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Dec 28 2011
Killing SOPA & PIPA
This is one of the few times that you will hear me advocate for the death penalty but we need to kill SOPA (Stop Online Piracy Act) and PIPA (Protect Intellectual Property Act). Our friend Gaius Publius at AMERICAblog has a list of companies, organization and wayward Democrats who have supported these Internet killing bills. There is still time for us to get the message to them that we are not pleased and what happened to Go-Daddy can happen to them.
I have already communicated to Sen Gillibrand that so long as she supports either bill, she would not be getting any contributions from me or my family members.
Here is GP’s list of companies:
Estée Lauder Companies: (212) 572-4200
Fraternal Order of Police (FOP)
Go Daddy: (480) 505-8800
International Brotherhood of Electrical Workers (IBEW): (202) 833-7000
International Brotherhood of Teamsters
International Union of Police Associations
L’Oreal: (212) 818-1500
Marvel Entertainment: (212) 576-4000
MasterCard Worldwide: (800) 622-7747
Minor League Baseball (MiLB)
National Center for Victims of Crime
National Crime Justice Association
National District Attorneys Association: (703) 549-9222
National Domestic Preparedness Coalition
National Governors Association, Economic Development and Commerce Committee
National Narcotics Offers’ Associations’ Coalition
National Sheriffs’ Association (NSA)
The United States Conference of Mayors: [email protected]
A lot of these folks have IP “content” – the NFL, for example – but also fan vulnerability.
And what about the unions (IBEW, Fraternal Order of Police)? Also, why do organizations like the Sheriff’s Association care about IP law? A little something extra in the retirement-fund Christmas basket? Or maybe groups like these just haven’t heard from the rest of us.
Given who’s on this list, I’m kind of waiting for the Catholic Bishops to weigh in.
Also these are the so called “progressive” Democratic Senators who have a foolishly co-sponsored the bills:
Sherrod Brown [OH] – (202) 224-2315
Al Franken [D-MN] – (202) 224-5641
Kirsten Gillibrand [D-NY] – (202) 224-4451
Amy Klobuchar [D-MN] – (202) 224-3244
Sheldon Whitehouse [D-RI] – (202) 224-2921
Pick a few of your favorites and send them a message. Be polite. 😉
Dec 28 2011
Kicking the Debt Ceiling Into 2013
While he is on vacation in Hawaii, President Barack Obama will ask Congress to raise the debt ceiling for the third and last time under the agreement that was negotiated last August. The increase, which is expected to be made by December 30, can only be stopped by passage of a “resolution of disapproval” which the President can veto. That isn’t likely since the last resolution was blocked by the Democrats in the Senate and since Congress in recess until the end of January, well past the 15 days Congress has to vote in the resolution of disapproval.
Pres. Obama is expected to ask for authority to increase the borrowing limit by $1.2 trillion which is within $100 billion of the current cap of $15.194 trillion. The motivation to request this raise now is mostly political and tied to the election next November, as noted by David Dayen at FDL:
In numbers that came out earlier this month, the deficit under current law for Fiscal Year 2012, ending September 30, is set to be right around $1 trillion. That doesn’t leave a lot of wiggle room for the White House to get to the next election without having to deal with the debt limit again, especially if new measures like the payroll tax go unfunded. [..]
That seems to be the motivating factor here. The White House simply does not want to go through another bruising debt limit fight again before the election. That places a limit on borrowing in the next fiscal year. It explains why the “fight” over the American Jobs Act wasn’t that major a fight, because passing all of the measures without paying for them immediately would require raising the debt limit again. And paying for them immediately would make the stimulative effect irrelevant. A couple of the measures, like the payroll tax and unemployment benefits, could conceivably pass while allowing the Treasury to squeeze past the elections under the debt limit. But the numbers are pretty close.
David Weigel at Slate points out, with some amusement, another reason to make the request now:
Both parties like to vote against debt limit hikes, when they can — makes for good TV ads. The problem this time is that they may never get a chance. The Washington Post‘s sharp congressional reporter Felicia Sonmez points out that Congress is actually out of town until January 17. [..]
