Archive for the Bailout/Bribe Category

Kleptocracy, Inc.: Rebranding America (November 18, 2013)

Posted in Awards / Incentives, Bailout/Bribe, Banks and Banking System, Bernanke, Economics, Economics Nobel, Federal Reserve, Kleptocracy, Stock Market on November 18, 2013 by e-commentary.org

. . .

A          “‘Go Kleptocracy, Inc. Go’ doesn’t have the same ring as ‘Go U.S.A. Go.’”

B          “You could replace the stars with dollar signs and the stripes with universal product codes to reflect the monetization of America.  Rally ‘round the ‘Dollar Signs and Bar Codes’ does not alliterate the way rally ‘round the ‘Stars and Stripes’ does.”

A          “And doesn’t sound right, does it.”

B          “To say that everything is a lie and a fraud is an understatement.”

A          “Almost everything is a lie.”

B          “That may be closer to the truth.”

. . .

B          “A kleptocracy is an oligarchy that no longer is even vaguely concerned about even the pretense of evenhandedness or equality.”

A          “That’s it; that’s us.”

. . .

B          “And yet so many commentators point to the Dow that topped 16 Grand for a time today.”

A          “It’s over the top.  The rise is so tightly correlated with the monthly eighty-five billion dollar ($85,000,000,000.00) bribe paid by the Federal Reserve to the Big Banks.”

B          “What if they doubled the bribe to one hundred and seventy billion dollars ($170,000,000,000.00) each month paid to the Big Banks.  Why not.  Everything is a fraud and a lie and a fraud.”

A          “The crash will be even more epic.”

. . .

A          “One of the former Federal Reserve officials confessed and apologized for the program known as ‘quantitative easing’ as the ‘greatest backdoor Wall Street bailout of all time’ with little real economic expansion.  Bernanke* is a nice guy who has really done little more than dispense bribes to Big Banks.”

B          “Like Bernanke*, Jellen may be the best this talent-starved kleptocracy can produce.  She will continue the official Federal Reserve policy of dispensing bribes to Big Banks.”

A          “In her testimony, she assured Wall Street and the Big Banks that she will maintain their primacy and hegemony.”

B          “Congress charged the Federal Reserve with considering employment.”

A          “The Fed is mindful of the impact of its bribes on employment on Wall Street.”

. . .

A          “What if he went out like former President Eisenhower and delivered a warning about the perniciousness of the financial industrial complex?”

. . .

A          “The answer is so obvious and so easy.  Preclude any bank from holding more than one hundred billion dollars ($100,000,000,000.00) in assets.”

B          “The Big Banks will never approve that action by the Federal Reserve.”

. . .

A          “The Norwegians do not help when they dispense their trophy to the cheer leaders who put a cheery façade on the fraud.”

B          “And the e-con-omics departments oblige by providing a steady pipeline of obedient sycophants.”

. . .

[See the article titled “Andrew Huszar: Confessions of a Quantitative Easer” at http://online.wsj.com/news/articles/SB10001424052702303763804579183680751473884.].

[See the “e-ssays” titled Greenspan’s Legacy – Apres moi, Le Meltdown (January 30, 2006), The Dow Jones (the Murdoch ?) Hits 14 K In A Hollow Economy (July 23, 2007), A Bleak Day: The Trillion Dollar Tragedy (October 6, 2008), The TARP Is A Trap (January 19, 2009), The Bush Grand Slam (February 14, 2011) and (M)End The Fed (July 11, 2011) concluding with a draft Federal Reserve Enforcement Order that Janet Jellen could issue in her first few weeks on the job.]

Bumper sticker of the week:

In Greed We Trust

September 15, 2008 – The Date That Should Live In Infamy (September 16, 2013)

Posted in Bailout/Bribe, Banks and Banking System, Economics, Federal Reserve, Kleptocracy, Occupy Movement on September 16, 2013 by e-commentary.org

. . .

C          “Five years ago in the morn, Senator McCain, the pundits and the powerful proclaimed that the fundamentals of the economy were sound.”

D          “Didn’t seem that way to me then.  Doesn’t seem that way to me now.”

C          “Didn’t seem that way even to them in the afternoon.  Those running the game realized that the hollow economy could not be propped up with lies and smoke and mirrors.  September 15 is the date that should live in infamy.”

