Post from Freestyle Politics: MYBO.com

While You Were Sleeping

State of the Union and How We Got Here (Talking Politics with "Values Voters"):

Lest someone forget to mention SOCIALISM- OH MY GOD, WE'RE ALL GOING TO DIE - Define Socialism. Remember that once upon a time in America the following industries (and others) were regulated (overseen) by the government. Google. Google. Google.

Deregulation (what our corporations - a.k.a. Republican sponsored charities - like to refer to as "anti-socialism " - which means  "no oversight/no accountability" - and seem to have sold you on with a frightening amount of success) has brought you the current state of economic and political affairs we are so enjoying at this moment, including but not limited to:

Home Mortgage Crisis:

"Home Mortgage Crisis" translates to Mortgage Fraud, including appraisal fraud, a circumstance beyond your control but which nevertheless will cost you dearly should real estate agents and appraisers be in cahoots. This practice, as far as I know, is illegal as well as unethical, but is embraced more often than we'd like to admit. Or maybe the law has changed, which it has a funny way of doing when you're not looking.

How would I know? Well, "Hi, I'm Karen. I'm a recovering home equity loan processor."  My choices were either to quit or have a heart attack, but since I had no health insurance, having a heart attack wasn't an option.

Lacking any limitations, and apparently no particular reason to regulate themselves, mortgage companies invented  a series of financial "products" which included the Adjusted Rate Mortgage (ARM), Interest-only Mortgage, Home Equity Line of Credit, Balloon Rate Mortgage, and Combined Mortgage (super-sized mortgages, meaning first and second rolled into one which negated the 20% down rule).  And who knows what else.

Now, it's not so much that unprecedented numbers of "greedy" consumers suddenly decided to make a run on banks in pursuit of the home mortgage Holy Grail. In fact, it was the other way around. Mortgage brokers were tripping over each other in order to offer consumers the deal of a lifetime: low (or lower) interest rates and low (or lower) monthly payments. 

If you owned a home between the years 2000 and 2008 you probably received unsolicited phone calls, and/or direct mail offers, and/or email from a few mortgage brokers. Chances are you were inundated with mortgage loan solicitations until you cried uncle. For the most part, the idea was to get people who already owned a home to refinance their existing mortgages at lower interest rates or to otherwise take out an adjustable rate loan on the equity in the home.

And that would have been fine if the parties concerned had been at all concerned about the prospect of going to hell.

It should come as no surprise that once prospective borrowers sat down to crunch numbers, predatory mortgage brokers may "inadvertently" have failed to apprise said borrower of the sort of loan structure that would produce the incredibly low interest rates and the magnificently low monthly payments. No need to bother about it really, seeing as the broker was in a position to electronically submit a loan application on behalf of the borrower even if the borrower decided against it. This last bit had to do with commissions.

In order to ensure that a borrower remained unapprised, one strategy that worked well for us (the lender) was to ensure that closing documents (containing, naturally, the loan agreement) did not make it to the closing agent until the day of closing.

Anyone who has ever been held captive at a closing table can attest to the fact that reading your closing documents at the table is a no-no. Get the picture? Even if a borrower had the opportunity and did take the time to read the sixty pages contained in the closing packet (yes, at last count we were at sixty pages), the legalese contained therein would on principle presuppose a lack of comprehension. But then again, it rarely occurred to these borrowers to adopt any sort of CYA policy because there has never really been a precedent for the widely-distributed, wholesale fleecing that took place. Those who did catch on were, shall we say, a little huffy.

Somehow, these mortgage companies, along with mortgage brokers, and even appraisers, got the idea that there would be no consequences for this veritable free-for-all. Where'd they get that idea, I wonder?  No oversight/no accountability and a change in the laws that had previously kept mortgage lenders and investment banks from fondling each other.

