10/31/2011 archive

So it was the 4th Annual Masquerade Ball (at least that’s what the commemorative sport bottle says) and I was a young politician on the make, sucking up to locals in the entourage of the second best attorney I know (his only flaw is he thinks he’s perfect) along with 2 other people who preceded me as capo di tutti.

I had dressed with my usual imaginative style in the battle tux I’d inherited from a dead former Master of my Lodge (you do know I’m a member of the Illuminati, don’t you?).

With me it’s all about the shtick and on this occasion I’d prepared several copies of a Gothic Black “Contract” with Lorem Ipsum as the body and my Montblanc knockoff was filled with red ink.  I’d chat with people and when they mentioned my lack of costume I’d object that I was entirely in the spirit of the event and not at all in my normal regalia.

But you know, that’s not really why I’m here tonight.

I’m here for you.

And then I’d pull out the contract and try and get their autograph.  I have no idea why this freaked them out but I didn’t collect a single one.

Now in my club we’ve been known to unwind every once in a while as many hotels will attest and although my boss, capo di tutti at the time, drank very little and I contented myself with my commemorative sport bottle of champagne (with intermittent refills) our two companions were slightly more… enthusiastic.

With one it was only to be expected.  He’s the only person I’ve ever had the misfortune to be thrown out of an airport bar with while the flight was still delayed.  I’ve never quite forgiven him for that.

The other one usually stuck to a few Bud Lights, but he had a credit card and was flirting with the bar tender who made a mean Sea Breeze.

As all good things do it came to an end and my Sea Breeze friend was trying to extricate his father’s Cadillac from an up hill lie onto the Cart Path we had parked off of, but was constantly thwarted by the inexplicable trailer hitch on the back which dug into the asphalt because of the angle.

“Turn your wheels this way”, said my airport companion in tones that led me and my boss to seek a strategic distance from the scene of hilarity in shadows of plausible deniability.

“I got this”, replied the driver as with a great scrape we later learned jammed 2 feet of Macadam up the hitch mounting he bounced onto the road (facing the wrong direction of course) and flipped the car around so it pointed at the exit.

My boss said, “I’m driving with you”, to which my reply was, “So how much of a head start do we give them?”

The Obama administration is about to screw Main St. one more time by letting the banks get away with mortgage and foreclosure fraud with a pittance of a fine and indemnifying the banks from state-level prosecution for a series of crimes at practically all stages of the mortgage process. It has been pointed out that by not enforcing the law, which includes investigating and prosecuting fraud, Barack Obama is in violation of his oath of office. Remember? The one he took on front of a rapt nation on the steps of the Capitol where he swore to up hold the Constitution and Law. I don’t recall any part of that oath including letting the banks get away with bringing the US economy to its knees through fraudulent practices.

Cutting to the chase: if you thought this was the deal that would hold banks accountable for filing phony documents in courts, foreclosing without showing they had the legal right to do so and generally running roughshod over anyone who opposed them, you are likely to be disappointed.

This may not qualify as a shock. Accountability has been mostly A.W.O.L. in the aftermath of the 2008 financial crisis. A handful of state attorneys general became so troubled by the direction this deal was taking that they dropped out of the talks. Officials from Delaware, New York, Massachusetts and Nevada feared that the settlement would preclude further investigations, and would wind up being a gift to the banks.

It looks as if they were right to worry. As things stand, the settlement, said to total about $25 billion, would cost banks very little in actual cash – $3.5 billion to $5 billion. A dozen or so financial companies would contribute that money.

The rest – an estimated $20 billion – would consist of credits to banks that agree to reduce a predetermined dollar amount of principal owed on mortgages that they own or service for private investors. How many credits would accrue to a bank is unclear, but the amount would be based on a formula agreed to by the negotiators. A bank that writes down a second lien, for example, would receive a different amount from one that writes down a first lien.

Sure, $5 billion in cash isn’t nada. But government officials have held out this deal as the penalty for years of what they saw as unlawful foreclosure practices. A few billion spread among a dozen or so institutions wouldn’t seem a heavy burden, especially when considering the harm that was done. {..}

The deal being discussed now may also release the big banks that are members of MERS, the electronic mortgage registry, from the threat of some future legal liability for actions involving that organization. MERS, which wreaked havoc with land records across the country, was sued last week by Beau Biden, Delaware’s attorney general, on accusations of deceptive trade practices.

