Author: Matthew G. Saroff

More Change We Cannot Believe In

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It turns out that while under federal receivership, and under the direction of the FHFA, Freddie Mac has simultaneously made it more difficult to refinance your mortgage and invested in risking and hard to sell financial instruments that profit from you not being able to refinance:

Freddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates.

Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages.

No evidence has emerged that these decisions were coordinated. The company is a key gatekeeper for home loans but says its traders are “walled off” from the officials who have restricted homeowners from taking advantage of historically low interest rates by imposing higher fees and new rules.

Yeah, there was no coordination here.

Just aggressive tightening of refinancing standards (further down in the story) that have put people, “in financial jail,”  and as it was ramping up on its risky bets, it also, “quietly announced that it was raising charges, called post-settlement delivery fees, for refinancing.”

But we aren’t going to see a recess appointment to replace the acting head of FHFA, Edward DeMarco, with someone who might reign in executive bonuses or work for home owners.

Yes, ML Global is allowed to steal

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The point about the “loss” of ML Global customer accounts is not that it was lost, but that it was looted as the company collapsed, but it’s all “no harm, no foul,” and there are no criminal investigations:

Federal officials looking for an estimated $1.2 billion missing from customers of MF Global Holdings Ltd. feel more and more that a lot of it may never be located, according to a report citing sources familiar with the probe.

What’s been learned so far suggests that a good deal of the money may have “vaporized” because of scrambling in trading in the week before MF Global filed for bankruptcy protection Oct. 31, the Wall Street Journal reported, citing “a person close to the investigation.”

This money was stolen, most likely by Jamie Dimon’s peeps at JPMorgan.

Even if you cannot prove criminal intent, you can get back this money, if you are willing to actually pursue it.

Still, Jon Corzine being frog marched out of his offices in hand cuffs would be a good thing.

H/t Atrios.

No, This is Not The Onion

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Simply because The Smew is giving its American counterpart a run for its money:

Flush With Oil From Alberta, Canada Prepares For Inevitable U.S. Invasion

OTTAWA, ON—It’s a subject the Canadian military high command doesn’t like to discuss, but one that’s taken on an increasing sense of urgency since the discovery of massive oil reserves in the Alberta tar sands: how to defend Canada from imminent U.S. invasion.

A highly-placed military source in the Harper government, speaking off the record, confirmed that Canada is actively preparing for an American attack. “Look, we can all see the pattern here: if a country has significant oil reserves, the United States will find a pretext to invade. Iraq, Libya—frankly, it’s either us or Iran next,” he said.

Brilliant!

Europe is F%$#ed

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Because the Germans have been allowed to force their self delusions on the rest of Europe:

Chancellor Angela Merkel cemented her political ascendancy in Europe on Monday when 25 out of 27 EU states agreed to a German-inspired pact for stricter budget discipline, even as they struggled to rekindle growth from the ashes of austerity.

Only Britain and the Czech Republic refused to sign a fiscal compact in March that will impose quasi-automatic sanctions on countries that breach European Union budget deficit limits and will enshrine balanced budget rules in national law.

The accord was eagerly greeted by the European Central Bank which has long pressed euro zone governments to put their houses in order.

The solution to problems caused austerity and overly aggressive efforts at European integration will be more austerity and overly aggressive efforts at European integration.

Yes, These Are Members of the Polish Parliament

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And they are protesting Poland’s signing onto the Anti-Counterfeiting Trade Agreement (ACTA):

Poland on Thursday signed an international copyright agreement, sparking more demonstrations by Internet users who have protested for days over fear it will lead to online censorship.

After the signing, protesters rallied in the Polish cities of Poznan and Lublin to express their anger over the treaty. Lawmakers for the left-wing Palikot’s Movement wore masks in parliament to show their dissatisfaction, while the largest opposition party — the right-wing Law and Justice party — called for a referendum on the matter.

Controversy in Poland has been deepening over the Anti-Counterfeiting Trade Agreement, or ACTA. Though many other industrialized countries have signed it, popular outrage appears to be greater in Poland than anywhere else.

This is actually significant.

It’s been growing slowly, but the almost universal consensus about the ability of IP holders to rent seek is now showing cracks, as more and more people start to see it as a drain upon society, rather than a benefit.

We are seeing this in the media, where we are seeing increasing coverage of patent trolls like Nathan Myhrvold.  (Here’s hoping that his f%$#ing cookbook is followed by people protesting his ass)

With a little bit of luck, we may eventually see the worm turn on all of this, and see the protections on IP seen through the lens of public benefit, and not the interest of the rentiers.

And He Will Name it Gingrich Base

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Seriously, promising a permanent moon base in the next 8 years?

Who but Newt could be so full of themselves that they would dare to make it a campaign pitch.

You know, I’m beginning to think that being a science fiction fan might be a disqualifier for holding executive office.

Newt claims influence from Asimov’s Foundation series, while Romney says that his favorite bit of sci-fi is Battlefield Earth.

Well, at least Newt has better taste in literature.

Heh

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The Republicans have discovered the downside to the Citizens United ruling in the person of one Newton Leroy Gingrich.

It appears that Newt’s bit of scorched earth insanity is almost completely funded by an equally unhinged, and very rich patron, one Sheldon Adelson, who had contributed millions to the “totally not coordinating” Gingrich super-PAC.

