Tag Archives: TARP

SYNDICATED COLUMN: Another Obama Sellout

Mortgage Settlement a Sad Joke

Joe Nocera, the columnist currently challenging Tom Friedman for the title of Hackiest Militant Centrist Hack—it’s a tough job that just about everyone on The New York Times op-ed page has to do—loves the robo-signing settlement announced last week between the Obama Administration, 49 states and the five biggest mortgage banks. “Two cheers!” shouts Nocera.

Too busy to follow the news? Read Nocera. If he likes something, it’s probably stupid, evil, or both.

As penance for their sins—securitizing fraudulent mortgages, using forged deeds to foreclose on millions of Americans and oh, yeah, borking the entire world economy—Ally Financial, Bank of America, Citibank, JPMorgan Chase and Wells Fargo have agreed to fork over $5 billion in cash. Under the terms of the new agreement they’re supposed to reduce the principal of loans to homeowners who are “underwater” on their mortgages—i.e. they owe more than their house is worth—by $17 billion.

Some homeowners will qualify for $3 billion in interest refinancing, something the banks have resisted since the ongoing depression began in late 2008.

What about those who got kicked out of their homes illegally? They split a pool of $1.5 billion.

Sounds impressive. It’s not. Mark Zuckerberg is worth $45 billion.

“That probably nets out to less than $2,000 a person,” notes The Times. “There’s no doubt that the banks are happy with this deal. You would be, too, if your bill for lying to courts and end-running the law came to less than $2,000 per loan file.”

Readers will recall that I paid more than that for a speeding ticket. 68 in a 55.

This is the latest sellout by a corrupt system that would rather line the pockets of felonious bankers than put them where they belong: prison.

Remember TARP, the initial bailout? Democrats and Republicans, George W. Bush and Barack Obama agreed to dole out $700 billion in public—plus $7.7 trillion funneled secretly through the Fed—to the big banks so they could “increase their lending in order to loosen credit markets,” in the words of Senator Olympia Snowe, a Maine Republican.

Never happened.

Three years after TARP “tight home loan credit is affecting everything from home sales to household finances,” USA Today reported. “Many borrowers are struggling to qualify for loans to buy homes…Those who can get loans need higher credit scores and bigger down payments than they would have in recent years. They face more demands to prove their incomes, verify assets, show steady employment and explain things such as new credit cards and small bank account deposits. Even then, they may not qualify for the lowest interest rates.”

Financial experts aren’t surprised. TARP was a no-strings-attached deal devoid of any requirement that banks increase lending. You can hardly blame the bankers for taking advantage. They used the cash—money that might have been used to help distressed homeowners—to grow income on their overnight “float” and issue record raises to their CEOs.

Next came Obama’s “Home Affordable Modification Program” farce. Another toothless “voluntary” program, HAMP asked banks to do the same things they’ve just agreed to under the robo-signing settlement: allow homeowners who are struggling to refinance and possibly reduce their principals to reflect the collapse of housing prices in most markets.

Voluntary = worthless.

CNN reported on January 24th: “The HAMP program, which was designed to lower troubled borrowers’ mortgage rates to no more than 31% of their monthly income, ran into problems almost immediately. Many lenders lost documents, and many borrowers didn’t qualify. Three years later, it has helped a scant 910,000 homeowners—a far cry from the promised 4 million.”

Or the 15 million who needed help.

As usual, state-controlled media is too kind. Banks didn’t “lose” documents. They threw them away.

One hopes they recycled.

I wrote about my experience with HAMP: Chase Home Mortgage repeatedly asked for, received, confirmed receiving, then requested the same documents. They elevated the runaround to an art. My favorite part was how Chase wouldn’t respond to queries for a month, then request the bank statement for that month. They did this over and over. The final result: losing half my income “did not represent income loss.”

It’s simple math: in 67 percent of cases, banks make more money through foreclosure than working to keep families in their homes.

This time is different, claims the White House. “No more lost paperwork, no more excuses, no more runaround,” HUD secretary Shaun Donovan said February 9th. The new standards will “force the banks to clean up their acts.”

