Video: Paul Ryan Reacts: Obama continues to shadow dance with America, punts – gives another word fog full of fury, signifying nothing
More Updates at end of post.
Update: Paul Ryan is GREAT here, he is ‘disappointed’ ohhh that is exactly it! They got us all revved up for that dereliction of duty of a speech from a lectern this afternoon? Really, really bad.
What a whiff that was!
As always, Obama votes Present by not coming out and endorsing either Simpson-Bowles or anything else, (he gave them a shout out and a h/t at the end but endorsed none of their plan specifics). He did a word fog full of the same tired lines from ’08. Promises he has ALREADY FAILED TO FULFILL in the past 3 years.
Then he did a pivot to his Dr. No, stern Daddy routine, and laughably, he did it on his ‘trademark issue’ The Bush Tax Cuts!, which is of course the Big Issue he ALREADY CAVED ON!
Yes, audacity and bamboozlement is back for Obamapalooza Tour ’11-’12! All the Hype, None of the Hope!
They really plan to run on the same 6 yr old tired, broken-down trope of Obama being anti-Bush Tax Cut extension and Pro Middle Class American Dream. (and mebbe he is…IN HIS DREAMS!! It’s just his actual POLICIES that let him down? ie protecting TBTF fxckers who have housing on its back, making the TBTF Bigger, and refusing to allow Clinton era tax rates to come back).
Unless Team Obama thought they had pulled off some Total Recall number on all of us last night, uh, WTF are they thinking?
Don’t they know that WE know that he ALREADY CRUMPLED LIKE THE WET PAPER BAG HE IS on the extension of the Bush tax cuts? Did he think we somehow didn’t notice that?
Sure, he gave us the courtesy of a - ‘I was forced to extend them to protect the middle class tax cuts’ BS line again, but again, if he gave his big ‘Hostages could be hurt’ spiel last time, doesn’t he think that WE think that HE WILL CAVE and extend them again when the Big Bad GOP Grandma Eating Wolf at the Door takes we middle class ‘victims’ ‘hostage’ again?
I means seriously, what the fxck? He doesn’t even TRY to spin us anymore? This is the best you;ve got? Man it’s lookin like a Fred Thompson energy level for Obama this time around.
So, it’s official there is for all effects and purposes no functioning POTUS on issues of real import. Congress needs to do what Hillary does on Foreign Policy, try to carry out the job with limited power while a Holier-Than-Thou absentee boss comes in once in a blue moon to pixx and moan about the work accomplished.
Let’s Review the Record on Obama’s Time at the Helm:
Foreign Policy? Has to be pushed HARD for MONTHS to make a decision, often leading to deterioration of circumstances on the ground that would allow mission success. See Af/Pak, Libya.
Update-Bonus- Launch military action unsanctioned by Congress, (previously one of your favorite Boosh! criticisms), go to Brazil to promote their energy independence and offer to make us dependent on them, do not make speech to nation on Libyan action.
Economy in Recession? Outsource a giant spendulus to Congressional Leadership of Pelosi/Reid and ‘Apollo Alliance’. Bonus – Insert unverifiable targets like ‘saving or creating’ jobs, yet attach chart that clearly projects a UE target that goes unmet for THREE YEARS while claiming Success! Escape Velocity! Recovery Summer!.
Explosion of Entitlement Spending to Drown us in Debt? Outsource to a Commission for some mythical ‘consensus’, ignore said Commission report except to use as prop/tool when helpful. See Simpson/Bowles Commission,
Budget Presentation to Congress and the Nation? Whiff. Jack up spending then present ‘Budget Freeze’. Get Budget Do-Over Pass from Media. Nevermind, it’s just another whiff.
Tax Debate? Your biggest campaign promise: An End to the Bush Tax Cuts for the Rich! Your raison d’être. Your ‘most deeply held political value’, the ‘shared sacrifice’, the ‘fairness rule’. You claim ‘hostages were taken, I couldn’t let people get hurt’ and position yourself, the President of the United States, as a hostage to the opposing party. You extend the Bush Tax Cuts for the Rich!
Bonus- You continue to claim this is exactly the wrong policy, that it is hurting the nation but you sign the bill anyway.
