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connecticut man1's picture
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Lambert, If you read the fine print written everywhere across the media and the intertoobz:

CR: Banks "leaving money on the table 'all day long....'"

Sun, 03/22/2009 - 5:00pm — lambert>

So tell me again how much we're bailing them out for? What they left on the table, too? Confusing!

Everything you need to know about the bailouts...

in 2 short paragraphs. A relatively long post for Atrios. And I'll explain why this is true below. Wheeeeeeeeeeeeee!

What's The Goal?

Others have made this point in various ways, but if the goal is to bail out the banksters and keep the existing too big to fail financial order in place with the same cast of characters in charge, then all of this sounds like a cunning plan.

If the goal was really to get banks lending again they'd be funneling large sums of money to healthy (mostly smaller) financial institutions who actually made sensible choices over the last few years.

Meanwhile a fire sale is going on:

Lenders have become so overwhelmed by the foreclosure crisis that they are starting to unload properties in bulk to investor groups at steep discounts.

Investors then flip the properties for a profit without necessarily improving the home.

For example, a unit of Citigroup, the troubled financial giant, sold a foreclosure in Temecula to an Arizona investment firm for $139,000 when comparable homes in the area were selling for $240,000 to $260,000.

The firm listed the home for $249,000, received multiple offers and the property has entered escrow, said Amber Schlieder, the real estate agent who handled the listing.

Citigroup left a 100 grand on the table. This looks like a great way to abuse the taxpayer even more.

I want to know who they are all selling in bulk to.

Remember who else was buying up the mortgages in bulk?

So it may come as a surprise that a dozen former top Countrywide executives now stand to make millions from the home mortgage mess.

Stanford L. Kurland, Countrywide's former president, and his team have been buying up delinquent home mortgages that the government took over from other failed banks, sometimes for pennies on the dollar. They get a piece of what they can collect.

"It has been very successful - very strong," John Lawrence, the company's head of loan servicing, told Mr. Kurland one recent morning in a glass-walled boardroom here at PennyMac's spacious headquarters, opened last year in the same Los Angeles suburb where Countrywide once flourished.

The Treasury has shown a willingness to recklessly toss all of our futures away to keep these "Too Big Failures" operating in their self-entitled comfort zone.

What incentive do the banks have to sell these properties for as much as they can when they can sell them in bulk at a loss to their buddies' companies (or even their own companies) so they can turn a profit on them and doing this knowing the failure bankers can ship off all of the bills for the losses to us? Think about it.

If Geithner were handing these trillions to the smaller more responsible bankers some of us little people would be able to buy these cheap houses... But this way the elite get to keep all of the assets in their greedy hands and have us pay for their gambling addiction failures too. And then they will turn a profit on selling us these properties AGAIN.

“While some critics are distressed that Mr. Kurland and his team are back in business, the executives say that PennyMac’s operations serve as a model for how the government, working with banks, can help stabilize the housing market and lead the nation out of the recession. “It is very important to the entire team here to be part of a solution,” Mr. Kurland said

Important for Whom? You, maybe, but not me.

I am thinking predatory lenders should already be in jail and that this is a model for more financial disaster for taxpayers. I smell smoke and all I see are fire sales and a bunch of greedy arsonists standing around with their gasoline soaked hands in our pockets...

And, so far, the elite are achieving their goal of bailing out themselves with our money. And they have even found more ways to profit from their own failure. While we foot the bills.

From buhdydharma at dKos, some extra food for thought:

Hard Not To Call It Evil

According to people who should know, The Ruling Class is using our money....draining our money, the money we use to survive and feed our children and to actual produce things, to rescue the very structure...that allows them to BE The Ruling Class. The structures that enable them to Rule us by controlling credit, capital, and our pensions and IRA's and 401k's.

And our regulatory agencies and politicians. And so by extension our military. Which is then used in the service and interests of The Ruling Class and their Party of Business, the GOP.

These people, the Ruling Class, are the ones who got us into this financial armageddon. These are the same Ruling Class that took us to war in Iraq, after ignoring the warnings that an attack was coming.

They are the same people who made America into a nation that tortures people they KNOW to be innocent. They are the same people...if they even deserve the name...who are stopping any serious efforts to mitigate a Climate Crisis of incomprehensible scope.

They are the same people that so unprecedentedly had the Supreme Court decide Bush vs. Gore, so they could have Bush cut their taxes and deregulate the very same structures that we are now being called to give OUR money to prop up. Yes, the very same people who are directly responsible for everything that has gone wrong in our world, are the people who are now telling us....not asking us....telling us, that we have to bail them out. While as always, not telling us the whole story, not telling us what they are doing behind the scenes and behind our backs.

Read on...