Don’t bet on it. The Administration promises “a robust enforcement mechanism”—i.e. an independent monitor. Such an agency, which would supervise the handling of million of distressed homeowners, won’t be able to handle the workload according to mortgage experts. Anyway, it’s not like there isn’t already a law. Law Professor Alan White of Valparaiso University notes: “Much of this [agreement] is restating obligations loan servicers already have.”

Finally, there’s the issue of fairness. “Underwater” is a scary, headline-grabbing word. But it doesn’t tell the whole story.

Tens of millions of homeowners have seen the value of their homes plummet since the housing crash. (The average home price fell from $270,000 in 2006 to $165,000 in 2011.) Those who are underwater tended not to have had much equity in their homes in the first place, having put down low downpayments. Why single them out for special assistance? Shouldn’t people who owned their homes free and clear and those who had significant equity at the beginning of crisis get as much help as those who lost less in the first place? What about renters? Why should people who were well-off enough to afford to buy a home get a payoff ahead of poor renters?

The biggest fairness issue of all, of course, is one of simple justice. If you steal someone’s house, you should go to jail. If your crimes are company policy, that company should be nationalized or forced out of business.

Your victim should get his or her house back, plus interest and penalties.

You shouldn’t pay less than a speeding ticket for stealing a house.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2012 TED RALL

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SYNDICATED COLUMN: Rise of the Obamabots

Stifling Liberal Dissent Under Obama

After they called the presidency for Obama, emails poured in. “You must be relieved now that the Democrats are taking over,” an old college buddy told me. “There will be less pressure on you.”

That would have been nice.

In the late 1990s my cartoons ran in Time, Fortune and Bloomberg Personal magazines and over 100 daily and alternative weekly newspapers. I was a staff writer for two major magazines.

Then Bush came in. And 9/11 happened.

The media gorged on an orgy of psychotic right-wing rhetoric. Flags everywhere. Torture suddenly OK. In a nation where mainstream political discourse was redefined between Dick Cheney on the right and libertarian Bill Maher on the not-as-right, there wasn’t any room in the paper for a left-of-center cartoonist. My business was savaged. Income plunged.

My editor at Time called me on September 13, 2001. “We’re discontinuing all cartoons,” she told me. I was one of four cartoonists at the newsweekly. “Humor is dead.” I snorted. They never brought back cartoons.

McCarthyism—blackballing—made a big comeback. I had been drawing a monthly comic strip, “The Testosterone Diaries,” for Men’s Health. No politics. It was about guy stuff: dating, job insecurity, prostate tests, that sort of thing. They fired me. Not because of anything I drew for them. It was because of my syndicated editorial cartoons, which attacked Bush and his policies. The publisher worried about pissing off right-wingers during a period of nationalism on steroids.

Desperate and going broke, I called an editor who’d given me lots of work at the magazines he ran during the 1990s. “Sorry, dude, I can’t help,” he replied. “You’re radioactive.”

It was tempting, when Obama’s Democrats swept into office in 2008, to think that the bad old days were coming to an end. I wasn’t looking for any favors, just a swing of the political pendulum back to the Clinton years when it was still OK to be a liberal.

This, you have no doubt correctly guessed, is the part where I tell you I was wrong.

I didn’t count on the cult of personality around Barack Obama.

In the 1990s it was OK to attack Clinton from the left. I went after the Man From Hope and his centrist, “triangulation”-obsessed Democratic Leadership Council for selling out progressive principles. Along with like-minded political cartoonists including Tom Tomorrow and Lloyd Dangle, my cartoons and columns took Clinton’s militant moderates to the woodshed for NAFTA, the WTO and welfare reform. A pal who worked in the White House informed me that the President, known for his short temper, stormed into his office and slammed a copy of that morning’s Washington Post down on the desk with my cartoon showing. “How dare your friend compare me to Bush?” he shouted. (The first Bush.)

It was better than winning a Pulitzer.

It feels a little weird to write this, like I’m telling tales out of school and ratting out the Vast Left-Wing Conspiracy. But it’s true: there’s less room for a leftie during the Age of Obama than there was under Bush.

