Tag Archives: foreclosure

Hey Third Party, Rise Up and Meet the Challenge!

Is this the political message Bob the electrician hears?

Republican Plan for America:
• Get rid of Obama
• Make a “simpler” tax code that lowers taxes for the Rich and increases taxes on the poor
• Let the housing debacle take its course, foreclose on millions of Americans and put millions more through bankruptcies to stabilize the banks
• Make a million jobs through drilling
• Reduce business costs by eliminating regulations and unions
• Cut government spending and start America on austerity
• Pass trade bills that loses millions more jobs

Democrat Plan for America:
• Tax the rich
• Tax the middle class
• Spend billions more stimulus to keep union jobs intact
• Keep government big and federal budgets big
• Propose jobs plan that won’t pass Congress, and that will create far fewer jobs than needed.
• Offer housing solutions that won’t stop foreclosures and bankruptcy
• Start a trade war with China that could cost millions of jobs

Bob now must decide which of these two political bags of trash needs to be put to the curb. With such a rotting smell coming from both camps, it will be hard for poor Bob to choose. Can’t he throw out both in favor of another? Will an independent rise up to either force at least one party to turn populist, or to take the White House on behalf of the Great Middle America? 2012 would be easier for a third party candidate to win outright than any post WWII.

Both parties seem intent on not angering the election gods who fund their re-elections, those one percent of Americans whose capital is at risk from any real solution to turn around America. The Republicans are casting their nets toward the one percent by bold, almost irreversible statements like those made by Challenger Mitt Romney who said, “Don’t try and stop the foreclosure process. Let it run its course and hit the bottom.” In so doing, the Republicans aren’t even hiding their intent from the 99 percent, almost blatantly admitting to the rest of America that elections are won by those that favor the gods.

The Democrats, however, recognize they need the one percent just as much as the Republicans. They know that programs that could turn around America could also put the wealth of the one percent more at risk. Therefore, President Obama’s plan seems to merely demagogue against the Republicans while offering meager fringe plans that sound like the right direction but that go only as far as the one percent will allow. Both parties have set their course for 2012 and it is a rough one for the 99 percent.

Tell me Bob the Electrician, which one of these plans is going to help you stay in your house, fix your credit, get a decent paying job, put your kids in college, and help you prepare for retirement? If you guessed neither, you are more right than wrong, so trust your instinct. If you are leaning toward, President Obama, you will probably be in the winning majority because a vote for words that sound like they are at least in the right direction will beat blatant, irreversible words that shout to the one percent “I am your Republican Guard” any day of the week.

Yet, America should not have to choose between meekness and arrogance. We can turn around our country without an all out class war. Housing debt can be fixed with an equity for debt swap that keeps banks intact, that doesn’t trigger credit default swaps, and that keeps America’s families in their homes. Business and consumer credit ratings can be salvaged with credit amnesty. All able Americans can be placed in jobs through a job voucher plan that immediately sets America back on course. We can begin to dig our way out through increased competitiveness, government can be right sized, and America’s business environment can be made more attractive. Hey, Republicans and Democrats, any takers? How about you Mr. Trump or Mr. Bloomberg?


Filed under American Politics, Job Voucher Plan, Jobs

From 30,000 Feet, We Cannot see the Devastation to Lives of Dresden Much Less the Humanity Harmed by Our Financial Crisis

Of the levers that are shifting world economies, the inability of the United States to deal effectively and equitably with it’s housing debt has placed ot squarely beside Japan as two of the 99 bottles of beer on the world’s economic wall that have been taken down and passed around toward obscurity. In the process, countless lives are being recklessly ruined so permit me an emotional outburst in the lull…

At 30,000 feet for those that could (which part of humanity could?) the bombing of Dresden must have appeared a fantastic spectacle of firey light. For most of the men who dropped 700,000 phosphorous bombs on this refugee city, however, they recognized on a deep guttural level the horror of the firestorm below. Official allied estimates put the deaths at 20,000 but some say the number of civilians who perished were as high as a half a million.

The shifting economies of Europe that precipitated WWI, war reparations, the Weimar Republic’s hyperinflation, Germany’s clinging to their answer in a swell of grotesque human behavior and the Allies equally inhumane defense, eventually led to the decision to place thousands of innocents in fourteen hours of 1,600 degrees Fahrenheit of hell. Humans are indeed capable of the greatest of grievances.

By comparison, our country’s inhumane, imprudent, and rash whitewashing of a banking scheme to engorge America through her addiction for debt that placed ten million homes in foreclosure, six million individuals in bankruptcy, countless homeless, mentally and emotionally scarred, and millions more innocents impacted by the destruction of their loved one’s self worth, well from 30,000 feet to the casual observer, it may not have even appeared as a smoldering ember.

