Obama Program That Hurt Homeowners and Helped Big Banks Is Ending
"When President Obama announced the Home Affordable Modification Program, or HAMP, on February 18, 2009, in Mesa, Arizona, he promised it would assist 3 to 4 million homeowners to modify their loans to avoid foreclosure. Almost seven years later, less than 1 million have received ongoing assistance; nearly one in three re-defaulted after receiving inadequate modifications; and 6 million families lost their homes over the same time period.
"Now the program is ending."
------------
To me, HAMP is a symbol of the Obama administration's disastrous decision to put the welfare of the big banks that crashed the housing market and the world economy ahead of the millions of homeowners who lost their home equity, their homes, their jobs, and their retirement security. Obama had a historic opportunity to break up these predatory banks, send a whole lot of banksters to prison, make the banks refinance underwater mortgages so that people could stay in their homes, and set up much stronger regulation of a metastasizing financial industry that even now has us all at risk again. Instead he decided to bail out the banks and insurance companies without insisting on structural changes.
Friday, January 01, 2016
Harbours Condominium lawsuit finds no wrongdoing - News and Tribune: News
Harbours Condominium lawsuit finds no wrongdoing - News and Tribune: News
Well, that's one way to put it, but there seems to have been another outcome:
"Although the state office wasn't able to find fraud or serious wrongdoing, Attorney General Greg Zoeller said changes to Indiana law that the case inspired were the most important result. 'When we first started, we didn't have the authority to review the finances of the homeowners association,' Zoeller said.
The statute that gave the attorney general the authority to investigate and take action on nonprofit organizations excluded homeowners associations. In 2011, the Indiana Legislature granted Zoeller that authority, largely because of the Harbours case, a news release states. That law was expanded in 2015 to give members of homeowners associations better access to financial information."
Well, that's one way to put it, but there seems to have been another outcome:
"Although the state office wasn't able to find fraud or serious wrongdoing, Attorney General Greg Zoeller said changes to Indiana law that the case inspired were the most important result. 'When we first started, we didn't have the authority to review the finances of the homeowners association,' Zoeller said.
The statute that gave the attorney general the authority to investigate and take action on nonprofit organizations excluded homeowners associations. In 2011, the Indiana Legislature granted Zoeller that authority, largely because of the Harbours case, a news release states. That law was expanded in 2015 to give members of homeowners associations better access to financial information."
Thursday, December 31, 2015
Russia eyes trillion rubles from privatization in 2016: finance minister | Reuters
Russia eyes trillion rubles from privatization in 2016: finance minister | Reuters
Here's the way they tell the story:
"Russia aims to raise 1 trillion rubles ($13.53 billion) from privatization next year, Finance Minister Anton Siluanov said in an interview aired on Thursday, signaling a major acceleration of plans to sell state assets. These plans, ambitious on paper, have largely ground to a halt over the last three years against the background of poor stock market conditions, exacerbated by a plunge in oil prices and Western sanctions linked to the Ukraine conflict. However, the same negative economic developments also mean that the government is increasingly strapped for cash, giving it an incentive to speed up privatization as an alternative to raising taxes, cutting spending or exhausting fiscal reserves."
------------
Privatization in Russia is basically another word for corruption, and here they go again. In the US privatization usually means contracting out, regulated monopolies, concessions, franchises, or vouchers. In Russia, as in Europe, it usually means selling off public assets that were built and maintained at public expense, and that now become the property of some plutocrat who is, of course, not paying huge bribes to government officials, so don't ask. In case you were wondering what could be left to privatize, after they sold off the government industries and farms in the early 1990s, the answer is simple: oil companies. After all, as somebody put it, Russia has become a big gas station that produces almost nothing the world wants except oil and gas:
"He added that "in the first instance" the state oil firm Rosen (ROSN.MM) was being prepared for privatization. Bashneft (BANE.MM), a smaller oil company that was renationalized last year, is also under consideration."
