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California Cities Considering (Legal?) Theft of Private Property

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California Cities Considering (Legal?) Theft of Private Property

Courtesy of Dr. Paul Price at Beating Buffett

All Americans should be very, very alarmed. Today’s Wall Street Journal ran a front page story on a proposal put forth by Mortgage Resolution Partners LLC as a ‘solution’ to the problem of underwater mortgages. When you read their PowerPoint presentation for comprehension it is clearly threatening to all commonly perceived rights of private property and free will.

Here is their summary slide describing the program…

The essence of the plan is to force private owners of mortgages to sell them to Mortgage Resolution Partners LLC [MRT] under the guise of eminent domain. MRT would initially only ‘take’ mortgages that are underwater based on estimated market value but that are current on their payments [NOT in default].

This is MRP’s own description of which loans they intend to seize…

Non-defaulted but underwater mortgages are highly profitable to those holding the paper.  Payments are being made as scheduled at interest rates generally well above today’s rates on similar mortgages. This would be similar to your holding an older non-callable 10-year CD or bond at a 7% annual interest rate. You would never want to give that up early except at a premium to face value.

The borrowers, by definition, have the ability to pay the monthly amounts due. That’s why they are not in default. The current market value of their homes has no bearing on their ability to pay the mortgage. That is a function of some combination of the borrower’s income and assets.

MRP would not only be confiscating highly desirable assets from private citizens or businesses but they’d also be setting artificially low prices as compensation.

The following are excerpted directly from MRP’s own PowerPoint.

Note the phrase “Neither under any compulsion to transact.” Eminent domain is the exact opposite. Holders of not in default mortgages would be forced to sell, period.

Not everyone is a mortgage lender. Many more investors own stocks. Imagine that someone could come along after a big stock market crash (such as Oct. 1987, Aug. 1998, post-Sep. 11, 2001, Aug. 2010, Oct. 2011 etc.) and determine you must sell them all your underwater shares, and at a discount to their already depressed market prices. In essence that would be an involuntary margin sell-out even if you were not on margin!

 

MRP will make money by seizing privately held mortgages through government action at “fair value” which MRP then defines as “significantly less than the fair value of the home.”

This is nothing short of the improper taking of private property against the will of the holder of said property.

Favored (politically connected?) borrowers who are financially able to keep paying their mortgages as promised contractually will get principal reductions (free money) at the expense of those who entered into valid contracts with them. Can you say “involuntary transfer of wealth?”

MRP likes to say:

Consider this…

The windfall profits of the ‘lucky’ homeowners who receive principal reduction will likely not be taxed. While MRP implies that the forgone tax receipts would not be used for purchase of boats, cars or other non-necessities there would be no possible way to enforce this. Money is fungible.

When taxes are forgiven for one group of taxpayers all other taxpayers must pay more to make up the difference.

MRP is offering ipso facto ‘bribes’ to government entities and charities to induce their participation in this scheme. OPM [confiscated from the original lenders] is always welcomed by these groups.

How bad will the ‘Fair Pricing” of the non-defaulted loans be for those forced to sell them? Bad enough to provide funding for MRP’s employees, MRP’s fees, all legal expenses, all debt forgiveness, all forgone future interest payments and money enough to ‘share’ with local government agencies and/or charities.

Once the fiscal rape of the original mortgage holders is completed… newly created, now very attractive MBS would be shopped to private investors who would profit from the value taken away from the rightful owners of these debts.

Didn’t private mortgage holders have a lot of MERS-related issues? Yes. For MRP though, these will be totally ignored and set aside.

To Summarize:

1.     Highly profitable, non-defaulted mortgage loans will be involuntarily confiscated from their legal owners through eminent domain.

2.     The owners of the ‘condemned’ loans will have no legal rights of refusal other than to challenge the ‘fair values’ after the fact- at great legal expense.

3.     A small subset of underwater borrowers who are not in default and able to pay their monthly mortgageswill be rewarded with principal and future interest write-offs.

4.     These ‘lucky’ borrowers will almost certainly pay no federal or California income taxes on their windfall profits due to this program.

5.     Mortgage Resolution Trust will collect enormous fees for their administration of this dubious project.

6.     Private investors (other than you and me) will be permitted to buy newly issued, highly desirable revalued to current market price MBS.

