Federal auditor: Obama’s anti-foreclosure effort is a failure

Ask yourself, who benefited from Obama’s anti-foreclosure programs? Why it was the banks, of course.

“Others, who may have somehow found ways to continue to make their mortgage payments, have been drawn into failed trial modifications that have left them with more principal outstanding on their loans, less home equity (or a position further ‘underwater’), and worse credit scores.

“Perhaps worst of all,” it continues, “even in circumstances where they never missed a payment, they may face back payments, penalties, and even late fees that suddenly become due on their ‘modified’ mortgages and that they are unable to pay, thus resulting in the very loss of their homes that HAMP is meant to prevent.”

The banks profited, Obama happily allowed this to happen, and homeowners got screwed.

Ratigan: Obama lies about bailout

http://www.youtube.com/watch?v=lDJc0PZV-Bk&feature=player_embedded

Zero Hedge.

The real question is why is Ratigan the only person who not only sees this, but has the guts to say it on national television TV.

Here’s the transcript of what Ratigan said (also from Zero hedge)

The president continues to say in public that banks have almost paid Americans back. That is a lie. The fact is the TARP which congress approved is only 2% of trillions of dollars in free money being provided to our banks by the Federal Reserve and our Treasury. The American people know this. They know that they are subsidizing our banking sector. And yet the TARP lie continues to be spread by our politicians. Our problem, Mr. President, is either you don’t understand it, which I doubt, I’m sure you do. You don’t want the American people to understand it, which would be understandable, although I also doubt that.

Or perhaps you are doubting no one will notice all the other support and the big spending from the Fed will make the whole thing go away, which I think is what is really going on. But I am here to tell you the problem will not go away until you actually fix it.

You see, we know, the American people know, that the CEOs of the banks turned into casinos, like Goldman Sachs, JP Morgan, Citi and AIG have paid themselves hundreds of billions of dollars building the debt bombs I was just talking about and exploiting the zero percent money from the Fed and the free money they get from the Treasury. The rewards for this go to bankers in the form of compensation, particularly the CEOs who decide how much risk the banks can take.

Meanwhile the risks those banks take, ultimately the losses on all their gambling, go to us, the people and are harvested from our labor in the form of taxes. And worse the extraordinary returns offered by the bankers’ fraudulent practices are like a black hole for America sucking money that would otherwise be getting invested in our country, but why would I go to the trouble of dealing with the investment when I have a funny money machine legalized by the government that’s done in secret at the bank.

Adding insult to injury the same giant banks are using the free money access granted to them by the political body to lend to foreign countries that seek to compete with us. The banks do this because it’s more profitable for the bank CEOs to lend to them than to go to the trouble to lending to America even if it’s coming at America’s expense. Why would we, the people, vote for you, the politicians, to do that to us. It’s beyond my comprehension and I suspect almost every other American who understands it.

Has the New York Fed been serving the public trust? Has Geithner?

Did you know the NY Fed is privately owned, makes handsome profits, refuses to open its bokks, and is generally run by investment bankers? Which begs the question, do they serve the public.

The secretive “blob” on Capitol Hill that’s blocking any hope of financial reform. It’s bi-partisan, of course.

The only way we will clean up the sewer that is DC and Wall Street is with a populist firestorm that forces them out of power and into prison. Because they will never reform themselves. Yes, I do believe that firestorm is coming. From all sides of the political spectrum too.

Obama hearts the bankers. Hugs Geithner. Because everything is just fine

Poor deluded fools like myself clearly to not get that Obama’s bailout plan will be looked at ten years from now as pure genius. That’s the word from his staffers, and why he gave a big hug to Timmy G. at the SOTU address. You see, Obama believes Geithner and the bailout plan are without blemish.

Except that grumpy TARP cop Barofsky is mucking things up, saying the plan has failed. What’s worse, he’s got 77 criminal and civil investigations going on now into what happened. He’s even said “We will see handcuffs.” Why that’s just rude, considering all the White House has done for the banksters.

So, it’s probably time for Barofsky – as they so indelicately put it in Texas – to be found in bed with a live boy or a dead girl, something that will knock him down and out. Oh wait, they tried that with Spitzer, didn’t they? Yet he’s back in action, clobbering the banksters. Dang.

(In retrospect, it seems quite a coincidence that Spitzer’s incredibly stupid and risky behavior was publicly exposed in May 2008 precisely when he was about to testify before Congress about bond industry. At the time, I thought such conspiracy theories to be outlandish. Maybe not.)

TARP special investigator: “We will see handcuffs”

Visit msnbc.com for breaking news, world news, and news about the economy

Neil Barofsky, the special inspector-general overseeing the US government’s financial rescue efforts, is to probe allegations of insider trading among bank executives and their associates.

He has launched 77 criminal and civil investigations into insider trading and other possible slimy dealings by the bankers after the TARP bailout. Also, the Fed refused to turn over documents to him that later surfaced in the congressional investigation. He wants to know why. So far, a few arrests have been made, with large-scale investigations in process.

Barofsky can launch investigations, but the prosecution is through DoJ. If the fix is in and they want to kill investigations, that’s where it will come from. Barofsky is the real deal, and deserves our complete support. As Eliot Spitzer says in the video, Barofsky is a hero.

Video Tip. The Big Picture

Bailout watchdog: TARP’s a flop


Chart from Business Insider (Read the whole article)

The watchdog charged with monitoring the government’s $700 billion bailout unleashed one of his harshest criticisms of the program to date, questioning its overall effectiveness.

Specifically, TARP has neither boosted bank lending nor decreased the number of foreclosures. Plus, it risks “re-inflating the bubble.” In other words, it’s been a failure.

Except for investment banks, that is, they’ve made windfall profits and paid themselves obscene bonuses. After being bailed out by the government with taxpayer money. They now can borrow money at virtually zero percent from the Fed then reinvest it in government securities for a guaranteed 3%+ return. Why should they lend money to you?

Geithner continues to demonstrate that his first and sole alliance is to investment banks, with little if any thought given to the public good.

Washington Note relates how someone suggested to Geithner that the highly qualified Elizabeth Warren be appointed to a Treasury Deputy Secretary position.

Elizabeth Warren is the Leo Gottlieb Professor of Law at Harvard Law School, Chair of the Congressional Oversight Panel created to investigate the U.S. banking bailout (TARP), and first developed the notion of a Consumer Financial Protection Agency.

Geithner’s alleged response: “Wall Street wouldn’t like it.”

No kidding!

For Geithner, that’s all that matters. Will the Street like it? After all, that’s where he’s from, and where he’s going back to. He’ll be amply rewarded for his efforts. Concerns for the American public do not enter into his calculations.