Posted on 05/28/2012 5:06:41 AM PDT by Zeddicus
(ref: How Banks Bought the Tea Party)
Seriously folks.
The 15 freshmen Republican representatives in the House Tea Party Caucus each ran in 2010 on a populist anti-Wall Street message, highlighting their opposition to bank bailouts like the 2008 Troubled Asset Relief Program (TARP) and criticizing Washington for enabling the banking sector as it became “Too Big to Fail.” After winning, all fifteen received significant PAC contributions from the banking industry — and have become a reliable vote and mouthpiece for the financial industry, a ThinkProgress analysis of campaign contributions, voting records and public statements reveals.
It would be nice if they just took money. They did worse.
11 of the 15 co-sponsored this piece of trash; is there any doubt they were bought and paid for?
‘(a) In General- In the examination of financial institutions--‘(1) a commercial loan shall not be placed in non-accrual status solely because the collateral for such loan has deteriorated in value;
‘(2) a modified or restructured commercial loan shall be removed from non-accrual status if the borrower demonstrates the ability to perform on such loan over a maximum period of 6 months, except that with respect to loans on a quarterly, semiannual, or longer repayment schedule such period shall be a maximum of 3 consecutive repayment periods;
‘(3) a new appraisal on a performing commercial loan shall not be required unless an advance of new funds is involved;
Got it? The fact that the collateral, which was the predicate for the loan in the first place, no longer supports the loan as originally agreed, cannot be used as the reason to place the loan in "non-accrual" (that is, at risk of not performing) status.
But the predicate for the loan being made in the first place was the provision of the collateral; but for that collateral's actual value the loan would have never been made in the first place!
This is what the so-called "Tea Party" that claimed to be against bank bailouts has supported -- literally changing the qualifications on a loan after it is made so that in effect there is no collateral required at all!
This is an attempt to literally approve by legislation the effective counterfeiting of the nation's currency and you are the victims as your purchasing power will be further destroyed by this bill should it become law.
11 of 15 "Tea Partiers" are co-sponsors.
Fire them all; they're traitors and mendacious bags of pus.
I agree with your assessment - though your logic isn’t always correct. Historically, Houses have appreciated since WWII BUT we’ve had two significant corrections since then that have reset value considerably, then the climb began again
Now I assume this is also true at some level with commercial real estate?
Further - if we didn’t apply this same standard to homes - EVERYONE would loose their homes right now, so why the double standard for commercial real estate? I think this makes sense.
Oh I see lots of Obama sickers and I’m in a very red state. You have to figure the teachers and college students and the watchers of the Daily Show. But even here I’m slow to put on an anti Obama sticker for fear of getting my car trashed by one of Holder’s people.
Thanks for this thread.
You know that we have touched their hot button when they pull out their “buckets of pus” card!
We must be doing something RIGHT!
_____________
Wooooooooo - - - - , Karl Denninger, you seem to be a tad upset when we oppose the linchpin of the 2008 to 2012 Bolshevik Movement against Banks.
Yep, I’m writing about Hank “hair-on-fire” Paulson’s TARP.
You, Karl write: “ - - - highlighting their opposition to bank bailouts like the 2008 Troubled Asset Relief Program (TARP) and criticizing Washington - - -. “
We then counter by sending in the “fighting fifteen!”
It is a chess game Karl, a chess game about money.
It is ALL about the money Karl, YOUR grandchildren’s descendants money.
BTW Karl, the banks were told to cave-in to Paulson in a 45 minute Gestapo-style meeting. Private Banks versus the US Federal Government Treasury Department, guess who told who will be publicly declared “to big to fail?”
Volcker, you clever old Socialist. You make have invented the concept of “to big to fail,” but Obama’s 5 TRILLION Dollar failure has proven that your idea is “to stupid to succeed.”
So Karl Denninger, what is it going to be: 1.) sh_tcan the Obamanation of the last 4 years, and oppose the Obamarule of the next 4 years; or 2.) Continue to kick America’s “can” into the Bolshevik Abyss?
Your grandchildren’s descendants will remember your choice when they visit your gravesite in the far distant future.
The zot from FR should come your way. Take your kooky crap somewhere else.