[Addendum: The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) in the United States and included banking reforms, some of which were designed to control speculation.[1] Some provisions such as Regulation Q, which allowed the Federal Reserve to regulate interest rates in savings accounts, were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm-Leach-Bliley Act. - Wikipedia]

So, before the ink even had a chance to dry, the mortgage lenders turned right around and sold those "subprime" mortgages to other banks. Then the rotten apples got bundled into packages alongside the good apples and the whole kit-and-caboodle went up for sale again. And so on and so forth. Finally the bad apples made their way into the investment market where stock brokers proceeded to sell them to investors.  Some of those investors were companies managing retirement accounts - the retirement accounts of your granny and mine (see Bank and Investment Firm Failures).

When the interest rates on these mortgages got cleared for take-off, as everyone (except maybe the borrower) knew was inevitable, and monthly mortgage payments began to mushroom beyond the borrower's capacity to pay, then all hell broke loose. Thus, record numbers of people began to lose their homes.  

There you go - in a nutshell.

Bank and investment Firm Failures: (direct result of home mortgage sham)

Part I:  Pensions, investments, and jobs of average workers are lost as a result of the home mortgage crisis, while corporate honchos preternaturally amass previously unimagined wealth and then sail off into the clear blue horizon.

Part II:  Government bails out bank/investment firm with your tax dollars, but you, tax payer, are still inexplicably devoid of pension, investment, and job - or a house. Tough luck - it was your fault in the first place! Or so goes the right-wing version of events when in fact the aforementioned fiasco was orchestrated by the aforementioned corporate honchos with unfailing assistance of the "right" arm of government whose coffers will needfully overflow with the aforementioned loot in the form of "campaign contributions."

And what, you ponder, will be the fate of the foreclosed-upon real estate?  Answer: predetermination.

Part III:  Let's 'cipher:  wealthy investors buy back real estate at "wholesale" prices, wait out recession /depression, resell, profit. WHALLAH! - the "axis of evil" attains heights of perfection previously unknown in the real-estate-mortgage banking-investment market complex.

Don't take my word for it. Google. Google. Google.

Shortcut: Phil Gram plus Republican enablers both public and private is one answer. Google anyway just to ensure that you understand this is not merely a figment of a liberal imagination.

Oil Crisis:

Record gas prices at the pump (can also be redefined as inflation - as price of everything associated is sky-rocketing - food, in particular) are unscrupulously undermining what's left of our economy. All modes of transportation and some forms of home heating are affected.  

Who benefits? Oil conglomerates earning record profits and of course Wall Street investors.

Sidebar: when asked on "Meet the Press" - oooh, about a year ago or so - if Big Oil thought maybe it might please cut the American public some slack, oil company representatives began cackling like old crones. Their response (once they managed to regain composure): "We're in business to make money. " Nothing personal; it's just business.  Except for the fact that they have the power to hurl our economy back into the Depression era if prices continue to rise at the rate they have been in the past year.

On the other hand, I can understand why the notion of affordability might seem foreign to people with gold-plated toilets.

But wait, GAS PRICES ARE DROPPING!  Could it be that the recent decline in gas prices may be related to the fact that we've cut consumption through voluntary unaffordability and have seriously begun to turn the collective eyeball toward alternative fuel, public transportation, renewable energy, and the need for higher vehicle gas mileage, amongst other such progressive-thinking notions? Or else it's an oil tease. Besides, it's an election year.

Just so's you know: the U.S. Department of Energy has publically admitted that "drill here, drill now" will not equate to relief at the pump - not now (which isn't physically possible to accomplish any time soon anyway) and not ten years from now.  Google. Google. Google. Here, I'll make it easy:  http://www.eia.doe.gov/oiaf/aeo/otheranalysis/ongr.html.

Another juicy nugget: energy companies already hold leases on about 68 million acres on and off-shore. Instead of using them, they're stockpiling. 

Nuclear energy (45 new plants spanning the nation, brought to you courtesy of McCain's-brains) is also not a feasible solution either cash-wise or otherwise. Why would we spend such exorbitant sums in order to dig ourselves further into a hole, when we could use it to dig ourselves out? Besides, the mere mention of a nuclear power plant in the back pasture brings on a case of the creeps as visions of neon three-headed frogs dance in our heads.  