7.     MERS problems unilaterally and quickly disappear.

8.     Privately held Home Equity Lines of Credit [HELOCs] and second mortgages are extinguished in most cases with no chance for recovery.

9.     Government programs and/or charities will share the wealth to encourage their participation in these unprecedented takings of privately held assets.

Stop this insanity. Demand a return to rule of law before it disappears entirely.

Dr. Paul Price

www.BeatingBuffett.com

 

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Mon, 07/23/2012 - 10:10 | 2642349 Remington IV
Remington IV's picture

Nancy Pelosi

Diane Feinstein

Maxine Waters

Jerry Brown

 

hmmmmmmmmmmmmm

Sun, 07/08/2012 - 06:37 | 2596014 Catullus
Catullus's picture

Great article until this line came out:

When taxes are forgiven for one group of taxpayers all other taxpayers must pay more to make up the difference.

That's not true.  The government just borrows more.  Someone else not paying their taxes has nothing to do with you. 

Sat, 07/07/2012 - 15:46 | 2595212 lakecity55
lakecity55's picture

Well, hey, you do not have private property in a communist regime.

Isn't that why BHO was elected?

Private Property is so... Freedom Oriented.

Can't have that, can we, Comrades?

Sat, 07/07/2012 - 14:54 | 2595113 Joebloinvestor
Joebloinvestor's picture

The Feds and state are reintroducing property seizure against dispensaries (now that they have a list of registered places, it is much easier)

After 20 years, they think people have forgotten what it leads to:

Donald Scott, a 61-year-old wealthy Malibu rancher, was murdered in 1992 by a joint task force (comprised of members of the Los Angeles County Sheriff's Department, L.A.P.D., Park Service, D.E.A., Forest Service, California National Guard, and California Bureau of Narcotics ) conducting an early-morning raid on the pretense that Scott was growing pot on his property. Responding to his wife's screams, a clueless Scott grabbed a gun and confronted the intruders. Two bullets were pumped into him. No pot was found. Ventura County District Attorney Michael D. Bradbury released a report criticizing the task force for using false information to secure a search warrant. Bradbury characterized the effort as an attempt to use forfeiture laws to slice up Scott's considerable assets between the participating agencies. "Clearly one of the primary purposes was a land grab by the Sheriff's Department," Bradbury wrote. They had obtained an appraisal of the property weeks before the raid. Los Angeles County and the feds tentatively agreed to pay $5 million to Scott's survivors.

 

 

Sat, 07/07/2012 - 13:39 | 2594966 prole
prole's picture

Well if you ZHers want to know how the sheople feel about this: IDFK what they are even talking about.

When the 'scam' is too complex for your average dumba$$ to even understand, IMO it's also guaranteed to work

If anyone wants to break down what is actually happening in terms a sheeple can understand, feel free to do so, I'll try to figure it out

over

Sat, 07/07/2012 - 13:18 | 2594933 riley martini
riley martini's picture

Return to the rule of law . Good one . Those original lenders were running an on going criminal enterprise RICO. It was fraudulent mertgages that drove house prices to 20 times income . Still a strange way to discard the excess created by fraud . Probably better than inflation . The primary fraudsters should be targeted.

Sat, 07/07/2012 - 13:07 | 2594914 Fox Moulder
Fox Moulder's picture

And now, with the Roberts decision on Obamacare, they can tax you if you don't agree.

Sat, 07/07/2012 - 13:21 | 2594937 HungrySeagull
HungrySeagull's picture

There is one method to fight taxes and it is extreme. Actually two.

The first is peaceful resistance by having zero income after AGI. That means not living high on the hog but within your means cash each month.

What are they gonna do? Burden you with tax Liens? HAH.

The second is in our Constitution. If a Government is becoming so burdensome....

Sat, 07/07/2012 - 13:46 | 2594977 Fox Moulder
Fox Moulder's picture

1. Obamacare invented the MAGI - Modified Adjusted Gross Income, which includes "tax-free" interest income.

 

2. That's the Declaration of Independence.

Sat, 07/07/2012 - 12:35 | 2594866 Judge Arrow
Judge Arrow's picture

so let me see if I get this  -  mobsters and california politicians (I know that's redundant)  seize a property and then make the dweller an offer he can't refuse to pay them and when that is all said and done there is a new train to ride to another location where this can be repeated - until finally nothing has any value at all and that will be called the new economy in the mainstream media - hey, of course, nowhere to go but up. 

