Yves Smith Takes Apart Obama’s Spin on Banking Crisis Solution

24 Jan

In an excellent piece published over at Common Dreams, Ms. Smith lays it out in plain English for anyone to see.

The federal government is aiding and abetting the banks in continued fraud and thievery while preventing and avoiding any way for a direct and honest legal response to their crimes.  Once more, settlement pacts which are all glitz and no substance being used to side step criminal prosecutions on behalf of a rapidly and vastly expanding beleaguered populace.

And once more, spinning it up to sound as if something real is happening – by stealing the talking points of the woman he refused to appoint to help protect the American people. Nice work, Obama. Sheesh.

Obama to Use Pension Funds of Ordinary Americans to Pay for Bank Mortgage “Settlement”

Obama’s latest housing market chicanery should come as no surprise. As we discuss below, he will use the State of the Union address to announce a mortgage “settlement” by Federal regulators, and at least some state attorneys general. It’s yet another gambit designed to generate a campaign talking point while making the underlying problem worse.

The president seems to labor under the misapprehension that crimes by members of the elite must be swept under the rug because prosecuting them would destabilize the system. What he misses is that we are well past the point where coverups will work, and they may even blow up before the November elections. If nothing else, his settlement pact has a non-trivial Constitutional problem which the Republicans, if they are smart, will use to undermine the deal and discredit the Administration.

To add insult to injury, Obama is apparently going to present his belated Christmas present to the banking industry as a boon to ordinary citizens. He refused to appoint a real middle class advocate, Elizabeth Warren, to the Consumer Financial Protection Bureau, but he’s not above stealing her talking points.

Once again, as Ms. Smith points out and as the article details in later sections is that these ‘settlement pacts’ as ever, fail to address the criminal acts, and unlawful behavior of banks/servicers which still go on to this day.

Make no mistake about it, the banks are winning on all fronts here and so long as the federal government insists on keeping it that way, the future of all Americans, and of their money, is in very serious jeopardy.

We note the end of the piece here and encourage everyone to participate as suggested:  Call your local State Attorney General. Let them know that you don’t want any settlements and you want full prosecution under the law for the wrong doers and robo signers still committing these crimes upon the people today, in January 2012.

As I urged last week, please call your state attorney general and tell them you think taking from your pension to enrich banks for abusing homeowners is a lousy idea and they should therefore refuse to sign on to the settlement. You can find their phone numbers here. Please call today if you haven’t already. Thanks!


Read the entire article at Common Dreams here



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