The Great Tea Party Secret Love Affair With Bankers
Why the Fed Colludes with the Goldman Sachs!
This Hub Touches on the Complexity of Economic Currents
I hope Tea Party Republicans and other readers would take a look at all the sections of this hub. I am mainly trying to point out here that this is a complex set of economic problems that exist in the United States. Feel free to comment and understand that I can see both sides of the economic issue. There are noble motives for making the US competitive and there are noble motives for keeping the middle class house prices stable, yet both are mutually exclusive as I write below.
This hub also will attempt to show that the Tea Party leadership generally has a love affair with big bankers. For the Tea Party, the bankers are the "good guys" and greed is good. But I have proven in many links below that the big bankers are not the good guys. Again, please comment about the Tea Party and their relationship with bankers, and please read the section below entitled "The Tea Party Conundrum". This hub contains instructions on how to check if your mortgage payments are going to those who actually hold your mortgage note. In most cases this is not happening.
Please bear in mind that the Tea Party is diverse, and I support the analysis of Ron Paul and Karl Denninger who have some good ideas about the danger of sovereign debt, of ponzi housing and the like. [I don't agree with Paul about giving any banker a fee for social security in privitization. Nor do I support the massive bank runs that could result from not guaranteeing the money markets. Nor do I support not stopping bank runs that can cause contagion.Nor do I support Ron Paul's libertarianism!]
But most of the leadership of the tea party, taking a cue from Rick Santelli, believes that it is the fault of the borrower and not the lenders in the ponzi housing and credit card usury scams.The Tea Party has no clue, apparently, that the TBTF banks are winning. They are confiscating huge amounts of property. Banks win in China, as the poor get 255 year mortgages, which will not be paid off. People pay interest and never end up owning anything.
Similar easy money loans were made in the US. That is what the Tea Party should be angry about; the banks greed in reclaiming property after profiting off of loans they knew would not be paid back. Perhaps some minds will be changed because of Foreclosuregate.
I have proved here that the ponzi housing scam was premeditated and planned. I hope all Tea Party people would read this.
I view the perpetrators as being the TBTF banks and the victims as the borrowers. I would suggest that Wall Street must be laughing at the Tea Party misplaced anger. You Tea Party People are a laughingstock to the richest Americans because you stupidly play into their hands. I am not the only one who believes that the lenders are more culpable for the ponzi housing bubble than the borrower. And now look at the behavior of Wells Fargo Bank in threatening the demise of the 30 year mortgage. Wake up Tea Party!
I was shocked to see Tea Party founder, Bill Hennessy, on Kudlow report talking about bad behavior without calling out the banks, the source and center of bad behavior. He never calls out the banks and he has been on CNBC more than once. I guess it is the view of Hennessy to say those of us who walk away from bank scams and frauds are guilty of bad behavior. But he refuses to call out the banks, which were guilty of the fraud and scam in the first place. Hennessy, you are a flake and a fraud. Anyone who kisses up to Wall Street cannot be trusted! I have given the Tea Party a lesson about blame for the mortgage crisis.
That same Kudlow came out as being for privatizing social security so that Wall Street could blow bubbles with the money and make money shorting it when the crashes happen! Wall Street hates the boomers boycotting stocks. Are you listening Tea Party? The program aired 8/13/2010.
The next time a bailout is required, and it could be sooner than you think, clawbacks must be written in to make the treasury whole. This would make their decision based upon the interests of the United States and not of the New World Order. Perception is that they voted their own pocketbooks. No more bailouts are wanted here! Take these banks down in a resolution trust just like you would take down a medium or small sized bank. Otherwise, Congress, you will lose the confidence of the American people.
Update 1: I had written that the Tea Party may want to back away from Rand Paul, who said that criticizing BP for the oil spill is not patriotic. However this needs clarification. Ron Paul, Rand's dad, has views that I respect with regard to the evils of the Federal Reserve and private central banks. Recently Rand Paul has shown a concern about wasteful military spending and this is a good development. I certainly like some of his views more than John McCain, who I consider a very corrupt human being. But Dr Paul wants to allow the very easy money deregulation that he claims he hates!
Update 2: I have great respect for the economic analysis, but not economic solutions, of his dad, Ron Paul, however they both may have been involved in some racist statements in the past. However Ron Paul has forcefully repudiated racism though he lost editorial control of his newsletter at one point. See the video below. Rand Paul criticized the 1964 Civil Rights Act then reversed the position completely. It may have been more to do with private associations, but come on. He can't really think that law should be repudiated because of a few mistakes?