Sat, 07/07/2012 - 13:17 | 2594932 HungrySeagull
HungrySeagull's picture

Let me get this straight.

Joe Schmuck pays 1 dollar a month for mortgage. He has been faithfully paying this on time every month auto drafted to the lender aka payme bank.

City is not happy that Joe Schmuck pays very little in taxes but are unable to do anything because the taxes are paid on time.

So City and Bank get together and takes Joe out of the home and conspire to resell the house at current rates and current taxes.

Joe Schmuck is left with a tiny check, and no home.

While city and bank divides up the spoils and relists the home for more profit.

If this is the way it's going, it needs to be stopped. If you are current on your payments no one can touch you unless you were running a meth lab or some other stupid shit in your home.

If you are free and clear, they cannot touch you.

Or can they?

I think it is high time you city folk vote with your guns and feet. GTFO of there and move to a free state where this kind of shit dont fly.

Now, in our area some buildings have been condemned and must be torn down. Nothing is kept secret and even the village idiot knew over a year ago that these particular homes and buildings are going to be "Gone"

Some are being rebuilt properly and will raise values when completed.

I am beginning to think they are deliberately making:

No Country for the Citizen.

Sat, 07/07/2012 - 19:37 | 2595550 lakecity55
lakecity55's picture

Haha. Make that no Citizen for the country, only a slave for the State.

Sat, 07/07/2012 - 13:53 | 2594988 Fox Moulder
Fox Moulder's picture

It's more like Joe Asshole the pension fund manager buys a pool of mortgages. He happens to be lucky and all of the borrowers are paying on time, even though their homes are underwater. Along comes the State and MRP and says "We are going to eminent-domain your mortgages and pay you 10 cents on the dollar. Then we will sell a new mortage to Joe Schmuck at a reduced principle. And BTW the Feds and State government can't count the reduction as income."

 

I think CalPERS might be opposed.

Sat, 07/07/2012 - 13:13 | 2594926 mrdenis
mrdenis's picture

othing new here ,Towns and politicians have been doing this for years through property tax conficiation .....hell how do you think we got Manhattan fron the indians 

Sat, 07/07/2012 - 13:09 | 2594919 algol_dog
algol_dog's picture

Come on man ... It's called financial innovation.

Sat, 07/07/2012 - 12:33 | 2594858 Snakeeyes
Snakeeyes's picture

http://confoundedinterest.wordpress.com/2012/06/29/trust-investor-rights...

I was on the conference call where investors were sounding the alarm wiith San Bernardino County. It is scary. They have crossed the line and didn't even flinch. 

This is just the beginning, folks.

Sat, 07/07/2012 - 12:31 | 2594851 Snakeeyes
Snakeeyes's picture

The WSJ article almost sounds supportive of MARXIST PROPERTY SEIZURES!!!!!!!!

I wrote this a couple of weeks ago. I was on the conference call with the San Berdoo City Manager.

http://confoundedinterest.wordpress.com/2012/06/29/trust-investor-rights...

It is true. We are numb to the crimes of government.

Sat, 07/07/2012 - 15:43 | 2595206 brettd
brettd's picture

I am not numb to it...I simply don't know one real, practical thing to do to fight it.

I frequently hear people about pitchforks and guns, but I'm always faced with this question:

Who's on the "pitchfork" list?

Sat, 07/07/2012 - 12:23 | 2594832 tony bonn
tony bonn's picture

the rule of law has already disappeared - it's too late to save it....america is a nazi state ruled by elite oligarchs who could not, even if they wanted, give a flying fuck about your little property or some relic right you think you have in the constitution.....bush, jr stated it so eloquently - "the constitution is nothing but a goddamned piece of paper."

 

Sat, 07/07/2012 - 12:00 | 2594764 tlnzz
tlnzz's picture

 It's all becoming a free for all. Descending further into lawlessness. It's been relatively peaceful for now. We are reaching a point where if the powers that be don't have to abide by the laws, then neither should anyone else. We are very close to a major tipping point.