Congress is still playing the unconstitutional game of pro forma sessions to prevent the president form making recess appointments. Technically, the resolution could be passed but it would have to be by unanimous consent and that is just not going to happen. So as Weigel notes unless some renegade congress critter demands a vote, even Congress keep from getting near the “burning wreckage” of this fight.
Dec 28 2011
On this Day In History December 28
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.
December 28 is the 362nd day of the year (363rd in leap years) in the Gregorian calendar. There are three days remaining until the end of the year.
On this day in 1895, the first commercial movie is screened in Paris.
On this day in 1895, the world’s first commercial movie screening takes place at the Grand Cafe in Paris. The film was made by Louis and Auguste Lumiere, two French brothers who developed a camera-projector called the Cinematographe. The Lumiere brothers unveiled their invention to the public in March 1895 with a brief film showing workers leaving the Lumiere factory. On December 28, the entrepreneurial siblings screened a series of short scenes from everyday French life and charged admission for the first time.
Movie technology has its roots in the early 1830s, when Joseph Plateau of Belgium and Simon Stampfer of Austria simultaneously developed a device called the phenakistoscope, which incorporated a spinning disc with slots through which a series of drawings could be viewed, creating the effect of a single moving image. The phenakistoscope, considered the precursor of modern motion pictures, was followed by decades of advances and in 1890, Thomas Edison and his assistant William Dickson developed the first motion-picture camera, called the Kinetograph. The next year, 1891, Edison invented the Kinetoscope, a machine with a peephole viewer that allowed one person to watch a strip of film as it moved past a light.
In 1894, Antoine Lumiere, the father of Auguste (1862-1954) and Louis (1864-1948), saw a demonstration of Edison’s Kinetoscope. The elder Lumiere was impressed, but reportedly told his sons, who ran a successful photographic plate factory in Lyon, France, that they could come up with something better. Louis Lumiere’s Cinematographe, which was patented in 1895, was a combination movie camera and projector that could display moving images on a screen for an audience. The Cinematographe was also smaller, lighter and used less film than Edison’s technology
The Lumière brothers, Auguste Marie Louis Nicolas (19 October 1862, Besancon, France – 10 April 1954, Lyon) and Louis Jean (5 October 1864, Besancon, France – 6 June 1948, Bandol), were among the earliest filmmakers in history. (Appropriately, “lumière” translates as “light” in English.)
(In) 1862 and 1864, and moved to Lyon in 1870, where both attended La Martiniere, the largest technical school in Lyon. Their father, Claude-Antoine Lumière (1840-1911), ran a photographic firm and both brothers worked for him: Louis as a physicist and Auguste as a manager. Louis had made some improvements to the still-photograph process, the most notable being the dry-plate process, which was a major step towards moving images.
It was not until their father retired in 1892 that the brothers began to create moving pictures. They patented a number of significant processes leading up to their film camera – most notably film perforations (originally implemented by Emile Reynaud) as a means of advancing the film through the camera and projector. The cinèmatographe itself was patented on 13 February 1895 and the first footage ever to be recorded using it was recorded on March 19, 1895.
Their first public screening of films at which admission was charged was held on December 28, 1895, at Salon Indien du Grand Cafè in Paris. This history-making presentation featured ten short films, including their first film, Sortie des Usines Lumière a Lyon (Workers Leaving the Lumière Factory). Each film is 17 meters long, which, when hand cranked through a projector, runs approximately 50 seconds.
Dec 27 2011
Dreidel, dreidel, dreidel…
Tonight is the 8th and last night of Hanukkah and a very slow news day which has its good side. So, with a h/t Tengrain @ Dependable Renegade, watch the kitty play with a dreidel
And his counterpart attacking the angel on top of the Christmas tree
Dec 27 2011
Punting the Pundits
“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”.
