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A Nightmare on Wall Street…
By Muriel Kane
Friday, January 6
Filmed in glorious black and white, this Twilight Zone-style parody turns out in the end to be a pitch for passing a financial transaction tax on Wall Street trading.
But the sight of an angry mob of little old ladies and bankrupt small business owners pursuing a guilt-stricken banker with calls to “tax the 1% who ruined our economy” is more than worth the price of admission.
http://www.rawstory.com/rs/2012/01/06/a-nightmare-on-wall-street/
This video was uploaded to YouTube by ProtestInTheUSA on January 3, 2012.
"I hate to be the one to say it, but Folks need to quit crying about what they want and start taking it back!!! They don't care about you, they have no fear of you, take a look around and see that this passing of the NDAA is proof positive they will indeed Get Rid of You!!!!"By Muriel Kane Friday, January 6 Filmed in glorious black and white, this Twilight... more-
- KB723
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- 1 month ago
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- 10 comments
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FBI Raids 'Connected' Energy Firm Solyndra
The FBI has confirmed to ABC News that federal agents are conducting a search this morning at the offices of Solyndra, the now-bankrupt California solar power company that received $535 million in federal loans under a green energy program touted by President Obama.
The raid is part of a joint operation between the FBI and the Department of Energy's Office of Inspector General, Public Affairs Specialist Peter D. Lee said Thursday morning. Lee said he could not disclose the reason for the raid because the matter is under seal. Karen Sulier, a spokeswoman for the Department of Energy's inspector general's office, confirmed its part in the probe.
Beginning in March, ABC News, in partnership with the iWatch News/the Center for Public Integrity, was first to report on simmering questions about the role political influence may have played Solyndra's selection as the Obama administration's first loan guarantee recipient. Federal auditors had flagged the loan, saying some applicants had benefitted from special treatment.
One of the lead private investors in Solyndra was an Oklahoma billionaire who served as an Obama "bundler," raising money during the 2008 presidential campaign.
The bundler, George Kaiser, has declined to comment. His firm, Argonaut Ventures and its affiliates have been the single largest shareholder of Solyndra, according to SEC filings and other records. The company holds 39 percent of Solyndra's parent company, bankruptcy records filed Tuesday show.
Energy officials have repeatedly denied those allegations, saying the selection process was even handed. Until two weeks ago, the Obama administration held out Solyndra as a model for its green energy program, which was devised to create jobs and spur investment in cleaner sources of energy. President Obama personally visited the Solyndra plant last year, and his Energy Department made it the first to win approval of a federal loan guarantee. The $535 million federal investment enabled the company to build a sprawling manufacturing facility.
Last week, Solyndra abruptly shut its doors, announced it was laying off 1,100 workers, and then filed for bankruptcy. Executives with the company and federal energy officials said the company's failure was the result of intense competition from China.
But questions about the federal support for Solyndra continued to grow. In May, ABC News and iWatch News reported that officials at the Office of Management and Budget had raised concerns about the risks of the Solyndra loan, and that the Energy Department had been forced to restructure the deal.
On Wednesday, ABC News and iWatch News reported that Solyndra had also benefitted from the terms of a loan with the Federal Financing Bank. The extremely low interest rates for its loan were the lowest of any Energy Department recipients.
'The FBI Is Here This Morning'
"The FBI is here this morning executing a search warrant," Solyndra spokesman David Miller told iWatch News Thursday. Asked what records the agency was seeking, Miller said: "I can't talk about that. I don't know."
He said the search took the company by surprise. "We'll cooperate with them and given them whatever they are looking for, but certainly it was a surprise," Miller said. "I came to work this morning and they were here and I've been sorting it out."
About the inspector general's involvement, Miller said, "I don't know if that's true. I've only dealt with the FBI agents who were here on site."
Energy officials continued to maintain their decisions about the company were all above board.
"The Department of Energy conducted exhaustive reviews of Solyndra's technology and business model prior to approving their loan guarantee application," said LaVera,. "Sophisticated, professional private investors, who put more than $1 billion of their own money behind Solyndra, came to the same conclusion as the Department: that Solyndra was an extremely promising company with innovative technology and a very good investment."
Republicans in Congress launched their own investigation into the loan program earlier this year, and ABC News confirmed this week that the senate also has questions about the Solyndra loan.
"How did this company, without maybe the best economic plan, all of a sudden get to the head of the line?" said Rep. Fred Upton, R.-Michigan, chairman of the House Energy and Commerce Committee, in an ABC News interview last week. "We want to know who made this decision ... and we're not going to stop until we get those answers."
"The Department of Energy conducted exhaustive reviews of Solyndra's technology and business model prior to approving their loan guarantee application," said LaVera,. "Sophisticated, professional private investors, who put more than $1 billion of their own money behind Solyndra, came to the same conclusion as the Department: that Solyndra was an extremely promising company with innovative technology and a very good investment."
Republicans in Congress launched their own investigation into the loan program earlier this year, and ABC News confirmed this week that the senate also has questions about the Solyndra loan.
"How did this company, without maybe the best economic plan, all of a sudden get to the head of the line?" said Rep. Fred Upton, R.-Michigan, chairman of the House Energy and Commerce Committee, in an ABC News interview last week. "We want to know who made this decision ... and we're not going to stop until we get those answers."
http://abcnews.go.com/Blotter/fbi-raids-connected-energy-firm-solyndra/story?id=14473051The FBI has confirmed to ABC News that federal agents are conducting a search this... more-
- crabbyoldguy
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- 5 months ago
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Solyndra to Declare Bankruptcy
Update: Solyndra announces it plans to file Chapter 11 bankruptcy, is suspending operations and seeks a reorganization. Click here for the company's full statement.