Double Bonus- Bring out the last successful Democratic president to sell your plan to country, leave him alone at lectern with media. Added points since you called this man a ‘racist!’ during ’08 campaign.
Double Triple Toe-Loop Bonus - You run for a second term on same promise to End the Bush Tax Cuts for the Rich! that you just extended, but give no explanation of how you can avoid the ‘hostage situation’ and accomplish this.
I can’t EVEN get into the National Security issues, it is frightening to consider NSC Advisers who do not know of Averted Terror Attacks on Large Scale in London,( TSA is FRISKING children and the left is quiescent~)Janet Napolitano claiming the border is more secure than ever, (170 bodies found in mass graves THIS WEEK just over the border), the incredible volte-face he has done on EVERY, SINGLE Bush anti-Terrorism policy he lectured about since 2006. It goes on and on.
Update to list: How could we forget-
Natural Disasters: BP Oil Spill in Gulf. Stern language against BP ‘boot on throat!’. Photo op- unlike Boosh! don’t do flyover, get down and pick up tiny tarballs. Then fly away home. Oil spill continues, unchecked, leave company who caused spill in charge of ending it. CONVENE PANEL! Oil continues to spill, unchecked. 40 Days+ later BP finally stops spill. Sidle up to lectern declare success!
Bonus - Set up ‘pot o’dough’ the go-to method of ‘solving problems’ for Community Organizers, see Al Sharpton.
Energy Policy: Allow Boosh! Era lax regulation( another of your campaign talking points) /certification/oversight of permits to continue under your Change!(d) DOE. This leads to worst oil spill in history. Convene panel! Stop all oil permits. Everywhere, land or sea.
Bonus- Give more grants to campaign supporter GE for ‘windmills’.
Double Bonus- Continue to snark at hard-working Americans who drive large vehicles, infer it is their fault as gas DOUBLES in your first 3 years. Propose new gas tax!
Triple Lutz Bonus: Fund off shore oil drilling IN BRAZIL. Announce to Brazilians you want America to be their customer. (Make announcement in Brazil while launching a military action that has not been sanctioned by Congress, leaving the American people to figure out what is happening without you.)
Conclusion- I don’t see how he has any chance of winning, even if Katie Couric and Brian Williams pick him up and carry him between his Arena Circuit Tour of College Campuses this time.
Unless of course, the conservatives within the GOP decide to sit the election out as they did in ’087. Really disappointing. I don’t think our economy will achieve Larry Summer’s vaunted ‘escape velocity’ if we get another 4 years of Obama.
Please vote. No matter who it is, please please vote.
Update 3: Jim DeMint calls Obama a ‘Bitter Clinger’!!!! BWAAAHAAA! (emphasis mine)~
“The President made it absolutely clear today that Democrats will cling bitterly to deficit spending until our nation is bankrupt. After offering an unserious budget just a few months ago, the President offered new platitudes but the same old policies. He’s still pushing for trillion dollar tax increases that would destroy jobs and cripple our economy. He still wants to add trillions in new spending to our $14 trillion mountain of debt without a credible plan to ever balance the budget….”
Update 2: AllahPundit at HotAir has more Ryan goodness from Levin.
“He’s basically a pyromaniac in a field of straw men”
Housing Double Dip revealed as New Sales plunge 17% m/m down 28% y/y to record low ~ Let the TBTF Games Begin!
Update at end of post
American Homeowners are Home Alone while Benny and the Feds continue to PROTECT TBTF BANKS as their ONE AND ONLY MANDATE.
New sales of single-family homes fell nearly 17% in February from a month earlier, coming in well below analysts’ estimates and at the lowest level recorded….
…February sales are down 28% from a year earlier….
And as we have been saying til we’re blue in the face, it is now NATIONWIDE:
In the Northeast in February, new homes sales cratered, falling 57% from January, according to the joint release from the Census Bureau and the Department of Housing and Urban Development.
Okay you say, how about prices? What is the delta, the RATE of change? It is ACCELERATING TO THE DOWNSIDE~lowest price since December 2003~
…The median sales price of new homes sold last month was $202,100, down nearly 14% from January, representing the largest monthly decline yet….
Tiny Tim and Bankster Ben have been in full save the banks, ‘extend and pretend’ on housing mode for THREE YEARS.
