19. Secondary Market Investment Tax: When the financial trading enterprise gambles or rigs the market with derivatives and programmed trades in the dark secondary market they must declare the results of those trades to the IRS, and pay a 2% tax on gains. The United States Treasury would quickly raise trillions.
21. Accountable government oversight of derivatives and other shadow market trades: Private investment must be protected by enacting legislation providing accountable and effective government oversight over the financial trading enterprise's derivatives trading and all other trades in the dark market.
22. Re-enact Glass Steagall or similar legislation: "Banks" do a lot of good things and serve many useful purposes. However, in the interest of Democracy and Liberty, certain areas demand serious review and reform. Among other things, we must prohibit banks, holding companies, and financial trading companies from securitizing and selling bonds made up from mortgages they design, originate, rate and service. In other words, because of the lethal conflict of interest inherent in allowing the financial enterprise to avoid accountability by selling to bond investors the mortgages it has created, originated and rated, while gambling with depositors' money, there must be a separation of mortgage origination and commercial banking, from investment and securities banking.
It was these conflicts of interest which caused the Great Depression, and it was the Glass-Steagal Acts of the 1933 that finally closed the barn door after the horse got away. But it was the gradual elimination of the Glass-Steagall acts, culminating with the Gramm–Leach–Bliley Act repealing the last of Glass-Steagall's affiliation provisions in 1999, that enabled the international financial trading fraud and purchasing of derivatives premiums betting that the secondary mortgage market would crash, which in fact caused the so-called Great Recession here, and tanked the pension funds and economies of Spain, Portugal, Greece, Cypress and Ireland to name a few. It was the largest swindle and transfer of wealth in the history of mankind, and the IMF followed it up by offering loans that could not be refused.
The passage of Glass-Steagall, which mandates the separation of commercial banking and loan origination functions from securitization, investment, and speculative banking functions, is fundamental to our national and global economic recovery.
There are presently four bills calling for restoration of the Glass-Steagall Acts. H.R. 129, H.R. 3711 and S. 985, and S. 1282 which was introduced on December 11, 2013 by Rep. Elizabeth Warren. The odds of any of these bills passing however are not great at the moment, and that is simply because most of our red and blue representatives dare not do anything to upset the financial trading cartel. But the passage of genuine Glass-Steagall legislation is fundamental and imperative to restructuring the international financial trading enterprise into manageable parts that will not be able to place short-sighted gains ahead of our national economic stability. America sorely needs this, and as I said before, if you will elect me I am prepared to fight like hell for it.
23. Utilize Eminent Domain to acquire California's toxic mortgage instruments at fair value to facilitate refinancing:
I would advocate using eminent domain as a tool to enable homeowners to refinance where mortgage servicers are perversely incentivized to foreclose.
In order to stop the ongoing vicious cycle of financial deception, and destruction of capital and countries, and the enslavement people, the momentum of the invisibly snowballing economic collapse has to be stopped, and this can be done by exercising the doctrine of eminent domain. As you probably know, the concept of eminent domain relates to the action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent. But eminent domain is a tool that can legally be applied to the negotiable instruments collateralizing that private property as well.
In short, having in large part failed to stop the attack upon private property rights with legislation, the government ought to seize all the fraudulently rated securitized notes that are currently in litigation or subject to dispute, and pay the holders of those securities the fair market price they would have otherwise not been able to receive. Then, the government, or a properly vetted private entity sanctioned by the government, will offer the homeowners whose properties are tied to those obligations, a low and flexible interest rate, a fair mortgage, regardless of the damage that the banks caused to the borrower’s credit scores by trapping them in unsustainable loans. Consideration and flexibility will be afforded to all homeowners who wish to retain homeownership and are able to demonstrate the ability to get back into the game of democracy and pitch.
35. Establish a Commission outside of the banking sector to monitor and if necessary regulate the Federal Reserve and the international financial trading enterprise:
Currently, America is experiencing somewhat of a bogus "recovery" based upon international financial trading and stock market activity, as well as the Federal Reserve's apparently endless creation of paper dollars at the expense of our $17.2 trillion federal debt.
The Federal Reserve is now purchasing about $65 billion in mortgage and treasury every month. But eventually interest rates will rise again, and hyperinflation will no longer be hidden. The stock market will fall, and that will lead to an unequaled era of austerity and oppression. We must not allow California and America to go down that path. The international trading enterprise which is now paying for the operational losses of what used to be America's neighborhood banks is sorely in need of review and reform, and if elected I promise to fight like hell for it.
