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Executive Branch Corruption?
The Market Ticker ^ | 6/20/09 | Karl Denninger

Posted on 06/21/2009 8:43:54 AM PDT by FromLori

Corruption is a strong word, but it appears warranted given the two stories of import this weekend. First, on the firing of inspectors general:

WASHINGTON - -- He was appointed with fanfare as the public watchdog over the government's multi-billion dollar bailout of the nation's financial system. But now Neil Barofsky is embroiled in a dispute with the Obama administration that delayed one recent inquiry and sparked questions about his ability to freely investigate.

Treasury, you see, is refusing to turn over documents - items that Barofsky believes he needs to do his job properly.

Mr. Barofsky's job is, for those of you who need a refresher, to investigate potential fraud and abuse in the TARP program. One would think that Treasury would be very interested in the integrity of that program, and submit without quarrel to any inquiry by the OIG's office, which was incidentally set up for the specific purpose of "watchdogging" the program itself.

It appears not.

Then there are two other IG firings:

The first dismissal occurred last week, when the White House terminated Gerald Walpin, inspector general of the service agency AmeriCorps. Walpin claims his dismissal was unjust, the result of political interference.

This one is particularly interesting because AmeriCorps is part and parcel of Obama's trademark "GIVE" bill - that is, the "youth service" corps that was put together for supposed "civic purposes."

The IG in question, Gerald Walpin, was a Bush appointee. The WSJ wrote this about the controversy:

A George W. Bush appointee, Mr. Walpin has since 2007 been the inspector general for the Corporation for National and Community Service, the federal agency that oversees such subsidized volunteer programs as AmeriCorps. In April 2008 the Corporation asked Mr. Walpin to investigate reports of irregularities at St. HOPE, a California nonprofit run by former NBA star and Obama supporter Kevin Johnson. St. HOPE had received an $850,000 AmeriCorps grant, which was supposed to go for three purposes: tutoring for Sacramento-area students; the redevelopment of several buildings; and theater and art programs.

Mr. Walpin's investigators discovered that the money had been used instead to pad staff salaries, meddle politically in a school-board election, and have AmeriCorps members perform personal services for Mr. Johnson, including washing his car.

At the end of May, Mr. Walpin's office recommended that Mr. Johnson, an assistant and St. HOPE itself be "suspended" from receiving federal funds. The Corporation's official charged with suspensions agreed, and in September the suspension letters went out. Mr. Walpin's office also sent a civil and/or criminal referral to the U.S. Attorney for the Eastern District of California.

Now remember, we were sold "an open administration" and "hope and change." What we appear to have received is just the change - about 2 cents, while the other 98 are siphoned off as political favors, and when an independent watchdog does their job and is uncovering what sure looks like a prima-facie case of looting of the public treasury, obtaining the approval of the corporation's own people and referring the matter for prosecution, The Obama Administration sacks him.

Second, there is the outright lying by The Obama Administration with regards to his "notice" to critics of his "financial overhaul" proposal:

"These are the interests that have benefited from a system which allowed ordinary Americans to be exploited," Obama said. The president said he would stand up for his plans, saying: "While I'm not spoiling for a fight, I'm ready for one. The most important thing we can do to put this era of irresponsibility in the past is to take responsibility now."

Does that include Fannie, Freddie, and Lockhart? Remember this from just yesterday?

June 19 (Bloomberg) -- President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.

The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.

And my comment thereupon:

If you are underwater on your house and take a deal like this, you are as dumb as a box of rocks and have just consented to being bent over the table and violated repeatedly. That our government would propose "allowing" such a thing is fomenting financial rape upon The American Public. Period.

I will stake a case of scotch on the bet that there will be no "clear, plain" disclaimer on any such refinance "offer" containing the following language in 14-point block type:

CAUTION TO THE CONSUMER:

Refinancing of your mortgage under this program will turn your mortgage into a "recourse" loan in all 50 states. If your current mortgage is a purchase money first mortgage - that is, it was originally issued to purchase a property for you to live in as your principal residence, you may be immune under the law from collection of any amount exceeding the foreclosure recovery if you fail to pay. If you execute this refinance, you will permanently lose any such protection and may be subject to a suit for collection or even garnishment of your wages should you default. You are strongly advised to consult with both LEGAL and ACCOUNTING experts of your own choosing before signing this document to determine what, if any, rights you are WAIVING VOLUNTARILY by executing this document.

