Local Stories, Events
Ref. : Civic Events
Ref. : Arts & Education Events
Ref. : Public Service Notices
Books, Films, Arts & Education
Ref. : Letters to the editor
Health Care & Environment
11.18 Air pollution levels ‘forcing families to move out of cities’ [like from desertification, lack of drinkable water and rising oceans, there will also be pollution-caused immigration until humans fix things]
11.17 Policies of China, Russia and Canada threaten 5C climate change, study finds [Climate catastrophe is increasingly likely without worldwide organization, funding and commitment to winning THE WAR AGAINST GLOBAL WARMING.]
11.16 How pesticide bans can prevent tens of thousands of suicides a year [how many thousands more die early from eating pesticide-laced food?]
11.15 The Earth is in a death spiral. It will take radical action to save us [fossil fuel burning, un-recyclable plastic production/use and methane gas release must cease ASAP.]
11.15 The long read: The plastic backlash: what's behind our sudden rage – and will it make a difference? [the world wants to throw-up...]
11.15 Claws out: crab fishermen sue 30 oil firms over climate change [workers are waking-up...]
11.12 This Land is Your Land: The Zinke effect: how the US interior department became a tool of industry [behaving ignorantly again...]
News Media Matters
US Politics, Policy & 'Culture'
11.19 Last Week Tonight with John Oliver 11/18/2018 (HBO) [29:26 video]
11.19 Trump Says He Was 'Fully Briefed' and Also 'Not Briefed Yet' But Either Way Saudi Crown Prince 'Absolutely' Not Involved Because Trump Knows 'Everything That Went On' Without Listening to Tape of Khashoggi Murder
11.19 'We Need New Leaders, Period': Progressive Newcomers Urge Democrats to Embrace Bold Agenda or Face Primary Challenges [Current Democrat leaders are highly compromised by corporate donations]
11.18 Trump says Pelosi deserves speakership, offers Republican votes [An affirmation of Pelosi's unsuitability]
11.18 Khanna to Pelosi: Don't Just Create Green New Deal Select Committee, Make Ocasio-Cortez Its Chair [Will Pelosi earnestly change, or end her career in disgrace?]
11.18 Chuck Schumer, Feckless Hack [Neoliberal Democrats must go!]
11.18 What the State of the VA Tells Us About Trump’s War on Welfare [Privatizing often results in outright fraud and higher costs by private prisons, privatized health insurance and health care, privatized public schools and online "colleges" like Trump University]
11.17 As Energy for Medicare for All Explodes, Steny Hoyer's Plan Includes Waiting for Trump to Help Make Obamacare Better [Another who is unfit to be Democrat leader]
11.17 'A Staggeringly Bad Idea': Outrage as Pelosi Pushes Tax Rule That Would 'Kneecap the Progressive Agenda' [Unfit to be Democrat leader]
11.14 The Guardian view on Yemen’s misery: the west is complicit [WAR CRIMES]
Economics, Crony Capitalism
11.19 Bankrupt Sears wants to give executives $19 million in bonuses [blatantly immoral and sick to richly reward those who led the company into the bankruptcy]
11.18 Big Pharma Bankrolled Pro-Trump Group As Trump Pushed Pharma Tax Cut [Corruption Central!]
11.16 Amazon’s HQ2 Will Get a Tax Break Designed to Help the Poor [a Republican program that directly helps participating wealthy companies—but only helps workers if and when 'trickle-down' occurs.]
11.16 Trump doesn’t want to punish Saudi Arabia over Khashoggi. His new sanctions prove it. [George W. Bush made a similar immoral decision for the same oily reasons after 9-11, protecting Saudi defense contracts while facilitating the slaughter of poorer Arab "terrorists" in the region.]
International & Futurism
11.18 France demands UK climate pledge in return for Brexit trade deal [Excellent!]
11.17 Thousands gather to block London bridges in climate rebellion [We're losing WWIII because the enemy is invisible while we're like frogs slowly cooking. We aren't informed enough to be alarmed, but must get organized and motivated to fight back. We need a War Plan to ruthlessly pursue the fight of our lives!]
Fraud in America
The real reason it's called "The Land of Opportunity"
Monday, 11 October 2010
Ever larger, more sophisticated fraud schemes proliferate. They "roll across America like waves move onto a beach. (They) rise and fall with new innovations and ultimate corrections."
A systemic problem, it's everywhere, especially in savage capitalism's greed-driven system, enriching a global royalty at the expense of most others. In his book "On Fact and Fraud: Cautionary Tales from the Front Lines of Science," David Goodstein examined examples from centuries back to more recent times, including some accusations turning out to be false.