Yet, the damage that is being done at ground level from this foolish foray of financial protectionism will harm the psyches of our children and grandchildren for generations. The children of the depression were entrepreneurially and socially scarred. The children of the Great Recession of 2008 are scarring now. We can look at each one of the millions currently being affected and dissect her personal situation as to whether she should or should not lose her home, but in the firestorm, hers is but one small voice in the roar that call for us to rise up as a people and recognize that economic tsunamis must inspire the better nature of humanity.

We can approach this time much differently than the financial cannabalism before us. Millions needn’t lose their homes because of artificially high valuations. Banks that are needed in our communities shouldn’t be gutted leaving us without the necessary financial tools of a free society. False profits that we thought were real shouldn’t keep our economy from recovery for want of equitable unwinding.

Roll the excessive debt into shared equity, give affected parties an option on a low probability potential at housing price recovery and let our nation move on. Our choices, our brothers, our nation…

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Filed under Job Voucher Plan, Social Media Democracy, social trajectory, War

In the Tradition of Shays’ Rebellion, America is Poised to Tear Down Our Monetary System

America is now poised to repeat a test of our Republic that played out at the end of the Revolutionary War in the state of Massachusetts, that of Shays’ Rebellion. In 1776, 90 percent of the patriots who fought in the war left their farms to do so. To feed the war effort, others sought loans from bankers and wealthy merchants to increase the size of their farms. Returning from the war in 1783, former soldiers found their farms in disarray. Returning from the war with war pay that had been severely devalued by banks, returning soldiers could not repay their farm loans. Farmers who had taken loans to increase their farm sizes now found with returning veterans, the demand for their produce had decreased and they also defaulted.

In the midst of these farm defaults, Massachusetts determined to raise revenues needed to pay war debt by taxing farm land and Boston bankers also demanded repayment of loans. Such began the conflict between the Eastern elites and Western farmers. Massachusetts had no bankruptcy law and the wealth class forced many farmers into debtor’s prison, creating fears that others would suffer the same fate. Farmers anxiously met in county conferences to send grievances to politicians, who had no political solutions. They petitioned the courts, which continued to foreclose on farms. These former revolutionary soldiers deciphered that the economy, banks, courts, and political systems of this new confederation that they had supported with their lives, now did not support their economic futures.

Led by Captain Shays, who had been a decorated soldier in the Revolutionary War, Western Massachusetts farmers conceived of the idea to organize and march on Boston and other Eastern Courts with enough weaponry to shut them down. They must have known that this uprising could not end well but in desperation they marched and did in fact shut down courts, temporarily halting foreclosures and debtor’s prison.

In response, Massachusetts passed the riot act to jail and take away properties of anyone who participated in these court disruptions. They then sent militia to capture leaders of the rebellion. Reacting to this aggression, Shays organized his own “militia”. Responding to Shays, 129 wealthy Bostonians paid for a mercenary army to march against the rebels. To have any chance against the mercenaries, in 1787, Shays determined to send his band of 2,200 men to secure the federal military stores in Springfield. In abandonment of all reason, Shay stated he would burn down Boston and overthrow the devils that controlled the courts. Shays’ Rebellion led to America’s founders adopting our constitution in 1787, including its federal protections of states against internal uprisings.

In 2011, America has experienced devastation to its middle class similarly to those that rose in rebellion against the elites in Massachusetts. Millions of modern Americans lost their homes not due to their deceitfulness or slovenliness but due to a fundamental shift in our economy that no longer supported their ability to repay their debts. A government and banking induced Ponzi collapsed the underlying value of their homes below the debt they incurred, and the resulting credit collapse caused a contraction of jobs and incomes.

While some civil groups have risen up like Shays and staged disruptions in courts that have caused delays in foreclosures, organized American resistance has been quiet. Unlike Western Massachusetts in 1783, Americans have not resorted to anything like armed rebellion. Millions have lost their life’s savings and thousands have been forced homeless. Yet thus far, unlike Greece, America’s social net has muted any resistance.

Unlike 1783, no one faces debtor’s prison. Although 10 million homes faced foreclosure since the crisis began, most states have allowed homeowners to simply walk away from their loans without recourse. For those states without nonrecourse provisions, a few have been able to work out short sales and deed in lieu of foreclosure. Most, however, have had to endure bankruptcy. Yet, unlike normal times, bankruptcy during this financial catastrophe has been accepted by the public without much social stigma. Six million Americans have faced it since the crisis began.