The New York Times Editorial: Keeping Students From the Polls
Next fall, thousands of students on college campuses will attempt to register to vote and be turned away. Sorry, they will hear, you have an out-of-state driver’s license. Sorry, your college ID is not valid here. Sorry, we found out that you paid out-of-state tuition, so even though you do have a state driver’s license, you still can’t vote.
Political leaders should be encouraging young adults to participate in civic life, but many Republican state lawmakers are doing everything they can instead to prevent students from voting in the 2012 presidential election. Some have openly acknowledged doing so because students tend to be liberal.
John Nichols: ‘Politico’ Is Right (and Wrong) About the Edgiest Electoral Test of 2012
‘Tis the season for lists. And so it should come as no surprise that the Politico, the Washington-insider journal that covers every aspect of national politics, has offered up a Boxing Day analysis of “2012’s Top Unanswered Questions.”
What is surprising, and significant, is that the first item on the Politico list does not involve a Congressional or presidential race.
Rather, it focuses on a fight in the states, where the direction of the nation is being determined by pitched battles between right-wing Republican governors and defenders of public education and public services.
Politico’s top unanswered question for 2012 was: “Can Democrats claim a scalp in Wisconsin?”
Putting aside the clichéd and offensive “get a scalp” language, the analysis turns attention to what will indeed be one of the great political battles of the coming year.
The president could have rescued the economy by pushing for more stimulus. Not doing so was an error of epic proportions
The economy badly needs stimulus. The collapse of the housing bubble caused us to lose more than $1.2tn in annual demand. Residential construction collapsed when the bubble burst, falling by more than 4 percentage points of GDP, which translates into approximately $600bn a year in lost annual demand.
The collapse of the bubble also led to the destruction of close to $8tn of bubble-generated housing equity. The wealth effect of this equity on consumption generated close to $500bn in annual consumption demand. This also was lost when the bubble burst.
Eugene Robinson: A Brainpower Revolution
This is a moment when policymakers should be thinking big, not small. History will little note nor long remember that the payroll tax holiday was extended for two months rather than 12. The complex and difficult questions we’re avoiding, however, may haunt us through the century.
Let me be clear that I applaud President Obama and the Democrats for the political victory they won last week. The impact was to weaken the influence of the most reactionary and clueless faction in Congress-the tea party Republicans-and strengthen the hand of both progressives and pragmatic conservatives. This can only be a good thing.
Melvin A. Goodman: The Bush/Obama War Against Truth
The campaign to intimidate potential whistleblowers or dissidents within the government is consistent with the national security state that the Bush and Obama administrations have created over the past decade. [..]
This trend is particularly regrettable because government oversight processes have been severely weakened during the Bush and Obama administrations. The Offices of Inspector General, particularly at the CIA and the Department of Defense, have been downgraded and significantly weakened. The House and Senate Intelligence Committees are unwilling to investigate illegal conduct in the intelligence community.
President Obama, who endorsed protection for courageous whistleblowers during his campaign, has been both unwilling to investigate crimes of the Bush administration and most willing to invoke the Espionage Act of 1917 to harass genuine whistleblowers.
We expected a Bush/Cheney administration to bend the law in their direction. But who would have expected Obama, a Harvard-trained lawyer and a teacher of constitutional law, to follow suit?
Wendell Potter: When Medicare Isn’t Medicare
Let’s say you have a Ford and decide to replace everything under the hood with Hyundai parts, including the engine and transmission. Could you still honestly market your car as a Ford?
That question gets at the heart of the controversy over who is being more forthright about GOP Rep. Paul Ryan’s plan to “save” Medicare, Republicans or Democrats.
If you overhaul the Medicare system like you did your Ford and tell the public it’s still Medicare, are you doing so honestly? [..]
PolitiFact’s Washington-based editor defended the choice by contending that Ryan’s proposal to restructure Medicare by providing beneficiaries subsidies to buy private insurance would not “end” the program. It would still be Medicare, he reasoned.
What he’s missing is that Ryan’s proposal would change the program so fundamentally as to represent the equivalent of replacing the engine and transmission.
