Global Economy Bursting?

[Randolph Kinney]

California Quits States’ Talks With Banks on Mortgages

http://www.nytimes.com/2011/10/01/business/california-quits-states-talks-with-banks.html

A decision on Friday by a California official to withdraw from negotiations with large banks over their mortgage practices threatens to derail a broad settlement that the Justice Department has been brokering for nearly a year.

If a deal were reached, it could provide billions of dollars for the Obama administration and states to distribute in assistance to homeowners, free banks from some of the mortgage claims that have caused their stocks to sputter, and score a victory for the Justice Department.

The main sticking point has been the banks’ desire for a broad legal waiver covering future claims over their mortgage practices.

They would like the waiver to cover not only robo-signing and other foreclosure practices but also potential claims related to their creation of mortgage securities before the financial crisis.

A broad deal might help banks reassure investors that they have a good handle on their potential payouts.

Attorney general Harris pointed to the housing weakness in California in her letter. She said that in the 11 months of talks, more than a half-million homes had entered foreclosure in the state. While California used to have five cities ranked on the list of the 10 highest in foreclosures, it now has eight such cities.

 

[Couch Potato]

The banks are trying to buy a "get out of jail card" and the justice department is treating it like a senate vacancy in Illinois. The only real sticking point has been the amount of the bribe required.

 

[Randolph Kinney]

The banks are trying to buy a "get out of jail card" and the justice department is treating it like a senate vacancy in Illinois. The only real sticking point has been the amount of the bribe required.

Reminds me of the "Polish hostage" gambit: Pollock sticks a gun to his head and says, if you don't give me the money, I will pull the trigger.

As these law suits continue and more are added, discovery makes future liability increase. $20 billion is really cheap so the banks need to up the ante to say, $500 billion spread over 10 years.

 

[Randolph Kinney]

California's debt burden soars to nearly 8 percent

http://www.sacbee.com/2011/10/01/3951766/californias-debt-burden-soars.html

California will devote nearly 8 percent of its general fund budget to paying off debt this fiscal year, more than twice the share of eight years ago, according to a new report from Treasurer Bill Lockyer.

Lockyer's report warns that if borrowing continues to rise, "That growth will come at the expense of other vital public services. Those services already are under severe strain."

Gov. Jerry Brown and lawmakers do not have to issue all of the bonds authorized by voters. Of the $9.95 billion in high-speed rail bonds available, for instance, the state has yet to borrow $9.5 billion.

Lockyer outlined three possible paths for lawmakers and the governor: no additional borrowing; issuing the remaining $49 billion in bonds that voters have approved; or pursuing a $238.6 billion public works borrowing plan championed by former Gov. Arnold Schwarzenegger.

 

[Randolph Kinney]

Recession? California gasoline use down 2.8%

http://www.bizjournals.com/sacramento/news/2011/09/30/california-gasoline-use-down-28.html

Californians used 2.8 percent less gasoline in June and 3.6 percent less in the second quarter of 2011, according to the State Board of Equalization. It was the third month in a row of declines.

California drivers used 1.22 billion gallons of gas compared to June 2010, when drivers bought and used 1.26 billion gallons. The average price of a gallon of gas also rose 84 cents to almost $3.97, a 27 percent increase from the year-over period of $3.13 a gallon, according to the BOE.

Gas prices have changed since June, the latest data available. The average price for a gallon of gas in the Sacramento region on Friday was $3.807, according to the AAA Fuel Gauge Report. In the state, it was $3.856. The price for diesel was $4.140. The state price was $4.166.

 

[Austin]

I heard something interesting on the news the other night that explains how states like California and agencies like the US post office that are bankrupt seem to keep plugging along long past their seemingly expected default date.
I heard there is a bank operation being run inside the treasury department. This bank has already loaned over 61 billion dollars and Mr. Tim reported that it has an unlimited source of funding. These funds are going to blue state Democratic governors and places like the US post office. Very reasonable rate too. It seems the idea is to put off the date when the crap hits the fan until the next administration takes over.

 

[Couch Potato]

Reminds me of the "Polish hostage" gambit: Pollock sticks a gun to his head and says, if you don't give me the money, I will pull the trigger.

As these law suits continue and more are added, discovery makes future liability increase. $20 billion is really cheap so the banks need to up the ante to say, $500 billion spread over 10 years.

$500 billion or $500 trillion, any way you look at it they are buying their way out of prosecution that could lead to actual jail time for some of the accusations. If you or I did that there would simply be an additional charge of bribery added to the list. Although restitution ought to be included in any sentence, I want those who committed crimes to serve their time rather than pay any bribe. You don't stop criminal activity by merely demanding a cut of their profits. Some of the accusations fall under the mortgage fraud statutes of states that have very low burdens of proof. You have banks negotiating to pay corporate money to avoid personal jail time and criminal records. For many no price is too high in that bargin and for the public any price is too low.

 

[Couch Potato]

I heard something interesting on the news the other night that explains how states like California and agencies like the US post office that are bankrupt seem to keep plugging along long past their seemingly expected default date.
I heard there is a bank operation being run inside the treasury department. This bank has already loaned over 61 billion dollars and Mr. Tim reported that it has an unlimited source of funding. These funds are going to blue state Democratic governors and places like the US post office. Very reasonable rate too. It seems the idea is to put off the date when the crap hits the fan until the next administration takes over.

And what is it that make you think the next administration would not merely continue the practice?

 

[Austin]

And what is it that make you think the next administration would not merely continue the practice?

The Tea Party. :new_snipersmilie:

 

[Randolph Kinney]

California Homeowners Mount a Growing Protest Movement Against Foreclosures

http://www.huffingtonpost.com/peter-dreier/california-foreclosures-_b_986244.html


Fighting back over foreclosure and eviction

http://www.latimes.com/news/local/la-me-0930-tobar-20110930,0,7655944.column


Oakland nurses march and strike in protest of benefit cuts

http://blog.sfgate.com/inoakland/20...-march-and-strike-in-protest-of-benefit-cuts/

Thousands of registered nurses, clad in bright red scrubs, marched across Oakland Thursday in what organizers called the largest nursing strike in U.S. history. An estimated 21,000 healthcare workers joined picket lines, attended rallies or simply stayed home from work in protest of proposed employee benefit cuts at 38 hospitals across California.


West Coast Wall Street Protest Gets 6 Arrested

http://www.nbcbayarea.com/news/poli...treet-Protest-Gets-6-Arrested--130857398.html

Hundreds of protesters took to the streets of San Francisco Thursday to protest Wall Street banks and six were arrested, police said.

The protesters marched along Market Street Thursday afternoon, stopping in front of Bank of America, Charles Schwab and Wells Fargo, organizers from ReFund California said.

The group is dubbed "Make Banks Pay in California" and have specifically targeted Bank of America, Wells Fargo and Chase Bank, according to SF Weekly.


United States Postal workers protest cuts

http://abclocal.go.com/kfsn/story?section=news/national_world&id=8370470

FRESNO, California (KFSN) -- Postal workers rallied across the nation and here in the Central Valley Tuesday, trying to save their jobs and the future of the U.S. Postal Service.


CSU faculty union calls for strike

http://www.sacbee.com/2011/09/28/3945819/apnewsbreak-csu-faculty-union.html

SAN FRANCISCO -- The California State University faculty union on Wednesday called for a one-day strike at two CSU campuses to protest the administration's decision to withhold negotiated pay raises.

The faculty union, which represents professors, lecturers, coaches, counselors and librarians, also plans to conduct informational picketing at all 23 Cal State campuses on Nov. 8 or 9, union leaders said.