[update] Via Newsweek, Follow the Bailout Cash:

In recent filings with the Federal Election Commission, the political action committee for Bank of America (which got $15 billion in bailout money) sent out $24,500 in the first two months of 2009, including $1,500 to House Majority Leader Steny Hoyer and another $15,000 to members of the House and Senate banking panels. Citigroup ($25 billion) dished out $29,620, including $2,500 to House GOP Whip Eric Cantor, who also got $10,000 from UBS which, while not a TARP recipient, got $5 billion in bailout funds as an AIG "counterparty." "This certainly appears to be a case of TARP funds being recycled into campaign contributions," says Brett Kappell, a D.C. lawyer who tracks donations.


[update deux] Via Tengrain, a picture is worth trillions of dollars:

The Bailout Tracker

Hat tip to Scissorhead LiberalDemDave, he discovered a handy way to find out how much the freakin’ bloodsuckers are getting out of us.

What’s really interesting is that this program also tells you the company’s market value and the percentage of the funds it received in proportion to the market value.

So, for instance, the market value of AIG is $942 million, and the bailout that they have received is 4246% of their market value. And if that doesn’t tell you everything you need to know…

Originally brewed in New Milford and available on tap here, as well.

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connecticut man1's picture
Submitted by connecticut man1 on

in short little jabs point to a bigger picture of their newest way to stick us with even more losses then they should while racking up more profits for them and theirs.

Submitted by jawbone on

NPR top of the hour news summary actually began by talking about how the private money was "at risk" AND the taxpayers stood to gain from this regurgitated Paulson Fix Is In plan of Obama and Geithner's. I can't recall if the caveat "if there are profits" was added.

I know Summers is in the design of this somewhere, but they're not putting him front and center.

A bit later the news summary mentioned a smallish $B or so figure coming from TARP I and also "loans through the FDIC." No number for that latter tricky accounting.

I think when the public gloms on to what's going on, the shit will hit the fan. And shitty blowback is a real mess. Capiche, Mr. President, et al?

Of course, unless the the Dems in Congress take a stand against this approach, the Democratic Party, from financial left to labor Dems to the unlabeled long-view progs and libs will get covered in the blowback shit as well.

We are so fleeced by this crew.

connecticut man1's picture
Submitted by connecticut man1 on

People already get some of it, but it is getting to be even more of a ripoff everyday. In the fianacial times and, as the buzzflash submitter noted, these self-etntitlement morons that broke the world economy are not trying to be funny here:

Bankers on Wall Street and in the City have struck back against moves by US lawmakers to slap punitive taxes on bonuses paid to high earners at bailed-out institutions.

Senior executives on both sides of the Atlantic warned of an exodus of talent from some of the biggest names in US finance, saying the "anti-American" measures smacked of "a McCarthy witch-hunt" that would send the country "back to the stone age".

There were fears the public backlash triggered by AIG's payment of $165m (£114m) in bonuses to executives at the unit responsible for losses that forced a $170bn taxpayer-funded rescue would have devastating consequences for the US's largest banks.

"Finance is one of America's great industries, and they're destroying it," said one banker at a firm that has accepted public money. "This happened out of haste and anger over AIG, but we're not like AIG."

An example of an idiocratic financial leadership that doesn't realize, yet, that we know how stupid, incompetent and greedy they are. You can leave your bonus on the table as you leave and we may, yet still, clawback your paychecks that amounted to a plundering of the economy. The other option is taking a pound of your flesh closest to your greedy heart...

"We are so fleeced by this crew."

They are shearing us and then they will turn around and try and sell us sweaters they pay us a pittance to knit and sell for more ridiculous profit and bonuses. There is the analogy in nutshell.

Submitted by jawbone on

money is being laundered to continue the banksters' fraud.

This is how Obama, Geithner, Summers and the Big Bankster Boiz are trying to create a new bubble -- or somehow repair the old one that was so wondrously profitable for them on a peronsal level. Why else are they so incredibly obstinate about this lemon socialism where profits go to the Uberwealthy and losses get covered by the taxpayer?

connecticut man1's picture
Submitted by connecticut man1 on

Dodd et al asking for the extra $500 billion for the FDIC, that money is for insurance dues that haven't been covered by the banksters and because there have been a long line of failed banks lately that FDIC has had to cover for. Arguably another backdoor way of getting money to the other banks since it cut their fees to the FDIC in half. Maybe? I am a little unclear on the question since I didn't write on the FDIC here.

Salmo's picture
Submitted by Salmo on

"US urges investors to buy bad assets" Financial Times (http://ftalphaville.ft.com/blog/2009/03/...). This is not secret. No one is pretending it is anything but a giveaway to rescue the folks who drove the economy over the cliff. It's worse than the trickle down economy. The pitch is that if we refloat them, the con artists and architects of ruin will lead us to a better future this time, and then maybe a little of that wealth and power could be shared with us. To parrot the NY Times, this is a little too close to the sort of thing we would have expected from Bush/Cheney.

connecticut man1's picture
Submitted by connecticut man1 on

This is well over over the line from a failed plutocracy turned to criminal kleptocracy. Engineered theft by the elite and for the elite.