Dec 27 2011
Did They? Or Didn’t They?
Saturday evening I received an e-mail from Stratfor, a security think tank based in Texas, that their web site had been hacked by “an unauthorized party” and they had shut down their servers and e-mail while the incident was under investigation by law enforcement. (Yes, I have an account.) The news of the breach hit the front page of the New York Times on Christmas morning:
On Saturday, hackers who say they are members of the collective known as Anonymous claimed responsibility for crashing the Web site of the group, Stratfor Global Intelligence Service, and pilfering its client list, e-mails and credit card information in an operation they say is intended to steal $1 million for donations to charity. The hackers posted a list online that they say contains Stratfor’s confidential client list as well as credit card details, passwords and home addresses for some 4,000 Stratfor clients. The hackers also said they had details for more than 90,000 credit card accounts. Among the organizations listed as Stratfor clients: Bank of America, the Defense Department, Doctors Without Borders, Lockheed Martin, Los Alamos National Laboratory and the United Nations.
The group Lulz Security (LulzSec), a hacking group loosely affiliated with Anonymous, has taken responsibility for the attack. LulzSec, which derives its name from the neologism “LOL, may have been involved in a previous attack against the security firm HBGary. One of its founders, Sabu, seems to act as its leader and decides what targets to attack next and who could participate in these attacks. However, the media has continued to give credit to Anonymous. Anonymous released a statement denying that they are responsible:
“The Stratfor hack is not the work of Anonymous. Stratfor is an open source intelligence agency, publishing daily reports on data collected from the open Internet. Hackers claiming to be Anonymous have distorted this truth in order to further their hidden agenda, and some Anons have taken the bait,” the group claimed in an online communiqué.
“The leaked client list represents subscribers to a daily publication which is the primary service of Stratfor. Stratfor analysts are widely considered to be extremely unbiased. Anonymous does not attack media sources.”


According to Anonymous, Stratfor has been deliberately misrepresented by “these so-called Anons” and portrayed in false light as a company which engages in activity similar to HBGary. 


“Sabu and his crew are nothing more than opportunistic attention whores who are possibly agent provocateurs… As a media source, Stratfor’s work is protected by the freedom of press, a principle which Anonymous values greatly. This hack is most definitely not the work of Anonymous,” the group added.
Since disarray and disagreement within groups and organizations these days seems to be the trend, re: Republicans and Democrats, why should Anonymous be any different? LOL
Dec 27 2011
On this Day In History December 27
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.
December 27 is the 361st day of the year (362nd in leap years) in the Gregorian calendar. There are four days remaining until the end of the year.
On this day in 1932, Radio City Music Hall opened in New York City.
The 12-acre complex in midtown Manhattan known as Rockefeller Center was developed between 1929 and 1940 by John D. Rockefeller, Jr., on land leased from Columbia University. The Radio City Music Hall was designed by architect Edward Durell Stone and interior designer Donald Deskey in the Art Deco style. Rockefeller initially planned a new home for the Metropolitan Opera on the site, but after the Stock Market Crash of 1929, the plans changed and the opera company withdrew from the project.
Its originally planned name was International Music Hall. The names “Radio City” and “Radio City Music Hall” derive from one of the complex’s first tenants, the Radio Corporation of America. Radio City Music Hall was a project of Rockefeller; Samuel Roxy Rothafel, who previously opened the Roxy Theatre in 1927; and RCA chairman David Sarnoff. RCA had developed numerous studios for NBC at 30 Rockefeller Plaza, just to the south of the Music Hall, and the radio-TV complex that lent the Music Hall its name is still known as the NBC Radio City Studios.
The Music Hall opened to the public on December 27, 1932 with a lavish stage show featuring Ray Bolger and Martha Graham. The opening was meant to be a return to high-class variety entertainment. The new format was not a success. The program was very long and individual acts were lost in the cavernous hall. On January 11, 1933, the Music Hall converted to the then familiar format of a feature film with a spectacular stage show which Rothafel had perfected at the Roxy Theatre. The first film was shown on the giant screen was Frank Capra’s The Bitter Tea of General Yen starring Barbara Stanwyck and the Music Hall became the premiere showcase for films from the RKO-Radio Studio. The film plus stage spectacle format continued at the Music Hall until 1979 with four complete performances presented every day.