Sat, 07/07/2012 - 11:55 | 2594758 Benjamin Glutton
Benjamin Glutton's picture
BOOM! Mortgage Promissory Notes Are NOT NEGOTIABLE INSTRUMENTS… ONE OF FLORIDA’S BEST JUDGES FINDS…

Posted by 4closureFraud on July 6, 2012

 

Let’s start with real basic stuff here. Sometimes law is complex, nuanced, difficult. Other times it’s black and white…you just read the words, look at the facts and the answer is unavoidable. Such is the case with the simmering dispute over the fact that the notes that are part of nearly every residential foreclosure case are not negotiable instruments. Oh sure, too many courts won’t take the time to consider the argument and…just yesterday I heard an appellate court argument where the judges just kept repeating the mantra, “this is a negotiable instrument” without ever doing any analysis at all and without any finding of that “fact” from the trial court. The attorney needed to stop the appellate judge right there and say, “No Your Honor, it’s Not A Negotiable Instrument”.

Just last week, in a trial court, here’s exactly they way it went down. Now, keep in mind, this argument in court was supplemented by a long and detailed memo similar to the one attached here. The best part it was in front of one of Florida’s most respected and brilliant judges. He’s been on the bench longer than I’ve been alive, he knows more law in the tip of his finger than most lawyers get in their whole bodies in an entire lifetime, he’s presided over tens of thousands of foreclosure cases. It was a beautiful thing to see an argument before a dedicated jurist whose seen and heard it all before that really made him sit up, dig in to those decades of judicial wisdom and then do the heavy lifting. That’s one of the beautiful things about this job….despite decades of work and hundreds of years of law, out of nowhere something new and exciting can still get the intellect and wisdom fired up and shooting like a cannon. Here’s how it goes down:

Your honor, I’ve highlighted and present for you the statutory definition of a “negotiable instrument”. Because it’s a statutory definition, it’s black and white. We cannot alter or weave or color it with shades of gray….here’s what it is:

673.1041 Negotiable instrument.—
(1) Except as provided in subsections (3), (4), and (11), the term “negotiable instrument” means
an unconditional promise or order to pay a fixed amount of money, with or without interest or other
charges described in the promise or order, if it:
(a) Is payable to bearer or to order at the time it is issued or first comes into possession of a
holder;
(b) Is payable on demand or at a definite time; and
(c) Does not state any other undertaking or instruction by the person promising or ordering
payment to do any act in addition to the payment of money.

FL Article 3

Be sure to check out the rest here…

~

4closureFraud.org

 

One note one payment/receipt one properly recorded transfer? Quick, fire up the eminent domain machine!!!

Sat, 07/07/2012 - 11:51 | 2594749 LMAOLORI
LMAOLORI's picture

They are obama's buddies just more of his Crony Communism

 

 

Investors With Ties To Buffett, Soros, Obama Plan Mortgage Eminent Domain Grab

 

 

http://www.futureofcapitalism.com/2012/06/investors-with-ties-to-buffett-soros-obama-plan

 

 

Buffett Extends Real-Estate Bet With ResCap Pursuit: Mortgages

http://www.bloomberg.com/news/2012-06-18/buffett-extends-real-estate-bet-with-rescap-pursuit-mortgages.html

 

Sat, 07/07/2012 - 11:50 | 2594746 LMAOLORI
LMAOLORI's picture

They are obama's buddies just more of his Crony Communism

 

Investors With Ties To Buffett, Soros, Obama Plan Mortgage Eminent Domain Grab

 

http://www.futureofcapitalism.com/2012/06/investors-with-ties-to-buffett-soros-obama-plan

 

Buffett Extends Real-Estate Bet With ResCap Pursuit: Mortgages

http://www.bloomberg.com/news/2012-06-18/buffett-extends-real-estate-bet-with-rescap-pursuit-mortgages.html

Sat, 07/07/2012 - 11:31 | 2594714 lightning
lightning's picture

One thing to remember is under eminent domain the city got a valuable asset.  Under this deal the city gains little, small local banks will get screwed, and the city will run the risk of depleted tax revenues.  Why?  If you have local banks (who pay local taxes because they are based there and not somewhere else like TBTF) take too many losses they go out of business.  You also have the underwater homeowner who may not qualify to refinance now in spite of being current on their mortgage payments.  Credit worthiness is more than simply paying your mortgage.  Hence they end up homeless because MRP will seize the house.  Rents are going up and vacancies are low.  This will impact city coffers in a bad way. 

