SYNDICATED COLUMN: Lose Your House, Collect $300

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?

The details:

  • 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.

Some perspective:

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

SYNDICATED COLUMN: The Rebranding of the President, 2012

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

Help!

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. Obama’s bid for a second term, and economists and political allies say the Obama’s non-response to the housing crisis was the administration’s most significant mistake.

SYNDICATED COLUMN: Lead, or Follow and Get Out of the Race

Voters Turn Against Pols’ Follow-the-Polls Strategy

In order to be a good leader, Disraeli said, “I must follow the people.”

Aided and abetted by toe-sucking pollster Dick Morris, Bill Clinton finessed the art of leading from the rear, relying on Morris’ tracking surveys to help him decide everything from whether to bomb Serbia to when and if to take a vacation.

By definition, however, leaders point where their followers should go. Americans haven’t seen much real leadership on the federal level since Reagan. Where there’s been progress, such as on gay rights, the President only stepped forward after public opinion had shifted enough to make it safe.

For the first time in 30 years, Dick Morris’ follow-the-voters strategy appears to be running out of steam. This year, the electorate seems to be hungering for presidents in the mold of TR, FDR and LBJ—old-school leaders who painted ambitious visions of where America could go and why it should, who took political gambles that the people might not be ready for what they had in mind, who anticipated crises and challenges before anyone else, and explained why we had to act sooner rather than later.

The craving for leadership is evident in the polls. Though personally popular and enjoying the advantages of incumbency, President Obama is running neck and neck against Mitt Romney, an awkward candidate from a minority religion who has trouble connecting with, and is seen as out of touch by, ordinary voters.

Democrats must be worried. Historically, Republican presidential nominees typically gain on Democrats throughout the fall. At this point in the game, Democrats need a substantial lead in order to emerge victorious in November.

What’s going wrong? Mainly, it’s the economy. It sucks. Still. Democrats say the President inherited the meltdown from Bush. But Americans blame Obama.

“The nation’s painfully slow pace of growth is now the primary threat to Mr. Obama’s bid for a second term, and some economists and political allies say the cautious response to the housing crisis was the administration’s most significant mistake,” reports The New York Times. Obama’s big screw-up: “He tried to finesse the cleanup of the housing crash, rejecting unpopular proposals for a broad 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.”

Recovery? What recovery?

The depressed housing market, coupled with the reduced purchasing power of tens of millions of Americans who lost their homes to eviction and/or foreclosure, makes recovery unlikely to impossible for the foreseeable future.

Many people, including yours truly, warned that the millions of Americans who were evicted under foreclosure, many of them illegally, were more “too big to fail” than Citigroup. Some, like former Congressman Jim Marshall (D-GA), voted for TARP, but urged the Obama Administration to condition the bailout on forcing the banks to refinance mortgages and write down principal to reflect the new reality of lower housing prices. “There was another way to deal with this, and that is what I supported: forcing the banks to deal with this. It would have been better for the economy and lots of different neighborhoods and people owning houses in those neighborhoods,” Marshall says.

Voters aren’t mad at Obama for not being clairvoyant. They’re pissed off because he ignored people who were smart and prescient in favor of those who were clueless and self-interested, like Tim Geitner. He may be about to pay a price for that terrible decision.

Tens of millions of Americans already have.

Speaking of leadership—the art of seeing what comes next and doing something about it—what looming problems are the political class ignoring today?

It’s too late to stop the 2008-to-2012 economic meltdown. But it’s still possible for Obama (or, theoretically, Romney) to get ahead of the economy—permanent unemployment benefits, anybody?—and other pressing issues.

Australia, for example, is taking the climate change crisis seriously.

Americans want leaders who point the way forward, to anticipate monsters we can’t yet imagine. For example, there is a huge looming crisis: pensions. In 10 to 15 years, Generation Xers will hit traditional retirement age. How will they eat?

Close to none have traditional defined-benefit pension plans. Gen Xers, who earn far less than the Baby Boomers at the same age, have been shunted into 401(k)s, which turned out to be a total ripoff: the average rate of return between 1999 and 2010 was 0.3 percent.

Total.

