Life under gangster government: Obama’s $20 billion bank heist

May 19, 2011

And a bunch of states’ attorney generals looking to pander for votes are in on the job. Karl Rove blows the whistle:

At last Wednesday’s “CBS Town Hall,” President Obama said he was “trying to . . . figure out how we can get the banks to do more” on modifying mortgage loan payments. Perhaps, he said, people whose mortgages are underwater should get a “principal reduction, which will be good for the person who owns . . . the home.”

Mr. Obama has decided that taxpayers have no appetite for bailing out homeowners who don’t make their payments, or for rescuing those whose homes are worth less than their mortgages. Instead, he’s backing a proposal by his Department of Justice and state attorneys general to force major banks to cough up the dough.

The money would come from a settlement with JP Morgan Chase, Citibank, Bank of America, Wells Fargo and other banks accused of “robo-signing,” in which foreclosure documents were signed by bank employees or agents without properly certifying all the papers. The attorneys general admit that virtually no one was erroneously foreclosed upon because of robo-signing. The banks foreclosed on people who were on average 18 months delinquent, and after multiple attempts to modify the loan had been tried and failed.

But Justice and the state attorneys general are demanding $20 billion for sloppiness, which they will then be able to hand out to voters—and potential supporters. The money won’t come from the banks; it will come from their customers, millions of whom will pay more in fees and interest and will, in some cases, be denied credit.

This stinks. It’s not only corrupt, it’s bad policy.

As Rove points out, only a few people were hurt in the robo-signing “scandal,” and the proper solution would have been to make them whole with some additional compensation, including returning them to their homes.  Instead, Ali Obama and his 40 Thieves President Obama and the state AGs are abusing the law to extort billions from the banks –at the customers’ ultimate cost– that can then be used to plug state budget gaps or as bait for votes. Far from doing justice, the robo-signing problem has been an excuse to do a great injustice, both to the banks and to the original victims, whose cause has been forgotten.

Michael Barone called this “gangster government” and “thugocracy;” we know it as “The Chicago Way.”

It sure isn’t the Rule of Law.

(Crossposted at Sister Toldjah)


Cash for clunker mortgages?

January 8, 2010

On Larry Kudlow’s show, Dan Mitchell of the libertarian Cato Institute and Christian Weller of the progressive Center for American Progress go head to head to answer Kudlow’s question about the money spent on the Obama administration’s mortgage-adjustment program: What do we have to show for $75 billion?

The plan to adjust mortgages is a failure: with the economy showing no real sign of improving and unemployment getting worse, thousands of homeowners still cannot afford their newly adjusted mortgages. What’s the statist, progressive answer? More intervention by the government! Mr. Weller and a banker quoted early in the clip advocate forgiving principle and using government power to coerce banks into, essentially, breaking contracts. This, of course, after government helped create the problem by using its coercive powers to push banks into making loans to marginal borrowers and then making it easy by guaranteeing those same bad loans.

In other words, the answer is more cowbell!

Watch the video. You will never see a clearer divide between the free-market and statist paradigms.

And, like Larry, I want my $75 billion back.  Not talking

RELATED: Is Ginnie set to join Fannie and Freddie in the poor house?


Follow

Get every new post delivered to your Inbox.

Join 13,941 other followers