Sat, 07/07/2012 - 11:27 | 2594704 q99x2
q99x2's picture

In the past that was one of the reasons people kept firearms.

Sat, 07/07/2012 - 11:33 | 2594718 Sleepless Knight
Sleepless Knight's picture

And its the reason fire arms sales are at an all time high - for the future

Sat, 07/07/2012 - 11:21 | 2594698 lightning
lightning's picture

I seriously doubt they will be successful in doing this.  This is way outside eminent domain.  Eminent domain seizes "real" property not contracts (ie mortgages).  You would need to re-write contract case law in this country to make this happen.  As someone else mentioned, the banks are going to be the ones to suffer, and why would they?  They haven't had to mark their underwater home loans to market since 08.  Why take a loss now, especially since eminent domain has never before been used to confiscate a contract.  Small banks will throw a hissy fit, and since most local governments rely on them rather than TBTF for their local taxes, it is questionable exactly how profitable this will be to the cities themselves.  You also have the question of whether they will actually be able to re-finance with the homeowner.  Just because they were able to qualify for a loan four years ago and are current on their mortgage now does not mean they can qualify for one now.  What if they can't?  MRP seizes the house and the loan?  Good deal if they can get it, but considering the damage this would do in terms of contract law, I do not think this will fly.

Sat, 07/07/2012 - 11:48 | 2594741 mind_imminst
mind_imminst's picture

I seriously doubt this will fly either, but the courts have surprised me before. The Kelo Supreme Court decision was awful for property rights. The Supremes basically gave government entities carte blanche to take any property for any reason. And they just gave government entities the power to compel all citizens to purchase anything they desire with the Obamacare decision. If this MRP idea ever went through the courts up to the Supremes, I would be worried. They can't be trusted with interpreting plain constitutional rights, private property, theft, such things.

Sat, 07/07/2012 - 11:07 | 2594684 Haloween1
Haloween1's picture

Hey, they threw the creditors under the bus when they nationalized GM, why do you think they would stop there?

Part of the reason we're still suffering economic weakness is due to people with money afraid to lend it out because of this kind of threats from our government leaders.  They're buying Treasuries at negative interest rates rather than to lend it to someone who could use it to run their business.

 

Sat, 07/07/2012 - 12:59 | 2594903 Mesquite
Mesquite's picture

And then GM starts moving it's manufacturing to China..!!

Sat, 07/07/2012 - 11:03 | 2594680 chunga
chunga's picture

MERS - The Secret Electronic Mortgage Society.

Nothing is as it seems. Tak a look at what the Illinois Bankers Association recently had to say.

We are particularly concerned with the implications of the Subcommittee’s recommendations in point 3 requiring that “a copy of each assignment of the mortgage be attached to the foreclosure complaint, and that a copy of the note, as it currently exists, including all endorsements and allonges” also be attached to the complaint. Our concern is further heightened by the statement in footnote 1 of the second proposed version of the “Affidavit of Amounts Due and Owing” that the affidavit “is not intended to relieve the foreclosing party from establishing . . . the party’s right to enforce the instrument of indebtedness if applicable.”

Securitization fail is getting traction in some courts and that is what they fear. More from IBA:

Advocates of this result apparently are not concerned with its implications beyond the context of a given lawsuit or class of lawsuits, but the rest of us should be, for obvious reasons. Fannie Mae and Freddie Mac together hold over $5.3 trillion in home mortgages, nearly half the entire residential mortgage market in the United States. Viewed on a prospective basis, Fannie and Freddie presently are issuing more than 95% of all mortgage-backed securities in the country.6 The notion that defaults on these notes cannot effectively be pursued in Illinois courts is untenable. To suggest that tens of thousands of seriously delinquent borrowers should retain their properties in de facto fee simple – which is what would happen, since there would be no other parties to foreclose on these loans (a result that also would encourage many thousands more to strategically default on their loans) – would be to accept a future in which almost no residential mortgages could or would be underwritten in the state of Illinois.

It is NY Securities laws that govern REMICS and given the very first opportunity to break the law - they did.

"Back-filling" the pools of loans into the trusts after their closing dates triggers the negative tax consequences of IRS 806 A - G.

Incidentally, many of these trusts have been closed (see SEC statements) having triggered the derivitave bets. The ponzi is huge.

