Category: Government Failure

They’re Afraid!

On By southwerkIn business ethics, ethics, Government Failure, Philosophy of Business2 Comments

The business community finds the President to be confrontational. He has viciously criticized them. They don’t think he’s really devoted to free markets. They’re worried.

This is incredible. President Obama barely touched them. His anti-business talk was so limited it barely existed. This is their reaction to the small amount of criticism they got from the President.

This is from Politico –

And business leaders, even the few who continue to be Obama-friendly, say they are convinced he is hostile to free markets and the private sector. Some of these executives have balance sheets flush with cash but are reluctant to add jobs or expand in part because they don’t trust Obama’s instincts for growth.

“He used anti-corporate, confrontational rhetoric too for legislative gain, and kept doing it after folks found it gratuitous,” a top executive said. “During health reform it was the bad, evil hospitals. . . Same with financial regulation: It was fat cats, greed, corruption.”

They can’t take even the mildest criticism. Is this pitiful or what? The President cuts deals on health care with the industry. The President declines to prosecute or go after the banks politically. The President protects British Petroleum. The President guts financial reform. The President refuses to create a foreclosure moratorium or to change his HAMP program to get more people out of foreclosure.

And this is their response! He’s confrontational. When?

These guys live in an alternate world. Any criticism is just totally unacceptable in their minds. In spite of all that has happened over the last decade, the great corporations are guiltless. In spite of bonuses, in spite of the destruction of millions of American jobs, in spite of regular defiance of the law ranging from the environment to playing the stock market, in spite of acting as if their duty to their country, their states and their communities was non-existent and in spite of a level of patriotism, Aaron Burr would have found acceptable, their feelings are hurt.

What is this? Are they the political equivalent of a 12-year old girl at her first cotillion?

What do I draw from this?

First, their contact with the vast majority of Americans is about non-existent.

Second, they’re political wimps. They can’t take it.

Third and the main point, they live in fear of those great unwashed masses. You know, the ones they have mercilessly exploited, them guys. They realize that there could be accountability

They realize that they are one step away from being cut, from people walking over to the other side of the street, from criticism in the press, from being named as what they are. They’re cowards, closer to cartoon villains.

They should be made to watch the movie, “They Live,” once a year.

Part science fiction thriller and part dark comedy, the film echoed contemporary fears of a declining economy, within a culture of greed and conspicuous consumption common among Americans in the 1980s. In They Live, the ruling class within the moneyed elite are in fact aliens managing human social affairs through the use of a signal on top of the TV broadcast that is concealing their appearance and subliminal messages in mass media.

Maybe twice.

James Pilant

Giving Credit For Agreeing With Me!

On By southwerkIn business ethics, Capitalism, ethics, Government Failure, Philosophy of Business1 Comment

I like most people like being told how smart I am. The next best thing to being told how smart you is to find agreement with your ideas. Here’s agreement with my thoughts. I get a certain guilty pleasure putting it up. This is a book review from the web site – Audiobooks Today Blog. Once I discovered the web site, I immediately favorited it. I’m not an audio book guide preferring to read but the book reviews are wonderful. You would enjoy it.

From the article –

THE BETRAYAL OF AMERICAN PROSPERITY by Clyde Prestowitz is a chilling examination of why the American Century is over, and how emerging countries like China will own the 21st. It unravels the history of our giving up production while increasing our consumption of imports, and what this portends for the U.S. unless a radical change of course is undertaken now, (and Americans get back to work doing what they once did six decades ago). Ominously, few in America act as if our affluence or standard of living will ever change, and instead continue to look to the government for bailouts while watching ball games on TV, yet when Treasury Secretary Tim Geithner visited Beijing University in 2009—and told students there that the dollar was safe—their response was that THEY LAUGHED. Not only are our remaining high tech jobs moving overseas, along with the plants that make computer chips, but service jobs are moving to India too. To top it off, even as our infrastructure is failing and our debt is increasing, our baby boomers are now starting to retire in record numbers, expecting the government to help support them. Narrated by Erik Synnestvedt, the audiobook pulls no punches in attacking the shrug-away “don’t worry” attitude of the Bush administration, and a universal shortsightedness that focused on quarterly statements while muleishly wearing blinders about the future. Unless we start exporting something other than soda and cigarettes, Prestowitz reveals, Americans will soon be forced to give up the “something for nothing” mantra that has characterized our accumulation of debt on the backs of “third world” producers (including cheap oil for much longer) as they acquire “first world” status from us by owning all our industries.