Update 3: Ron Paul has repudiated the Palin/Beck version of Tea Party thought for reasons related to their protection of the bankers and war. Ron Paul repudiates the Republican response to the Mosque as being opposed to libertarian thinking.
Update 4: While we, as a nation, need to be more frugal, and the government needs to pare back spending, so we don't become like Greece, we will have to find another poster boy for fiscal sanity. Taxes may need to be raised on the wealthiest Americans, because, although the top 20 percent of Americans earn 60 percent of wages, they control 85 percent of the wealth. That disparity is what is hurting mainstreet. Taxes are pretty fair regarding income, but not fair regarding the accumulation of wealth. There are many loopholes for the rich to be sure.
Update 5: The Tea Party canceled the Iowa racist, Steve King (not to be confused with author Stephen King), for a fundraiser. While it was good of them to do this, many of the Tea Party rank and file are very racist and almost hatefully racist. While I am no fan of Obama, racism is just not to be tolerated.
Update 6: Much of the Tea Party leadership is a scam for Wall Street and it is working. I posted this to a Yahoo article recently:
"People, the real issue is that the Tea Party wants to blame the poor for the credit crisis. They want to deflect blame off of the banks. Fox News protects the banks. It is a scam people.
Most are not outright racist although some are, but that is not the point. Read my stuff. I have a link from my site to the Tea Party issues.
I emailed Hennessy and he is a flake. He wouldn't even discuss the issues. He goes on CNBC and Kudlow, the bank lover, and he doesn't even call out the banks for the evil they have done. He is doing this as a scam and it is working, dividing mainstreet. That is what Wall Street wants."
Update 7: I think the government needs to consider the unthinkable. The government should rip money (ill gotten gains from the financial ponzi) away from the top 1 percent, by legal force if necessary, and give it to mainstreet or allow a jubilee forgiveness of all mainstreet debt.The mainstreet consumer in the US is the driver of world prosperity. If he sneezes, manufacturing in China slows down. The world relies on the US consumer. And he is reeling. Capital flows out of the US but taxes should not flow out with it. If the richest people in America are hiding their wealth, this is unpatriotic.
Update: 8. IOU documents to complete title transfer were not conveyed to the trustees of the ponzi MBS bonds sold to unsuspecting investors. Turns out, the reason this was not done was to fool investors in MBS AAA rated securities that were not AAA. If the Tea Party wants to do something to prove their hatred of what the banksters did, they should come out and advocate that Fannie and Freddie not back these mortgages. These mortgages are flawed, and there is no clear title or a chance to go back and file proper documents. Therefore, Fannie and Freddie should not pay. I doubt if most of the Tea Party would want to be this hard on the banks, but I could be surprised.
Certainly, Rico Laws should be dusted off to go after these banksters, but it is unlikely that politicians will bite the hand that feeds them. But certainly, with this notary fraud going on, it is clear more than ever that the lenders,[or should I say the MBS fake lender architects], the investment banks, not the borrowers, were primarily at fault for the ponzi housing scheme. And the Tea Party failure to understand this will lower their credibility. One thing we know for certain, the MBS securities, not having clear title, were all fake securities. The banksters can be sued for this fraud. This is massive fraud.
What About the Tea Party and the Neocons?
Neocon advocates have been more and more adamant that the US attack Iran, which may or may not lead to WW3. I hope we don't try to find out!! I support Israel's right to exist in peace, but I do not support an attack on Iran unless intelligence shows Iran would seek to make war, a contention not proven so far.
Update 9: Some may want to view this thread that I started on Patrick.net. I hope you enjoy my outing of the Tea Party for the greedy Wall Street helpers that they are. Remember, even social security going private is a Wall Street con, because the "money on the sidelines" is not coming back. Here is why:
1. The boomers have been burned twice in the last 15 years, with the dot com crash and the credit crisis crash. They are out of the market.
2. The boomers and others are raiding their 401k's, lowering the banksters' ability to drive the stock market up and down at 401k expense.
The Tea Party plays into the hands of Wall Street because Wall Street needs new and fresh money, your social security! Don't trust them, they will ruin you. And shame on you Tea Party!