Sat, 07/07/2012 - 12:13 | 2594804 chunga
chunga's picture

I don't know if you read the IBA thing (4 pages) but it's pretty spooky. They fling around the "moral hazard" bullshit; then threaten to withhold their financial junk in the future.

There is a huge amount of money involved here. FNMA and FHLMC enable this whole mess quite deliberately.

New York Estates, Powers & Trusts - Part 2 - § 7-2.4 Act of Trustee in Contravention of Trust

§ 7-2.4 Act of trustee in contravention of trust. If the trust is expressed in the instrument creating the estate of the trustee, every sale, conveyance or other act of the trustee in contravention of the trust, except as authorized by this article and by any other provision of law, is void.

And here is Internal Revenue Bulletin: 2009-20

This is not a conspiracy theory. These wizards have ripped everybody off big-time, skipped out on the taxes, and will stop at nothing to keep it going.

This CA deal is another smoke-screen imho.

 

Sun, 07/08/2012 - 14:01 | 2596477 MachoMan
MachoMan's picture

Agreed...  The problem with a corrupt system is that everyone gets their hands dirty...  which means that everyone is then impotent to clean house.  But yeah, there is an incredible amount of money on the line and foreclosures are really just the tip of the iceburg...  the real issue is on the securities/derivatives side.

Sat, 07/07/2012 - 11:46 | 2594736 MachoMan
MachoMan's picture

Bingo.  The simplest solution to a lot of fraudulent foreclosures is to require them to pony up the docs on the front end.  This coincides with the requirements (often times in rule 10 of the rules of civil procedure) that any contract or other document used as the basis of the lawsuit be attached.  Failure to attach documents establishing prima facie standing = dismissal. 

Now, what's to stop them from submitting fraudulent documents if we know they're going to do that anyway?  Well, you also need to include a requirement for an affidavit to be included...  that way, whoever signs off on it is the first on the chopping block.  There needs to be a requirement for the CEO or other similar administrator to execute the affidavit.

They'll get around it by appointing a foreclosure administrator that signs everything, but that person better be sure as hell the docs are legit.  Otherwise, it's time in the pokey (needs mandatory penalties similar to DWI and should be strict liability, in other words, no prosecutorial discretion).  You gonna sign off on that for minimum wage?

There are too many easy solutions for a lot of this to have as little of progress as we do atm... 

Sat, 07/07/2012 - 12:15 | 2594809 chunga
chunga's picture

Sorry MachoMan, I accidentally replied to myself above LOL.

Sat, 07/07/2012 - 10:56 | 2594673 Walt D.
Walt D.'s picture

I think there is a big difference here -in the Supreme Court decision on Kelo vs City of New London, the city was stealing the property of individuals. Here, the cities will be trying to steal property from Wells Fargo, Bank of America and Chase. This is like trying to steal from the mafia. If this type of transacton was allowed to go through, it could potentially wipe of the capital of these big banks. However, these banks are too big to fail. 

Sat, 07/07/2012 - 10:50 | 2594665 i-dog
i-dog's picture

It's just one aspect of TPTB's 'Agenda 21'. This interview explains how and why you will be seeing eminent domain crop up more and more in the coming months:

http://www.youtube.com/watch?v=1YccTUy96vI

Sat, 07/07/2012 - 15:52 | 2595225 lakecity55
lakecity55's picture

Yep. Peoples will be herded into warsaw-type ghettos (making it easier to exterminate them) while TPTB get all the land.

Agenda 21: 21 rounds to your body from an automatic rifle.

Sat, 07/07/2012 - 11:51 | 2594747 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

I don't know who is junking i-dog.  You should spend some time on the UN website if you think he is wrong.

Nothing new under the sun.

"...establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies..." - Declaration of Independence

Learn the civilized and honorable way to defend yourself and your family.

http://www.youtube.com/watch?v=a8MAQEJZbuY

http://www.1215.org/

Freedom isn't free.

Is it possible that you were told some lies?

http://www.youtube.com/watch?v=8gVJeQ3rLW0

http://www.youtube.com/watch?v=szBTl3S24MY

 

Sat, 07/07/2012 - 10:38 | 2594648 three chord sloth
three chord sloth's picture

Y'know what this looks like to me? A direct assault on small, neighborhood banks, S&Ls, and credit unions. They are the types of institutions who made mortgages the old fashioned way... and kept the paper in-house. They are NOT the bankers who are the problem. They will lose a big chunk of their assets. The big banks will shrug it off... they can always just stroll up to the FED window, grab some money, and replace the lost assets. The small banks can't.