And where has that gotten the REAL ECONOMY~ The Main St economy? Absolutely nowhere.
Where has that gotten the TBTF? They will still fail if they take the losses they NEED to take, but they have lots of nice bonuses and dividends (Except for BofA which is the redhaired stepchild and is allowed to wither on the vine sans dividends) and Jamie Dimon was even able to produce a $20Billion line of credit for ATT to become Ma Bell, again.
The economy on Main St will NOT RECOVER until housing is addressed in a MEANINGFUL way that allows consumers to correct their balance sheets.
You know, the way the TBTF are allowed to. The way CRE is allowed to. The way every Wall St firm is allowed to, by RESTRUCTURING THE DEBT. HOLC or real mods, pick your poison.
Or we can keep IGNORING the real problem and let the banks who MADE THE STUPID LOANS be the ONLY ONES who get off with NO LOSSES TAKEN while the US consumer continues to struggle for years under the housing morass as Ben prints to infinity and beyond like a deranged Buzz Lightyear.
Update: Oh lookee here!! Chris Whalen says FAN FRED are hiding ANOTHER 100B in losses on their books! But TPTB and TBTF are claiming writing down homeowners principal will cost taxpayers? Bullshit. And don;t EVEN talk to me about moral hazard after the shxt the Fed is doing for the banks.
…Both investors and Congress need a lot more details about the purchases of defaulted loans by Fannie and Freddie. We need to know exactly how many dud loans have migrated back to the GSEs, what their loan loss reserve is, how much of that loan loss reserve is “covered” by the MIs and how much “capital” the MIs have against these exposures. The GSE are letting dead loans sit on their books in part to avoid recognizing the losses, an event that would drive many of the MIs into bankruptcy. If you look at how slow the process of final loss recognition by Fannie and Freddie is proceeding, then you’ll understand why the publicly disclosed loss rates reported by Fannie and Freddie have been falling.
Instead of demanding insurance payments, the GSEs are doing everything in their power to keep the MIs looking like going concerns so that they can count the MI “receivable” as a good asset. This is why the GSEs direct LTV based LLPAs to the MIs, to keep some cash flowing their way, and…
If there was a proper mark-to-market on the MIs (like all proper insurance/reinsurance businesses do), then the MIs would be massively insolvent. The GSEs would have to take another huge amount of capital from Treasury. Geithner and the GSEs are trying to avoid it, and to date are getting away with it….
In other BAD housing news, Tom Miller the Lead AG on the servicer fraud investigation has caved. From ‘criminal charges’ to nothing to see here, move along, move along. Maybe this is a move to get himself appointed to head the Consumer Protection Panel, the place where Elizabeth Warren went to grow moss.
TBTF win again, middle class loses, thus the economy loses long run.
Naked Capitalism has the Miller scoop:
I’m not exactly surprised at the bait and switch by Iowa’s Attorney General Tom Miller, who is leading the 50 state investigation by state attorney generals into mortgage abuses. Less than a month ago promised that he would “put people in jail” Now he’s apparently decided to adopt a “move along, nothing to see here” posture. Per Bloomberg (hat tip reader Duncan B, who also sent a copy of a stinging e-mail to his state AG):
The five largest loan servicers, including Bank of America Corp. and JPMorgan Chase & Co., may be the first to settle with the 50 state attorneys general probing foreclosure practices, Iowa Attorney General Tom Miller said…..The group isn’t pursuing a criminal investigation, Miller said. “Our focus is to reform the servicing process and that’s inherently civil, not criminal,” he said….
Housing: State AGs testify before Senate Banking Cmte on foreclosure fraud 2:30pm ET; securitization lobby strikes back at TARP COP report on failures
Update 7: Video added of Levitan explaining the losses must be taken, still, and the US taxpayer isnt taking them this time, no more bailouts, thus the TBTF need to eat the shxt they created. and added video of NACA calling out Lowman of Chase. Clips courtesy of CSPAN and FDL TV
Update 6: Perfect end to this, Diana Olick, via ZeroHedge, reports the AGs are gonna kill the investigation and cut a WEAK deal to have some pitiful fund for possible restitution to ‘wronged’ homeowners, and an attempt to end the two track system wherein banks keep foreclosure proceedings open, timeline evolving, while evaluating homeowners for mods. Like I said, WEAK. We need HOLC but we arent gonna get it. Lack of leadership.