Update 10: Spencer Bachus of Alabama has already tipped the hand of the Republicans. He wants the Volcker Rule watered down and he wants banks to be able to wheel and deal and apply massive leverage if the rest of the world is doing it. This is wrong, and we need to keep the banks from scamming mainstreet which is what happen when the easy money flows. I wish the people of Alabama would wake up and realize their congressional representative is corrupt! What are you going to do about it Tea Party? Probably nothing.
Update 11: The poor taking advantage of banks was not the reason for the ponzi housing bubble. Tea Party, you lost Karl Denninger because you don't understand the real issues of how the banks have scammed us. Please read this ebook I wrote and it's relationship to the CRA. about this bank ponzi scam
Update 11: I posted this to the article on Yahoo originally written for the New York Times by Gretchen Morgenson entitled, "Imagining Life Without Fannie and Freddie":
Most of the Tea Party does not understand this. And that is why they will be disappointed:
Basel 3 and the traitors, Bernanke and Giethner, want taxpayer "backstops" because that is what Basel 3 wants. Since the banksters are in charge, the only sentence in this article that is of value is this:
"Still, it is not clear that such moves, sensible though they are, will be enough to prevent taxpayers from having to bail out institutions that back mortgages in the future."
Fannie and Freddie, or no Fannie and Freddie, taxpayers will be on the hook with taxation without representation because the power of the banksters is absolute.
Major Flaws in Tea Party Thinking
- Wells Fargo Bank Leads Securitization Attack On Taxpayers
Wells Fargo bank wants the government to guarantee all mortgages and has threatened to make the 30 year mortgage obsolete if the bank doesn't get what it wants. I have been writing about this subject of...
- I Know What The Next Bubble Could Look Like And The Tea Party Needs To Pay Attention
The next bubble could be a doozy and put us into war.
- Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy
Crisis triggered by private and unregulated investment banks and shadow banking system.
- Payday Lending And Ponzi Mortgage Loans Come From The Same Source
Both types of loans are debt traps for consumers.
Warning toTea Party and Everyone: Caught Up On Your Mortgage? But Who Are You Paying?
Well, you smug folks who are caught up on your mortgage, and better than everyone thanks to the Rick Santelli rant, need to eat some humble pie. Turns out that Santelli and you all may be paying your mortgage payments to people who don't even own your mortgage note. That is right. And the trusts receiving your payments may not even be authorized to own the notes anyway! The banksters have screwed this up so badly that you may not even have clear title when your house is paid off in the future. Here is a website that will help you to find out who you are paying your mortgage to and if they own the note.
If they do not own the note you need to contact the state attorney general in your state and an attorney. So, don't be so arrogant that the banks have your backs because they don't most times.
Tea Party Express is a Phony Theft of Tea Party Term
Update: The Tea Party national organization has kicked the Tea Party Express out of their organization. That is a good first step. We just have to keep Hennessy from scratching Kudlow and the bankster cartel's back on CNBC and get an admission from them that the banks are the prime cause of the housing bubble scam and we will be getting somewhere. Palin was supporting the Express, from news reports. That will now end. Maybe she will go back into the cave from which she came too. One can hope.
Sarah Palin is supporting the Tea Party Express. Come to find out, the Tea Party Express is a con. It is not the tea party grass roots movement but is rather a PAC, using Russo Marsh, a PR firm, as a way to earn money off the term "tea party". The document unearthed proves this More later.
Three Founding Members of the Bankster Party Exposed by Dylan Ratigan
Both Parties Were Involved in the Credit Meltdown
Being an independent voter, I have no skin in the game regarding
Republicans versus Democrats with regard to the credit meltdown. Both
parties clearly were involved in allowing the Ponzi housing loans to
gain traction. Both parties really let the shadow banking system
flourish, with no regard to the outcome.
The partial list of characters mentioned as being involved in the phony securitization scam and CDS gambling binge have roots in both parties. A partial list includes Greenspan, Dodd, Rubin, Gramm, Gregg, Schumer, McCain, Paulson, Geithner, Summers, Frank, the Fed, the international central banks, the investment banks, including Lehman, Bear, Merrill, Goldman, as well as the loan originators, Countrywide, Wamu, World Savings, Wachovia, Indymac and many others.
It would seem that the majority of folks involved in the meltdown were Republicans because financial services are dominated by Republicans. The Democrats were certainly involved with the concept of extending home ownership. But the banks stood to profit from this behavior. The Democrats were passive in some of this, being out of power as the ponzi scam came to pass.
