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)


When Texas burns, the Fed rushes into action… in Mexico??

May 11, 2011

In case you missed it, much of Texas is burned up, literally; according to Kevin Williamson at NRO, about 3400 square miles have gone up in flames, an area the size of Puerto Rico. Williamson uses this fact to excoriate President Obama for coming to Texas to raise money and sell his non-starter of an immigration plan while refusing to even tour devastated areas, let alone declaring a federal disaster area.

But he saves the cherry on the sundae for last:

To its credit, the Obama administration has dispatched aircraft to help with the firefighting . . . in Mexico.

MEXICO??

Following Williamson’s link, we find that he really did:

Two specially equipped U.S. Air Force cargo planes left Colorado on Saturday to help battle wildfires in northern Mexico.

The C-130s were requested by the Mexican government and the U.S. State Department, a U.S. Northern Command spokesman said.

The planes can spray about 3,000 gallons of fire retardant in a matter of seconds from a system of pressurized tanks called Modular Aerial Fire Fighting System or MAFFS.

The fires have burned 386 square miles in Mexico — one-ninth of what’s been destroyed in Texas — and yet the Obama administration won’t send help to Texas but will to Mexico? Mr. President… Barry… WTF??

Oh, and you want to know the best part? The planes will be flying from a base… in Texas.

That sound you heard was the sound of the back of Obama’s hand meeting Governor Perry’s face.

Look, I have no problem helping Mexico, per se; we have plenty of resources in the Western states. But it seems to me that you take care of your own people, first, and then lend what you can spare to help the neighbors. This looks like nothing more than the administration taking out its petty anger at Texas and its governor for not voting for Obama and for not supporting his policies. President Peevish apparently only helps those who help him, regardless of the duties of his job.

So, let’s consider. On the one hand:

  • He seemed indifferent to the  flooding that devastated Nashville in 2010.
  • He is ignoring fires that are ravaging Texas in 2011.
  • He is wrecking the Gulf Coast economy with his permitorium, in defiance of a federal court order.

On the other:

Three-to-one. I’d say it’s pretty clear his natural instincts are to go with the “gangster government” approach to governance: “If you play nice, you get help. But if you cross me, you can burn for all I care.”

Literally.

via Jim Geraghty’s Morning Jolt

CLARIFICATION: The linked article discussing planes sent to help Mexico is from April 16th, nearly a month ago. I should have noted that and apologize for any confusion. However, as an article from the Christian Science Monitor, dated just two days later, shows, Governor Perry was asking for help way back then. So, why the hold up?

(Crossposted at Sister Toldjah)


Workers matter to Obama. Union workers, that is…

March 7, 2011

And if you’re not in a union? Then you can expect a kick in the backside, instead of a pat on the back. It seems that while reorganizing General Motors, Treasury Secretary (and tax cheat) Timothy Geithner protected the benefits and pensions of union workers while gutting those of non-union employees:

Republican Reps. Mike Turner of Ohio and Dan Burton of Indiana are asking House Oversight Committee Chairman Darrell Issa, California Republican, to dig into the Obama administration’s decision to cut more than 20,000 private-sector workers’ pensions and eliminate their health and life insurance plans during the General Motors (GM) bailout in 2009.

A spokesman for Issa’s committee told The Daily Caller the committee “remains interested” and is “looking forward” to findings from an ongoing Government Accountability Office investigation, which is expected to come out within the next couple of months. What Turner and Burton are saying happened during the GM bailout is that Treasury Secretary Timothy Geithner decided to cut pensions for salaried non-union employees at Delphi, a GM spinoff, to expedite GM’s emergence from bankruptcy. The problem with that, according to the congressmen, is that Geithner decided to fully fund the pensions of union workers involved in the process – including workers associated with United Auto Workers, Steelworkers and the IUE-CWA.

“This is a terrible injustice. This is a political decision, not a legal or financial decision,” Turner said in a phone interview with TheDC. “There were people who were penalized and people were chosen as winners and losers. The White House, the administration and the Auto Task Force (ATF) decided who were going to receive their pensions and who were not.”

Bear in mind that this wasn’t some sharing of the burden, no spreading the pain around (rather than the wealth). The Delphi employees saw their pensions savaged while union workers had theirs made whole — at taxpayer expense.

Further on in the article, it becomes clear that the complaint of the Delphi employees (at least those interviewed) is that they didn’t share in the largesse. While I can sympathize, to have bailed them out, too, would have been wrong. What should have happened is a GM bankruptcy that would have cleared existing contracts and brought in new management to try to restore the company to health. Yes, it would have been more painful short-term for everyone, but much better for the regional and the American economies in the long run than the current zombie corporation, which exists only as an appendage of the government.

(Oh, and bondholders wouldn’t have been strong-armed out of their rights, either.)

That said, this picking of winners and losers is another illustration of who the administration thinks its real constituents are.

Just look for the union label.

(Crossposted at Sister Toldjah)