Wages remain stagnant but housing prices, propelled by speculating investors, are shooting upward. How will the housing market avoid crashing after all the investors get tired of holding on to their properties? Well, this is where we start to look at 2007 again…
The 2003 film “House of Sand and Fog” depicts a tragic string of events that follows a woman who loses her house after ignoring eviction notices mistakenly sent to her for nonpayment of county taxes. A recovering drug addict recently abandoned by her husband, she’s overwhelmed by the deluge of bureaucratic housekeeping demanded by contemporary American society.
I think of that beleaguered woman’s character whenever I receive yet another notice from my credit card company that they are changing their terms and conditions, when an airline urges me to join their frequent flyer program, when a client informs me that they never received the email I’m sure I sent out, but now I can’t find in my sent messages. So much crap, so many petty details, why bother to get up in the morning?
Never is this deluge more front and center than during the immediate aftermath of the latest mass hacking, typically, allegedly, by online gangs in the former Soviet Union. During the Cold War, they said they would bury us. Now they are — in security-focused inanity.
In the latest fiasco that has to make one question if we are really better off now than we were in the old days of passbook savings, they’re saying that as many as 76 million households may have had their account information compromised by an incursion into computers at the banking conglomerate JPMorgan Chase. “The intrusion compromised the names, addresses, phone numbers and emails of those households, and can basically affect anyone — customers past and present — who logged onto any of Chase and JPMorgan’s websites or apps,” reports The New York Times. “That might include those who get access to their checking and other bank accounts online or someone who checks their credit card points over the web. Seven million small businesses also were affected.”
Understand this: we are supposed to be very very scared. And we’re supposed to be scared for a reason: they want us to act. They – the banks and corporations – want us to spend an awful lot of time and energy protecting their money.
Bear in mind, when someone steals your credit card data and makes unauthorized purchases or withdrawals, you’re not responsible. In short, it’s not your problem. But the media is colluding with the megabanks in order to make us care about something that we really shouldn’t.
Consider, for example, this advice to us banking customers in the Times article: “Those who want to add a layer of security to their financial life should consider a ‘security freeze,’ one of the strongest tools against theft because it prevents someone from trying to open a new account in a consumer’s name. When you freeze your reports, the big three credit bureaus will not release your credit reports to any company that does not already have a relationship with you. Financial providers and other companies typically request such reports before issuing a new account.”
Considering that this is something that the powers that be want us to do, they’re not making it easy.
The paper continues: “Consumers need to approach each of the three credit bureaus — Equifax, Experian and TransUnion — and may need to pay a small fee, depending on where they live. The process can be a hassle because the freeze has to be ‘thawed,’ or lifted, to apply for a new credit card, for instance, or for a mortgage. (And consumers may need to keep PINs and other information handy to do that).”
So let me get this straight. Credit agencies that earn billions of dollars selling our information, much of it erroneous, want to charge us for our own data, so we can protect the big banks that we bailed out in 2009 at taxpayer expense and even now refuse to refinance mortgages or lend to small businesses, a major reason that the economy is still terrible, and waste God knows how many hours online or on the phone dealing with this boring crap.
Well, hear this, Russian hackers and American banksters: I’m a busy person. I have a lot to do. Like most Americans, I work three jobs. If I ever find myself with any spare time, it’s going to be on the beach and is going to involve margaritas and good books.
I am not going to change my passwords every time I read one of these scare stories. I refuse to pick new unique passwords for each of my dozens of accounts. I will not freak out on behalf of people who don’t give a damn about me or anyone I care about. And it will be a cold day in hell before I put a credit freeze on my own account, and pay for the privilege.
(Ted Rall, syndicated writer and cartoonist, is the author of the new critically-acclaimed book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan.” Subscribe to Ted Rall at Beacon.)
COPYRIGHT 2014 TED RALL, DISTRIBUTED BY CREATORS.COM
What if there were radical liberals pushing a left-wing agenda, and willing to do whatever it takes to get it enacted? The current “double-barreled showdown” over the federal budget and raising the debt limit is a reminder that American politics is a contest between the right and the further right.
Why Aren’t Rioters Burning Down the Banks?
One in ten Americans take such antidepressants as Prozac and Paxil. Among those in their 40s and 50s, it’s 23%. Maybe that’s why we’re so passive.
Like the blissed-out soma-sucking drones of Huxley’s “Brave New World,” we must be too drugged to feel, much less express, rage. How else to explain that furious mobs haven’t burned the banks to the ground?
Last week, as the media ginned up empty speculation about Hillary Clinton’s presidential prospects, and wallowed in nuclear cognitive dissonance — Iran, which doesn’t have nukes and says it doesn’t want them, is repeatedly called a grave threat worth going to war over, while North Korea, which does have them and won’t stop threatening to turn the West Coast of the U.S. into a “sea of fire,” is dismissed as empty bluster, nothing to worry about — the Office of the Comptroller of the Currency and the Federal Reserve released the details of the settlement between the Obama Administration and the big banks over the illegal foreclosure scandal.