D          “If market forces had been allowed to continue without the TARP and other interventions, the current generation would have endured its excesses rather than heaping them on the younger generations.”

. . .

C          “And two years since the emergence of the Occupy movement.  The folks shared a concern that something is wrong with the economic and political game even if they could not explain the problems or advance the solutions.”

. . .

D          “No one has ever audited the Federal Reserve.”

C          “Some companies claim to have paid back some of the government loans, but who really knows.”

D          “No one has ever been prosecuted except a few unconnected fools and Madoff who made the mistake of purloining from the powerful.”

. . .

C          “The Dow’s new highs are a sign of peril not of promise.  As long as the Federal Reserve keeps fabricating phony funds, the Dow will keep providing phony figures.”

. . .

C          “All the counterparty agreements are essentially insurance policies.  An insurance company is required by law to provide adequate reserves to satisfy possible claims.  Every concerned citizen should have reservations about an insurance scheme with no regulation or even reserves.”

D          “Insurance companies have historically been regulated by states.  The most likely state to regulate the financial industry – New York – has no incentive to regulate and every incentive to allow unregulated criminality.  New York is profiting handsomely from the criminality,”

C          “Laissez faire, they say.  Those in power are too lazy to create a fair economic system.”

D          “The same old same old.”

C          “The same old same old.”

D          “The same old same old is getting old.”

. . .

[See the “e-ssays” under the Category “TARP” at https://e-commentary.org/category/tarp/ and any of a few dozen “e-ssays” presented in the last nine years on the economy.  See the “e-ssays” under the Category “Occupy Movement” at https://e-commentary.org/category/occupy-movement/.]

Bumper stickers of the week:

A system that cannot go on forever will not go on forever.

“Twenty-five years ago, I worked there during the summers for $7 an hour and now my son works there part-time for $7.75 an hour.”

Proposition H8 And The Enduring Appeal Of Fear And Hate (February 13, 2012)

Posted in Abortion, Antitrust, Bailout/Bribe, Banks and Banking System, Civil Rights/Civil Liberties, Congress, Constitution, Courts, Crime/Punishment, Gay Politics, Judges, Less Government Regulation Series, Miscegenation, Supreme Court on February 13, 2012 by e-commentary.org

. . .

K          “In the early 1960s, a constitutional law textbook included a lengthy chapter collecting pivotal decisions challenging Jim Crow laws.  A library in this state, a grammar school in that state, a swimming pool in this state, a drinking fountain in that state.  The campaign was undertaken one institution, one jurisdiction, one decision at a time.  There were successes; there were failures; there were more successes than failures.  The Civil Rights Act of 1964 (CRA) changed the ground rules.  These outdated cases are of interest to historians today; they are moot asides for lawyers.  The whole chapter was expunged and a new chapter unfolded to detail the legal dispute du jour.”

J          “The unfolding chapter is reading like the old one.  America is gasping its way through the same spasms regarding gay marriages and gay rights.  The long-run outcome is clear, but the path is rocky.  Gay marriages and gay rights will be the norm and the law in thirty years.”

K          “Gay rights are the civil rights issue of this generation.  Instead of passing laws to protect civil rights such as the CRA, however, Congress passes unconstitutional screeds such as the Defense of Marriage Act of 1996 (DoMA).  Perverse group, the gang that legislates congress.”

J          “In thirty years, the kids will dismiss the dispute as ‘weird’ or ‘bizarre’ or whatever the patois is at the time.  Until then, prejudice, hate and fear drives the fight.  The Ninth Circuit decision is another step in the long slog.  And now the outcome likely turns on Kennedy.  Someone observed that Kennedy observed that his gay clerks were . . . human.  He decided that they should be treated that way.”

K          “In Lawrence v. Texas.  Contrast the development of the law regarding gay rights with the development of the law involving abortion.  Last month marked thirty-nine years since the Supreme Court addressed abortion in Roe v. Wade.  Curious circumstances and decision.  The matter was decided not by the Warren Court but by the Burger Court.  Warren retired to go bass fishing or something in 1969.  The seven vote majority opinion was written by a Republican-appointed Justice (Blackmun) and was joined by three Nixon appointees (Burger, Powell, Blackmun), two Eisenhower (Stewart, Brennan), one FDR (Douglas), and one LBJ (Marshall) appointees.  Even with no Democratic-appointed justices at all, Roe would have become the law of the land solely on the votes of Republican-appointed justices.”