My totally unprofessional advice: if you were reamed by servicers with fees and gouged with atty fees or forced placed insurance, or foreclosed on while in HAMP trial modification, or HAMP application process, then contact your STATE AG NOW. File a complaint with your state AG NOW.
Update 5: WSJ reports on modifications being the tool of choice for the AG settlement options and the legislators.
Update 4: Hmmm. CFO of Fannie resigns.
Update 3: Well it’s an oligarchy folks and the TBTF are in control. WASS. I disagree with David Dayen of FDL on practically everything, but he has been doing an excellent job following the foreclosure and housing crisis and the impact on the economy at large and we concur on this issue. He live blogged the hearing today here.
…Dodd says he held a summit on how to handle foreclosures with servicers in 2007. Servicers agreed to modifications, added resources to deal with the scale of delinquencies. Despite agreeing to that, the servicers simply failed to do any of this.
Dodd mentions people losing their homes without having mortgages. Banks were “too quick” to call robo-signing scandal a technical problem, seem emblematic of much deeper problems with servicing practices “putting homeowners at risk.” The current servicer business model “is broken” and not equipped to deal with the current crisis. Mentions financial disincentives to modification among servicers. Could be “extensive problems” throughout the servicing process. Quotes Sarah Bloom Raskin on all the servicer fraud. “Service-driven defaults,” mentions “forced-place insurance” scandal, failure to record transfer, failure to administer HAMP, failure to meet requirements of foreclosure process, and failure to manage trusts under pooling and servicing agreements.
Mentions COP report and systemic risk.
Dodd says he created Financial Stability Oversight Council to deal with exactly this issue. That’s a big deal; the FSOC doesn’t think this is a systemic risk.
Dodd says we need more robust loan modifications with real principal forgiveness, but should expedite foreclosures where the homes are vacant. Must put an end to this housing crisis….(go read the whole live blog!)
Chase claimed they never wrongfully foreclosed, at which point Bruce Marks of NACA jumped up with around 20 supporters and he yelled Perjury! and called the Chase Suit a liar, which the Chase suit clearly is. NACA has been unable to get JPMChase to throw any modification action their way so Marks is pixxed. BofA and others get a ‘pass’ from Marks and NACA because they play ball. If you want help from NACA you sign an agreement to go ‘protest; several times a year at their request.
Consumers are so screwed. Nary a peep from the much vaunted Consumer Protection Team led by the suddenly mute Elizabeth Warren.
The economy will not recover until the American consumer can deleverage and the TBTF MUST take a hit on the books a big hit to do that. It is the simple truth, let;s see how long they can pump $ to try to make the TBTF whole, they do not get it. UE will continue and more homeowners will default.
If the incentives which securitization skewed are not realigned and I would say restored, then there is NO PROFIT MOTIVE for the TBTF Servicers to make meaningful mods the way banks did time immemorial pre MSB bullshxt.
Bank of America is responding to the securitization fiasco by proclaiming they are in HAND TO HAND COMBAT with bondholders on putbacks of Countrywide loans that failed to comply with the PSAs. Fabulous.
To fix what the TBTF geniuses did by overleveraging the world on bad MBS loans they, the TBTF must take a hit, the GLOBAL taxpayers of the industrialized world have ALREADY taken HUGE hits, time to share the pain big boyz, write down losses on HELOCS, release the dead equity off the loans, let ALL refi to 3%
Give all GIs a home loan! There are answers but since they all involve the TBTF taking huge hits and decimating their bonus pools geithner and co cannot see them as options. Frakkers.
Update 2: The complete PDF of the Congressional Oversight Panel report on the mortgage securitization/foreclosure fraud fiasco.
Update: CSPAN now has the hearing listed as 3:15pm ET. Will be carried here
The Senate Banking Committee will hear testimony from the State AGS investigating what IS SYSTEMIC FORECLOSURE FRAUD AND A FAILURE OF THE SERVICING AND SECURITIZATION PROCESS today. Bankstas will be there to whine as well.