Trinity University's Bob Jensen maintains fraud updates through June 2009 on his web site.
He also reviewed a "History of Fraud in America," starting in colonial (and pre-colonial) times, saying the earliest kinds involved "phony health cures," including snake oil ploys, medical frauds, and other deceptions transitioning to today's "miracle cures and Internet charlatanism."
Largely agricultural early America saw land schemes as well as "deceptive rural living and farming products." Con men either bought or sold land. Victims were often immigrants and Indians. The one best remembered was the 1626 Manhattan Island purchase "for trinkets valued at 60 guilders," about $24. Ironically in a sense, Carnarsie Indians were the culprits as the land wasn't part of Manhattan. Usually, however, indigenous people were victimized, land scams expanding the country west and south, accompanied by others at the expense of the unwary.
Frontier history got crooked politicians and bureaucrats involved, accepting bribes collaboratively with land swindlers. It got worse during corporate America's early days. In 1787, less than 40 existed, mostly to build roads, bridges, canals, and other public projects. Many involved "bribes, kickbacks, and inflated prices" like today but for smaller stakes.
Checks and balances also arose, significantly in free press reporting, but not enough to curb greed or notorious "robber barons" like Jay Gould, Andrew Carnegie, John D. Rockefeller, Cornelius Vanderbilt, JP Morgan, and others, perhaps inspiring Honore de Balzac's maxim that "Behind every great fortune lies a great crime," or words to that effect.
The landmark 1886 Santa Clara County v. Southern Pacific Railroad gave corporations personhood under the 14th Amendment. It also helped proliferate fraud, including stock scams, land grabs, labor exploitation, various types of product and pricing swindling, and much more.
Now recognized as legal persons with full rights without obligations, corporations were on a roll, heading them towards monopoly or oligopoly power. Today more than ever globally with interlocking directorates, market dominance, and complicit governments arranging things their way.
Years back, General Motors negotiated a big heist with bribes and other means to get cities to abandon street cars for buses. It worked brilliantly, but was disastrous for large communities and the public, becoming more dependent on autos. A sprawling suburbia arose. Urban decay followed, so now ghettos proliferate nationally, their needs largely ignored.
Prior to the Great Depression, corporations operated virtually regulation free. That changed, but over time consumer protections eroded. Thereafter, global cartels arranged business friendly environments, manipulated them for profit, and committed greater than ever fraud. It's worst of all on Wall Street, especially after the 1913 Federal Reserve Act gave big banks money creation power, letting them game the system more than ever, including a free hand to commit fraud.
The 1920s stock selling scandals culminated in the 1929 crash. New Deal reforms followed, but what goes around comes around. Deregulation in the 1980s facilitated savings and loan fraud, then crime on the order of Enron, Worldcom, Madoff, other Ponzi schemes, market manipulation, bubbles, derivatives flimflam, embezzling, insider trading, false accounting, phony financial products, misrepresentation, and other scams, conspiracies, "foreclosuregate," and grandest of grand theft bailouts. The Treasury was literally looted of trillions of dollars, government partnering with bankers for plunder, sucking wealth from consumers globally.
Underlying Causes of Fraud in America
Jensen lists eight, including:
As a result, ever larger, more sophisticated fraud schemes proliferate. They "roll across America like waves move onto a beach. (They) rise and fall with new innovations and ultimate corrections." Creative corporate ploys follow new accounting and auditing rules, exponentially growing to become nearly incomprehensible.
Corporate bad guys so far are winning, their excesses continuing unrestrained. Neither legislation, potential lawsuits, or criminal prosecutions deter them. The "weakest front" is the political one because office holders need cash, and powerful lobbyists game the system for them. So one scandal begets another, new ones increasingly greater for larger stakes. Big money always prevails while consumer households lose out.
Ellen Brown (http://www.webofdebt.com) does some of the best financial writing around. Her latest deals with foreclosure swindling, involving fabricated documents, forgery, and perjury proliferating "massive fraud," including lost paperwork that "would have revealed to investors that they had been sold a bill of goods - (a package of junk), toxic subprime loans very prone to default." Yet they were cleverly dressed up in legal mumbo jumbo to resemble AAA quality until post-bubble foreclosures exposed the scam, too late to save most victims.
On October 7, Washington Post writers Brady Dennis and Ariana Eunjung headlined, "In foreclosure controversy, problems run deeper than flawed paperwork," saying:
In fact, major US banks faked documents to speed up foreclosures illegally, a criminal industry/Washington partnership dispossessing defrauded homeowners from their properties. In other words, when pols conspire with Wall Street racketeers, the public gets scammed, in this case millions of victimized homeowners.