And much of that was withdrawn—under penalty—to subsist after layoffs.

“[Gen Xers] have no savings, and what they had was devastated by two market crashes,” said Andrew Eschtruth of the Center for Retirement Research. “They never got off the ground.”

If you’re 45 years old now and just beginning to save for retirement, financial planners say you should save 41 percent of your income annually (if you haven’t gotten laid off again). As if. Half of Gen Xers live hand to mouth; the rest save a piddling six percent a year.

The Gen X retirement crisis represents 46 million people waiting for a savior—and 46 million potential votes.

Attention Mssrs. Obama, Romney and anyone else presenting yourself as a would-be leader: Don’t just read the polls. Don’t follow us. Show that you care about, and have a credible plan to confront, the problems of the future. If you do that—and we’re not holding our breaths—we’ll pay attention to you.

(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

Sacramento Bee Cartoon: Wild Kingdom Revisited

I did this cartoon for The Sacramento Bee. The California state legislature enacted a series of bills aimed at protecting homeowners from banks and mortgage lenders. Banks are arguing it will only help a small number of homeowners, and hurt the rest by drying up credit, etc. Of course, all of us are touched by how much the banking industry cares for the plight of people trying to hold onto their homes.

Some Republicans that this is a bailout for mortgage holders who took reckless risks in buying homes they couldn’t afford. No doubt, some of those folks (and maybe some speculators) will benefit from the protections in this package. But where were Republicans in opposing the huge bailout of Wall Street? Hypocrisy on parade, as usual.

SYNDICATED COLUMN: Occupy Wall Street – What Comes Next?

Things Have Changed. Time to Adapt.

The Occupy National Gathering, held July 1-4 in Philadelphia, perfectly captures the current state of Occupy Wall Street.

First, the cops pushed the Occupiers around, refusing them space in Independence Park. They wound up in Franklin Square. (Just like old times. In September 2011 Occupiers found Wall Street blocked off by the NYPD. Zuccotti was ad hoc option two.)

Second, the Philly confab was wimpy and watered-down. When one of your honored guests is Daryl Hall of the 1980s duo “Hall & Oates,” militancy is probably off the menu.

Third, the Occupiers weren’t really Occupiers (though many no doubt didn’t know that they’d been coopted by Democratic Party operatives). ONG was yet the latest attempt by front groups set up by MoveOn.org in order to channel the energies of the OWS movement into the Obama reelection campaign.

“What’s going on with Occupy?” people ask me. “We don’t hear anything about them anymore.” By which they mean, they haven’t seen or read anything about OWS in the corporate media. They also probably haven’t “heard” about the enormous street protests in Montreal, which routinely draw 400,000 to 500,000 people, or about Bill 78, a law passed by Quebec’s parliament that suspends the rights of free speech and assembly, which has transformed the province into a police state, or that the real unemployment rate—the way it was calculated before 1980—is 23 percent.)

When your media is this far gone, you don’t “hear” much.

Some say Occupy is dead. Others disagree. “Occupy Will Be Back,” liberal writer Chris Hedges wrote recently.” It is not certain we will win. But it is certain this is not over.” (I don’t know who this “we” is. As far as I’ve heard, the squishy former New York Times journo’s role at Occupy has been limited to book-shilling.)

As a person who helped plan the event that initially sparked OWS; as one who was thrilled by its instant popularity, potency and potential; as someone who participated in the branch of OWS in my own community through the winter, including direct action confronting the authorities—and as a long-time student of historical crises and revolutionary movements—I think it’s less important to guess whether Occupy has a future than to examine how a movement with widespread public support from left and right alike devolved from nearly 2000 public encampments to its current situation: marginalization and cooption.

That said, this summer offers good opportunities for OWSers to make some noise. Occupiers will protest the two major party conventions later this summer. The longer the campaign goes on without either candidate seriously engaging jobs and the economy—hands down the most important issue in Americans’ minds—in a credible way, the more removed from reality the political horserace and its media carnival barkers become, the longer the suffering goes on (and suffering, we sometimes forget, is cumulative, each pain and setback exponentially building upon the last), the more appealing Occupy, or perhaps some more aggressive successor, will be.