All that talk about "too big to fail" banks is just bullshit. The only banks the government wants to let live are "the too big to fails"... the better to be cronies with, I guess.

Sat, 07/07/2012 - 10:23 | 2594628 William113
William113's picture

These shit bag bankers have screwed us all. They put these idiots in power positions to do their bidding and when it doesn't go the right way they complain.

On the other hand at least California will have a high speed train that they can't pay for.

Sat, 07/07/2012 - 11:16 | 2594691 in4mayshun
in4mayshun's picture

Oh the high-speed rail project isn't for travel. It's to distribute all the millions of people in LA to the FEMA camps up north.

Sat, 07/07/2012 - 15:43 | 2595207 BidnessMan
BidnessMan's picture

If it ever gets to LA.  Phase 1 is a train from nowhere to nowhere.

Sat, 07/07/2012 - 10:18 | 2594617 Downtoolong
Downtoolong's picture

Capitalism of destruction at it's finest. No economic value creation; no real investment; no real solution to the underlying problem. It's just greedy financiiers,  playing with other people's money, breaking laws and doing whatever it takes to steal a bigger piece of a shrinking pie for themselves.  Their only justification for what they do is that it's profitable for them, and that is all they require to believe it's all fair and good for everyone. At least that's what  they tell us; I mean sell us.

 

Sat, 07/07/2012 - 11:34 | 2594716 All Risk No Reward
All Risk No Reward's picture

It isn't Capitalist, just like China and Russia are not Communist.

Both systems are Oligarchical Dictatroships, one to the left of th eother on the authoritarian scale and one closer to the right (right being more authoritarian).

OUr system is moving further to the right be month... and it seems to be accelerating.

In Orwellian fashion, the social controllers manipulate words to minimize societal understanding of the world in which they live - one that isn't in their self interest.

The reason they don't call Russia or China what it is, an Oligarchical Dictatorship, is because the proles here in America might have the mental framework to discover the Financial Oligarchical Dictatorship that exists here in the former American Republic.

 

The Ultimate History Lesson:   http://www.youtube.com/playlist?list=PL463AA90FD04EC7A2

The Ultimate history Lesson Commentary: https://www.tragedyandhope.com/th-films/the-ultimate-history-lesson/comm...
Sat, 07/07/2012 - 14:14 | 2595031 DosZap
DosZap's picture

OUr system is moving further to the right

Check your history, its the LEFT not the RIGHT.

Sat, 07/07/2012 - 09:10 | 2594531 Centurion9.41
Centurion9.41's picture

"This would be similar to your holding an older non-callable 10-year CD or bond at a 7% annual interest rate. "

And that is why you fail. It's a good factual example. But over 90% of the voting public has no idea what these words mean.

Here's two recent events that prove most of the American public is either too ignorant or too amoral for the right to be a voting American.

First, the eminent domain case in CT, second the bond holders in GM during the "bailout".

Remember when US was founded one had to own property to vote; yes women & many others who should have been able to vote were denied the right to vote.

But the virtue of higher requirements to voting, from an interests of the government vs interests of the people, than merely breathing AND being recipient of political largess is being taught, again, by man to men.

Sat, 07/07/2012 - 16:01 | 2595241 brettd
brettd's picture

90%?

You're too generous. 

98%.

 

Sat, 07/07/2012 - 12:33 | 2594856 algol_dog
algol_dog's picture

That last sentence is a classic. So very true, isn't it. If that were the law today, most all manner of parasitic existence would stop immediately. Men are created equal, and are equal at birth, but it's a horse race after that.

Sat, 07/07/2012 - 10:57 | 2594669 Jay Gould Esq.
Jay Gould Esq.'s picture

Kelo v. City of New London is the most corrupting and corrosive decision regarding private property rights and the protection thereof, in recent memory. It shall be historic in the context of precedent -- confiscatory precedent.

Yet, ask any American what it is and the legal principle addressed, and the answer will likely be, "Kelo ? Nope. Never been to a Kelo parlor. I only play at Foxwoods."

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