Here's the way they tell the story:
"Russia aims to raise 1 trillion rubles ($13.53 billion) from privatization next year, Finance Minister Anton Siluanov said in an interview aired on Thursday, signaling a major acceleration of plans to sell state assets. These plans, ambitious on paper, have largely ground to a halt over the last three years against the background of poor stock market conditions, exacerbated by a plunge in oil prices and Western sanctions linked to the Ukraine conflict. However, the same negative economic developments also mean that the government is increasingly strapped for cash, giving it an incentive to speed up privatization as an alternative to raising taxes, cutting spending or exhausting fiscal reserves."
------------
Privatization in Russia is basically another word for corruption, and here they go again. In the US privatization usually means contracting out, regulated monopolies, concessions, franchises, or vouchers. In Russia, as in Europe, it usually means selling off public assets that were built and maintained at public expense, and that now become the property of some plutocrat who is, of course, not paying huge bribes to government officials, so don't ask. In case you were wondering what could be left to privatize, after they sold off the government industries and farms in the early 1990s, the answer is simple: oil companies. After all, as somebody put it, Russia has become a big gas station that produces almost nothing the world wants except oil and gas:
"He added that "in the first instance" the state oil firm Rosen (ROSN.MM) was being prepared for privatization. Bashneft (BANE.MM), a smaller oil company that was renationalized last year, is also under consideration."
Cintra, Macquarie file bankruptcy on Indiana Toll Road | Examiner.com
Cintra, Macquarie file bankruptcy on Indiana Toll Road | Examiner.com
This is from September, 2014, but I just ran across it. This article lays out the way the "private-public partnership" (PPP) works, using the vaunted Indiana Toll Road privatization as an example. It starts when a state or local government decides that bonds, taxes, and user fees won't do to pay for a highway or other major infrastructure, so they consult some big investment bank about "creative financing" arrangements. The bank finds some gigantic pools of money floating around--sovereign wealth funds, hedge funds, and so forth--and they "lease" the asset from the state, using bonds to pay themselves back. The lease is for longer than the useful life of the asset. They set up a shell corporation--called a concessionaire--to operate the highway as a toll road. The toll doubles so the consumer gets hit, the investors get huge profits up front during the next 5-10 years, and then, when the asset is used up and needs work, they bankrupt the shell concessionaire. The losses fall on whoever gets stuck with the asset after the music stops, or the whole deal gets repackaged for a new investor. As the article explains:
"They structure the deals to be extremely long leases so that they can depreciate the road as an asset on their taxes. They put very little of their own money at risk as the equity (a mere $800 million out of a total $3.8 billion), and allow the private bond investors and/or taxpayers to take on the risk for the vast majority of its debt. The companies get their own equity back with some profit in just a few short years of collecting tolls. This leaves the other investors to the take the actual losses just about when the road is going to go bankrupt, and often when the road is also in need of major maintenance or rehabilitation."
And at the point the public is stuck with a used-up highway or other asset that they actually need to use to, you know, get to work. Now, you might think that this scam could be run only once, but it has been done many times. Does it surprise you that Texas thinks this is a great way to do things? What is even stranger is that this sort of thing is all the rage in Washington. The Treasury and DOT produced this paper: "Expanding the Nation's Infrastructure through Innovative Financing." It is quite enthusiastic about PPPs, despite the way they work out in practice, often to the detriment of the public:
https://www.treasury.gov/press-center/press-releases/Documents/Expanding%20our%20Nation's%20Infrastructure%20through%20Innovative%20Financing.pdf
But then again, given that so many Americans have been brainwashed into hating the very idea of government, it is no surprise that they allow themselves to become victims of privatization schemes. All you have to do is promise people that "the private sector" is more efficient and that you will eliminate "waste, fraud, and abuse," and ordinary people go along with schemes that cost them jobs and money and wreck the public assets they need. But don't try and tell them that, because they heard The Truth from Fox News or Rush Limbaugh.