Tuesday, November 16, 2010
02:30 PM – 05:00 PM
538 Dirksen Senate Office Building
The witnesses will be: The Honorable Tom Miller, Attorney General, State of Iowa; Ms. Barbara J. Desoer, President, Bank of America Home Loans; Mr. David Lowman, CEO, Chase Home Lending; Mr. Adam J. Levitin, Associate Professor of Law, Georgetown University Law Center; and Ms. Diane Thompson, Counsel, National Consumer Law Center. Additional witnesses may be announced at a later date.
TBTF are still fraudulently foreclosing on Americans. Regardless of your feelings on this issue you should recognize the extreme danger to property rights and rule of law if the securitization fiasco via MERS is allowed to continue to bypass state courts. No one’s property will be safe if TBTF can manufacture documentation and take your property without due process. PEOPLE WITHOUT LOANS ARE LOSING HOMES ALREADY. HOLC FTW. Sept 28 2008 HRC in WSJ on HOLC here.
The Senate Banking Committee will hear testimony Tuesday from both sides of recent foreclosure problems at the major banks.
…Senate Banking Committee will hear testimony on the issue from Bank of America Home Loans President Barbara Desoer and JPMorgan Chase Home Lending CEO David Lowman. Speaking first will be Iowa AG Tom Miller, who is heading up the 50-state investigation.
Diane Thompson, counsel for the National Consumer Law Center, and Adam Levitin, an associate professor of law at Georgetown University will also testify.
Those listening in can expect Desoer and Lowman to elaborate on the amount of volume the banks are facing, and the others to demand action to sure up servicing operations…..
Oh cry me a fxckin river. The poor poor TooBigToFail shxtheads that took down the global economy are whining b/c they don’t have enough staff to foreclose?
I CALL BULLSHIT! They DELIBERATELY left peeps in homes to AVOID TOO MUCH INVENTORY DRAGGING DOWN PRICES.
They DELIBERATELY used HAMP as an EXTEND AND PRETEND vehicle to DRAIN FAMILY’S LAST RESOURCES only to turn around and deny the mod when the family had nothing left.
FXCK the TBTF. And Fxck the banksta backed Obamaites like Geithner who are selling Americans PROPERTY RIGHTS and RIGHTS TO DUE PROCESS down the river to avoid WRITING DOWN BAD PAPER, AND HELOCS.
The TBTF MADE THE LOANS, the TBTF DESIGNED THE ENTIRE SECURITIZATION PROCESS.
We, taxpayers, made them whole. They have failed to do jack shxt to help families.
Obama is an utter failure. Hillary would have done HOLC, This would be BEHIND US. We would be RECOVERING.
As we have said for THREE YEARS, there will be NO ECONOMIC RECOVERY if HOUSING is not addressed. DO THE DAMNED HOLC.
..”I’m concerned about Treasury making representations categorically that you don’t see a systemic risk,” Silvers told Treasury’s chief homeownership officer. “And let me walk you through exactly why.”
“That letter asks for $47 billion of mortgages — of mortgage- backed securities to be repurchased at par,” Silvers went on. “Do you know what those mortgages are currently carried at … the market value of those bonds today?”
Caldwell declined to comment.
“OK, fine. Let me tell you what the Fed says they’re worth. The Fed tells us they’re worth 50 cents on the dollar. So if the Fed’s request to Bank of America is honored, right, Bank of America, assuming they are carrying these bonds, assuming when they buy them back they mark them to market, Bank of America will take a $23 billion loss.
“The Federal Reserve further informs us that there is nothing particularly unique about that particular set of mortgage-backed securities — meaning they have not been chosen…because they’re particularly bad. They believe they are of a common quality with the rest of Bank of America’s underwritten mortgage-backed securities. There are $2 trillion [worth] of Bank of America’s underwritten mortgage-backed securities.
“Five such deals — five such requests, if honored to Bank of America…will amount to more than the current market capitalization of Bank of America, which is $115 billion.