Like me, the author finds the policies of the United States to be disastrous over the long term. Soon, a visitor to South America, no matter what nation, will notice the obvious similarities to our nation except some of them have much better statistics. What I mean by statistics is infant mortality rate and life span. Some of these nations has overtaken us in these areas.

This country is 38th in life expectancy. The United States of American is second rate in life expectancy in comparison to Costa Rico (and Cuba).

Just great. What’s next? A high infant mortality rate?

Oops! We’re 33rd. For every 1,000 births in this country, more than six children die. Guess who we’re behind this time? Cuba and Slovakia.

There’s 195 countries on the list. I wonder with our infrastructure disintegrating and our hospital system headed toward disaster, how low we can go. Maybe we can hit a round number like 100? What do you think?

James Pilant

Robo-Signing Foreclosure Freeze Update (via Foreclosureblues)

On By southwerkIn business ethics, Capitalism, Government Failure, White Collar Crime2 Comments

The guys at Foreclosureblues are hard workers and well informed. They have dubbed the current crisis, Robo-gate. I like it!

This is their update on the situation. It’s thoroughly excellent. It’s a good summary. It is worthy of your time.

James Pilant

Robo-Signing Foreclosure Freeze Update Robo-Signing Foreclosure Freeze Update Today, November 05, 2010, 7 hours ago | Sean O'Toole Here’s a quick update on the impacts we are seeing from “Robo-Gate”. For those that missed this major foreclosure news item, robo-gate refers to the foreclosure freezes implemented by various lenders after revelations that foreclosure filings were being attested to in a robotic fashion that may not have met legal requirements. In the beginning the freezes … Read More

via Foreclosureblues

Britain Moves Toward “Fair Use” Of Copyrighted Material On Internet!

On By southwerkIn business ethics, Corporate Social Responsibility, Government Failure, Philosophy of Business

From the BBC –

(Bizarrely, enough, the British are envious of our Fair Use provisions, and the article begins with praise for the American doctrine. This is bizarre, because there are current proposals in Congress to butcher these protections.)

“Over there, they have what are called ‘fair-use’ provisions, which some people believe gives companies more breathing space to create new products and services.

“So I can announce today that we are reviewing our IP laws, to see if we can make them fit for the internet age. I want to encourage the sort of creative innovation that exists in America.”

The six month review will look at what the UK can learn from US rules on the use of copyright material without the rights holder’s permission.

It will also look at removing some of the potential barriers that stand in the way of new internet-based business models, such as the cost of obtaining permission from rights holders and the cost and complexity of enforcing intellectual property rights in the UK and internationally.

If only we had the kind of forward looking leadership here to encourage a lessening of our over protections of copyrights (SEVENTY years plus the life of the author). What genius thought that was appropriate protection? Why should a publishing company hold those kinds of rights for so long? The only answer is that the publishing industry has a tremendous influence over legislation.

What that means in practice is that hundreds of thousands of works that should have passed into the public domain are lost to time, discarded by libraries, thrown away by owners who don’t realize their value, or simply decay into the dust. These things could be preserved for every future generation of Americans by web sites like Project Gutenberg.

But because of the rapacious greed of American companies and their minions in the Congress, a good sized chunk of American’s intellectual heritage is discarded like used toilet paper.