We have a sterling opportunity here to reinvent ourselves based on environmental sustainability, and to free ourselves from dependence on foreign oil and domestic oil companies. Google. Google. Google.

*Test on Monday over the abundant possibilities of generating renewable energy (extra credit for answers involving the words "Swedish," "Belgian," and "innovation").

High Unemployment: (current rate of which does not take into account those not collecting unemployment benefits and can therefore be estimated at a much higher rate than is currently reported)

Thanks to all of the above: economy in crisis = job loss = plummeting consumer confidence due to lack of consumer confidence in sustainable paycheck +/- newly-minted condition of homelessness = more job loss.  It's a vicious cycle, isn't it?

Don't lose sleep over it though. You can always find work at a chicken-plucking factory: "There are jobs Americans aren't doing. ... If you've got a chicken factory, a chicken-plucking factory, or whatever you call them, you know what I'm talking about." -George W. Bush, Tipp City, Ohio, April 19, 2007 (http://politicalhumor.about.com/library/blbushisms.htm).

Healthcare Crisis:

Even if you ARE insured and suffer a catastrophic illness or injury, your insurance will likely not be enough to cover the medical costs (unless you're a member of Congress with health entitlements) and you can therefore look forward to bankruptcy. Oops, no you can't - because the powers that be made sure that it would be nearly impossible to file for bankruptcy (unless you're a mega-corporation with economic incentive entitlements) and so you lose your home, your car, and everything else.

Note: in the midst of the build-up to the mortgage crisis, a law was passed that would prevent individuals from filing bankruptcy: Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Was it coincidence or merely convenient?

As an added bonus, your credit rating goes down the tubes. In turn, bad credit could prevent you from obtaining employment, an apartment, and even basic utility services. Thus, should you have no family upon which to rely - you may find yourself among the much-derided homeless population.  And let me tell you: there's a fine line between this life and the one under the nearest bridge. To ensure this, the only bad decision you need make is to get sick. Thus, we refer to this condition as a "healthcare crisis."

Note: half of all bankruptcies in the U.S. are due to [were, since you can longer file for bankruptcy] financially debilitating medical expenses, notwithstanding the fact that three-quarters of those entering into bankruptcy had health insurance at the onset of a catastrophic illness or injury (Harvard study). Google. Google. Google.

War on Democracy/Political Corruption: (related to corporate corruption)

Our system of government has even succeeded in deregulating ITSELF (meaning that the regulating bodies of Congress and the Judiciary with Executive oversight have been rendered impotent.) The President has proclaimed that he may ignore any law of his choosing if only he recites the words "Executive Privilege." He may furthermore alter any law passed by Congress due to a little known Executive perk referred to as the "Signing Statement."

"If this were a dictatorship, it'd be a heck of a lot easier, just so  long as I'm

the dictator."

--George W. Bush, Washington, D.C., Dec. 19, 2000

(http://politicalhumor.about.com/library/blbushdumbquotes2.htm)

 "I'll be long gone before some smart person ever figures out what happened inside this Oval Office."

--George W. Bush, Washington, D.C., May 12, 2008

(http://politicalhumor.about.com/library/blbushisms.htm) 

Let us also not forget that (thanks to The Patriot Act) the government may now spy on you at will. It has, in addition, been empowered to detain you without charge and without benefit of trial so long as it labels you a "terrorist. " The official definition of "terrorist" is rather loose and has come to include language that suggests "anti-government" activity which would not, as it is, preclude peaceful dissent. Thus your local "fusion center" (fusion of local police department and federal intelligence agencies) may effectively alleviate you of your right to petition the government, to the freedom of speech, to freedom of the press, and the right to peaceably assemble. In other words: Adios First Amendment to the Constitution! Almost.

You may still practice a religion of choice so long as it jives with "Judeo-Christian values." Whew! We were worried there for a minute that we might not be able to invoke the name of God in every conceivable political discussion. The latest: "Terrorist Watch List Hits One Million Names": http://www.huffingtonpost.com/barry-steinhardt/terrorist-watch-list-hits_b_112596.html. 