By the 1970s, changes in film distribution made it difficult for Radio City to secure exclusive bookings of many films; furthermore, the theater preferred to show only G-rated movies, which further limited their film choices as the decade wore on. Regular film showings at Radio City ended in 1979. Plans were made to convert the theater into office space, but a combination of preservation and commercial interests resulted in the preservation of Radio City and in 1980, after a renovation, it reopened to the public.
Radio City Music Hall is currently leased to and managed by Madison Square Garden, Inc. Movie premieres and feature runs have occasionally taken place there but the focus of the theater throughout the year is now on concerts and live stage shows. The Radio City Christmas Spectacular continues to be an important annual event. The Music Hall has presented most of the leading pop and rock performers of the last 30 years as well as televised events including the Grammy Awards, the Tony Awards, and the MTV Music Awards.
Dec 27 2011
On this Day In History December 27
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.
December 27 is the 361st day of the year (362nd in leap years) in the Gregorian calendar. There are four days remaining until the end of the year.
On this day in 1932, Radio City Music Hall opened in New York City.
The 12-acre complex in midtown Manhattan known as Rockefeller Center was developed between 1929 and 1940 by John D. Rockefeller, Jr., on land leased from Columbia University. The Radio City Music Hall was designed by architect Edward Durell Stone and interior designer Donald Deskey in the Art Deco style. Rockefeller initially planned a new home for the Metropolitan Opera on the site, but after the Stock Market Crash of 1929, the plans changed and the opera company withdrew from the project.
Its originally planned name was International Music Hall. The names “Radio City” and “Radio City Music Hall” derive from one of the complex’s first tenants, the Radio Corporation of America. Radio City Music Hall was a project of Rockefeller; Samuel Roxy Rothafel, who previously opened the Roxy Theatre in 1927; and RCA chairman David Sarnoff. RCA had developed numerous studios for NBC at 30 Rockefeller Plaza, just to the south of the Music Hall, and the radio-TV complex that lent the Music Hall its name is still known as the NBC Radio City Studios.
The Music Hall opened to the public on December 27, 1932 with a lavish stage show featuring Ray Bolger and Martha Graham. The opening was meant to be a return to high-class variety entertainment. The new format was not a success. The program was very long and individual acts were lost in the cavernous hall. On January 11, 1933, the Music Hall converted to the then familiar format of a feature film with a spectacular stage show which Rothafel had perfected at the Roxy Theatre. The first film was shown on the giant screen was Frank Capra’s The Bitter Tea of General Yen starring Barbara Stanwyck and the Music Hall became the premiere showcase for films from the RKO-Radio Studio. The film plus stage spectacle format continued at the Music Hall until 1979 with four complete performances presented every day.
By the 1970s, changes in film distribution made it difficult for Radio City to secure exclusive bookings of many films; furthermore, the theater preferred to show only G-rated movies, which further limited their film choices as the decade wore on. Regular film showings at Radio City ended in 1979. Plans were made to convert the theater into office space, but a combination of preservation and commercial interests resulted in the preservation of Radio City and in 1980, after a renovation, it reopened to the public.
Radio City Music Hall is currently leased to and managed by Madison Square Garden, Inc. Movie premieres and feature runs have occasionally taken place there but the focus of the theater throughout the year is now on concerts and live stage shows. The Radio City Christmas Spectacular continues to be an important annual event. The Music Hall has presented most of the leading pop and rock performers of the last 30 years as well as televised events including the Grammy Awards, the Tony Awards, and the MTV Music Awards.
Dec 26 2011
Punting the Pundits
“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: Springtime for Toxics
Here’s what I wanted for Christmas: something that would make us both healthier and richer. And since I was just making a wish, why not ask that Americans get smarter, too?