“Now do you wish to retract your statement that there is no systemic risk in this situation? And the word is ‘risk’ — not ‘certainty’ — but ‘risk’? And I would urge you to do so, because these things can be embarrassing later.”…
From the report issued today:
…”Clear and uncontested property rights are the foundation of the housing market,” the report said. “If these rights fall into question, that foundation could collapse. Borrowers may be unable to determine whether they are sending their monthly payments to the right people. Judges may block any effort to foreclose, even in cases where borrowers have failed to make regular payments.”…
Better do HOLC now Bankstas NO MORE TAXPAYER BAILOUT $ FOR YOU!!!! FHA will take until 2014 to get to 2% MANDATED reserves!! Good Grief!! And ‘experts’ agree, HOUSING IS GOING DOWN AGAIN.
SIFMA the IDIOTS who designed the securitization process and who lobby for it madly have a typical it’s all lies! everything is fine! response courtesy the NYT acting as mouthpiece for Obama positions as always via Naked Capitalism:
It doesn’t matter when mortgage assignments and endorsements are recorded because the existence of the pooling and service agreement and purchase sale agreement is proof in itself that the loan was conveyed, said Stephen Ornstein, a partner in the Washington office of SNR Denton, a law firm that represents loan servicers and lenders.
“If the assignment is missing, you can create it by having the old assignee reassign it to you,” Ornstein said.
I’ve heard this argument before, and none of the five experts who advise New York state on trust matters (and virtually all mortgage securitizations use New York trusts) accept that point of view. New York trusts can accept assets only as stipulated in their governing agreement. The pooling and servicing agreement made very specific provisions as to how the notes (the borrower IOUs) were to be endorsed and further required that the process be completed by specific dates, typically no later than 90 days after the trust was closed, with only very limited exceptions. And the trustee, on behalf of the trust, was required to provide multiple certifications that all these steps had been taken.
Let’s put it another way: the industry position is that the underlying contract, the pooling and servicing agreement, can just be ignored if the industry screws up on a grand enough scale. Would any servicer tolerate this argument if someone, say Treasury, tried to cut their fees? Funny how the “sanctity of contract” argument is nowhere to be found when adherence to contracts might crimp industry profits….
The soopergeniuses in D.C. and on Wall St have tried everything EXCEPT meaningful mods, helping homeowners, principal writedowns-HOLC. Nothing is working. DO THE DAMNED HOLC ALREADY.
Video: Chris Whalen – more on MBS FraudGate, Pension Fund suits, Securities Law and the markets need to restructure these TBTF banks
The risks are high, and Mr Market is asleep, methinks that Uncle Sam has given the TBTF the all clear, leaving taxpayers holding the bag, again.
Courtesy of Market-Ticker:
“This is cancer – this isn’t a sudden crisis that is going to erupt out of the ground.”
“We’re going to wait until well-into this, and then we’re going to do the right thing – which is restructuring.”
“MBS…. are calling their lawyers. Trustees may or may not have the note.“
“There are a lot of investors out there who don’t know what they own… they may own unsecured loans….. trustees that were supposed to do things under state law (and didn’t)… even Fannie and Freddie have issues with this.”
“…. this is not minutia; this is the letter of the law.“
“The dealer has to deliver to the trustee the notes (under NY State Law)”
This Congress is killing the middle class.
…Whitney also said financial regulation reform and policy-making that is not friendly to the middle class will hurt growth.
“The populist incumbents argue that we’ve got to get money to redistribute wealth,” she said. “This squeezes the middle class further down the food chain. The unintended consequences of this are maddening.”..
Meanwhile back in DC our HUD secretary is either deluded or spinning like a top:
…”There is no question that today’s housing market is in significantly better shape than anyone predicted 18 months ago,” he told reporters, adding, “Seventeen months after President Obama took office our housing market is stabilizing.”
To support the claim, the HUD chief released a scorecard on the housing market that showed after 30 straight months of decline, home prices have leveled off and are expected to begin adjusting upward.
It also showed that since April 2009, 2.8 million homeowners have received restructured mortgages through Obama’s loan modification programs, and more than 2.5 million families used the First-Time Homebuyer Tax Credit to purchase a home. The credit was a part of the first stimulus bill Obama signed into law shortly after taking office….
BWAAAAHAA!!! ROTFLMAO!!!!! HAMP and the Tax Credit worked he says!! BWAAAAHAAFRAKKINHAAAA!~!!! ZOMG! Ahh man they really slay me.