The MERS registry was also subpoenaed last week by Eric Schneiderman, the attorney general of New York, as part of his investigation into the fun-while-it-lasted mortgage securitization fest. If he were to sign on to the settlement, his investigation into MERS could not move forward.

Angry yet?

Morgenson highlights another feature of the plan:

   One of the oddest terms is that the banks would give $1,500 to any borrower who lost his or her home to foreclosure since September 2008. For people whose foreclosures were done properly, this would be a windfall. For those wrongfully evicted, it would be pathetic. Roughly $1.5 billion in cash is expected to go into this pot.

“Pathetic” isn’t strong enough. Let’s look at the damages sought by Nevada attorney general Catherine Masto in her second amended complaint against Bank of America: civil penalties of $5000 per violation, or $12,000 for elderly or disabled borrowers. An individual loan can, and likely does, have multiple violations. The suit also seeks restitution, costs for wrongful foreclosures, plus the cost of damage to municipalities and homeowners from unnecessary vacancies. Note that an AG victory on the issue of wrongful foreclosure would pave the way for private lawsuits, and here the damages would be massive, particularly if state law or precedent allows for penalties (as we’ve noted, Alabama has statutory tripe damages for wrongful foreclosure, and recent rulings have had applied penalties in excess of nine times).

And what did Masto get from a different servicer, Morgan Stanley’s Saxon? The settlement is estimated to average somewhere between $30,000 and $57,000 per borrower. And the basis of action wasn’t erroneous or fraudulent foreclosures, but deceptive practices in mortgage lending and securitization.



Look at the MERS compplaint filed by Delaware AG Beau Biden. He’s suing MERS over deceptive practices, at $10,000 per violation. It’s quite possible that he may find more than one violation per mortgage. And I would imagine that success against MERS would pave the way for actions against servicers who relied on MERS in the face of knowledge of its deficiencies.

In other words, the suits filed by two AGs alone make a mockery of these negotiations.

So, how much are the banks contributing to the president and the attorney generals who are going to try to let them off the hook?  

A brief summary-

#OWS protests have spread internationally and one such location is London, in particular the grounds of St. Paul’s Cathedral in what is called ‘The City’ near the London Stock Exchange.

Last week the Dean of St. Paul’s, the Rt. Rev. Graeme Knowles, announced that the Church would sue protestors to seek their removal.  This was rapidly followed by the resignations of 2 prominent subordinates- Rev. Dr. Giles Fraser, the Canon Chancellor, and part time chaplain, Rev. Fraser Dyer.

The struggle for St Paul’s

The anti-capitalist protest outside the gates of St Paul’s has sparked a moral battle inside the cathedral.

By Jonathan Wynne-Jones, Religious and Media Affairs Correspondent, Sunday Telegraph

7:00AM GMT 30 Oct 2011

The split tearing apart the nation’s church was not just damaging its reputation, but leaving its staff exhausted.

Martin Fletcher, the clerk of the works, who had given the initial advice for the cathedral to close, had been rushed to hospital in an ambulance after collapsing from stress. He is still on sick leave.

…

One figure who is understood to have taken a particularly dim view of Canon Fraser’s outbursts is the cathedral’s registrar, Nicholas Cottam, a retired Major-General.

He has, so far, managed to keep a low profile, but he is described as “the power behind the throne”, and central to convincing the dean to support evicting the protesters.

Having served as a Commanding Officer in Northern Ireland in the early Nineties, he is said to have acted as an enforcer who didn’t like the clergy stepping out of line.

The Dean and his former Canon Chancellor only live a few houses apart, but they have been pulled in different directions, with Dean Knowles being leant on by senior political and ecclesiastical figures, in addition to his registrar.

…

Senior figures at the City of London Corporation had decided that the protesters must be evicted, and backing from the cathedral Chapter was the last touch needed to give it moral authority.

As the fallout from the Chapter’s poor handling of the row has descended into an embarrassing debacle, it has cast the Church in an unflattering light.

The canons have been accused of selling out to the wishes of politicians rather than carrying out their gospel duties to care for the poor and downtrodden.