43. The recapture of trillions: Like millions of people around the world, I opposed the squandering of trillions to keep favored central banks afloat. But I wasn't against it necessarily because I thought that large international banks should be allowed to simply fail. The so-called Great Depression proved that emergency capital injections can become necessary to support the financial system. I was instead against the way the alliance between banking and government chose to do it, because for one brief moment, the highest people in our government (assuming those highest people in our government have any control over the New England families behind the Federal Reserve) had the leverage to require the central banks to become accountable, and restore trust in the main engine of the American economy, the Secondary Market, by standing behind the bogus mortgage backed securities the American central banks fraudulently pre-sold into that market and to the investment funds, pension funds, and nations around the world. But instead, based upon decisions influenced by panic, poor information, greed and sheer political corruption, the bank controlled politicians blew it, propping up favored institutions based upon perverse motives, and allowing insiders to position themselves to trade upon that information. If elected I promise to examine and take action on the options to rewind this squandering of present and future taxpayer dollars.
45. The international financial trading enterprise must be genuinely supervised and regulated when necessary, and the secondary market must be properly revived: Private investment and private property must be protected.There must be a measure of accountable government oversight over the presently dark derivatives trades of the international financial trading enterprise. Such oversight will assist them to abandon the perverse incentives inherent in rigging the secondary market for short-sighted gains. But you will not hear any of this mentioned on the mainstream media. Nor will you hear it to any substantive degree from the aloof, captured or inexperienced candidates for District 33.
52. The denationalization of banks: When we, through our own elected officials, allow corporations to grow into monopolies so big, that they control our government, then we, the people, have effectively nationalized our corporations. It is no longer real capitalism at work. It is the dog-eat-dog kind of capitalism. For when corporations become too big to fail, lest they bring down the government, then government's only option is to nationalize them with taxpayer money, and that is one of the most undesirable aspects of fascism --- and facists are always ruled by higher powers, like international financiers and industrialists, the controllers of central banks, the financial trading enterprise, and as of the last century, intelligence community based policy making arms of the military industrial complex. But there are other ways for multinational powers to thrive, rather than exploit and destroy the citizenry, and thus eventually themselves.
The Bowles-Simpson Plan
The Bowles-Simpson Plan presently before Congress somewhat misses the target to restore economic sustainability because it fails to consider taxing the financial trading enterprise, as was even recommended by the International Monetary Fund. It is more proof that the financial trading enterprise takes no prisoners, has the sharpest of lobbyists at our Congress, and does not allow any measures whatsoever toward genuine recovery if it inconveniences them in the slightest.
Nonetheless, we must stay relentless in our resolve. We must boldly pursue targeted debt reduction policies, including mortgage write-downs as the United States did throughout the 1930's, to deliver economic benefits, including the substantial mitigation of the negative effect of household de-leveraging on economic activity. A large part of the so-called Great Recession is due to households trying to reduce their debt levels, which in turn leads to less spending in the economy, less demand for products, and less jobs to produce those products. And being emphatic is not being redundant.
The hot button issues before Congress in 2014 do not confront a fundamental problem
Reducing the deficit, raising the debt ceiling, securing national borders, and economic recovery, are the main issues for Congress going into 2014. But no matter how much these issues are argued in the "do nothing" Congress, there cannot be genuine recovery if the elephant in the room is ignored, and that elephant happens to be the simple fact that the financial trading enterprise and a few other enormous interests totally own most of Congress. Congresspersons are convinced they cannot be elected and remain in office without their monetary and behind the scenes support.
Indeed. A lack of meaningful regulation coupled with awarding the financial trading enterprise trillion of dollars during the collapse, gave it the ability to acquire smaller properly run financial institutions, countless other kinds of companies, and hire the sharpest experts from fields such as banking, law, public relations and counter-intelligence. For instance, this financial trading enterprise, that we still refer to as "the banks" presently owns over 40% of the mainstream media. No wonder Congress dare not breath a word of genuine financial trading oversight or financial corporation regulation reform, among the "approved" hot button issues.
Interests controlling Congress no longer bear allegiance to our country
We all know that the direction of a nation is generally governed by its industry and its strongest corporations anyway. To more efficiently coordinate the administrators of that alliance was the initial purpose in the creation of the Rand Corporation. But this is a little different. The financial trading enterprise and a few of the other interests controlling most of Congress today are international and no longer bear allegiance to our country.