Citibank, JPMorgan Chase, Bank of America, Wells Fargo and other major home mortgage lenders foreclosed upon and evicted millions of homeowners between the start of the housing collapse in 2007 and 2011. Millions of families became homeless, including 2.3 million children. The vast majority of these Americans are still struggling; many fell into poverty from which they will never escape.
Disgusting, amazing, yet true: the banks had no legal right to evict these people. In many cases, the banks didn’t have basic paperwork, like the original deed to the house. They resorted to “robo-signing” boiler room operations to churn out falsified and forged eviction papers. In others cases, people could have kept their homes if they’d been allowed to refinance — their right under federal law — but the banks illegally refused, giving them the runaround, repeatedly asking for the same paperwork they’d already sent in. Soldiers fighting in Afghanistan and Iraq, protected from foreclosure under U.S. law, came home to find their homes resold at auction. In other cases, banks even repossessed homes where the homeowner had never missed a mortgage payment.
The foreclosure scandal helped spark the Occupy Wall Street movement.
Promising justice and compensation for the victims, President Obama’s Justice Department joined lawsuits filed by the attorneys general of several states.
Last year, Obama announced that the government had concluded a “landmark settlement” with the banks that would “deliver some measure of justice for those families that have been victims of their abusive practices.” The Politico newspaper called the $26 billion deal “a big win for the White House.” $26 billion. Sounds impressive, right?
So…the envelope, please.
How much will the banks have to pay? What will people whose homes were stolen — there is no other word — receive? Now we know the details.
Remember what we’re talking about. Your house is your biggest asset. You own tens of thousands, in some cases hundreds of thousands of dollars in equity. One morning the sheriff comes. He throws you and your family out on the street. Your possessions are dumped on the lawn. You have nowhere to go. Your kids are crying. If you were struggling before, now you’re completely screwed. And the bank that did it had no legal basis whatsoever to do what they did.
They took your house, sold it, and pocketed the profits.
What would happen to you if you walked into Tiffany’s and stole a $200,000 necklace?
- Even though they qualified for federal loan modifications, the banks seized 1.1 million homes, making 1.1 million families homeless after they were approved for refinancing. Since the average foreclosed home was worth $191,000, the banks stole $210 billion in homes. Under the “landmark settlement,” these wrongfully evicted Americans will receive $300 or $500 each, the value of a modest night out at a nice restaurant in Manhattan (two tenths of one percent of their loss).
- 900,000 borrowers who were entitled under Obama’s Make Home Affordable program to refinancing were denied help and lost their homes. They get $300 or $600.
- 420,000 homeowners who lost their homes while the banks intentionally dithered and “lost” their paperwork get $400 or $800.
- 28,000 families who were entitled to protection against foreclosure under federal bankruptcy law, but got thrown out of their homes anyway, get $3,750 to $62,500.
- 1,100 soldiers entitled to protection against foreclosure because of their military status get $125,000.
- 53 families who weren’t late on their mortgages, never missed a payment, but got thrown out anyway, get $125,000.
So we’ve got more than 2.4 million families — that’s 5 million people — whose homes got bogarted by scumbag banksters. They’re getting a thousand bucks each on average. A thousand bucks for a two hundred thousand dollar theft! Not to mention the heartbreak and stress they suffered.
Why aren’t those five million people stringing up bank execs from telephone poles? It’s gotta be the Paxil.
But what really gets me is the 53 families who are getting $125,000 payouts for losing homes they were 100% up to date on.
Even if you’re a heartless right-winger, you’ve got to have a problem with a bank taking your house when you never missed a payment. Sorry, but these are multinational, multibillion dollar banks. They should pay these families tens of millions of dollars each.
Those 53 families should own Citibank, JPMorgan Chase, Bank of America and Wells Fargo.
Citigroup CEO Vikram Pandit received $260 million in pay between 2007 and 2012, the height of the foreclosure scandal.
In 2011 alone, JPMorgan Chase CEO Jamie Dimon was given $23 million. In 2012, the company’s board of directors “punished” him for a $6 billion loss in derivatives trading by paying him “merely” $18.7 million.
In 2012 alone, Bank of America paid CEO Brian Moynihan $12 million; Wells Fargo paid $23 million to CEO John Stumpf.
Not bad for some of the worst criminals in history.
That’s how things work in the United States: the criminals get the big payouts. The people whose lives they destroy get $300.
(Ted Rall’s website is tedrall.com. His book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan” will be released in November by Farrar, Straus & Giroux.)
COPYRIGHT 2013 TED RALL
Why Is Obama Running on His Record?
