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Archive for the Kleptocracy Category

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?

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The First Look At The “Second Political Party” (January 3, 2011)

Posted in Abortion, Capital Punishment, Death Penalty, Drugs, Economics, Elections, Gay Politics, Government Regulation, Kleptocracy, Political Parties, Politics, Society on January 3, 2011 by e-commentary.org

. . .

R “I’ve been shut out by the venal and feral nut cases in my party.”

D “I’ve been sold out by the effete and craven fruits in my party.”

R “My team is fraudulent; yours is feckless.”

D “Your team markets fear; mine peddles hope. No one addresses problems or provides answers.”

. . .

D “Your team caters to the very rich; you’re not very rich.”

R “But I can be.”

D “Not any longer. They let you nourish that delusion to string you along.”

R “But I could have been.”

. . .

R “We need a third party.”

D “We already have a third party, but it is a rabid and toxic mix of nuts and fruits. We need a fourth party.”

R “At core, both parties are owned hook, line and over the barrel by the same corporate and financial interests. The Repubocrats and the Demolicans. Maybe we need a second party.”

D “Our country has transformed from a democracy to a kleptocracy. Each party protects and serves the kleptocrats and banksters who keep the public diverted and entertained with frivolous diversions and entertainments.”

R “The Supreme Court decision in Citizens United was designed to promote the interests of my party and also has doomed the prospect of any other party emerging in America.”

. . .

D “We need less government involvement in our personal lives. No government definition of marriage. No government regulation of abortion. No government criminalization of marijuana.”

R “We need government to dictate the definition of marriage. It is what I say it is, between a man and a woman. We need government to invade each bedroom and demand delivery of every conceivable baby. If the little tyke steps out of line, we need capital punishment. Remember that life begins at conception and ends at birth. We need government to imprison people for smoking marijuana when it is still legal to drink all the alcohol they want.”

. . .

D “So now once again what are the essential bedrock policies of the ‘Second Political Party’?”

. . .

Bumper sticker of the week:

TPTB America has abandoned the Middle Class; what is interesting to watch is how the Middle Class abandons TPTB America.

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Rational Fear: Still “Unusually Uncertain” (November 8, 2010)

Posted in "L" Shaped Economy, Bailout/Bribe, Banks and Banking System, Bernanke, Depression, Federal Reserve, Greenspan, Kleptocracy, Technology, Unemployment, Volker with tags Volker on November 8, 2010 by e-commentary.org

. . .

K “Think about it. Some maintain the blind conviction that the business cycle is ordained by nature like the tides to rise after it falls.”

J “Faith in nature. This season is bad so that the next season will be good because that is the way it is. Good luck.”

K “Some desire to return to unrestrained personal consumption and unbridled economic growth. Even if it is attainable at this time it is not sustainable over time.”

J “Faith in unchecked consumption. With oil peaking and a world population that has not peaked, the prospects are not promising. America had its opportunity to consume. Other countries, particularly China and India, now want and have earned their opportunity to consume. If the oil holds out. And if the coal does not kill us.”

K “Some believe that new technology will be pulled out of the hat and pull us out of this mess.”

J “Faith in technological salvation. The technology sector likely will continue to grow but not enough to propel the entire economy. The tech world is producing some sexy developments and neat gadgets.”

K “I’ve always supported free trade when it is truly free. Decades ago, I could see that globalization would shift massive numbers of American jobs overseas. They said the solution is to train and retool the America workforce. The workforce is not retrained and retooled and may not be retrainable and retoolable. Not many commentators in academic economics or in the financial press have a clue.”

J “It is one thing to listen to Greenspan and know that everything he says is wrong, yet who is getting it right. Knowing which way not to go in a maze is not the same as knowing which way to go. Volker has a clue, yet he is on the sidelines.”

K “Bernanke* has a clue. Now that monetary policy has effectively failed, he is enacting what is effectively fiscal policy. Fiscal policy is the province of the legislature, the Congress. But Congress is broken. The Humphrey-Hawkins Full Employment Act, an act of Congress, requires the Fed to promote full employment. Perhaps he is actually trying to stimulate employment.”

J “But there are no jobs, now or in the future. Quantitative Easing II is nothing more and nothing less than TARP II implemented by the Fed rather than Congress. The Fed’s purchase of bonds is nothing more and nothing less than a slick way to provide another bribe and bailout to Wall Street.”

K “That is hard to dispute unless there are a few random hires here and there. And he continues a tradition at the Fed of lying or at least deceiving the public. He can do something. He and the Fed regularly issue ‘Remarks’ and ‘Speeches’ on all manner of topics. He should direct the Fed to issue a finding that a single bank with deposits and assets of more than 100 billion is a clear and present danger to the American economy and to the security and well-being of the Republic. If a bank or other financial institution does not enter into an Enforcement Action with the Fed, close the resources of the Federal Reserve to the bank or financial institution. In effect, require banks to downsize to manageable sizes. They must be small enough to fail and to play well with others.”

J “Won’t happen. Our democracy is now a kleptocracy.”