Without bloodletting, modern America has staged its own Shay’s rebellion. Sensing the inane injustice of an economic wave that has crushed financial stability, Americans have simply washed their hands of debt, giving it back to their bankers. In fact, in one out of every three foreclosures, homeowners who still had the wherewithal to continue paying their debt simply walked away from houses in which the debt exceeded the home’s value.

This modern American rebellion was not without consequence. Similarly to the elites’ initial quashing of Shays’ rebellion, banks reacted to America’s modern default by staging a “bank bombing” of America. With housing prices in freefall, profits of international banks plummeted. Some went into bankruptcy. Others merged. Finally, after several waves of financial panics, political appointees and elected representatives of the people colluded to bail out the banks to “keep the economy from imploding”. The Fed quickly shored up its fellow banks by patching financial cracks with two trillion dollars of quantitative easing.

Just as 1783 Americans were shocked when their militias fired on fellow Americans during Shays’ rebellion, modern America watched in cognitive disbelief as our elites and political supporters volleyed back and forth with the American people. Leading up to the crisis, reminiscent of Shays, banks and politicians worked in unison to create the stage for housing inflation, an expected recurring event in American history, committing Americans to trillions of dollars of unsustainable debt. As the debt Ponzi popped, Americans recognized a financial scam of historic proportions and felt no remorse in handing their debt back to the banks. As the financial elite turned on themselves in a flurry to rid their portfolios of financial stock precipitating a collapse of the world’s monetary system, banks responded by obligating politicians to throw bank debt back on the American taxpayers.

Now, all stare across the truce table sensing a potential mutually assured destruction. At an unwinnable impasse, the American people have still forced previous partners, EurAmerican banks and politicians, to face off in front of the electorate, challenging the elite to accept partial responsibility for the crisis. Knowing that the Great Middle has twice flushed Washington’s political power since the crisis began, once in 2008 electing the Democrats by landslide, and then reversing direction electing Republicans and the Tea Party when the Democrats failed to address the crisis, both parties are stalling in an increasingly obvious side step to avoid committing either elite or middle class constituents to the bargain.

Tea Partiers are beating the drums of Shays’ ancestral beginnings and attempting to rally the American people to their side. Yet the Great Middle, though beginning to rouse, remains muted. In a foreshadowing of the great conflict ahead, the Greek bourgeois have taken to the streets to demand equitable participation of their elites and to rue the austere contraction of their consumerism. America is now queuing behind Greece to continue on a much grander scale the Western upheaval that threatens our entire monetary system during the next phase of America’s modern Shays’ Rebellion.


Filed under American Politics, Federal Budget, U.S. Tax Policy

Is Bankruptcy in America’s Future?

Pat Robertson, as controversial a televangelist as he has been, ran for president of the United States in 1988 with a platform of a constitutional amendment for a balanced budget. America’s debt in 1988 totaled a “mere” 2.6 trillion dollars. One of his controversial presidential platforms was a call for the Year of Jubilee, a biblically historical reference that every 50 years, all debt was cancelled, all land went back to its original owner and all slaves were set free.  Mr. Robertson stated that the Year of Jubilee would be a less harsh way to deal with depressions of capitalism for the United States.

His solution for the path he predicted would ultimately lead America to the precipice that we now face was a Year of Jubilee for America. The idea was such an anathema to our firm societal view of debt repayment that it branded him a marginal candidate and cost him the control of his media empire.

Eleven years ago, after 24 million petition signatures were gathered worldwide for debt relief, the World Bank and IMF participated in Jubilee 2000 and forgave debt of approximately $90 billion to 22 of the world’s poorest nations, freeing them from a form of indentured servitude. This foretelling of restructuring of world debt gave credence to Pat’s solution and vindicated his thoughts, but could not begin to support the idea that America might join the ranks of defaulting nations.

23 years after Mr. Robertson’s suggestion, America has a much different social psyche. While a few percent of our elite have prospered during the past 23 years, many of Americans have struggled. When Wall Street decimated much of the only vestige of the American Dream in which many Middle Americans could participate, home ownership, it changed the bargain between classes.

A great many Americans are now choosing to walk through the social stigma of bankruptcy and foreclosure and to self direct their own personal Year of Jubilee. If this social movement takes hold, a new “Pat Robertson” claiming America’s biblical right for a Year of Jubilee 2016 could gain the White House, defeating the financial defenses of our political structure, and catapulting America into a nation that considers default as a valid option.  It is critical for our nation, that our political leadership presents a fiscally responsible budget, supports an economy that will provide jobs to all Americans, and restores confidence in the democratic and capitalistic contract that has been the basis of wealth distribution for our society.


Filed under American Governance, social trajectory, World Sustainability