Whether the first major street movement since the 1960s survives, grows or metastasizes, we must learn the lessons of Occupy’s first year.

Like every political system, every movement contains the seeds of its future demise. OWS began with an unsustainable premise: occupy public space, yet remain nonviolent. What happens when the cops show up? You leave peacefully. Game over. Which, with the exception of Occupy Oakland—an interesting exception, insofar that clashes with the police increased popular support—is what happened everywhere from lower Manhattan to City Hall Park in Los Angeles.

Occupy should have permitted resistance, violent and/or nonviolent. That, or it shouldn’t have camped out in parks in the first place. Similar movements, in Spain and Russia for example, operate out of offices and churches and use flash-mob tactics to carry out hit-and-run direct actions against banks and other targets. If you’re going to make an Alamo-like stand, well…make a stand.

As I and just about everyone else pointed out at the time, moreover, camping out in the cold sucks. A dumb tactic for a movement that began in the fall and intended to last indefinitely.

Occupy has been overly inclusive. As a reaction to and rejection of the two big corporate-backed political parties, OWS was inherently radical. Yet for week after week, month after month, General Assemblies all over the country have been disrupted and hijacked by liberals, Democrats, and other traditional partisans who don’t share the OWS ideology of non-partisanship and non-affiliation with Ds or Rs, and militant resistance to their backers, the banksters and other corporate hucksters.

Others have criticized OWS’ unwillingness and/or inability to issue a list of demands. Not me. I have seen how the debates within Occupy have empowered voiceless men and women who used to think politics was for politicians. It was—is—powerful.

Let the oppressors try to guess how we may be mollified, how they might avoid revolution. Demands, we believed, would define us too narrowly and separate us from one another.

But things have changed.

We have been kicked out of our encampments. Occupy groups in numerous cities have split into radical and reformist (liberal and/or Democratic) factions.

There really is no place for the liberals within Occupy. Democratic apologists should go where they belong, to volunteer for Obama, to waste their time and money on the torturer of Guantánamo, the drone murderer of Waziristan, he who golfs while the 99% watch their wages shrink and their homes taken away, he who extended his “good war” against Afghanistan through 2024.

We real Occupiers, we radicals, should come together around a list of demands that define us, and allows the wait-and-see public what we’re about, to understand that we are fighting for them—demands that a somewhat reasonable and responsive government would agree to, but cannot and will not because it would counter their insane, addictive greed, their lust to control and own everything, everywhere, everyone.

They even trademark the germs.

There should be demands for justice: prison sentences and fines for the politicos and corporate executives of those whose behavior was not only reprehensible but illegal, along with the seizure of their companies and their properties for the public good. One would start, naturally, with the President.

There should be demands for redress: payments and other material compensation for those who were the victims of crimes, economic and otherwise. Torture victims need counseling and homes, and deserve punitive and compensatory damages; those who lost their homes to illegal foreclosures need not only their old lives back, but also interest and cash penalties to serve as a deterrent to those tempted to engage in such behavior again; the same goes for those who rotted in prison for non-criminal “crimes” like using drugs.

And there should be demands for systemic changes: opening up ballots to third parties; making it illegal for elected representatives to talk to businesspeople, much less accept contributions from them; rigorously enforcing the constitution, laws and treaty obligations so that, for example, Congress gets back the exclusive right to wage war; expanding the Bill of Rights to include such obvious 21st century necessities as a right to a college education should a citizen desire one, a right to a living wage that doesn’t depend upon the whims of local employers, and a right to be treated for any illness, without charge, just because you’re American and you live in the wealthiest society that has ever existed, anywhere.

(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.)

(C) 2012 TED RALL, ALL RIGHTS RESERVED.

Hope for Jobless College Grads

Half of new college graduates are jobless or unemployed. Are you one of them? If so, don’t whine. There’s hope in the new paradigm of collapse.

The Call to Arms

President Obama goes after Republicans on micro mini-non-issues. This week, he toured college and university campuses to urge students to support his attempt to keep Stafford student loan interest rates at 3.4% rather than allowing them to rise to 6.8%. Not exactly Hope and Change, is it?

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