Mortgage Settlement Is Just Another Stealth Bank Bailout

Yet Another Bailout for the Giant Banks … Homeowners Get Hosed Again

The 50-state settlement with the banks (Oklahoma didn’t sign, but supports letting the banks go scot-free) over mortgage fraud is a stealth bank bailout, according to many top observers. See this, this, this, this, this, this, this and this.

This is par for the course … All of Obama’s previous “mortgage relief” programs have really been stealth bank bailouts which screwed the homeowner. And see this.

For example:

Most independent experts say that the government’s housing programs have been a failure. That’s too bad, given that the housing slump is now … worse than during the Great Depression.

Indeed, PhD economists John Hussman and Dean Baker, fund manager and financial writer Barry Ritholtz and New York Times’ writer Gretchen Morgenson say that the only reason the government keeps giving billions to Fannie and Freddie is that it is really a huge, ongoing, back-door bailout of the big banks.

Many also accuse Obama’s foreclosure relief programs as being backdoor bailouts for the banks. (See this, this, this and this).

Settling prosecutions for pennies on the dollar is a form of stealth bailout. It is also arguably one of the main causes of the double dip in housing.

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  • Barnetnetdotnet

    This is just more feel good propaganda to get Obama reelected, like he needs any help what with the GOP Clown Show now in high gear. We will hear a lot more of this Me, hero of the people crap until he is reelected. He sold us out and he knows it now he needs another four years to complete the job of securing fascism’s leading role in American politics.

    Right now he is the lesser evil so we have little choice but to reinstall his deceitful ass, what a pity and what a terrible loss to what’s left of America’s honor.

    T

    • fallingman

      Hmmm. Obama is Bush 2.0. The next guy will be Bush 3.0…puppets of the bankers every one.

      How exactly is he the lesser of the evils? And you’re willing to be complicit in his deceit by reelecting him?

      Nice profile in courage pal. Vote for the fascist you perceive to be “better” than the other fascist while being blind to your own observation. They’re BOTH fascists.

      We have little choice? Really? According to whom? There’s Ron Paul for the first round…Gary Johnson for the general. They’re NOT fascists. And then, there’s always not voting.

    • bob e

      GOP Clown Show. LOL :)

    • Owen K.

      Now watch the banks do the foreclosures they had been putting on hold. Think the real estate market is tough now? Just wait. In the meantime, we need to vote Barry out of office in November before he does any more damage.

  • james

    Vote as you like, for who you will, or don’t. Big Money (the Fed, the SDC players) always rules. And if you are able to look behind the Wizard’s Curtain, you can take advantage of your insights & make some money on the mess. All politicians can do is cover their asses & cover for their providers (the real sovereigns in this money game, the private central banks in each country & the UN). Government has never been anything but a preditor & parasite. It is always by definition fascist (a bundle of a few people at the top of the food chain with the most money & other key resources, a fascia, a front for plutocrats), it is concerned with military-police operations to preserve itself. It is always giving itself away to anyone who isn’t so open minded his brain has fallen out.

  • Warren

    “Right now he is the lesser evil so we have little choice but to reinstall his deceitful ass, what a pity and what a terrible loss to what’s left of America’s honor.”

    Obama the lesser evil? Little choice?

    What a pity and what terrible loss to what’s left of your brain cells that you do not see Ron Paul as the only clear and non-evil choice in this race.

    Wake up, America. It’s Ron Paul or none at all.

  • Disgusted up north

    Remind me again…

    Which presidential candidate did Big Banking donate the most $$$$ to during the ’08 election??

    Right…. thought so.

    At a time when they should be convicting more financial fraudsters than ever… federal fraud convictions are the lowest they’ve been in 20 years.

    I need a stronger word than “disgusted” to describe it.

    http://www.ritholtz.com/blog/2011/11/bank-fraud-prosecution-continues-to-drop-under-obama/

  • dogismyth

    Marked! As a shill site. Why? Because my truthful comment was not “approved” by YOU. So there you have it….you lost another one and you have moved over to my list under “shill/propaganda” site.

    Have a great day.

  • derico

    How low can this government go;with the way things are(recession&inlation),instead of reducing the principal on underwater mortgages and allowing homeowners to refinance at today’s interest rate the present market value of the property,they make a stipulation that if a person has declared bankruptcy in the last 2yrs-they cannot qualify for the relief. How absurd,because if the monies were there,bankruptcy would’nt occured and since in a loan modification,hardships(divorce,loss of income,medical bills)are viewed in order to qualify,these same life experiences should apply to this “relief program”in the sense that many people had to file Chap.7 or 13 in order to keep the house that is underwater or face foreclosure. Now all this does is put the homeowner in a position to “stragetically default”and the bank will now have a property that they MUST sell at market rate or allow it to sit for who knows how long. I REFUSE TO BELIEVE THAT THIS WASN’T DISCUSSED BY THOSE”PEOPLE”!!!!!! At this rate we’ll be building tents and log cabins.

  • Blurtman

    Please vote for William K. Black for President. There is a choice.

  • Dunder Jack

    Wow! All the hate! Why not educate yourselves about the positions of the candidates, look at (for example) Ron Paul’s record (voting, actions, bills introduced, etc…) and compare to the bastard resident of the White House (he should be hanging for treason)…
    Just my 2cents worth…
    Jack

  • Lili

    The bankers are playing a dangerous game. Very shortly the majority of American citizens will be having serious troubles with their mortgages.

    There was a time when the banks would be flooding customers with bank loan offers just to keep them there. Now it seems the banks are trying to take the money and run.

    But where will they go? The whole world is wired now.
    Bankers: it’s time to cooperate before the taxman comes and inflames the entire US population. If the people cannot vent at the IRS guess who they’ll choose next?

  • Fairpay

    Is there something objectionable about my comment? Why is it not approved?
    I don’t see how moving to the larger picture is anything you need censor. No room here for comprehensive perspective?

    ?

    If we didn’t have wealthpower giants for Tom Miller (Iowa’s haughty att. gen.) to always be in bed with, then Tom Miller would not be in bed with wealthpower giants, eh?

    Tom Miller in bed with wealthpower giants is a CONSEQUENCE of allowing wealthpower giants. So why don’t we simply stop trying and failing to deal with the zillions of CONSEQUENCES of allowing wealthpower giants and proceed to murdering the idea to allow wealthpower giants on the basis that it is anti-natural, unsustainable, egregious un-just-ness that is killing us all and this planet?

    I mean, how hard is it to see that for as long as we allow the depraved disgrace of unlimited personal fortunes there will ALWAYS be a fraction few wealthpower giants having the unchallengeable power to make human history be whatever they say it will be? And how hard is it to know that the people will continue to be trampled, robbed, and cannon-foddered by the monomania of wealthpower giants for wealthpower??

    If Humanity doesn’t stop straining gnats and swallowing camels, we are toast.

    Murder the self-harming idea to allow wealthpower giants on Earth – and have a happy, safe planet to live on.

    The solution to 99% of unnecessary human suffering is so simple. But you have to see the cause and dig the root instead of focusing on the zillion consequences.

 

 

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