I didn’t realize how besotted progressives were by Mr. Hopey Changey.

Obama lost me before Inauguration Day, when he announced cabinet appointments that didn’t include a single liberal.

It got worse after that: Obama extended and expanded Bush’s TARP giveaway to the banks; continued Bush’s spying on our phone calls; ignored the foreclosure crisis; refused to investigate, much less prosecute, Bush’s torturers; his healthcare plan was a sellout to Big Pharma; he kept Gitmo open; expanded the war against Afghanistan; dispatched more drone bombers; used weasel words to redefine the troops in Iraq as “non-combat”; extended the Bush tax cuts for the rich; claiming the right to assassinate U.S. citizens; most recently, there was the forced nudity torture of PFC Bradley Manning and expanding oil drilling offshore and on national lands.

I was merciless to Obama. I was cruel in my criticisms of Obama’s sellouts to the right. In my writings and drawings I tried to tell it as it was, or anyway, as I saw it. I thought—still think—that’s my job. I’m a critic, not a suck-up. The Obama Administration doesn’t need journalists or pundits to carry its water. That’s what press secretaries and PR flacks are for.

Does Obama ever do anything right? Not often, but sure. And when he does, I shut up about it. Cartoonists and columnists who promote government policy are an embarrassment.

But that’s what “liberal” media outlets want in the age of Obama.

I can’t prove it in every case. (That’s how blackballing works.) The Nation and Mother Jones and Harper’s, liberal magazines that gave me freelance work under Clinton and Bush, now ignore my queries. Even when I offered them first-person, unembedded war reporting from Afghanistan. Hey, maybe they’re too busy to answer email or voicemail. You never know.

Other censors are brazen.

There’s been a push among political cartoonists to get our work into the big editorial blogs and online magazines that seem poised to displace traditional print political magazines like The Progressive. In the past, editorial rejections had numerous causes: low budgets, lack of space, an editor who simply preferred another creator’s work over yours.

Now there’ s a new cause for refusal: Too tough on the president.

I’ve heard that from enough “liberal” websites and print publications to consider it a significant trend.

A sample of recent rejections, each from editors at different left-of-center media outlets:

• “I am familiar with and enjoy your cartoons. However the readers of our site would not be comfortable with your (admittedly on point) criticism of Obama.”

• “Don’t be such a hater on O and we could use your stuff. Can’t you focus more on the GOP?”

• “Our first African-American president deserves a chance to clean up Bush’s mess without being attacked by us.”

I have many more like that.

What’s weird is that these cultish attitudes come from editors and publishers whose politics line up neatly with mine. They oppose the bailouts. They want us out of Afghanistan and Iraq. They disapprove of Obama’s new war against Libya. They want Obama to renounce torture and Guantánamo.

Obama is the one they ought to be blackballing. He has been a terrible disappointment to the American left. He has forsaken liberals at every turn. Yet they continue to stand by him. Which means that, in effect, they are not liberals at all. They are militant Democrats. They are Obamabots.

As long as Democrats win elections, they are happy. Nevermind that their policies are the same as, or to the right of, the Republicans.

“So what should I think about [the war in Libya]?,” asks Kevin Drum in Mother Jones. “If it had been my call, I wouldn’t have gone into Libya. But the reason I voted for Obama in 2008 is because I trust his judgment. And not in any merely abstract way, either: I mean that if he and I were in a room and disagreed about some issue on which I had any doubt at all, I’d literally trust his judgment over my own. I think he’s smarter than me, better informed, better able to understand the consequences of his actions, and more farsighted.”

Mr. Drum, call your office. Someone found your brain in the break room.

Barack Obama and the Democrats have made it perfectly clear that they don’t care about the issues and concerns that I care about. Unlike Kevin Drum, I think—I know—I’m smarter than Barack Obama. I wouldn’t have made half the mistakes he has.

So I don’t care about Obama. Or the Democrats. I care about America and the world and the people who live in them.

Hey, Obamabots: when the man you support betrays your principles, he has to go—not your principles.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2011 TED RALL

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