Surprise: I got my wish, in the form of new Environmental Protection Agency standards on mercury and air toxics for power plants. These rules are long overdue: we were supposed to start regulating mercury more than 20 years ago. But the rules are finally here, and will deliver huge benefits at only modest cost.
So, naturally, Republicans are furious. But before I get to the politics, let’s talk about what a good thing the E.P.A. just did.
Matt Taibbi: A Christmas Message From America’s Rich
It seems America’s bankers are tired of all the abuse. They’ve decided to speak out.
True, they’re doing it from behind the ropeline, in front of friendly crowds at industry conferences and country clubs, meaning they don’t have to look the rest of America in the eye when they call us all imbeciles and complain that they shouldn’t have to apologize for being so successful.
But while they haven’t yet deigned to talk to protesting America face to face, they are willing to scribble out some complaints on notes and send them downstairs on silver trays. Courtesy of a remarkable story by Max Abelson at Bloomberg, we now get to hear some of those choice comments.
Just in time for Christmas, PolitiFact delivered a big, fat gift to the Republican Party and its efforts to end Medicare. Sure, this gift was wrapped in a tissue-thin veneer of objectivity and held together by a transparently weak ribbon of a qualifier-it was missing the phrase “as we know it”-but when PolitiFact slapped a brazen “Lie of the Year” bow on top, all pretense pretty much disappeared.
The reaction to such a gross distortion, one that no doubt will be featured in GOP campaign ads throughout the general election next fall, was swift and full-throated:
Here’s the inestimable Pierce on its general “pissantery.”
Here’s Jonathan Cohn with an healthcare policy rebuttal.
Here’s Dave Wiegel talking about how the “lie” actually has its origins in, of all places, the Wall Street Journal.
John Nichols: A Conservative Christmas Carol of Scrooge, Marley, Gingrich and Romney
There is something painfully fitting about the fact that the race for the GOP presidential nomination is hitting its peak during the Christmastide. The open disdain for the least among us, for the toilers in the vineyards, for strangers that has been expressed by Newt “End Child Labor Laws” Gingrich, Mitt “Corporations Are People Too” Romney and their immigrant-bashing, union-hating compatriots has given the 2012 race a distinct 1843 character.
In her exceptional new biography of Charles Dickens, Claire Tomalin explains that the novelist’s tale of that latter year, A Christmas Carol, was “Dickens’ response to the condition of the working class.” And she is right, up to a point. But A Christmas Carol is, as well, Dickens’s response to those who would blame the conditions imposed by economic inequality on children who have not taught themselves how to “rise.”
In seeking to awaken a spirit of charity in his countrymen, Dickens called attention to those who callously dismissed the poor as a burden and the unemployed as a lazy lot best forced to grab at bootstraps and pull themselves upward.
New York Times Editorial: Fairness for Home Care Aides
Evelyn Coke spent 20 years as a home care aide helping the elderly and the sick, but she did not live to see fair labor laws applied to her work.
In a case that went to the Supreme Court in 2007, Ms. Coke, who died in 2009, sued her employer for years of unpaid overtime and lost, 9 to 0. This month, President Obama invoked Ms. Coke’s memory when he announced that the Labor Department had finally proposed changes to the provisions on which the court had based its decision.
At issue in Ms. Coke’s case was a 1975 labor rule that defined home care aides as “companions,” a class of workers that does not qualify for federal minimum wage and overtime protections. Ms. Coke’s lawyer, Craig Becker, argued that the rule was supposed to apply only to occasional domestic workers, like baby sitters, not home care aides – one of the nation’s fastest-growing occupations and one whose duties often include feeding, bathing and dressing clients. But the justices said that only Congress or the Labor Department could change the rule, not the court.