If you currently owe more on your loan than your home is worth IT MAY BE TO YOUR ULTIMATE BENEFIT TO INTENTIONALLY DEFAULT INSTEAD OF REFINANCE AND GIVE UP YOUR HOME. This is particularly true if the offered refinance extends the term of your loan or includes closing costs and fees into the new principal balance. ONLY QUALIFIED LEGAL AND ACCOUNTING ADVISERS CAN ANALYZE YOUR PERSONAL CREDIT, INCOME AND HOUSING SITUATION AND DETERMINE IF THIS REFINANCE IS IN YOUR BEST INTEREST AND YOU ARE STRONGLY ADVISED TO SEEK SUCH REPRESENTATION BEFORE EXECUTING THIS DOCUMENT. NO LOAN OFFICER OR GOVERNMENT EMPLOYEE CAN DO SO, AND ANY SUCH REPRESENTATION TO THE CONTRARY IS BOTH FALSE AND CRIMINAL FRAUD.

If President Obama's "consumer protection" was real along with his intentions in that regard, he would not have trotted out Lockhart with his "HOPE Plan changes" without making such a strong statement.

Of course he didn't, because the political cronies over at Fannie and Freddie - yes, even now - are more important to him than YOU, the citizen who was originally screwed through fraudulent appraisals, artificially inflated "values" and complex loan products that were inadequately explained to you yet sold as a means for you to "afford" to "own" a home that you in fact could never actually obtain clear title to given your personal circumstances of credit, assets and income. Yes, some of you (perhaps even most) were willing participants in this scam, but that belies the point: your culpability wasn't singular and yet now you're being asked to stick your neck on the chopping block while those who profited from your naiveté (or worse) keep their fancy houses, cars, yachts and political patronage.

Funny how the facts interfere with the "Hope and Change" fantasy Olympics.


TOPICS: Business/Economy
KEYWORDS: americorps; barofsky; bho44; bhotreasury; corruption; cultureofcorruption; denninger; execbranch; ig; impeach; second100days; ticker; transparency

1 posted on 06/21/2009 8:43:54 AM PDT by FromLori
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To: FromLori

MO is involved!


2 posted on 06/21/2009 8:46:20 AM PDT by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: FromLori

But I just read that McLame said zer0 was doing a good job so far


3 posted on 06/21/2009 8:52:23 AM PDT by reefdiver (So how's that HOPE & CHANGE working out for ya ?)
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To: reefdiver

If McLame thinks zero is doing such a fabulous job then it wouldn’t have made a whole lot of difference WHO was elected.


4 posted on 06/21/2009 8:58:14 AM PDT by Slimey
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To: FromLori; freekitty; Free ThinkerNY; SkyPilot; Faith; PhiKapMom; Polarik; ZULU; 2ndDivisionVet; ...

Since the Fuhrer owns the DOJ, how does corruption within this Administration get prosecuted on behalf of the American people? It is apparent, by the lack of response from our representatives, that the American people no longer have a voice in their government. The current Congress, it would seem, is an accomplice in the destruction of our country. Are there any lawyers in the house?


5 posted on 06/21/2009 8:59:07 AM PDT by ExTexasRedhead
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To: PhiKapMom; Atom Smasher; blackbart.223; shoutingandpointing; NFHale; sheik yerbouty; ...

FYI post #5. Any thoughts?


6 posted on 06/21/2009 9:02:25 AM PDT by ExTexasRedhead
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To: LucyT; hoosiermama; STARWISE

IG ping


7 posted on 06/21/2009 9:02:30 AM PDT by Freedom2specul8 (Please pray for our troops.... http://www.americasupportsyou.mil/)
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To: maggief

IG ping..


8 posted on 06/21/2009 9:04:28 AM PDT by Freedom2specul8 (Please pray for our troops.... http://www.americasupportsyou.mil/)
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To: ~Kim4VRWC's~

Thnk u


9 posted on 06/21/2009 9:07:13 AM PDT by hoosiermama (Hey hey! Ho ho! Where's your Birth Certificate/ We've a right to know!)
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To: ExTexasRedhead

Next time let’s give each branch its own DOJ.