Fear affects the trigger fingers of corporate guns
The fear among the so-called corporate guns, is that if any candidate like me should be considered to be entrusted with a platform to facilitate reform, I must be suspected of intending to put the nation's banking, oil, pharmaceutical, financial and military industrial corporations out of business. I might be suspected of waiting to open the taxpayer gates of welfare to the forgotten people who many believe ought to just stop protesting and find themselves a job. Conversely, because I may appear a little hard to handle, I might even be expected to implement further national socialist welfare for corporations that may be in dire straits but would never admit it.
But while one committed to pursuing genuinely bold reform may be suspected of all these things, it is really only money and semantics that stand in the way of legislators agreeing how to employ solutions to economic problems that none of us have ever before confronted.
TEA PARTY LEADERS LOOK AT BANK/GOVERNMENT COLLUSION
November 13, 2010
I shared a Facebook link yesterday, of November's Rolling Stone article by Matt Taibbi about how the courts are administratively helping banks to railroad homeowners; and I got a hit from Lisa Miller.
Lisa: Matt Taibbi is a progressive; a kept man. He started off strong with the piece on bubbles and has been twisting it since.
Vince: Lol. I see a lot of lame stuff on the net about Taibbi, mostly from conservatives. Maybe he's a knothead. But I also noticed him making statements on TV that the Tea Party was being misled. And I tend to agree with him, at least to the extent that I was asked to speak at one of the first Tea Party rallies in L.A. and was then told that "picking on the banks" was not going to be part of the agenda.
Nancy: Great article.
Vince: Neither Dems nor Repubs can politically afford to acknowledge what really happened to the global economy. Lisa, oh Lisa. You raise up your head, and you ask, "Is this where it is?" And somebody points to you and says "It's his" And you say, "What's mine?" And somebody else says, "Where what is?" And you say, "Oh my God, am I here all alone?"
Because something is happening here
But you don't know what it is
Do ya, Mr. Jones...
Lisa: Vince, its banks and government collusion. They've been living off bubbles and the American people for some time now. Notice the victimhood mentality of those who can not pay. Florida, Nevada, California, Illinois had the highest amount of fraud. Then there are those suffering job losses as Govt spending drives unemployment. None the less they signed a contract.
Vince: Well sure, they signed contracts. Many of those payment shock contracts were just like a contract to buy a car on time, a car that the manufacturer designed in advance to breakdown. Thereafter, the manufacturer got that contract and millions just like it stamped AAA, and while secretly betting big-time against those contracts in a shadowy secondary market casino, the manufacturer sold those same contracts (which were not really about cars, but people's homes) to unsuspecting pension funds and municipalities in the USA, and to banks in France, Greece, Spain, Ireland, Germany, Russia, China, and the Netherlands. And when all those international investors became badly burned, and lost trust in the people running the (Eisenhower created) Secondary Mortgage Market, the market chiefly responsible for the American boom years since 1955, it broke the back of that previously free and liquid marketplace. Thereafter, the US central banks had nowhere to offload their fraudulent junk, and their liquidity evaporated. Then, as secondary market investors around the world demanded their money back under repurchase clauses, the USA bank controlled government felt it had no alternative but to create TARP, so the American taxpayers could get the bankers off the hook.
Injecting capital into world banks was essentially the right thing to do. But instead of making sure the billions of taxpayer dollars went to reimburse the pension funds and banks around the world that our banksters defrauded, which would have preserved the ability of the secondary mortgage market to function, and would have re-established trust that the American government stands behind the things it exports, even if the exports happen to have been fraudulent mortgage backed securities, the bankster government just couldn't control themselves, and instead rewarded themselves again by playing favored nations with the secret cash injections and then trading on that information too. So, instead of reviving trust in the Secondary Market and thereby solving the global liquidity crisis, which they had the opportunity to do, these traders, tantalized by the thought of making another huge score, killed the main engine of the American economy.
Naturally, the financial trading enterprise supporting the Federal Reserve, composed of Bank of America, Citigroup, Wells Fargo, JP Morgan and the most powerful Wall Street brokerage firm Goldman Sachs, among others, made sure the TARP money first went to pay insurance giants like AIG where they had used credit default swap derivatives premiums to insure their bogus Triple A rated mortgage securities many times above face value. For instance, for each one of those mortgages that went or goes into default, which they were betting big-time would, Bank of America collects 30 times the face value of each such mortgage note, and then gets to take back that same mortgage again, and resell it at a steep discount to a distressed debt securitization whose only interest is foreclosure.