The Tea Party Is Linked to Unsavory Characters
The Tea Party folks are allowing their party to be crashed by very unsavory characters who have no intention of really going along with them. Lets take Rush Limbaugh as an example. I personally heard Rush (not that I often listen to him) once say that the housing bubble was a figment of the drive by media's imagination. I wonder how much that ended up costing his uncritical listeners? Rush is an opportunist. While the Republicans were in power, he had no need to speak out about a bubble that people were warning him about. You always have to worry about a guy who censors his callers.
Let me say before I continue that I view the actions of the Obama administration as being a massive letdown. I voted for the guy, and I feel a certain betrayal in knowing that he allowed Wall Street to recover at the expense of mainstreet. But the Tea Party is worse, as deregulation will not allow a reining in of the big banks and their behavior going forward.
However, when you Tea Party folks allow Sarah Palin, a dominionist, to be a spokesperson, you aren't really staying true to your roots. Sarah Palin has more in common with Neocons than with Tea Party people. Unless the Tea Party is prepared for endless war, then perhaps Sarah should not be your girl. I wonder if you really want to stop bailouts of banks or if you are opportunists just like Sarah and Rush are?
Tea Party Hero Rick Santelli Diverts Blame From Wall Street
The Government Wants to Save the Big Banks at Your Expense
- Proof That Basel 2 Caused Ponzi Housing and Foreclosuregate
I get railed on now and then as I post at Seeking Alpha that off balance sheet banking allowed at Basel 2 in 1998 resulted in the ponzi housing bubble. One fellow who posts comments, Pier 0188, said while...
- Say No To Recourse Loans
Don't Be Slaves to Big Bank Credit Card Abuse Update: The jury is out on the new Hamp modifications. They may not change a loan from a non recourse to a recourse loan. That would be good say, for folks in...
- Stopping the Housing Spiral Is Another Government Scam. Boycott Housing. Boycott Trusting Wall Stree
I have talked to many young folks who want to buy a home. But the housing market is not adjusting so that they can afford to buy their first home. Investors are competing and are spending cash. But the fact...
- Proof the Stock Market is Manipulated by Investor Class
A recent article by me on the Seeking Alpha website indicated that reverse repos could bring the stock market down and increase volatility. The issue is that reverse repos, a method championed by Ben Bernanke...
This Is the Solution the Tea Party Should Be Applauding
As far as a solution to the Tea Party anthem of no more bailouts, I
prefer to side with Ellen Brown, who wrote this on SA:
Bernero joins a growing list of candidates proposing this sensible solution to their states’ fiscal ills. Local economies have collapsed because of the Wall Street credit freeze. To reinvigorate local business, Main Street needs a heavy infusion of credit; and publicly-owned banks could fill that need.
A February posting tracked candidates in five states running on a state-bank platform and one state with a bill pending (Massachusetts). There are now three more bills on the rolls – in Washington State, Illinois and Michigan – and two more candidates on the list of proponents (joining Bernero is Gaelan Brown of Vermont). That brings the total to seven candidates in as many states (Florida, Oregon, Illinois, California, Washington State, Vermont, and Idaho), including three Democrats, two Greens, one Republican and one Independent.
Before you anti government people reject the plan, you must understand that deregulation allowed the ponzi housing scheme to take hold. On a very basic level, throwing out underwriting standards is a form of deregulation. It was a disaster. Face it Tea Party. If you think that throwing out the TBTF banks without regulating basic financial services will work, you are dreaming.
Come to find out that there is a new scam by big business in town. But booking sales in the US, but profits from those sales in countries that don't even have those sales, big business can scam billions of dollars off their tax owed to the US. Sounds like offshore scamming. How different really is this to just hiding your money in a Swiss UBS bank account?
Weak Regulation of the Big Banks Doesn't Weaken the Guilty Players in the Credit Meltdown
The regulation that the Democrats and Dodd and most Republicans want is a regulation with bailouts available to the big international banks.
That is not strong enough legislation.
However, Dodd-Frank is better, if written correctly, than the libertarian/Tea Party solution of no regulation!
Wouldn't Ellen Brown's solution be more effective? Strip the TBTF banks of their deposits and place them with state banks. The example of course is North Dakota, a Red State, which has had a state bank assisting the community banks for decades. We need a plan for dismantling the TBTF banks. Ellen has that plan.
The way banks fail in this nation is to set them into a resolution trust. If there is a ready made place for these bank deposits to be placed, rather than making the surviving banks even bigger, then state banks may be the only way. I can't imagine Tea Party people wanting a JPM to gobble up one of the other TBTF bank's deposits.