J          “Even with a clear precedent, challenges to abortion will still be caroming around the courts in thirty years.  Gay rights will be resolved.”

K          “We would all be better off if the government got out of the bedroom.”

. . .

[See the Ninth Circuit decision in Perry v. Brown at http://www.ca9.uscourts.gov/datastore/opinions/2012/02/07/1016696com.pdf.]

[See the “e-ssay” titled Less Government Regulation Series: Love and Marriage (May 19, 2008).]

[See the “e-ssay” titled Fire Your Attorney General (November 7, 2011) and review http://www.nakedcapitalism.com/2012/02/mortgage-settlement-as-attorney-general-sellout-deal-is-not-done-and-final-version-guaranteed-to-be-worse-than-advertised.html.  The bankers murdered the body politic (and economic) with malice aforethought and all we could offer them is an overdue book fine.]

Bumper stickers of the week:

“All that Proposition 8 accomplished was to take away from same-sex couples the right to be granted marriage licenses and thus legally to use the designation of ‘marriage,’ which symbolizes state legitimization and societal recognition of their committed relationships.  Proposition 8 serves no purpose, and has no effect, other than to lessen the status and human dignity of gays and lesbians in California, and to officially reclassify their relationships and families as inferior to those of opposite-sex couples.  The Constitution simply does not allow for ‘laws of this sort.’”

Let freedom ring; let love rule

Good to have loved and lost; better to have loved and won

Happy Valentine’s Day

Standing Up In America (December 5, 2011)

Posted in "Fiat ______", Bailout/Bribe, Banks and Banking System, Courts, Credit Unions, Crime/Punishment, Housing, Kleptocracy, Law, Locke Gary, Perjury/Dishonesty, Politics on December 5, 2011 by e-commentary.org

. . .

L          “We now learn that while he was Secretary of Treasury, Henry Paulson tipped off some of his hedge fund buddies of the Fannie Mae bailout.  Everyone in power is quick to proclaim that his statements and actions are not illegal and declare that nothing can be done.  His statements and actions are illegal, but those in power refuse to enforce Title 18, the criminal provisions of the United States Code, because they do not want to bring charges against their compatriots in power even their competitors in the other party.”      

O         “They cop out and refuse to send the cops out.  Because otherwise someone could bring charges against them some day.  The Great Ruling Class Truce.  And no one asks any follow-up questions or demands answers.”

L          “However, a federal judge in New York, Jed S. Rakoff, took a stand from his seat on the bench and rejected a settlement between the Big Banks and the SEC that would have let the Big Banks substantially off the hook.” 

O         “I read a blurb that the state attorney general in Massachusetts, Martha Coakley, took a stand and demanded that the Big Banks follow standards.  The lawsuit may put the Big Banks on the hook.”

L          “And in developments overseas, America’s standard-bearer in China, Gary Locke, is America’s stand-up guy in China.”

. . .

[Henry Paulson:  http://www.bloomberg.com/news/2011-11-29/how-henry-paulson-gave-hedge-funds-advance-word-of-2008-fannie-mae-rescue.html]

[Jed S. Rakoff:  http://www.npr.org/blogs/thetwo-way/2011/11/28/142856070/judge-blocks-citigroup-sec-settlement]

[Martha Coakley:  http://www.washingtonpost.com/business/economy/massachusetts-attorney-general-sues-big-banks-over-foreclosure-practices/2011/12/01/gIQAgwnUIO_story.html.  See the “e-ssay” titled Fire Your Attorney General (November 7, 2011)]

[Gary Locke:  http://www.washingtonpost.com/lifestyle/style/gary-locke-is-star-in-china-as-first-us-ambassador-of-chinese-ancestry/2011/11/28/gIQA703DEO_story.html?hpid=z2.  See the “Category” denoted “Locke, Gary”]

Bumper stickers of the week:

America Is Exceptional / When America’s Exceptional

Take a stand

Take a few fiat dollars out of your credit union and put them in your pocket for safe keeping.