Imagine the writers and the thinkers who thought they were creating a legacy for their fellow citizens to be frustrated by the shallow fundraising of the the flag waving hypocrites of the American Congress. It is hard to think of more disgusting show of influence than these well financed companies and the Congress of the United States laying waste to American ‘s past for the long green.

James Pilant

White House Should Stop Protecting Banks

On By southwerkIn business ethics, Government Failure, Philosophy of Business, White Collar Crime

Simon Johnson writes in the web site, the Baseline Scenario, about the Obama Administration’s protection of banks and failure to hold the mega financial institutions to standard of law and justice.

From the article –

The premise – and central mistake – of the Obama administration in 2009-10 can be summed up in what the president said to leading bankers on that fateful day, March 27, 2009: “My administration is the only thing between you and the pitchforks”.

The organizing notion then, provided by Larry Summers and presumably Tim Geithner, was that the “responsible” administration would protect global megabanks from “dangerous” populists, in return for cooperation and better behavior.  This kid gloves strategy turned out to be a very bad bet – not only is it far from best practice with regard to handling failed financial systems (there must be consequences for executives and shareholders, at the very least), but it also allowed banks and their close allies to bounce back to profitability and use that cash (underwritten by the taxpayer) to oppose the administration on financial reform and, according to credible public reports, to funnel large amounts of money into various “populist” anti-administration midterm campaigns.

The article calls for White House support for Elizabeth Warren and the new agency to protect consumers from the depredations of financial predators. I strongly support that.

I want you to understand that I come to criticize the Obama Administration reluctantly but their actions make a mockery of ethics, of doing the right thing, and of carrying out their obligations to the law.

James Pilant

Cordray: Refiling Affidavits is an Insult to the Justice System

On By southwerkIn business ethics, Capitalism, ethics, Government Failure, White Collar Crime

I don’t usually print press releases, but I REALLY like this one!

From the Ohio Attorney General Web Site –

COLUMBUS, Ohio) — In response to Wells Fargo’s statement acknowledging that it “made mistakes” and that affidavits in 55,000 foreclosures filed by the bank did not “adhere” to the law, Ohio Attorney General Richard Cordray offers the following statement:

“The big mortgage servicers and financial firms continue to demonstrate their belief that they do not need to play by the same rules as everyone else who uses our court system. The suggestion by Wells Fargo and its colleagues at several other national firms that they can cure fraudulent testimony by simply refiling new affidavits and continuing to proceed toward foreclosures shows they do not recognize the seriousness of the problem they have created. There is no simple ‘do-over’ for false testimony that will be likely to avoid sanctions and penalties imposed by the courts. Their brazen efforts to minimize their financial exposure by sweeping these problems under the rug are an insult to the justice system in this country. These disclosures by Wells Fargo will now become the focus for a new prong of our on-going investigation.”

Earlier this month, Cordray filed a lawsuit against GMAC for issuing false affidavits in many Ohio foreclosure cases. He has taken a hard-line approach with national loan servicers operating in Ohio in the wake of the foreclosure crisis. In July 2009, Ohio was the first state to file a lawsuit against a loan servicer for violating the state’s consumer laws. Since then, two other cases have been filed in addition to the case against GMAC.

Okay, guys, there it is. I’ve been talking about it for weeks. This is fraud. It’s not mishandled paperwork. It’s not routine. It’s not something that “wouldn’t have changed the outcome in the vast majority of cases.” It’s illegal. It’s lying to the court. It’s telling Judges what you know to be untrue on oath.

The Ohio Attorney General has the guts to get out there and say it. The President won’t. The Wall Street Journal won’t. The Treasury department won’t.

But I have almost from the beginning.

It’s time for a foreclosure freeze, a moratorium until the industry gets its house in order. It’s time for action not just in Ohio but all over the fifty AND the federal government.

The American people have a right to believe that there is one type of law for all people be they in the banking industry or other citizens.

Let us go forward as a nation not just Ohio and punish these criminal acts.

