren’t really all that “permanent.” Instead, after five years, the interest rate would be permitted to rise, much like the resetting adjustable rate mortgages of the financial crisis. This meant that within a handful of years after the “permanent” period of HAMP expired, the average borrower whose interest rate had been reduced to the minimum rate during his modification would eventually see his monthly payments rise by 23 percent,possibly putting him once again at risk for a default. Though that policy might undermine the long-term success of the program from the borrowers’ perspective, it made perfect sense if an immediate “foaming of the runway” for the banks was Treasury’s primary goal. For the banks, five years was an eternity.
Mad Dogs & Englishmen:
ALEC has been working to influence local, state and federal courts:
If/when the President or his Executive administration attempt to weigh in on key cases, Congress cries foul, saying the Executive branch is unfairly trying to influence the Judicial branch…while those representing the cabal in the Legislative branch are doing precisely that. From the foregoing we’ve established that it isn’t simply the corporations, foundations and institutes representing the cabal who use these briefs to influence the courts, many of the cases such as the ACA and Citizen’s United, have briefs filed by Congressional members (McConnell, Cantor, Boehner and others affiliated with ALEC). In the ACA litigation, hundreds of conservative Republican members of Congress and state Assemblies filed briefs to overturn “Obamacare”.
Bad enough that corporations through ALEC are able to write and propose pro-corporate legislation…but once they succeed matters are made worse by their ability to then have the opportunity to use the same lawmakers to influence the court’s decisions on their behalf to ensure a favorable outcome.
Today this “Amicus Project” concept is being used throughout our court system by the cabal. They use it successfully to secure such favorable opinions in; telecommunications, labor, union, education, environmental, insurance, healthcare and criminal justice cases – to name just a few of their initiatives.
We as “constituents”, “voters” and simply “citizens” have no representation to present our side of any issue or case. Those who are elected and have the duty of such representation have been co-opted, their loyalty and pursuits dedicated to the corporations, foundations, institutions and organizations who can/will/are contributing to keeping them in office and power. Those organizations who still have some form of voice to represent us; labor groups, unions and liberal groups…are under full attack from the entire cabal who are trying to silence even the last whispers of objection to their subversion of our democracy.
Michael Moore on Aurora shootings:
“If President Obama is watching right now, and I say this with all due respect: What if it were them? What if it were them, last Thursday night? Would you stand at the microphone the next day and say, ‘I feel your pain, and, you know’ — this is what he said — ‘the existing gun laws are enough.’ Is that really what you’d say, Mr. President? I don’t think so. You and I and everybody have to see these children, these young people killed on Thursday night, as our children.”