In September, "foreclosuregate" emerged after evidence forced Ally Financial (formerly GMAC Mortgage) to stop dispossessions in 23 states where court orders are needed.
At issue are backdated documents, false affidavits, and so-called court-ordered "rocket docket," speed throughs to evict homeowners, proceedings lasting around 20 seconds per case. Judges are so swamped, they pay no attention, says Margery Golant, a veteran Florida foreclosure defense lawyer. As a result, "They just rubber-stamp them," case closed.
On October 8, Bank of America announced it would halt foreclosure sales in all 50 states. Earlier, Ally Financial and JPMorgan Chase said they're doing it in 23 states. PNC Financial Services Group will also for 30 days, and very likely other banks will follow.
On October 8, Obama pocket-vetoed a rushed-through Senate bill to facilitate foreclosure fraud. It would have mandated mortgage and other financial document notarizations in one state (including those done electronically) be recognized in all others. Consumer groups and other critics complained, saying the measure would have facilitated dispossessions faster, and in many cases improperly.
Attorney General Eric Holder then said the Financial Fraud Enforcement Task Force is investigating reports of greater numbers. Seven or more state attorneys general began their own, that if not stopping, at least may slow down dispossessions. More on that below.
Last May, Herman John Kennerty, a Wells Fargo default document group administration manager testified that he typically signed 50 to 150 evictions daily. He also said he didn't independently verify information to which he was attesting, just rubber-stamping it along.
In Florida, problems are especially acute, recent 12th Judicial Circuit state findings showing that 20% of foreclosures set for summary judgment involved deficient documents, according to Chief Judge Lee E. Haworth. In an interview, he said:
As a result, on September 17, Judge Harry Rapkin, overseeing district foreclosures, dismissed 61 cases. Plaintiffs may refile, however, by repeating the procedure, including paying fees involved.
Overall, the process is riddled with fraud. Mortgage lenders used boiler room tactics, conning borrowers with no knowledge of what they were doing, including the risks. To close deals, some forged their signatures on key documents, pressured real estate appraisers to inflate home values, and created fake W-2 forms to exaggerate applicant incomes.
The Housing Bubble
Make no mistake, the housing bubble was built on an edifice of fraud and was no accident. Catherine Austin Fitts is a former Assistant Housing Secretary. Then from 1994 - 1997, her company, Hamilton Securities, was the lead Federal Housing Administration (FHA) advisor. An expert, she "watched both the Administration and the Federal Reserve (game the system by) aggressively implement(ing) the policies that engineered the housing bubble."
In her March 15, 2009 Solari.com article headlined, "The Fed Did Indeed Cause the Housing Bubble," she explained:
In her August 7, 2007 article titled, "Sub-Prime Mortgage Woes Are No Accident," Fitts said:
The model is global, profiting hugely from illicit drugs, money laundering, and economic destruction of poor communities. Business and government officials at the highest levels are involved because of the enormous stakes - an estimated $500 billion - $1 trillion laundered annually through major financial firms, mostly in America.
On May 6, 2009, the Center for Public Integrity headlined, "Who's Behind the Financial Meltdown: The Top 25 Subprime Lenders and Their Wall Street Backers," saying:
They include Goldman Sachs, JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other familiar names, profiting hugely through criminally engineered fraud, facilitated by government complicity - initially during the Clinton administration, or perhaps earlier.
Banks getting bailout money own, financed, or were financially connected to at least 21 of the top subprime lenders. Twenty have now closed, stopped lending, or were sold to avoid bankruptcy. Nine were California based, including: Countrywide Financial, Ameriquest Mortgage, New Century Financial, First Franklin, and Long Beach Mortgage, scamming homebuyers through criminal fraud.
State Foreclosure Fraud Investigations
As explained above, seven or more state attorneys general began investigations, and reports suggest up to 40 or more may work cooperatively on it. According to Bloomberg.com on October 8:
Whether Attorney General Holder and top congressional officials will get on this forcefully remains to be seen. So far, there's more furor than action or tough measures. There's also risk it may subside post-election, given other lame duck session priorities, then a new Congress in January. However, the housing scandal is so huge ("foreclosuregate" one part alone) that momentum may give it legs in 2011.
The situation bears watching. Financial institutions may be penalized, but expect no top heads to roll, just perhaps a few lower-level sacrificial lambs. It's how Washington officials always handle scandals, because they, too, are complicit.
Listen to Lendman's cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.
Mr. Lendman's stories are republished in the Baltimore Chronicle with permission of the author.
Copyright © 2010 The Baltimore News Network. All rights reserved.
Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.
Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.This story was published on October 11, 2010.