If you need more, here is a three-part series that explains it.
This is from September, 2014, but I just ran across it. This article lays out the way the "private-public partnership" (PPP) works, using the vaunted Indiana Toll Road privatization as an example. It starts when a state or local government decides that bonds, taxes, and user fees won't do to pay for a highway or other major infrastructure, so they consult some big investment bank about "creative financing" arrangements. The bank finds some gigantic pools of money floating around--sovereign wealth funds, hedge funds, and so forth--and they "lease" the asset from the state, using bonds to pay themselves back. The lease is for longer than the useful life of the asset. They set up a shell corporation--called a concessionaire--to operate the highway as a toll road. The toll doubles so the consumer gets hit, the investors get huge profits up front during the next 5-10 years, and then, when the asset is used up and needs work, they bankrupt the shell concessionaire. The losses fall on whoever gets stuck with the asset after the music stops, or the whole deal gets repackaged for a new investor. As the article explains:
"They structure the deals to be extremely long leases so that they can depreciate the road as an asset on their taxes. They put very little of their own money at risk as the equity (a mere $800 million out of a total $3.8 billion), and allow the private bond investors and/or taxpayers to take on the risk for the vast majority of its debt. The companies get their own equity back with some profit in just a few short years of collecting tolls. This leaves the other investors to the take the actual losses just about when the road is going to go bankrupt, and often when the road is also in need of major maintenance or rehabilitation."
And at the point the public is stuck with a used-up highway or other asset that they actually need to use to, you know, get to work. Now, you might think that this scam could be run only once, but it has been done many times. Does it surprise you that Texas thinks this is a great way to do things? What is even stranger is that this sort of thing is all the rage in Washington. The Treasury and DOT produced this paper: "Expanding the Nation's Infrastructure through Innovative Financing." It is quite enthusiastic about PPPs, despite the way they work out in practice, often to the detriment of the public:
https://www.treasury.gov/press-center/press-releases/Documents/Expanding%20our%20Nation's%20Infrastructure%20through%20Innovative%20Financing.pdf
But then again, given that so many Americans have been brainwashed into hating the very idea of government, it is no surprise that they allow themselves to become victims of privatization schemes. All you have to do is promise people that "the private sector" is more efficient and that you will eliminate "waste, fraud, and abuse," and ordinary people go along with schemes that cost them jobs and money and wreck the public assets they need. But don't try and tell them that, because they heard The Truth from Fox News or Rush Limbaugh.
If you need more, here is a three-part series that explains it.
Wednesday, December 30, 2015
Homeowners uncertain of next step for flooded homes | KOMU.com | Columbia, MO |
Homeowners uncertain of next step for flooded homes | KOMU.com | Columbia, MO
This story is about Lake of the Ozarks, but it could just as easily come from any number of towns where people's homes are under water up to the roof line. The private and public costs to restore people's homes will be enormous.
This story is about Lake of the Ozarks, but it could just as easily come from any number of towns where people's homes are under water up to the roof line. The private and public costs to restore people's homes will be enormous.
'Trump Filter' Lets You Surf the Internet Without Seeing Donald Trump - Fortune
'Trump Filter' Lets You Surf the Internet Without Seeing Donald Trump - Fortune
Now if I can just get one for television.
Now if I can just get one for television.
Forecast for 2016 housing market
And the forecast is dinky condos for everybody under 40.
http://www.nbcnews.com/storyline/2015-year-in-review/will-housing-logjam-bust-2016-don-t-bet-mortgage-or-n487611?cid=sm_tw&hootPostID=4b446a66fb1cb79ce9b90b6d8e895280
http://www.nbcnews.com/storyline/2015-year-in-review/will-housing-logjam-bust-2016-don-t-bet-mortgage-or-n487611?cid=sm_tw&hootPostID=4b446a66fb1cb79ce9b90b6d8e895280
Subscribe to:
Posts (Atom)