Boycott Big Banks – Vote Your Dollars (November 21, 2011)

Posted in Bailout/Bribe, Banks and Banking System, Boycott Series, Civil Rights/Civil Liberties, Credit Unions, Guns, Occupy Movement on November 21, 2011 by e-commentary.org

. . .

X          “The money you withdraw from a Big Bank and deposit in a credit union does not matter to the Big Bank.  The Big Banks get free money from the Federal Reserve.  The Federal Reserve has already given away more than 16 Trillion with no Congressional approval and no prospect of every receiving any of the money.  However, when you withdraw your money from a Big Bank, you are surrendering your serfdom and asserting your freedom.  The Big Bank can no longer fleece you.  All the little fees are little fleas that pester and annoy and destroy you.  The Big Banks are five and ten dollaring you to death.”

Y          “When I moved my money to my local credit union, I was already in the lobby when I thought about applying for a car loan.  They offered the best rate.”

X          “Never borrow money from a Big Bank; only borrow money from a credit union or community bank.  When too many Americans did not deserve credit, the Big Banks and their surrogates fooled them and forced credit on them.  Now when a few deserving Americans desire and deserve credit, the Big Banks are unwilling to lend.  A credit union is willing to loan.”

Y          “The brochure says that I may even be able to apply for a home improvement loan.”

. . .

[See Senator Bernie Sanders at http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3]

[See the “e-ssay” titled “O’Bama Arming Industry (November 22, 2010).”  The benchmark price of .22s in November is $21.99.]

Bumper stickers of the week:

The spray seen ’round the world – UC Davis, 11/18/11

The pen is not mightier than the sword, but the video camera may be as moving

A video is worth ten thousand words

Banks got bailed out; people got sold out

Boycott Big Banks; Support Credit Unions

Lend To Credit Unions; Borrow From Credit Unions

Vote Your Dollars

http://www.occupycafe.org/

http://caselaw.findlaw.com/us-9th-circuit/1332957.html

An “Occupy Primer” (November 14, 2011)

Posted in Bailout/Bribe, Banks and Banking System, Economics, Kleptocracy, Law, Occupy Movement on November 14, 2011 by e-commentary.org

. . .

?          “The Bonus Marchers sought what?”

!           “Bonuses owed to them by the government.”

?          “The civil rights advocates sought what?”

!           “Civil rights.”

?          “The women’s rights proponents sought what?”

!           “Women’s rights.”

?          “Those who sought to end the war in Vietnam sought what?”

!           “To end the war in Vietnam.”

?          “Those in the Occupy Movement seek what?”

!           “Simple.  They seek to end a game that is rigged at every step against everyone except a very small elite.  They seek to change a political and financial and legal and schooling scheme that is corrupt and decadent from top to bottom and from right to left.  They seek a build a future but suspect that there is not one.  They seek to replace the current vacuous kleptocracy with a viable democracy.  They seek to start a discussion and a dialogue among equals in an outdoor Academy to supplant the lies foisted on them from those in power.  That type of stuff.”

?!         “They want a fair chance.  I get it.”

. . .

[See the “e-ssays” titled Occupy America (October 10, 2011) and Occupy America: The “Bonus March/Chicago Police Riot/Kent State” Of 2011? (October 17, 2011)]

[See the “e-ssay” titled America Recycles Day, November 15 (November 15, 2010) and celebrate “America Recycles Day” tomorrow by doing something.]

Bumper stickers of the week:

We are the 99.9%

Occupy Jenkins Hill; Occupy Capitol Hill

Occupy [our small burg]

(Neoclassical) Economics – “The Dismal Religion”

(Neoclassical) Economics – “The Delusional Religion”

I won’t believe that a corporation is a person until Texas executes one

Is A “Strategic Default” Of A Mortgage Now A Moral Imperative? (February 28, 2011)

Posted in Bailout/Bribe, Banks and Banking System, Courts, Crime/Punishment, Economics, Housing, Kleptocracy, Law, Society, Supreme Court, TARP on February 28, 2011 by e-commentary.org

. . .

S          “You have heard of them.  A ‘strategic default’ is a default by a person who could make the monthly payments on the mortgage yet elects to cease making the payments because the property is underwater financially.”

