Eliot’s Mess

Greg Palast Journalism ^ | 2008-03-16 | Mike Acker

[Mike Acker]

Interesting essay purports to disclose relationship between Eliot Spitzer and the Bush administration involvement in the sub-prime lending and banking crisis

[NinoFan]

more conspiracy BS

[Old Sarge]

Rules...

[the invisib1e hand]

of course it does.

[hoyaloya]

I’m impressed. Palast has moved on from writing about conspiracies of Bush stealing the Florida election, starting wars for oil, giving drugs to blacks, ripping off poor folks . . .

to writing about Bush and Bernacke being the real villains of the Spitzer story.

What a joke Palast is.

[svcw]

So GWB is now responsible for the housing mess and MP whoring around?

[hoyaloya]

Palast is pathetic. He knows his little world and twists everything to fit it.

In Palast’s world, Countrywide didn’t exist until Bush (I wonder who my mortgage payments in 1999 were really going to then?). ARM mortgages didn’t exist prior to Bush.

No wonder we get so many buffoons in our culture. They get information, however twisted, from people like this. I once had a law school buddy refer me to Palast. Personally, he reminds me of a Don Knotts character.

[vietvet67]

Hey Palast!!

[ninonitti]

to writing about Bush and Bernacke being the real villains of the Spitzer story.

The timing of these events are interesting as is the Carlyle Group croaking and the Bear Stearns $200 Billion near miss. Monday is going to be very interesting.

You may want to laugh it off but I'm not seeing the humor - this guy raises legitimate questions and I haven't heard any credible responses on any of these questions from the White House other than the blanket denial: "There is no recession".

[Mike Acker]

==>Palast is pathetic. that is an ad homineum and you know better than to do that

==>In Palast’s world, Countrywide didn’t exist until Bush

Here is what Palast wrote:

From out of nowhere, a company called ‘Countrywide’ became America’s top mortgage lender, accounting for one in five home loans, a large chunk of these ‘sub-prime.’

Hoy, have you been taking journalism lessons from the NY Times?

All that I posted here on F/R is "interesting essay purports" I think there are some things that Palast's essay touches on that might get looked into a bit. I have the day off tw and maybe I'll try that a little

[xJones]

Hi, newbie.

"By Greg Palast Reporting for Air America Radio’s Clout"

Well, if Airhead America isn't a reliable source, I don't what is. BTW, the DUmmie site is somewhere else on the internet, you've posted on the wrong website. That's okay though, we don't expect you to know any better.

[Mike Acker]

so, ya don't like Jack Palast

all I said was "interesting essay purports". If you can't read English accurately then perhaps YOU might enjoy the Dummies Site

I happen to think Jack's essay warrants a little more checking into. I have the day off tw becasue it is St. Patrick's Day and maybe I'll do a little checking. But right now I'm gonna get some lunch and then watch the race

[xJones]

No, my little Pigsle, you still don't understand. Air(head) America hates George Bush. Any article from there will imply that GB is worse than Hitler and Stalin put together. Their veracity is doubtful, to say the least, and their objectivity is nonexistent.

I know that's too much to think about at one time, so go eat your Gerber's lunch.

[therut]

Palast is a commie propagandist. Know of FSTV as a saint of left wing propaganda. A NUT.

[Bodhay]

Remarkably empty the postings on this topic sound.

I was expecting some indignation on the 200bn govt bailout, to say the least. You like that part?

[xJones]

Remarkably empty the postings on this topic sound.

Yoda, is that you?

[mimaw]

Weekly radio report on Air America, that says it all.

[RightOnTheLeftCoast]

"Here is what Palast wrote:

From out of nowhere, a company called ‘Countrywide’ became America’s top mortgage lender, accounting for one in five home loans, a large chunk of these ‘sub-prime.’"

Following is from a speech by Countrywide's chairman in 2003. Its basic premise was "We should be dealing out mortgages to unqualified people, especially minorities, with special 'intro periods' in which their loan balance increases, heh-heh."

This bookends nicely with what Sam Zell is saying. The subprime crisis has its roots in politics, basically: bankers financing homes that the borrowers couldn't afford, ignoring traditional green-eyeshade/sharp-pencil calculations in favor of political correctness and wishful thinking. Classic self-correcting problem. Welcome to the correction, now. It'll pass.