“It’s not clear what [President Obama] is passionate to do if he is elected for another four years,” writes David Brooks, conservative columnist for The New York Times. “The Democratic convention is his best chance to offer an elevator speech, to define America’s most pressing challenge and how he plans to address it.”
Addressing the DNC Wednesday night, Bill Clinton came as close as any Democrat has this year to answering Brooks: “In Tampa, the Republican argument against the president’s reelection was pretty simple: We left him a total mess, he hasn’t finished cleaning it up yet, so fire him and put us back in. I like the argument for President Obama’s reelection a lot better.”
Nicely done—though this argument only works for voters stuck in the two-party trap. But the biggest piece is still MIA: Obama’s domestic and foreign policy agenda for a second term.
Two principal arguments are being advanced in favor of Obama’s reelection: first, that he “took out” Osama bin Laden; second, that we are “absolutely” better off economically than we were four years ago. These arguments, if they continue to be the Democrats’ main talking points, will lead Obama to defeat this fall.
U.S. history shows that the candidate who presents the most optimistic vision of the future usually prevails. The future he sells doesn’t have to be specific (Romney’s 12 million new jobs, say). Ronald Reagan, who projected vague aw-shucks optimism reflected by a 100%-pabulum campaign slogan, “It’s Morning in America,” defeated Jimmy “Malaise” Carter and Walter “Let’s Tell the Truth About Taxes” Mondale. (Never mind that Carter and Mondale were more honest, smarter and nicer.)
Obama followed the Reagan model in 2008: hope, change, charming smile, not a lot of specifics. And it worked. (It didn’t hurt to run against McCain, the consummate “get off my lawn, you damn kids” grouch.) So why is Obama trading in a proven winner? Why is he running on his first-term record?
Obama’s entourage has obviously talked themselves into believing that the president’s record is better than it really is—certainly better than average voters think it is. Grade inflation is inevitable when you evaluate yourself. (In 2009, at the same time the Fed was greasing the banksters with $7.77 trillion of our money—without a dime devoted to a new WPA-style jobs program—he gave himself a B+.)
First, the extrajudicial assassination of bin Laden, an act of vengeance against a man in hiding who had been officially designated to pose no threat since at least 2006, makes some people queasy. Sure, many voters are happy—but getting even for crimes committed more than a decade ago still doesn’t spell out an optimistic vision for the future.
Similarly, and perhaps more potently since jobs are the most important issue to Americans, claiming that we are better off than we were four years ago, either personally, or nationally, is a dangerous argument for this president to make. Four years ago marks the beginning of a financial crisis that continues today. GDP remains a low 1.7%. Credit remains so tight that it’s still strangling spending.
Four million families lost their homes to foreclosure, millions more were evicted due to nonpayment of rent, and a net 8 million lost their jobs under Obama. Structural unemployment is rising. New jobs are few and pay little.
Most Americans—by a nearly two-to-one margin—feel worse off now than they did four years ago. Coupled with the media’s ludicrous claim that the recovery began in mid-2009, Obama’s “who are you going to believe, me or your lying eyes” (or pocketbook) sales pitch is so insulting and reminiscent of George H.W. Bush’s tone-deaf attitude during the 1992 recession that it can only prove counterproductive.
The historical lesson for Obama is 1936. Franklin Roosevelt is the only president in recent history to have won reelection with unemployment over 8%, as it is currently (it was 17%). Why? FDR’s New Deal showed he was trying hard. And things were moving in the right direction (unemployment was 22% when he took office). Fairly or not, Obama can’t beat Romney pointing to improvement statistics don’t show and people don’t feel.
Obama must articulate a new vision, relaunching and rebranding himself into something completely different—in other words, running as though the last three four years had never happened. Like this was his first term.
New image. New ideas. New policies. New campaign slogan.
Not only does Obama need to float big new ideas, he needs to convince voters that he can get them through a GOP Congress. Not an easy task—but there’s no other way.
It isn’t enough to simply say that Romney will make things worse. Lesser-evil arguments are secondary at best. As things stand now, with people angry and disappointed at government inaction on the economy, Romney’s “Believe in America” meme—though stupid—is more potent than Obama’s reliance on fear of a Ryan budget.
(Ted Rall’s new book is “The Book of Obama: How We Went From Hope and Change to the Age of Revolt.” His website is tedrall.com. This column originally appeared at NBCNews.com’s Lean Forward blog.)
COPYRIGHT 2012 TED RALL
Obama tried to finesse his response to the housing crash, rejecting a bailout of homeowners facing foreclosure in favor of a limited aid program and a bet that a recovering economy would take care of the rest. Millions of people lost their homes and the recovery never materialized. The economy is now the primary threat to Mr. Obamaâs bid for a second term, and economists and political allies say the Obama’s non-response to the housing crisis was the administrationâs most significant mistake.