A big part of what’s wrong in this country and the fear that I have about where we’re all heading is the fact that Wall Street and their kind are profiting obscenely at the expense of the American taxpayer while those same American taxpayers are suffering like never before.
In the end, I’m afraid this disconnect, the disparity between rich and poor, the unfairness between the haves and the have nots is going to produce civil unrest. People can only be pushed so far. The Great American Sleeping Giant is being kicked every single day all across this country and it is starting to wake up.
A dramatic example of this disconnect between Wall Street and Main Street is the IndyMac/OneWest Shared Loss Agreement. For an detailed explanation about what’s so wrong with this deal, click this video here. Now, as indicated, some facts in the video are in dispute, but I’m convinced there is something very real here and the video certainly makes for compelling watching.
What makes me so mad in general about negotiating with these lenders in foreclosure or modification is they’re playing with house money. They negotiate based on 100% of the face value of the loan when in fact most of the lenders who are now foreclosing payed pennies on the dollar for these loans. And to add insult to injury, they paid those pennies on the dollar with our money. And to make things even more disgustingly worse, we’re starting to learn that if they take a “loss” on these loans the taxpayers still pay out. And God only knows what kind of tax breaks and more sophisticated benefits they’re all getting from this in the long run.
Which brings us back to the Bank United Purchase and Assumption Agreement. I frankly cannot understand the depths of this Agreement and would really welcome some commentary and analysis of it, but the bottom line is that we cannot allow the banks and institutions to continue profiting on the backs of the misery of the American people. We cannot allow this gross unfairness to play out in our courtrooms and in our legislatures all across this country.
While Wall Street Parties on…there’s no party out there for the American people.