It still does not make Citizens United a good ruling. It’s and awful, corrupt, and politically motivated decision by the conservative bloc of the Court, but I am amused by how it’s biting the ‘Phants in their flabby white asses.

It’s Bank Failure Friday!!!! (on Saturday)

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Huh, 4 closings this Friday.  After a lull at the beginning of the year, we’ve had a bit of a spike.

Still, it’s better than the past two years.

  1. First Guaranty Bank and Trust Company of Jacksonville, Jacksonville, FL
  2. Tennessee Commerce Bank, Franklin, TN
  3. Patriot Bank Minnesota, Forest Lake, MN
  4. BankEast, Knoxville, TN

Full FDIC list

So, here is the graph pr0n with last years numbers for comparison (FDIC only):

And here is the detail, since it is early in the year:

Someone Flipped on the Scott Walker Prosecutions

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It has been announced that former Scott Walker aide Darlene Wink is cooperating with prosecutor:

Two staffers who worked directly for Gov. Scott Walker while he was county executive were charged Thursday with illegally doing extensive political work while being paid by taxpayers to do county jobs.

One of the two, Darlene Wink, cut a deal with prosecutors under which she agreed to provide information in a related investigation about the destruction of digital evidence and to aid in further prosecutions. This is the first indication that the multifaceted John Doe investigation may be pursuing charges of evidence tampering.

Milwaukee County prosecutors also made the surprising disclosure that top Walker aides set up a private Internet network to allow them to communicate with one another by email about campaign as well as county government work without the public or co-workers’ knowledge.

They set up a VPN to break the law? 

This is pretty f%$#ing brazen, and it has the advantage locating all the offending communications in one place, which might, as the article says, provide investigators with a trove of information as they pursue other angles in the case.”

It gets better, because it looks like it wasn’t just politicking on the job, but they are also looking things like bid rigging as well.

Of course, Scotty Walker is saying that it isn’t his fault, “Walker’s campaign said he had a policy against county employees using government resources to do campaign work.”

Dude, your guys set up a private network.  It simply does not get any more official policy than that.

I am smelling burnt bread in Wisconsin, because Scott Walker is toast.

H/t Susie Madrak.

So, He’s Either a Bigot or a Political Opportunist

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It turns out that signed off regarding the publication of the racist screeds in his newsletter:

Ron Paul, well known as a physician, congressman and libertarian , has also been a businessman who pursued a marketing strategy that included publishing provocative, racially charged newsletters to make money and spread his ideas, according to three people with direct knowledge of Paul’s businesses.

The Republican presidential candidate has denied writing inflammatory passages in the pamphlets from the 1990s and said recently that he did not read them at the time or for years afterward. Numerous colleagues said he does not hold racist views.

But people close to Paul’s operations said he was deeply involved in the company that produced the newsletters, Ron Paul & Associates, and closely monitored its operations, signing off on articles and speaking to staff members virtually every day.

“It was his newsletter, and it was under his name, so he always got to see the final product. . . . He would proof it,’’ said Renae Hathway, a former secretary in Paul’s company and a supporter of the Texas congressman.

The newsletters point to a rarely seen and somewhat opaque side of Paul, who has surprised the political community by becoming an important factor in the Republican race. The candidate, who has presented himself as a kindly doctor and political truth-teller, declined in a recent debate to release his tax returns, joking that he would be “embarrassed” about his income compared with that of his richer GOP rivals.

Well, if he was just cashing in on bigoted rubes, this actually is consistent with the basic principle(s) of  Libertarians, “F%$# you, I’ve got mine.”

Your Economic Data Points of the Week

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The GDP numbers came out, and the word is “meh”, with the economy growing at a 2.8% annual rate in the 4th quarter,  under performing the forecast of 3%, and giving a 1.7% increase for the year.

We need to top 3% for a while to really improve our situation.

Yesterday,initial unemployment claims rose, to 377,000, as did continuing claims, though the 4-week moving average, and extended claims fell.

That being said, Consumer sentiment rose in January, which is good news.

What Atrios Said

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The basic thinking seems to have been that it was wonderful for university to be free back when most people who attended were quite wealthy, but once the masses started getting ideas about going it was time to force them to pay. And there again is your generational divide.

—Atrios, on the institution of penury inducing tuitions at British colleges

It’s actually a bit more contemptible than that.

The skyrocketing college costs began with two things:

  • Collusion by the Ivies and similar elite institutions on tuition and financial aid.
  • It started in the 1960s, when the alternative to going to college was getting drafted, and playing hide and seek with a really angry guy with an AK-47 in rice paddies.

Twitter Goes Evil

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So now Twitter has decided to do the dirty-work of every despotic regime on the face of the planet earth:

Twitter, a tool of choice for dissidents and activists around the world, found itself the target of global outrage Friday after unveiling plans to allow country-specific censorship of tweets that might break local laws.

It was a stunning role reversal for a youthful company that prides itself in promoting unfettered expression, 140 characters at a time. Twitter insisted its commitment to free speech remains firm, and sought to explain the nuances of its policy, while critics — in a barrage of tweets — proposed a Twitter boycott and demanded that the censorship initiative be scrapped.

“This is very bad news,” tweeted Egyptian activist Mahmoud Salem. Later, he wrote, “Is it safe to say that #Twitter is selling us out?”

Yes.

This has been another episode of simple answers to simple questions.

They are claiming that this has nothing to do with China, but is has everything to do with China.