Latest Bank and Government SPIN

So now we are to learn that there must be no national foreclosure moratorium to sort out the fraud because it will “hurt the economy” and have “unintended consequences.”  They dusted off that old gem (remember that from Hank Paulson’s pleas to the Congress?  ‘memba??)  Well, let’s see, by that logic, it is AWESOME for the economy to have fraudulent foreclosures continue to pound the housing market.  I’m glad we got that straight.  Let’s ask the panel:

Ohio Attorney General Richard Cordray in yesterday’s New York Times: “There’s a belief here that Wall Street is a fixed casino and it’s back in business, and we’re left holding the bag,” said Mr. Cordray, whose office overlooks East Broad. “It’s important for us to show we’ll go after a company that does wrong.”

Arizona Attorney General Terry Goddard in the NY Times in Nov. 09:  “It’s time to stop this absurd dance.”

“Maybe the banks think we don’t have the gumption to pull the trigger,” Mr. Goddard said

Martin Andelman on blog Mandelman Matters:Never mind the fact that people were lied to and tortured by our nation’s financial institutions and mortgage servicers, something that was obviously condoned by Treasury and presumably by the Obama Administration, the fact is that the Treasury officials said that HAMP was a success because it slowed down foreclosures, if nothing else.

But, now… now that it’s come out that the banks are forging documents, illegally foreclosing, and therefore defrauding homeowners, investors, our government, the IRS, and the taxpayers, to say nothing of the investors around the globe who I have to believe are loading up an entire fleet of 747s with lawyers to come sue the bankers into oblivion yea as we speak… now that that sort of writing is all over the wall… now the bankers are saying we have to ignore our laws protecting property rights in this country, because anything that slows down foreclosures WILL KILL THE ECONOMY?

So, wait… which is it?  Geithner says HAMP slowing them down was good, but now that it’s the bank’s criminal behavior that threatens to cause such a the slowdown, it’s going to cause the end of the world as we know it?

Alright banker-people… that’s enough.  I think I can speak for quite a few Americans… like at least a dozen… when I say that at this point you’d be better off shutting up and stopping the empty threats about “endangering the recovery” that you continually draw like a gun every time something threatens to limit your ability to do whatever you want, whenever you want to do it.

To begin with, there is no economic recovery, never has been, so stop kidding yourselves, assuming that’s what you’re doing.  There’s no lending, and there won’t be any… outside of the government lending programs, of course… for a long, long time.  The next time investors around the world trust our country’s bankers and more over, our regulatory agencies, will be decades from now.

. . .

So, stop with the “endangering the recovery” blather, you sound like idiots and liars, and we were just getting used to you just being liars.  We can’t handle both at once.  Besides, the biggest thing stopping our recovery is you guys that engineered its demise.

Stopping foreclosures while we wait for you bankers to figure out how to fix things, assuming such a thing is possible, because when you guys break the world you do one heck of a job, isn’t going to harm anything.

Author James Howard Kunstler:  Did nobody, for instance at Fannie Mae or Freddie Mac, review any of the paperwork fluttering in from places like Countrywide or Ditech and scores of other boiler rooms where mortgages were hatched like Peking ducklings?  There was an awful lot of it, I’m sure, but aren’t there a lot of seat-warmers at Fannie and Freddie who collect their salaries for the express purpose of reading mortgage documents? Was nobody the least bit suspicious about the mysterious flurry of “restaurant employees” and “lawn-care technicians” buying million-dollar condominiums with no money down at terms that would make a three-card monte dealer weep with laughter? After all, they had to sort and bundle all these contracts for the likes of Goldman Sachs and JP Morgan and Citibank – the list isn’t that long, but you get the picture….And speaking of these august institutions, didn’t anybody in the divisions charged with assembling complex securities composed of mortgages, or composed of bets against bundles of mortgages, or composed of some notion of something dimly related to a rumor of mortgage lending – didn’t any of these expensively-educated chaps or lasses pause a moment in their aardvark-like labors of bonus-seeking to withdraw their snouts from the moist ground where swindles pupate and at least goggle in self-admiration at the fantastic legal novelty of their endeavors.

And what of the numberless agencies, federal on down, starting with, say, the Office of Thrift Supervision, or the Comptroller of the Currency, or the Federal Deposit Insurance Corporation, or the Board of Governors of the Federal Reserve, or the chairpersons of a dozen senate and house subcommittees on matters related to finance, or the various inspectors general from sea to shining sea or the attorneys general of all fifty states plus the US Department of Justice, or the countless fiduciary officers of the pension funds who tripped over each other buying all the tainted paper churned out like so much Purina Rat Chow – or, for Godsake, a lonely loan officer here or there with something resembling a conscience?


Thank you, guest panel.


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