K “That won’t help employment, however. But he could pull it off. He can be bold. He would have to play all his capital. But for us citizens, however, the only things we have to fear are so many very real fears.”

. . .

Bumper stickers of the week:

The only things we have to fear are so many very real fears.

Don’t end the Fed, mend the Fed.

“And as things fell apart/Nobody paid much attention.” “(Nothing But) Flowers” – Talking Heads

“This country’s hard on people, you can’t stop what’s coming.” No Country for Old Men movie (2007)

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On The Digital Revolution (March 22, 2010)

Posted in Cyberactivities, Economics, Entitlements, Estate Tax, Kleptocracy, Society, Water on March 22, 2010 by e-commentary.org

. . .

“Most, if not just about all, of the fortunes amassed in the last ten to twenty years were stolen. Nothing was created. Much was destroyed.”

“Jobs created some jobs.”

“And to his credit he is still creating a few. There are a few others who are producing and contributing, yet they are the rare exceptions. Scrutinize the “Forbes 400” list. Some have family money. Some made some contribution. Few of them have done much to produce a product or provide a service. The companies they overleveraged will soon overwhelm the economy. At best they structure affairs to shift risk to others or to the taxpayers. Successful businesses are dismembered and destroyed not created. That is the fundamental difference between the robber barons of olde and the robber barons of new.”

“No dispute here.”

“Taxing some of the stolen money is impossible when the government can be and has been taken over and overtaken by the small cabal that owns and runs the kleptocracy.”

“No dispute here.”

“Today we hold electrons not dollars. For a few seconds one afternoon, my computer indicated that there was nothing in my retirement account. All 000s. All goose eggs. That caught my attention. Seemed like a true harbinger of what will happen in the future. The system refreshed in a few seconds and reported familiar figures. What about a Digital Revolution that simply eliminates from all records ownership of any assets over five million dollars by any one person?”

“Cyberactivities are the real weapons of mass destruction. They are also the weapons of mass creation. Sort of like nuclear technology that is creative when harnessed for positive ends and destructive when deployed for harmful ends. A five million dollar threshold will not impact me.”

“After the Digital Revolution, when you log onto your computer, you discover that you have no more than five million per person and ten million per couple including a personal residence, a vehicle, savings, golf clubs, polo saddles, etc. As a rough gauge of worth or value to the individual, the algorithm will treat assets within a class such as a residence, cabin, car or boat that has been owned the longest as the most valuable and will remain with the individual. The other assets will be randomly assigned to others.”

“No impact here, yet imagine the surprise one morning when someone wakes up to discover that he owns a fractional interest in a fractionally-rigged 76 foot sloop with rod rigging and a full complement of complimentary sails.”

“That only creates another travesty. Individuals who did not create an idea, work late at night or take a risk should not be rewarded gratuitously. The scheme would only contribute to the entitlement mentality that is such a defining part of the problem in contemporary America. No one seems to be producing good goods or undertaking productive activities; no one deserves any reward. However, the Digital Revolution would make a great novel. ‘Coming to a theater near you.’”

“Don’t worry, the Chinese will trigger the Digital Revolution, although the outcome will be far less equitable than your proposal. Perhaps you should worry.”

(World Water Day)

(Stewart Udall 1920 – 2010)

Bumper stickers of the week:

Golden Rule: He who has the gold makes the rules.

Carnegie made steel; today’s barons steal.

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Europe: Boycott America (Sept. 28, 2009)

Posted in Boycott Series, Dollar - World's Reserve Currency, Economics, Europe, Kleptocracy on September 28, 2009 by e-commentary.org

How enlightened Europe could get suckered by and sucked into the Great American Meltdown is bewildering. Those with some distance and perspective should have seen that the American economy was hollow and vacant as early as 2005 if not earlier. Countries such as Iceland and Ireland – good people all – and cities, towns, and villages throughout Europe largely brought it on themselves because they bought the lies and the poison from America. The financial products exported from America had to look suspicious at the time.

Europe should boycott America. Really. In a rational and purposeful way. Purchasing and holding dollars may make economic sense in the future. If so, buy bucks. The decision may get more problematic when the dollar is no longer the world’s reserve currency.

Holding American bonds may make economic sense in the future. If so, investigate them with care and acquire them. Keep in mind that American municipalities and other political subdivisions can file bankruptcy.

However, the financial sector in America is corrupt to the core. O’Bama is trying to clean up the mess, yet he cannot surmount the entrenched financial community. Only powerful financial/economic/political market forces will compel change in the American financial markets. The pressure may need to come from overseas.

Bumper sticker of the week (sported on a red Renault convertible sports car):

USA: Fool me once, shame on you; fool me twice, shame on me.

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e-commentary

Archive for the Kleptocracy Category

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

The First Look At The “Second Political Party” (January 3, 2011)

Rational Fear: Still “Unusually Uncertain” (November 8, 2010)

On The Digital Revolution (March 22, 2010)

Europe: Boycott America (Sept. 28, 2009)

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