Others are incredulous that a great symbol of London has been closed for the first time since the Blitz because of health and safety concerns posed by the camp.

The Rt. Rev. Alan Wilson, the Bishop of Buckingham, said that it was not just the public who were bemused by the closure.

“Cathedral deans I’ve spoken to are mystified as to why they would do it,” he said. “It’s made them look like idiots. Anyone who looks at the camp can see that it is complete nonsense to claim that it was done for health and safety.”

The health and safety report published on Monday listed “rope/guy-lines” and rodents among potential dangers posed by the presence of the camp.

Sources close to the Dean say that he was baffled as soon as he saw how weak the evidence was, and moved to have the building reopened as quickly as possible.

The cathedral charges £14.50 for entry and, with its restaurant and gift shop also shut, is estimated to have lost more than £100,000 in the week it was closed.

Today, the Dean has resigned.

Rowan Williams warns of ‘urgent issues’ raised by protests as third St Paul’s clergyman resigns

The Archbishop of Canterbury, Dr Rowan Williams, has warned that “urgent” issues raised by the protesters at St Paul’s Cathedral must be properly addressed as the Dean, the Rt Rev Graeme Knowles, resigned.

By Victoria Ward, The Telegraph

2:55PM GMT 31 Oct 2011

Speaking publicly about the crisis for the first time, Dr. Williams added: “The urgent larger issues raised by the protesters at St Paul’s remain very much on the table and we need – as a Church and as society as a whole – to work to make sure that they are properly addressed.”

…

Dean Knowles said today: “It has become increasingly clear to me that, as criticism of the cathedral has mounted in the press, media and in public opinion, my position as Dean of St. Paul’s was becoming untenable.

“In order to give the opportunity for a fresh approach to the complex and vital questions facing St. Paul’s, I have thought it best to stand down as dean, to allow new leadership to be exercised. I do this with great sadness, but I now believe that I am no longer the right person to lead the Chapter of this great cathedral.”

Yesterday, he addressed protesters at the camp, insisting that he was keen to listen and to answer their questions.

However, he looked distinctly uncomfortable on the podium and was heckled as he failed to answer why legal action had been sought.

He admitted that he found it “quite difficult” that the protesters assumed he did not share their views simply because he used different methods of expressing them. Just hours later, he advised the cathedral Chapter of his decision to step down.

Good.  He should be uncomfortable, the pompous hypocrite.

The Archbishop of Canterbury is technically the ‘second in command’ of The Church of England since it’s titular head is the British Sovereign.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Paul Krugman: Bombs, Bridges and Jobs

A few years back Representative Barney Frank coined an apt phrase for many of his colleagues: weaponized Keynesians, defined as those who believe “that the government does not create jobs when it funds the building of bridges or important research or retrains workers, but when it builds airplanes that are never going to be used in combat, that is of course economic salvation.”

Right now the weaponized Keynesians are out in full force – which makes this a good time to see what’s really going on in debates over economic policy.

What’s bringing out the military big spenders is the approaching deadline for the so-called supercommittee to agree on a plan for deficit reduction. If no agreement is reached, this failure is supposed to trigger cuts in the defense budget.

New York Times Editorial: Flat Taxes and Angry Voters

By wide margins, Americans are now telling pollsters they want a tax system that raises more money and is more fair by asking the rich to pay more. They are connecting the dots between the lavish high-end tax cuts of the past decade and today’s serious problems – including widening inequality and mounting deficits – and demanding change. The Republican presidential candidates aren’t listening.

Take the flat tax plan of Gov. Rick Perry of Texas. For all his talk about how it would make filing easier – that is dubious – what it would really do is give high-income Americans a big tax break, while almost everyone else could expect relatively modest tax savings or none at all.

Occupy Wall Street NYC now has a web site for its General Assembly  with up dates and information. Very informative and user friendly. It has information about events, a bulletin board, groups and minutes of the GA meetings.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

October 31 is the 304th day of the year (305th in leap years) in the Gregorian calendar. There are 61 days remaining until the end of the year.

