I like to listen to the Young Turks. I think they do the best job of political analysis in the media. Admittedly, I don't have the time I'd like to to read more articles, blogs and newspapers, so I don't have the foundation to critique their work at the margins. But the substance is usually spot on.
I heard Cenk mention a week or so ago that the US Government is backing nine out of ten mortgages in the United States. That figure floored me, so I Googled it. What I found was that since Fannie and Freddie crashed, nine of ten are backed by the US. Now, I'm not sure if this means that it is "only" 90% since the crash of 2008, or that we assumed all of F & F's disastrous paper and WE, the taxpayer, now guarantee 90% of the mortgages. And for the point I want to make, I don't care.
This is a socialized mortgage market. Don't be fooled because the mortgages are still going through banks. If we the taxpayer guarantee the loan (meaning WE pay the BANK if the borrower defaults), then this is a government-run home ownership program.
Here's my question: why have the banks in the loop at all?
These fucking banks, these fuck-stained fuck-heads that fucked us all out of billions, and then trillions. Why are they in the loop? Why are we guaranteeing their PROFITS when their incompetence and fraud caused the problem in the first place?
Hey, I'm liberal...you can easily talk me into a dose of government intervention. I'm all for a decent level of socialism, IF it BENEFITS THE AVERAGE WORKING PEOPLE. I would be totally in favor of this level of government intervention in the housing market if the government actually gave the loans. Shit, if we're going to back bad loans and underwater properties anyway, why not just refinance on terms friendly to the treasury, and give Americans a break in the process.
Let underwater and behind-payment Americans refinance directly with the Fed if the bank is not bending over backwards to help them out. Snatch those fucking papers right out of Wall Street's portfolio. If they're bad, we're stuck with them anyway. But if we can reach terms that help Americans stay in their homes, we might save a lot of neighborhoods, maintain some property values and preserve the wealth of the American homeowner.
And, while we're at it, craft some legislation that lets the Treasury take the paper at a discount from the banks, especially if they have been bailed out, or gorging themselves on practically free money from the Fed's window. If the homes have been under water, and the banks haven't negotiated with the owners, take it at real value, and then negotiate at lowered principle. If the banks don't like the Treasury moving in, then give them a chance to do what they should have been doing all along - since their behavior caused this mess in the first place. Regulate on those mother fuckers - they can fix the mess, or We the People can take over and reap the benefits.
Again, I don't know all the details - but I know enough to know we are being screwed, with no vaseline. If we are backing 90% of home mortgages anyway, why not just officially socialize the home loan market and run it strictly for the common good. Why let banks take 100% of the profit if they are only taking 10% of the risk. That makes NO SENSE WHATSOEVER! It doesn't make sense economically, morally or politically, if our political system wasn't already sold to the highest bidder.
For that matter, why stop there? There are old usury laws that could be dusted off, and enforced. Since the Fed window has been open to the banks, have they been lending to consumers? NO! They have continued gambling on derivatives. They are currently wagering in a currency derivative market that is valued at over 60 TRILLION DOLLARS! Yeah, like THAT'S not going to blow up! Meanwhile, Americans still lack credit. Slam the window on those banks, and open it to the American consumer.
I want a "FED-IT" card. Let me roll over my usurious 20+ percent VISA or Mastercard to a Fed issued credit card that charges 4% over the current near-zero bank rate. I can chop away at that principle, while we let most of that 4% go towards paying down the national debt. America gets debt reduction, increased consumer spending, increased sales and investment in small, medium and large sized businesses, more hiring and we don't get fucked hard by the Wall Street financial rapists.
I mean, shit...we have bailed them out, back-door bailed them out, given them free money, and guaranteed 90% of their mortgages. I give my kids, who I love dearly, less support. Then, just to rub it in our faces, they paid themselves RECORD BONUSES, because they were so profitable. No shit! If I had the Fed giving me free money, my frozen dog shit shoppe would be among the most profitable businesses too! (By the way, shareholders of bank stocks, are you sharing in those record profits? You know the answer is "hell no!")
The notion of a "free market" in Wall Street finance is long gone, it's out the window. Those banks are basically leeches, sucking the life blood out of the American consumer. Let's go with a financial public option now, and let them fall in line, or fuck off. If they don't like some regulation, let them set up shop in Somalia, and good luck them.
And reader, this is NOT communism. It is the socialization of the supply and distribution of money. Consumers will still be spending this Fedit in a private marketplace. Do you want to argue that it is socialism? Sure, I'd much prefer it to a few elite bankers leveraging our borrowing power to gamble in the international derivatives casino, fucking us all when they crash the system by losing bets. And it is not a question of IF they will lose a bet, but when.
No, sign me up for a Fed-it card. Let the Fed take over my mortgage. Then, appoint regulators that will scrutinize the Fed like a proctologist. And the banks? They used to do just fine making 4, 5 or 6% on mortgages and car loans, and 9.5% on credit cards. If they go back to that, there will be plenty of big salaries to go around, but not as many bonuses. If they don't like it, get a job teaching, fighting fires, changing tires, greeting at Walmart...
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