So if you're a good Christian and are hoping to escape the assault on your dignity as a free human being by rendering yourself unto the arms of the Lord when your number comes up- not so fast. There is one last indignity that awaits you upon your departure to the hereafter. 

Allow me to explain.

It just so happens that our very own Constitution states, "The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." 

How exactly does the current tax system provide for the "general welfare"?  Instead, your taxes contribute to the general welfare of the wealthiest among us.  The Bush Tax Cuts (your share was $300, remember?), which John McCain suddenly finds so appealing, further provide untold amounts of payola scraped from the backsides of those who can least afford it - whether living or DEAD. Think I'm joshin'? Okay, so here's another example of the endless despicable things that our sanctified corporations (through the generous support of our "democratic" government) do with your tax dollars: "dead peasant" insurance. Just a hint: the term "dead peasant" refers to YOU and ME once rigamortis sets in.

In short, "dead peasant" insurance is a slang term for corporate-owned life insurance.  So maybe you're thinking, Great! My company will look out for my family if I die. Wrong. Here's how it works:  an employer is legally entitled to take out secret life insurance policies on rank-and-file employees. The insured employees don't even know that the policies exist. Whenever said employees kick the bucket, the employer collects even if an employee no longer works for the company. How much goes to the family of the deceased? NONE - ZERO - ZIP.

It isn't so much the insurance money that corporations are salivating over - it's the generous tax breaks they get. The premiums and insurance payoffs are tax deductible.  Moreover, the company can borrow against the insurance policy. Therefore, as a taxpayer, you indirectly assist your employer (or former employer) in profiting from your demise to the tune of hundreds of thousands of dollars.  SA-WEET!

According to MSN Money, "Hundreds of companies -- including Dow Chemical, Procter & Gamble, Wal-Mart, Walt Disney and Winn-Dixie -- have purchased this insurance on more than 6 million rank-and-file workers" (http://moneycentral.msn.com/content/insurance/p64954.asp). Once you've begun Googling, note that the names Enron and Phil Gramm (McCain's economic advisor) mysteriously crop up again. Phil Gramm happens to be McCain's pick for Secretary of the Treasury should he be elected President.

Recently I've learned that new laws require companies to obtain employee consent before taking out corporate-owned life insurance policies. BUT, is consent a condition of employment? You do the 'ciphering.

In light of these and similar events, if you're still aboard the "Straight-Talk Express," I'd say it's time to get off the bus, Gus. Make a new plan, Stan. No need to be coy, Roy - just set yourself free.

Meanwhile, I'll be sleeping with one eye open.  

Get the full scoop at Washington Monthly: http://www.washingtonmonthly.com/archives/individual/2009_08/019423.php

At a recent town hall, I stumbled upon some rather interesting circumstances. The teabag experts with whom I spoke, and they were many and varied, were either Medicare recipients and thus insured by a government-run health care program, in the military or retired military and thus covered by Tricare (another government-run health care program), or uninsured. None of them had ever heard the term "rescission."

One woman, when I asked her what kind of medical insurance she had, told me that she had "the kind you pay for". So I asked, "Which insurance provider?" She said, "The kind you pay for." I replied, "Yes, but which insurance company?" She said, "The kind you pay for." It was a curiously Katie Couric/Sarah Palin moment.

I suspected that this woman was, in fact, uninsured.

Moreover, I can't count the number of times I was confronted with "Why should I pay for your health care?" My response: "Why not? I pay for yours, don't I? Both Medicare and Tricare are supported by federal taxes and I pay taxes. So what's your point?" 

Besides, I have health insurance, but I also have a conscience about those who don't have it and can't get it.

In the car on the way home I told my husband that I didn't think many of these people even had health insurance, yet they were protesting Obama's public/private health care exchange. 

So here's my dilemma: Do I contribute to Kenneth Gladney's health care fund or let him suffer? 

From: "Congressman Doug Lamborn" <co05ima@mail.house.gov> Subject: Reply from Congressman Doug Lamborn Date: Tue, 4 Aug 2009 17:05:48 -0400 To: <kfreed@----.--->

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