Category Archives: Banksters

Quote of the day: The rush to kiss Trump’s ass


The day Littlefingers became president of the united States also brought down the curtain on the 2017 World Economic Forum Annual Meeting, the gathering of 2,500 leading corporate moguls, banksters, elected officials, economists, celebrities [George Clooney attended this year], and media figures in the elite Swiss resort town of Davos.

One of those in attendance was former World Bank Chief Economist, U.S. Treasury Secretary, and Harvard University President Lawrence Summers, a man who played a central role in the deregulation of American banking and the unleashing of the derivatives market.

In of the other words, he bears much of the responsibility for bringing on the Crash of 2008 and the ongoing global Great Recession.

But even he abhors the rush to embrace President Pussygrabber by his fellow Davos elites, as he writes in Financial Times [subscription only]:

I am disturbed by (i) the spectacle of financiers who three months ago were telling anyone who would listen that they would never do business with a Trump company rushing to praise the new administration; (ii) the unwillingness of business leaders who rightly take pride in their corporate efforts to promote women and minorities to say anything about presidentially sanctioned intolerance; (iii) the failure of the leaders of global companies to say a critical word about US efforts to encourage the breakup of European unity and more generally to step away from underwriting an open global system; (iv) the reluctance of business leaders who have a huge stake in the current global order to criticise provocative rhetoric with regard to China, Mexico or the Middle East; (v) the willingness of too many to praise Trump nominees who advocate blatant protection merely because they have a business background.

>snip<

My objection is not to disagreements over economic policy. It is to enabling if not encouraging immoral and reckless policies in other spheres that ultimately bear on our prosperity. Burke was right. It is a lesson of human experience whether the issue is playground bullying, Enron or Europe in the 1930s that the worst outcomes occur when good people find reasons to accommodate themselves to what they know is wrong. That is what I think happened much too often in Davos this week.

Headline of the day: It was just chump change


From the New York Times:

Treasury Pick Didn’t Disclose $100 Million in Assets to Senate

  • The revelation about Steven Mnuchin, a former Goldman Sachs banker, came hours before he was scheduled to testify Thursday before the Senate Finance Committee.
  • He also did not list his role as a director of an investment fund in the Cayman Islands on a questionnaire.

Trump’s Treasury pick ran a really rapacious bank


A bank so rapacious that evicted one family into a blizzard and tossed another out over a 27-cent payment shortfall.

Indeed, the bank was so predatory in its practices that California investigators recommended prosecution.

From the Intercept:

OneWest Bank, which Donald Trump’s nominee for treasury secretary, Steven Mnuchin, ran from 2009 to 2015, repeatedly broke California’s foreclosure laws during that period, according to a previously undisclosed 2013 memo from top prosecutors in the state attorney general’s office.

The memo obtained by The Intercept alleges that OneWest rushed delinquent homeowners out of their homes by violating notice and waiting period statutes, illegally backdated key documents, and effectively gamed foreclosure auctions.

In the memo, the leaders of the state attorney general’s Consumer Law Section said they had “uncovered evidence suggestive of widespread misconduct” in a yearlong investigation. In a detailed 22-page request, they identified over a thousand legal violations in the small subsection of OneWest loans they were able to examine, and they recommended that Attorney General Kamala Harris file a civil enforcement action against the Pasadena-based bank. They even wrote up a sample legal complaint, seeking injunctive relief and millions of dollars in penalties.

But Harris’s office, without any explanation, declined to prosecute the case.

Mnuchin, the former CEO of OneWest, was already facing challenges in his upcoming Senate confirmation hearings on account of his bank’s ruthless foreclosure practices, ranging from locking out one homeowner during a Minneapolis blizzard to foreclosing on another over a 27-cent payment shortfall.

Call it another case of Trump Compassion Deficit Disorder.

Bubble alert: The housing bubble reinflates again


Cheap adjustable rate loans plus an insane derivates market brought the global economy crashing down nearly a decade ago, and now the housing market is reinflating, fueled in large part by more of those adjustable rate mortgages.

Those cheap loans triggered a massive housing price inflation, as loan officers signed off virtually all buyers, thanks to those robosigning machines [which are still very much in use].

And given that President-elect Trump has stocked his cabinet with Wall Street banksters, an Associated Press news story should send chills down our collective spine:

U.S. home prices rose again in October as buyers bidding for scarce properties drove prices higher.