---- http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-04-2003/0001885208&EDATE=

Countrywide's Chairman Mozilo Delivers John T. Dunlop Lecture

- Leader Calls on Mortgage and Housing Industries to Address Homeownership Gap -

WASHINGTON, Feb. 4 /PRNewswire-FirstCall/ -- Angelo R. Mozilo, chairman, CEO and president of Countrywide Financial Corporation, Inc., (NYSE: CFC), urged mortgage professionals, housing experts and others to address the obstacles that create an "intolerably wide" gap between minority and lower-income homeownership and what is classified as white homeownership. Mozilo delivered the John T. Dunlop Lecture sponsored by the Joint Center for Housing Studies of Harvard University and the National Housing Endowment on Tuesday night.

In his presentation entitled "The American Dream of Homeownership: From Cliche to Mission," Mozilo told his audience, "Expanding the American dream of homeownership must continue to be our mission, not solely for the purpose of benefiting Corporate America, but more importantly, to make our country a better place." He went on to outline bold suggestions that the mortgage industry and others should consider to overcome barriers to homeownership.

These include elimination of mortgage down payment requirements, educational efforts to make the home loan process easier to comprehend, and reduction and streamlining of loan application documentation.

Mozilo drew upon his 50 years of experience in the mortgage industry and cited Countrywide's successful efforts to increase homeownership opportunities for minority and lower-income borrowers. From these perspectives, he identified and commented on several structural obstacles within residential finance business practices that adversely impact home-buying among these constituencies:

-- The loan underwriting process: "We must look for ways to capture 'alternative' payment histories and to properly factor in cultural differences in credit, income and spending habits, so that we can say 'yes' to borrowers who have the ability and willingness to make their mortgage payments. Credit scores must not be the dominant factor for assessing risk. Non-traditional factors such as rent and utility payment history should be imbedded in the automated underwriting process."

-- Loan performance measurement: "Let's focus on the majority of people who are successfully managing their loans and living their dream. Let's not be obsessed by the few that fail, but instead be encouraged by the vast majority who succeed. Let's look for every possible reason to approve applicants, not to reject them."

-- Counter-productive regulatory efforts: "With respect to predatory lending, enough of the mania. Let's be mindful that reputable lenders cannot operate under hundreds of laws that only have one thing in common -- the word 'predatory.' Subprime lending and predatory lending are not the same thing. Brushing them with one broad stroke only wipes out the opportunities for homeownership for too many deserving low-income and minority home buyers."

Mozilo spoke of the importance of homeownership to families, communities and the nation. "In addition to increasing personal wealth and adding to our national economy, creating more homeownership opportunities and narrowing the homeownership gap increases social capital. In other words, it ties families, neighborhoods and communities together," he explained.

Citing several studies, he noted that children living in owned homes have higher math and reading achievement levels, and homeowners are more likely than renters to belong to civic groups, such as parent-teacher organizations.

In conclusion, Mozilo said, "Housing is critical to our nation's welfare and to our communities' well-being. Let's make sure that the American dream of Homeownership is never a cliche, and always our cause, and always our steadfast mission. We have the resources. Together, as partners, let's show the will."

The John T. Dunlop Lecture was held at the National Housing Center in Washington, DC. The Dunlop Lecture series honors a distinguished member of the Harvard community in recognizing the contributions of emeritus professor John T. Dunlop and his distinguished career at the University, in government, and in the private sector. Dunlop played a key role in establishing the Policy Advisory Board of the Joint Center for Housing Studies. Mozilo serves on that board, as well as the Board of Trustees of the National Housing Endowment, and has been inducted into the National Association of Home Builders Hall of Fame.

