Why and how did we get into the position that the leader of the Western world in innovation, manufacturing and technology is now falling apart and the politicians are fighting to stop the repairs? My answer to most such problems in America is follow the money. If we do it now, like all the other countries around the world, everyone will make money, the economy will be revived to historic levels and we will have a much better place to live with a burgeoning middle class fueling spending and growth like what we have seen in the past.
But if we wait until everything collapses, lives are lost and business grinds to a halt, THEN the price we would be willing to pay for the instant repair (even though substandard from the start), will be open-ended and the vendors who are hired to recreate America will be able to demand ten times the price they could if they did it now. So the smart move by business is to keep America waiting and payoff politicians to invent doctrinaire reasons for why we can’t afford to invest in new electrical grids, bridges, tunnels, highways, water, transportation etc.
It’s sort of like the trick played on us with prescription drug coverage in medicare. The law was passed only when the cost of staying alive was becoming unsustainable. So they passed a law that appeared to cure that but the caveat was that the government was not permitted to negotiate on price with the pharmaceutical companies which meant that they had a blank check signed by Uncle Sam. The result, with co-pays and doughnut holes now costs both the taxpayer and the patient even more than they were spending before.
Why am I writing about this here? Because Goldman, JPM and others are already being fined as they take monopolistic positions in the basic elements and supplies for rebuilding infrastructure for this century. They just can’t resist building their own infrastructure where they can manipulate the price of aluminum, copper and other things that will be needed when the outcry gets loud enough where politicians can say “I don’t care how much it costs, we must save America.”
We found a way to fund $2 trillion off the books for two dubious wars and we we found a way to prop up these banking behemoths through the Federal Reserve that is buying trillions of dollars in “mortgage bonds” that are completely worthless. Of course we will find a way to fund the infrastructure either off the books, on the books or both — as soon as the price becomes open ended like the wars and the drugs.
This is what Thomas Jefferson was afraid of back when central banking became a topic of conversation between he and his rival Hamilton. I always agreed with Hamilton because in my fundamentalist belief in capitalism and the goal of making as much money and creating as much commerce as possible. Upon reading Jefferson again, and reading Hamilton again, I am changing my mind — the Rothschilds were right, to wit: we can pass all the laws we want, as long as they retain control over the purse strings, they will ultimately control everything.
And so we have seen the legislative branch of government bow and kiss the boots of big business and big banking, we have seen the executive branch pretend that nothing bad is happening, and we see the judicial branch being very slow to accept the possibility that the securitization scam was nothing more than a PONZI scheme and that the investors and homeowners are owed a lot of money for theft of money and their identity which was traded as though the money and the identities were the property of the bank. And we even saw an admission from an investigator questioned by Senator Elizabeth Warren that when the truth was discovered the government stepped in to protect the banks and has not shared the vital information that the homeowners who were thrown out of their homes should not have been thrown out and were in fact owed money from the Wall Street banks and their affiliates. Nothing is changing despite a constant drumbeat of revelations that should scare the crap out of anyone who is thinking.
So get ready for round two: as the banks take control of our natural resources in preparation for a bidding war when we can no longer stand in live in a country of falling bridges, collapsing tunnels and blackouts to go comfortably with blackened water supply, we will once again get screwed out of the money that gets harder and harder to make.
Here are some articles to read and think about before you vote in the next election cycle and before we accept the likable guy or gal who is running. Are they running for their country or are they running for the people who pull the strings?
And give up your favorite labels. Labels are not an acceptable substitute for actual thought. Conservatives conserve nothing and liberals have not liberated anyone. Replace labels with a desire to read and get information beyond TV sound bites. Make up your own mind based upon your own information and cast your own vote. Don’t delegate your vote to some slick adman pitching a candidate. As a general rule, if it is on TV it probably is not true — or at least it is not enough of the whole story to make an informed decision.
U.S. investigators uncovered evidence that banks reaped millions of dollars in trading profits at the expense of companies and pension funds by manipulating a benchmark for interest-rate derivatives.
Lawrence Summers’s personal website includes two biographies and traces his career from Harvard University president to director of President Barack Obama’s National Economic Council. The site says he’s now teaching at Harvard and serving on corporate and nonprofit boards.
To read the entire article, go to http://bloom.bg/15ikclD
Banks sued again over CDS monopoly • An affiliate of MF Global sues, alleging 11 banks engaged in anticompetitive practices to keep the company out of the lucrative clearing business for swaps • It’s the third U.S.lawsuit making such claims (previous), and the EU has also filed suit • Those charged: BAC, BCS, C, CS, DB, GS, MS, RBS, UBS • JPMorgan (JPM) is named as a co-conspirator, while the ISDA and Markit are named separately as defendants • One source suggests the 3 U.S. claims could be consolidated into one case
DOA: crowdfunded foreclosure rescue
BofA faces government lawsuits over mortgage-bonds • Bank of America (BAC) is facing a number of civil lawsuits from regulators over mortgage bonds. • The Department of Justice intends to move against BofA over one or two “jumbo” mortgage bonds that comprised loans which were too big to be guaranteed by Fannie Mae and Freddie Mac. • The SEC may file charges over one of those loans as well. • The agency may also sue BofA unit Merrill Lynch, which is facing charges from the New York Attorney General’s office too.
GMAC Mortgage to pay $230 million as part of foreclosure review
Colorado Foreclosure Attorney Turned Whistle-Blower Alleges Fraudclosure Abuses
Colorado Foreclosure Lawyers Made $5 Million Overbilling Homeowners, Lawsuit Says
Brooklyn Law School professors discuss ‘Show me the note!’ defense in foreclosures — EDITOR’S NOTE: EVEN THEY MISSED THE POINT RAISED 6 YEARS AGO BY STUDENTS AT FORDHAM LAW SCHOOL IN THEIR LAW REVIEW ARTICLE “WILL THE REAL HOLDER IN DUE COURSE PLEASE STAND UP”. THE QUESTION IS WHAT ACTUAL TRANSACTIONS OCCURRED AND BETWEEN WHOM?
Florida bankers made risky bets, broke the law to make themselves rich before banks failed
Filed under: foreclosure