The Standard & Poor’s CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 5.1% in October from a year earlier after climbing 5% in September. Prices for the 20 cities are still 7.1% below their July 2006 peak.

The broader Case-Shiller national home price index was up 5.6% in October and has fully recovered from the financial crisis.

Prices rose 10.7% annually in Seattle, 10.3% in Portland and 8.3% in Denver. New York registered the smallest year-over-year gain: 1.7%. Los Angeles prices rose 5.7%.

From the Federal Reserve Bank of St. Louis, a look at the course of the housing bubble through the end of July:

blog-housing-homes
And it’s not just home prices that are soaring. Rents are rising dramatically as well, another bad sign of a developing crisis:

blog-housing-rents

Greek Christmas trees are dying of austerity


If there is one single story that epitomizes neoliberalism and its ruthless agenda, consider this one from the nation hardest hit by the Wall Street-bankster initirated Great Recession and the austerity regime imposed by the International Monetary Fund, European Central Bank, and the European Commission.

From Kathimerini:

Demand for real Christmas trees has been declining steadily since the start of the crisis in Greece, and this year the Environment Ministry has approved the felling of around 17,000 fewer firs than last year, figures show.

Last year, 124,976 fir trees were cut down in the country, and in 2014 the number was 153,728. This shows a marked reduction from before the crisis, when the number of Christmas trees harvested came to above 200,000 a year on average.

The majority of the Christmas trees sold (85,935) last year came from cultivated forests around the country and the remainder from private farms.

And see the comments below for more.

Troikarchs continue to ramp up heat on Greece


No extra help for pensioners, they declare, even though a series of more than ten pension cuts have pushed half of elderly Greek below the poverty line,

From Kathimerini:

The institutions involved in Greece’s aid program have issued a “critical” report assessing whether unilateral measures announced by Athens are compatible with its bailout obligations, a German Finance Ministry spokesman said on Friday.

“The report is preliminary and it is quite critical,” spokesman Dennis Kolberg said, adding that the German government would evaluate the content in detail next week.

Germany had asked the institutions involved in Greece’s aid program on Wednesday to assess whether a planned pre-Christmas payout to poor pensioners was compatible with Greece’s bailout obligations.

More from Reuters:

Under Greece’s latest bailout, Athens can spend more on social programs if it exceeds its fiscal targets, provided it consults its creditors first. Earlier this year, Greek lawmakers approved a social justice bill providing health insurance to vulnerable citizens and offering jobs for the unemployed.

But political experts say the bonus was calculated to garner public support ahead of a big showdown with Greece’s emergency lenders, the European Union and International Monetary Fund.

>Snip<

Almost a dozen pension cuts have pushed nearly half of Greece’s elderly to below the poverty line with income of less than 665 euros a month. After rent, utility bills and health care, they barely make ends meet.

Troikarchs put pressure on Greece, bailout halted


Following Greek Prime Minister Alexis Tspras’s announcement of holiday bonus for Greece’s poorest pensioners, hard hit by the Great Recession, the Troika has called a temporary halt to the nation’s bailout loan.

The Troika of the International Monetary Fund, European Central Bank, and European Commission had attached stringent austerity measures to the latest round of bailout loans, but Tsipras’s decision to help some of the nation’s neediest angered the Troika and the German government.

German arms dealers want the cash, even though their arms sales to the previous conservative Greek government helped fuel the crisis, a financial mess made worse by the greed of those Wall Street banksters who ignited the Great Recession.

From Kathimerini:

Eurozone finance ministers on Wednesday suspended debt relief measures for bailed out Greece in response to extra spending on pensions announced by Greek Prime Minister Alexis Tsipras.

“The institutions have concluded that the actions of the Greek government appear to not be in line with our agreements,” said a spokesman for Eurogroup chief Jeroen Dijsselbloem, the head of the Eurogroup that oversees Greece’s massive 86-billion euro bailout.

There is “no unanimity now for implementing short-term debt measures,” he added.

More from BBC News:

The Greek Prime Minister Alexis Tsipras has refused to back down over his plans to give poor Greek pensioners a pre-Christmas bonus.

A government official said Mr Tsipras would ask parliament on Thursday to approve the payment, worth €617m (£517m) in total.

>snip<

The arrangement of 5 December included extending the maturity on certain loans to the Greek government, and locking in the interest rate on some of its debts in order to reduce the country’s repayment burden, but they did not alter the total amount owed.