Only the President has power over the EDOJ, they need not fear any repercussions from congress or the judiciary.

Only congress has power over the CDOJ, they need not fear any repercussions from the president or the judiciary.

Only the supreme court has power over the JDOJ, they need not fear any repercussions from the president or the congress.

Details are left to the reader as an exercise...


10 posted on 06/21/2009 9:07:36 AM PDT by null and void (We are now in day 153 of our national holiday from reality.)
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To: ExTexasRedhead
Since the Fuhrer owns the DOJ, how does corruption within this Administration get prosecuted on behalf of the American people?

That picture posted here on FR of Bambi schmoozing with the Supremes says it all. The FIX was in. Chicago Style politics taken to D.C.

11 posted on 06/21/2009 9:17:07 AM PDT by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: FromLori
For those late-comers who haven't figured it out yet, Chicago corruption and Springfield shenanigans have been brought in full force to the White Crib.
12 posted on 06/21/2009 9:25:41 AM PDT by SERKIT ("Blazing Saddles" explains it all.....)
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To: FromLori

Maybe Barofsky is just “confused”.


13 posted on 06/21/2009 9:30:13 AM PDT by cripplecreek (The poor bastards have us surrounded.)
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To: ExTexasRedhead
Are there any lawyers in the house?

Therein lies the problem. Too many for too long.

14 posted on 06/21/2009 9:58:20 AM PDT by upchuck (In memory of my Hero, my Dad. 08/13/17 - 05-31-96 I miss you every day.)
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To: ExTexasRedhead

Think it spoke volumes when Holder dismissed charges against the Black Panthers in Philly for voter intimidation when they had all the evidence on them. Holder did it against the wishes of career DOJ employees.

Our only hope is to elect Republicans with backbone to take back the House and Senate in 2010. We should be able to get back the House and make the Senate a lot closer so the RATs don’t have a 60 seat majority.

Some comments on here recently seem to want to split the GOP but it is what we have and will have so we all need to get out and work to elect good solid conservatives and in states that trend liberal, go for economic conservatives who believe in states rights. Using State’s Rights during this period of time will resonate IMHO and it should all the time as the Feds have taken over way too much authority from the States.


15 posted on 06/21/2009 10:24:11 AM PDT by PhiKapMom (Mary Fallin for OK Governor/Coburn for Senate 2010 ! Mark Rubio for FL Senate 2010!)
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To: reefdiver

Didn’t that make you want to puke?(All over McCain?)


16 posted on 06/21/2009 10:43:34 AM PDT by calex59
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To: upchuck

I meant here on FR to give us some info on how to expose the treason taking place within the Justice Department.


17 posted on 06/21/2009 10:48:54 AM PDT by ExTexasRedhead
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To: upchuck

Each anti-lawyer remark helps deflect blame from the real problem children, the politicians who pass too many laws. Too many laws is the disease; too many lawyers is the symptom.


18 posted on 06/21/2009 11:04:45 AM PDT by Buchal ("Two wings of the same bird of prey . . .")
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To: ExTexasRedhead

The Congress is now largely the Politburo..


19 posted on 06/21/2009 12:59:09 PM PDT by sheik yerbouty ( Make America and the world a jihad free zone!)
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To: ~Kim4VRWC's~

btt


20 posted on 06/21/2009 1:05:57 PM PDT by maggief
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To: FromLori

later read


21 posted on 06/21/2009 1:35:09 PM PDT by OldBlondBabe
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To: FromLori

Obama is a product of the corrupt Chicago Dem machine, which is now in the White House.


22 posted on 06/21/2009 2:40:59 PM PDT by M. Espinola (Freedom is not 'free'.)
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To: ExTexasRedhead

Gotcha. Sorry. Good question.


23 posted on 06/21/2009 2:46:45 PM PDT by upchuck (In memory of my Hero, my Dad. 08/13/17 - 05-31-96 I miss you every day.)
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To: ExTexasRedhead

FYI post #5. Any thoughts?

############

R-E-V-O-L-U-T-I-O-N?

Vote all of their a$$es OUT! Watch out for the ones that try to make good at the last minute...just to try & save their jobs...OUT!


24 posted on 06/21/2009 7:35:55 PM PDT by Atom Smasher
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