This day is internationally known as Halloween, also known as All Hallow’s Eve, Reformation Day, and Day of the Dead for the Philippines

On this day in 1926, Harry Houdini, the most celebrated magician and escape artist of the 20th century, dies of peritonitis in a Detroit hospital.

Houdini was born Erik Weisz in Budapest in 1874, the son of a rabbi. At a young age, he immigrated with his family to Appleton, Wisconsin, and soon demonstrated a natural acrobatic ability and an extraordinary skill at picking locks.

He went on his first international tour in 1900 and performed all over Europe to great acclaim. In executing his escapes, he relied on strength, dexterity, and concentration-not trickery-and was a great showman.

In 1908, Houdini began performing more dangerous and dramatic escapes. In a favorite act, he was bound and then locked in an ironbound chest that was dropped into a water tank or thrown off a boat. In another, he was heavily bound and then suspended upside down in a glass-walled water tank. Other acts featured Houdini being hung from a skyscraper in a straitjacket, or bound and buried-without a coffin-under six feet of dirt.

In his later years, Houdini campaigned against mediums, mind readers, fakirs, and others who claimed supernatural talents but depended on tricks. At the same time, he was deeply interested in spiritualism and made a pact with his wife and friends that the first to die was to try and communicate with the world of reality from the spirit world.

Eyewitnesses to an incident in Montreal gave rise to speculation that Houdini’s death was caused by a McGill University student, J. Gordon Whitehead, who delivered multiple blows to Houdini’s abdomen to test Houdini’s claim that he was able to take any blow to the body above the waist without injury.

The eyewitnesses, students named Jacques Price and Sam Smilovitz (sometimes called Jack Price and Sam Smiley), proferred accounts of the incident that generally corroborated one another. The following is Price’s description of events:

   Houdini was reclining on his couch after his performance, having an art student sketch him. When Whitehead came in and asked if it was true that Houdini could take any blow to the stomach, Houdini replied groggily in the affirmative. In this instance, he was hit three times before Houdini could tighten up his stomach muscles to avoid serious injury. Whitehead reportedly continued hitting Houdini several more times and Houdini acted as though he were in some pain.

Houdini reportedly stated that if he had time to prepare himself properly he would have been in a better position to take the blows. He had apparently been suffering from appendicitis for several days prior and yet refused medical treatment. His appendix would likely have burst on its own without the trauma. Although in serious pain, Houdini continued to travel without seeking medical attention.

When Houdini arrived at the Garrick Theater in Detroit, Michigan on October 24, 1926, for what would be his last performance, he had a fever of 104 F (40 C). Despite a diagnosis of acute appendicitis, Houdini took the stage. He was reported to have passed out during the show, but was revived and continued. Afterwards, he was hospitalized at Detroit’s Grace Hospital.

Houdini died of peritonitis from a ruptured appendix at 1:26 p.m. in Room 401 on October 31, aged 52.

After taking statements from Price and Smilovitz, Houdini’s insurance company concluded that the death was due to the dressing-room incident and paid double indemnity.

Houdini’s funeral was held on November 4, 1926 in New York, with more than 2,000 mourners in attendance. He was interred in the Machpelah Cemetery in Queens, New York, with the crest of the Society of American Magicians inscribed on his gravesite. To this day the Society holds a broken wand ceremony at the grave site in November. Houdini’s widow, Bess, died on February 11, 1943, aged 67, in Needles, California. She had expressed a wish to be buried next to him but instead was interred at the Gate of Heaven Cemetery in Westchester, New York, as her Catholic family refused to allow her to be buried in a Jewish cemetery out of concern for her soul.

This might sound like a foolish title, but actually the concepts of heat and temperature are quite different.  Obviously things that feel “hotter” must have more heat in them, right?  Actually, that is not always, and is often NOT, the case.  The two concepts are quite different, but are related.

In a bit we shall go into specific definitions of what heat and temperature actually are, but it is more interesting to look at the historical thoughts about them.  Back before quantitative physics, the higher the temperature that an object had, the more heat that it was thought to have.  That is correct for a specific object, as the temperature increases, the amount of heat in it also increases.

But it is easy to show that for dissimilar objects, the amount of heat is quite unrelated to the temperature.  I shall show you that ice might contain more heat than red hot steel!  Ready to look more deeply?  Then let us go to it!