James Pilant

Mortgage Companies Get Public Money For Properties They Don’t Own?

On By southwerkIn business ethics, ethics, Government Failure, Philosophy of Business, White Collar Crime

Mortgage companies enrolled in the Obama administration’s signature foreclosure-prevention initiative may be receiving taxpayer funds despite not having a legal right to the home or to the mortgage, a top Treasury Department official revealed Wednesday.

But despite faulty or missing paperwork, the Obama administration allows mortgage companies to boot homeowners from the program, sticking the borrowers with massive bills that often leave them worse off.

During an oversight hearing, Phyllis Caldwell, Treasury’s housing rescue chief, acknowledged during questioning that Treasury doesn’t know whether mortgage companies and the owners of mortgages are receiving public money under “false pretenses.” Treasury is investigating, she said.

The contradiction highlights what many critics of the past two administrations’ policies have claimed for some time: they exert overwhelming force when it comes to saving financial institutions, but merely modest assistance when it comes to distressed homeowners.

So, let me get this straight, the federal government in this case the Treasury Department, has been kicking hundreds of thousands of people out of their program (HAMP) to keep their homes but the mortgage companies have been getting the money whether or not they owned the homes?

Actual human beings have had to fill out tons of paperwork (my understanding is that the initial application is a seventy page document), provide endless reams of evidence of income, etc., get relatively little aid and more often than not get kicked out of the program.

On the other hand, the banks who have been receiving federal funds (HAMP funds), have not had to prove they owned the property to collect benefits?

At what point, did the phrase, double standard, become the Administration’s sole approach for mortgage foreclosures?

They can’t be troubled to find obvious bank problems but happily squish homeowners for the smallest application fault? Thanks a lot, White House, for lining up with the little guys!

James Pilant

How Arrogant Are Foreclosure Firms?

On By southwerkIn business ethics, ethics, Government Failure, Philosophy of Business, White Collar Crime

This arrogant! – (from Money Talks News) –

How many people didn’t get an attorney and thought they were safe because they made all their payments?

James Pilant

Why False Affidavits Matter

On By southwerkIn business ethics, Capitalism, ethics, Government Failure, Philosophy of Business, White Collar Crime

I found this video today. It’s short and precise. I recommend you watch it. It explains (generally speaking) the affidavit’s importance in law.

Good Stuff!

Stay tuned. I spend hours a day reading about the foreclosure mess from major news sources, internet sites, legals sources and the foreign press.

I’ll keep you up to date.

James Pilant

Sheldon Whitehouse Weighs In On The Foreclosure Crisis

On By southwerkIn business ethics, Capitalism, ethics, Government Failure, Philosophy of Business2 Comments

There is deep concern in Washington over the damage the foreclosure crisis might do to banks and the “recovery” in the marbled halls of our elected representatives, their expensive lobbyists and the beltway media.

They worry about the banks. I don’t waste a moment on them. The poor banks. God, I’d hate to get up in the morning and be as friendless, attorneyless and helpless as a major financial institution.

Here what I would like to hear more of. From the Huffington Post –

I have heard from constituents being ignored and abused in the foreclosure process: documents repeatedly lost, inconsistent advice, hours trapped on the phone, and common sense turned on its head to reject fair modifications in favor of foreclosure. I have heard from mayors about the terrible collateral cost to communities from foreclosure. I have watched the big loan servicers drag their feet in the Obama Administration’s well-intentioned mortgage modification program. And most recently, we have all learned that these companies have been playing fast and loose in their foreclosure process, carrying out foreclosures in the cheapest manner possible, often outsourcing the process to a “foreclosure mill” document processing company.

Trapped in administrative purgatory, real families suffer when the big banks and their servicers force foreclosures. Children pack up their rooms; parents struggle to find a temporary roof. We owe these families a fair chance to stay in their homes, and a humane, logical and orderly foreclosure process if all else fails.

That’s what I want to hear.

James Alan Pilant