“...even though Denninger had voted for Obama.[3] The blog-post took issue with the bank bailouts, the US national debt and “the fraud and abuse in our banking and financial system” which included the predatory lending practices at the center of the home mortgage foreclosure crisis.[4]”
You take the word of this moron who voted for Obama?
Do you really think Freepers are stupid enough to fall for the screeching of this “progressive” idiot?
I’ll take the Tea Party over him and you everyday.
Well done, FReepers. I smell a troll in our midst...
More on the nutcase Demnninger:
“Denninger stated on Russia Today that he supports the Occupy Wall Street movement”
I had hired a contractor to build a house and had building mortgage loan set up with FCS ( Farm Credit Services) which does get federal funds.
The loan was set up so that the funds could only be drawn out in 5 separate stages of the construction. It was set up as a 25 year mortgage and I was paying payments monthly from the start.
Well, after the first 2 draws the contractor changed the terms of the agreement and totally screwed up the construction by using unapproved subcontractors, very shoddy work that didn't meet building codes.
I refused to sign off on any more draws on the loan.
The contractor filed suit and I counter-sued.
It turned out the the FCS branch manager was friends of the contractor and said they were going to foreclose on my property, saying I broke the contract. Even though I did nothing wrong and had made every payment if full and on time.
I told them I could add FCS to the suit if they wanted to try that crap and they backed off on that.
I won totally in the suit and put that contractor out of business, but it took several years to get to a jury and nearly bankrupt me in the process.
Thru all that time I made full payments and had to rent a second home. The bastards at FCS were never any help at all in getting it resolved.
If Dodd Frank were in place at that time FCS may well have been able to steal my land ( worth 5x the home loan), even though I made every payment on time.
Conspicuous by his absence is Colonel Allan West, who has had some not nice things about the Tea Party and the people who elected him. He may very well be a one-hit wonder. Shame, because there was promise there. I guess there is truth in not biting the hand that feeds you.
The TP is more than 15 freshman representatives.
The TP is best summed up here:
http://video.answers.com/condoleezza-rice-on-tea-party-racism-516897990
So now we should take advice from Neo-Marxist Obama shills?
In the business dictionary online it says a non-accrual loan is one in which the interest is overdue. In other words the borrower missed a payment. All this bill seems to say is that you have to actually be behind in payments before the loan is declared to be a sour loan.
I’m not sure why Denninger and Soros think a loan is non-accruing solely because the value of the pledged asset declines. All car loans work this way... the value of the asset depreciates but the loan is supposed to be small enough in relation to the value that it continues to accrue... the car owner continues to pay. If I pledge assets to a lender that are larger than the amount of the loan, then why should it matter that the asset depreciates, so long as I don’t miss payments?
The key word in the bill is “solely”. If a borrower is financially solid and making the payments, or the value of the collateral is high, a mere decline in the value of the collateral shouldn’t automatically trigger it being tossed into the “non-accruing” bin.
In the business dictionary online it says a non-accrual loan is one in which the interest is overdue. In other words the borrower missed a payment. All this bill seems to say is that you have to actually be behind in payments before the loan is declared to be a sour loan.
I’m not sure why Denninger and Soros think a loan is non-accruing solely because the value of the pledged asset declines. All car loans work this way... the value of the asset depreciates but the loan is supposed to be small enough in relation to the value that it continues to accrue... the car owner continues to pay. If I pledge assets to a lender that are larger than the amount of the loan, then why should it matter that the asset depreciates, so long as I don’t miss payments?
The key word in the bill is “solely”. If a borrower is financially solid and making the payments, or the value of the collateral is high, a mere decline in the value of the collateral shouldn’t automatically trigger it being tossed into the “non-accruing” bin.
Conspicuous by his absence is Colonel Allan West, who has had some not nice things about the Tea Party and the people who elected him. He may very well be a one-hit wonder. Shame, because there was promise there. I guess there is truth in not biting the hand that feeds you.
“Am I missing something?”
Nope. The OP read into this something that doesn’t exist.
Apparently Rep. West did join the Tea Party Caucus, if CNN can be trusted as a source of political facts ...
http://politicalticker.blogs.cnn.com/2011/07/29/who-is-the-tea-party-caucus-in-the-house/
He has made several rookie errors in his voting record, however.
I am calling BS on this article and the entire Think Progress web site.
The site is a Left Wing, rabidly anti-Conservative, anti-Republican cesspool, and is best ignored.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.