Ilyse Hogur: When GOP Walks, Dems Must Move From Blame to Fight
Congress officially adjourned for the year yesterday when Representative Michael Fitzpatrick (R-PA) brought down the gavel and declared class dismissed until January 2012. When Democrats protested that the majority had not allowed a vote on the bipartisan Senate deal to avoid raising the payroll tax on 160 million American workers, the GOP cut the microphones and cameras so Americans could not hear their protestations. This remarkable move prompted C-SPAN-responsible for filming the sessions so Americans can keep tabs on their lawmakers-to publicly exonerate themselves, tweeting, “C-SPAN has no control over the U.S. House TV cameras-the Speaker of the House does.”
It’s as if Speaker Boehner thinks that by shutting down the cameras, turning off the lights and going home, the movie is over. Only-to state what’s obvious to anyone who is not in the DC fog-this “movie” is a real-life nightmare for too many Americans. If this were a screenplay, this move would be a perfect way to wrap up the year defined by hyper-partisan gridlock. Cutting the C-SPAN feed that offers at least some transparency to Congress’s machinations puts an exclamation point on the ruthless serial political brinkmanship that now stands in for the business of governing the country.
Dec 26 2011
The Sham Of Foreclosure Relief
The Obama administration under the guise of trying to look like they are helping the 99% with the massive problem of the housing collapse, the banks are still let off the hook for fraud. It is crystal clear that the financial good old boys are being protected by this administration.
by Gretchen Morgenson
So many were skeptical when the Office of the Comptroller of the Currency announced yet another program in April. This one was intended to provide reparations to homeowners who’d been hurt financially by foreclosure abuses at banks.
As the details trickle out, the program looks like more of the disappointing same. “This is just the next program that’s getting people’s hopes up,” said Alys Cohen, staff attorney at the National Consumer Law Center in Washington. “Not only will it not help people, it could easily harm them.”
The program arose out of a regulatory review in late 2010 of loan servicing practices at the nation’s largest banks. The review followed the robo-signing scandal that erupted after consumer lawyers – not regulators, mind you – identified numerous apparent forgeries and other improper foreclosure documents filed with courts by banks and their representatives. [..]
Some of the problems were aired at a Senate subcommittee hearing on Dec. 13. Three Democrats – Robert Menendez of New Jersey, Jeff Merkley of Oregon and Jack Reed of Rhode Island – expressed doubts about the program to Julie L. Williams, chief counsel at the comptroller’s office. The senators were especially vocal about the potential for conflicts of interest among the consultants hired to conduct the reviews. [..]
Michael Olenick, a specialist in mortgage research, said he spotted a conflicted consultant after one hour of digging. Allonhill, a smallish firm appointed by Aurora Bank, a mortgage servicer, is headed by Sue Allon, whose previous small firm acted as credit risk manager in a 2003 mortgage pool for which Aurora oversaw the loans’ servicing. The prospectus on that deal noted that Murrayhill, Ms. Allon’s former firm, would “monitor and advise the servicers with respect to default management of the mortgage loans.” It also said that Murrayhill would make recommendations to the servicers regarding delinquent loans.
Now, under the comptroller office’s program, Ms. Allon’s firm may be analyzing the treatment of borrowers on whose loans it acted as credit risk manager. “This conflict is so deep and so obvious, how could anybody have missed it?” Mr. Olenick asked.
What is even more troublesome is that, as Yves Smith at naked capitalism emphasizes, homeowners are required to give up rights that may be needed to protect themselves in the future:
This is yet another Obama Administration “pretend we are helping ordinary citizens when we are in fact helping the banks” scheme. The most damning tidbit comes late in the article, that borrowers may (I’d assume will) be asked to sign releases that are far broader than the matters under examination. In other words, to get whatever relief the OCC provides, borrowers may unwittingly give up rights worth far more:
For example, participants in line to get remuneration may be asked to give up their rights to defend themselves if they get into financial trouble again.
“This process is not meant to fix the original lending practices, so people need to hang on to their right to challenge the original loan later,” she [Cohen] said.
And after all that, the homeowner could still lose their home. This didn’t surprise Alys Cohen who said, “This is the O.C.C . that we’re talking about, [,,] It has a long record of favoring banks over homeowners.”
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