There were homeowners who signed contracts all right; impossible contracts; mortgage contracts with unsustainable terms created for the sole purpose of populating deceptively high yielding pools of securities that had already been sold to unwitting investors in the secondary mortgage market. Once the Promissory Notes securing those unsustainable terms were signed by homeowners steered into those terms, their loans were electronically transferred to the real lenders, the securitization pools, that had already signed Pooling and Servicing Agreements designating the pretender lender as the Servicer. Thereafter, the real party in interest funded the loan to the pretender lender, i.e. Bank of America or Countrywide, that was claiming to be originating the loans, and the pretender lender "originated" and funded the borrower's loan.
The majority of homeowners who signed mortgage contracts between January 1, 2003 and December 31, 2007 were actually signing with an undisclosed beneficiary fronted by a pretender lender that had already transferred its interest in the loan before it was ever funded. But contracts predicated upon fraud are null and void. So with reference to your closing statement "None the less they signed a contract," I can't argue that most of "them" probably did sign. But who were "they"? The nameless, forgotten people you categorize were all kinds of different people, who for different reasons were able to be steered into different kinds of deliberately unsustainable contracts. Lumping them all together, probably as imprudent speculators or deadbeats, sounds very "bankish" Lisa, although I think some of your other conservative positions are pretty cool.
Lisa: Vincent, if they couldn't afford the house, then they should not have bought it. Irrespective of declining house values, if they could afford to pay it, they should pay. If not, there is bankruptcy court. Or in this case, foreclosure.
As illegal activity perpetrated by our government and their agents becomes "legalized theft" that needs to be dealt with by limiting government and voting out the criminals that made it happen.
Vince: Trouble is, that the "legalized theft" you speak of is allowed by both major political machines that live in fear of the central banks.
And while your logic is sound about people who bought things they couldn't afford, it is also a little myopic. Not every one of "them" overextended themselves to buy a car or add on an extra bathroom. In many cases, banks and servicers pushed people into default with false promises of modifying their loans, or told them they had to skip payments in order to qualify, but then foreclosed. Other cases involve contractors, builders, who were contractually obligated to retire construction loans and who really had no choice but to accept the payment shock loans into which they were steered. Still others were cajoled into accepting unsustainable terms by being told they would be refinanced out of them.
In my own experience, Bank of America representatives seeking to earn the highest commission, switched my loan documents and stuck me with a no documentation Subprime mortgage, even though I applied for a full doc loan, and had a credit score above 750. After hundreds of phone calls and letters I finally got a modification, but they reneged and sent the payments back. So, I was forced to file my lawsuit against them.
There are lots of people like that, people who were swindled by America's largest central banks; maybe even more of them than the loan officers who were contributorily negligent and/or fraudulently steered people into loans they couldn't afford, for the sole purpose of earning the highest commissions in return for the too-good-to-be-true terms they had already sold to suckers in the Secondary Market.
Do you really think it is likely that 35 percent of the homeowners in America just decided to live beyond their means, and took advantage of the largest central banks behind the Federal Reserve? Don't you think millions of people might have been deliberately steered into unsustainable payment shock terms within empty shell securitizations, that were sold to unwitting secondary market investors way before the money to fund those loans was ever aggregated and funded to the banks who originated them after the fact? Don't you know that the current wave of foreclosures will be replaced by another, and then another, as more of those kinds of loans reset over the next four years, and that the central banks will make this Depression last a decade if not restrained?
But then something else is happenin' here, and you don't know what it is. Do you, Mr. Jones?
Lisa: It is your responsibility to read and understand what you sign unless you are mentally incompetent.
Vince: Yes, and it is government's responsibility, to make sure their masters at the banks don't provide incentives and cash rewards for their loan officers to steer citizens into contracts that are designed to fail.
Lisa: I think everyone is responsible, from the inattentive citizen to the consumer, investor, taxpayer and the poor, Virtually anyone who didn't stand up and say "Stop!" We need remedy.
The only way to salvage this injustice is to withdraw taxpayer money from the market and contract the base so the productive and prudent can reclaim their purchasing power. This will deprive the plunderers of their ill-gotten gains at which point we can privatize and reset our markets to real market demand.
We need to reach market equilibrium to return to market demand velocity. Hence a drop in home values is a correction not deflation. We need to stop manipulating the market. We need to return to commerce, charity and the individual and their rights and responsibilities and reset government as honest brokers in regulation, tax and oversight.