Founded in 1969, Countrywide Financial Corporation, Inc. (formerly Countrywide Credit Industries, Inc.) is a member of the S&P 500, Fortune 500 and Forbes 500. Countrywide, through its family of companies, provides mortgage banking and diversified financial services in domestic and international markets. Consumer businesses include mortgages, insurance and other financial products. Business-to-business activities encompass capital markets, transaction processing and insurance. The company is headquartered in Calabasas, California, and has 30,000 employees with more than 500 offices nationwide. For more information about the company, visit Countrywide's Web site at http://www.countrywide.com

[Mike Acker]

thanks pard — very interesting. tends to confirm what I’ve been suspecting — there’s more to this under the surface

[Mike Acker]

thanks pard but I already have that picture

[Mike Acker]

poking around for about an hour now, come up with this

ASSURANCE OF DISCONTINUANCE PURSUANT TO EXECUTIVE LAW 63(15)

I ain't exactly sure where all this leads to except it probably doesn't lead to a field of daisies

[Mike Acker]

==>Palast is a commie propagandist. Know of FSTV as a saint of left wing propaganda. A NUT.

I did a little research this morning on the fellow and my impression is that he is a controversial fellow and most likely a very interesting one at that

There was this: APP profile on Greg Palast

What I'm going to do is buy one of his books and read it. perhaps it will be full of baseless assertions and if it is I'll junk it.

But one thing seems completely clear, and that is that in dealing with our "New Media"* it is important to consider a variety of sources. And keep in mind: cui bono? ( i.e. "follow the money" ) .

* the term "New media" to me means the interactive media. I was arguing with my dearly beloved mother one night and she exclaimed "Oh! The Internet is awful: anyone can say anything s/he wants!". "Precisely" I replied, "and if you try pushing your agenda you will promptly be call to task for that. They days of manufactured authorities enjoyed by the media and by academia have ended. At least as long as we can maintain Free sites on the Net like Free Republic

I've only been using F/R for a few months now. Mostly it's good,--

[therut]

If you have Dish network just watch FSTV for 1- minutes and you will learn all you need to know.

[RightOnTheLeftCoast]

"thanks pard — very interesting. tends to confirm what I’ve been suspecting — there’s more to this under the surface "

The galling thing is that this sorry episode--an entirely predictable consequence of bankers abrogating their fiduciary duty in the pursuit of political correctness--is being promoted for Bush-bashing and America-bashing. It's politics, in other words. Sam Zell agrees: http://www.cnbc.com/id/23350846/site/14081545 ...I'll take his analysis over any collection of presstitute pundits, any day. Frankly, in this episode the media and politicians are doing their level best to keep people uninformed. That speech by the chairman of Countrywide tells you all you need to know about the mess, including that its consequences will be painful (as we're seeing) and temporary (as we'll see).

[RightOnTheLeftCoast]

Mike Acker: Thanks, that’s a nifty find. Shows that Countrywide was under pressure by no less than Elliot Spitzer for allegedly racist lending practices that resulted in minorities receiving higher-cost loans. A quick read suggests: they deny wrongdoing, point out that Spitzer’s analysis excluded credit risk factors (e.g., ignored the possibility that black/hispanic borrowers might not, as a class, have as good a credit history as other ethnicities), and promise to obey the law and be audited for compliance.

Apparently, the Spitzer pressure was occurring at about the time the Chairman of Countrywide was going around making that astonishing speech. One wonders if his paean to political correctness—and the flood of bad loans that followed—was a reaction to Spitzer’s legal assault...

Regardless of whether the Chairman’s sentiments were sincerely held or crafted to keep the voracious Spitzer at bay, it’s clear that this mess has its roots in liberalism.

High finance and soft-headed bleeding-heart-ism should never cohabitate!

[Mike Acker]

==>it’s clear that this mess has its roots in liberalism.

High finance and soft-headed bleeding-heart-ism should never cohabitate!

yep, or just plain ordinary raw greed

and it sure ain't the first time greedy un-scrupulous thugs have conspired to scam the public. Our defense is communications and we are still recovering that capability

The more often I visit Free Republic the more I like the outfit

[Mike Acker]

I have Charter cable; dunno if I can get that channel. should I check into it?

[Mike Acker]

"Bush bashing"

Is that against the rules? which is worse democrats or republicans or politicians? Fraud is fraud regardless of whether it is red or blue.

I have a particular fondness for these notes by Dr. Franklin and I think we should all review them from time to time

[Mike Acker]

I a book entitled Financial terrorism by John F McManus I found this tidbit

Be ready for your copy