State banks are an idea whose time has come. As credit unions were an answer to tight money banking, so now are state banks an answer to loose money ponzi scams.
And until the Tea Party jettisons the proven mainstream Republicans like Limbaugh and Palin, I can't support them. If they feel they need a spokesperson who says that it is God's will to make war in Iraq (Palin), then they will soil themselves with people who will not lead them to the promised land of mainstream power and acceptance.
Too Big To Fail.
Political Links from Bgamall
- Mish, Marx and the Future of Capitalism
First I would say that one can learn a lot from Mike Shedlock (Mish). I enjoy reading his blog and commenting on it. Mish is right about the uselessness of pouring money into black holes like Freddie and...
About the Tea Party and Bailouts
The Tea Party is against all bailouts. While I am against the bank bailouts as they are, and would prefer a means whereby the banks would pay back our treasury, I would hope for some sort of amnesty for debt for the average American. Maybe we can't afford it after the bank bailouts, though.
But my major disagreement with the Tea Party and Rick Santelli is that they want to place the blame away from the banks and onto the people who were deceived by the loans and the Wall Street ponzi loan scam. They bring a certain superiority and arrogance to the discussion that is quite distasteful. In their self righteousness, they look with disdain upon those who are walking away from dishonest loans and usurious credit card obligations. I have argued that these actions to deleverage will ultimately help the purchasing power of many American households.
That Tea Party Arrogance is unacceptable and makes me doubt them, along with their relationship with Sarah Palin and Rush Limbaugh that soils their honest disgust with the TBTF banks.
While some Tea Party activists are purists, they are not able to stop the fusion of some Tea Party opportunists with Republicans who actually were members of the party most responsible for deregulation. While both parties had their men who facilitated the meltdown as written at the beginning of this Hub, the Republicans were in the majority when Glass-Steagall was repealed, although Clinton stupidly signed the bill.
Without the big investment banks none of this could have happened. I don't like to see the Tea Party pitting the working man against himself. You are doing the big bank's bidding if you do. That is folly. If the working people don't hang together the banks will have us hanging separately. Already inventory of houses being held off the market is causing house prices in LA, a bubble city still, to go up!
The Tea Party Conundrum
The Tea Party has a conundrum. They want jobs. They don't want the government to spend. These are a conundrum for us all because they are mutually exclusive propositions. Here is how I see it.
On the one hand we have the following noble motives:
1. Cut spending so the national debt doesn't get out of hand.
2. Let house prices drop as wages drop so the US can be more competitive
On the other hand we have another set of noble motives:
1. Give workers a decent living wage so that not just the richest will prosper so that the small businesses will prosper. This means good private and government jobs need to be created. The alternative is very little job formation and difficulties in small business.
2. Keep house prices up to preserve the little bit of wealth that the middle class still has.
The way I see it, the first motives are mutually exclusive of the last motives. If we spend, we get more in debt. If we don't spend, we may become more competitive but it will be preceded by a dreadful economy and maybe even social unrest. So, Tea Party people, you can always comment on how to proceed in this very complex global environment. I lean toward letting house prices and wages diminish, but on the other hand, it has to be tempered with more taxes on the wealthiest who have prospered most from the Bush years and crony capitalism.There has to be some compromise between those who hold the first set of noble motives and those who hold the second set.
However, when push comes to shove, I lean toward the view that markets should not be manipulated. That means house prices should fall to levels that allow wages to fall, and we can be more competitive abroad. Oil prices should not be manipulated either, as inventory gains rarely lead to the price of oil dropping. How can anyone know what anything is really worth as long as there is manipulation?
But I see a lot of dislocation that could happen by pursuing the free market in a world of great economic imbalances, where the Chinese can live on $1.50 per hour and he is our competition in the manufacturing sector. Perhaps this process of becoming competitive can be slowed down to protect the innocent. Remember what the Greeks will have to suffer at the hands of the IMF unless they default on loans. I would rather see them default. America could lose even more sovereignty if she ends up crawling to the IMF like Greece is doing. I believe that debts should be forgiven or that people should engage in strategic default in order to offset the vice of lower wages and higher house prices that Larry Summers is trying to engineer!
Just remember, if a country defaults, it ruins the sovereign credit score but it cleans up the balance sheet. No country should be a slave to the IMF or the world banking cabal.