D          “There are a flood of them today.”

S          “A strategic default may be de rigueur today.  Look at the law.  Start with the indoctrination process in law school.  Young law students are taught the theory of ‘efficient breach’ which counsels one to breach a contract if breaching the contract is worth more than performing the contract.  That is defined as ‘efficiency.’  The students who answer obediently get on the law review, clerk for the Supreme Court and make millions representing banks, big businesses and insurance companies.”

D          “And assist in running them into the ground.”

S          “That’s the plan.  They don’t even understand ‘efficiency.’  In practice, the party breaching the contract is not spawning a more efficient use of global resources.  The breaching party simply does not want to pay or perform and usually has far more money and can overwhelm the non-breaching party in court.  The party not receiving payment or performance loses big and usually has little judicial relief.”

D          “With a few exceptions, the legal system seems to exist to protect and serve the interests of the wealthy and the well-connected. I’ll take my direction from no one other than the MBAs at the MBA (Mortgage Bankers Association) who recommend defaulting on your mortgage if it is not working for you.  The banksters decided not to pay the mortgage on the MBA office building in D.C. (Washington, D.C.), even though the group had the funds to pay.  The banksters strategically defaulted.”

S          “They are indeed an example for all.  When the government bribed and bailed out the banks and other institutions, some contended that the government could not breach the contracts providing for unwarranted and illegal bonuses.  How un-American.  The government should have disregarded every contract and required the banksters to bring suit.  How American.”

D          “Allowing the banksters to file suit would allow them to file in a sympathetic Republican Federal District Court and possibly steer the case to a receptive judge.”

S          “Always a risk in the legal game.  However, before the banksters brought suit, their legion of lawyers would remind them that they could confront defenses and counterclaims.  In court, the government could assert a dozen affirmative defenses and also counterclaim for fraud, deceit, perjury, conspiracy, embezzlement, racketeering, misrepresentation, breach of fiduciary duty, obstruction of justice, etc.  Some of the banksters would not file suit which is the least expensive and, yes, the most efficient way of reaching a just resolution.”

D          “Seems that the courts are stacked against the public.  Nonetheless, there is a small chance that an independent judge might hear some of the cases and hold that the bonuses are illegal.  An affirmative award against the banksters is improbable but not impossible.”

S          “Neither the Republicans nor the Democrats ever intended to bring criminal charges against the criminals.  We seem at times to be alone in a lawless world with millions of laws on the books.  We in America have moved from a democracy to a kleptocracy.”

D          “And no one to throw the book at them.  Except that the law and morality are clear.  Homeowners are morally obligated to default on the payment of their mortgages if the property is underwater financially.  The government is morally obligated to default on the payment of the bankster’s bonuses.  In today’s amoral America, a strategic default is both an economic necessity and a moral imperative.”

S          “Perhaps a provision should be added to Title 18 of the United States Code making it a crime not to strategically default if the property is underwater financially.  Not to strategically default is so un-American.  And inefficient.  We just can’t have that.”

D          “Strategically defaulting immanentizes the eschaton.”

S          “Indeed.”

. . .

Mortgage Bankers Association Defaults:  http://www.thedailyshow.com/watch/thu-october-7-2010/mortgage-bankers-association-strategic-default

Home Sales Data Is Overstated:  http://online.wsj.com/article/SB10001424052748704476604576158452087956150.html

“Three years after a horrific financial crisis caused by massive fraud, not a single financial executive has gone to jail, and that’s wrong.”  Charles Ferguson upon receiving the Oscar along with Audrey Marrs for the Best Documentary for the movie “Inside Job.”

“Almost everyone counted publicly each and every single day of the event known as the ‘Iran hostage crisis,’ yet no one is counting publicly the days that have passed since September 15, 2008 without a single major criminal indictment of the banksters and their ilk who caused the financial crisis that continues to plague this country today.”

[See the “e-ssay” titled “1000 AUSAs (February 9, 2009).”]

Bumper stickers of the week:

Do as I do not as I say

Mortgage Bankers Association: Strategically Default Today

Free $1000 an hour legal advice:  Strategically Default On Your Mortgage Today

Efficiency uber alles

Efficiency is Inefficient

If your property is underwater, should you plant seaweed in the front yard this spring?