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Solyndra, a major manufacturer of solar technology in Fremont, has shut its doors, according to employees at the campus.
"I was told by a security guard to get my [stuff] and leave," one employee said. The company employs a little more than 1,000 employees worldwide, according to its website.
Shortly after it opened a massive $700 million facility, it canceled plans for a public stock offering earlier this year and warned it would be in significant trouble if federal loan guarantees did not go through.
The company has said it will make a statement at 9am California time, though it's not clear what that statement will be. An NBC Bay Area photographer on the scene reports security guards are not letting visitors on campus. He says "people are standing around in disbelief." The employees have been given yellow envelopes with instructions on how to get their last checks.
Solyndra was touted by the Obama administration as a prime example of how green technology could deliver jobs. The President visited the facility in May of last year and said "it is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world. And you guys all represent that. "
The federal government offered $535 million in low cost loan guarantees from the Department of Energy. NBC Bay Area has contacted the White House asking for a statement.
Some Republicans have been very critical of the loans. "I am concerned that the DOE is providing loans and loan guarantees to firms that aren't capable of competing in the global market, even with government subsidies" Florida Congressman Cliff Stearns told the New York Times.
http://www.nbcbayarea.com/news/local/Solyndra-Shutting-Down-128802718.htmlUpdate: Solyndra announces it plans to file Chapter 11 bankruptcy, is suspending... more-
- crabbyoldguy
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- 5 months ago
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- 1 comment
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Evergreen Solar and SpectraWatt first victims of volatile market
In the past week and a half, two U.S., based solar materials manufacturers, Evergreen Solar Inc. and SpectraWatt Inc. filed for bankruptcy. The filings were made following a second quarter that was dismal for most solar companies as subsidies reduced at the same time that modules flooded the market, forcing manufacturers to lower prices to remain competitive.
At least one analyst thinks more companies could follow suit.
One of the biggest drivers for Evergreen’s bankruptcy was the mercurial fall in the price of silicon. When the cost of silicon was high, Evergreen developed a method called string ribbon technology that used less silicon in the manufacturing process.
“Unfortunately for Evergreen, polysilicon prices tumbled, from a high of $475 per kilogram in early 2008 to $52 today,” Bloomberg reported.
SpectraWatt couldn’t compete with inexpensive modules from China, said CEO and Chief Restructuring Officer Brad Walker.
"United States-based manufacturers are under a great deal of stress because of the emergence of manufacturers in China, who receive considerable government and financial support," said Walker.
China has invested $11.5 billion in its solar manufactures recently.
This could be just the beginning of a shakeout in the industry.
“It’s clear that the weaker, less cost-competitive companies are having problems. So, yes, there are a lot of private companies out there that we don’t know the balance sheets of, so it’s hard to say [how they'll do],” said JP Morgan analyst Christopher Blansett. “There are a lot of small private companies trying to participate in the solar PV food chain, and foreign companies trying to get into the playing field. Even competitive companies have extremely poor gross margins right now.”
The fluctuation in solar subsidies across the world is likely to significantly impact the solar industry, according to Blansett.
“The subsidies supporting the industry continue to decline [particularly where they’ve been the strongest, in Europe]. Those countries have driven the majority of demand and profits in the industry so far,” he said. “Those same subsidies are scheduled to decline significantly in Germany and in Italy within the next 12 months. The most profitable region is cutting subsidies at the fastest rates.”
With the potential loss of those subsidies, the industry may face more dire straights.
“Solar’s nowhere near being self-sustaining. When we first launched [coverage] on the sector back in ‘07, we said: ‘No subsidies, no industry.’ We still see that’s true,” Blansett said. “We need subsidization for a number of years before it can stand on its own.”
While some companies may fail, others will are likely to survive the tumult.
“We’re definitely seeing stronger business models float to the top. The companies that have executed well are going to survive longer and do better, and we’ve definitely seen that in Evergreen’s case,” Blansett said. “We’re seeing good and bad business models go in their appropriate directions.”
Evergreen’s plight could have taken a very different route, however, had it done some things differently or if the timing was different, according to Blansett.
“It all depended on what the debt holders were going to do. If [Evergreen] got debt holders to trade debt for equity, the company might not have declared bankruptcy. But [debt holders] weren’t willing to do that,” he said.
Evergreen also may have made its salvo, a move to China, too late. If Evergreen Solar's move to China happened a year ago, they might not be in this position now, according to Blansett.
http://www.cleanenergyauthority.com/solar-energy-news/major-solar-companies-file-for-bankruptcy-082611/In the past week and a half, two U.S., based solar materials manufacturers, Evergreen... more-
- crabbyoldguy
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- 5 months ago
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- 1 comment
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Dealers: One Man’s Bankruptcy
Gary seizes an opportunity when he spots a toy store going out of business.-
- TonyDiGerolamo
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- 6 months ago
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Rhode Island city asks retirees to permanently cut their own pensions by a full 50%
As cities across the United States struggle to keep their finances afloat, Central Falls, Rhode Island, is taking a novel approach to try to avoid bankruptcy.
The city is asking police and firefighter retirees to give up 50% of their pension.
On Tuesday, a state-appointed receiver, Judge Robert Flanders, met with constituents to discuss options that will prevent the city from filing for bankruptcy, but the choices seemed limited: either volunteer for the pension cut, or risk losing it all.
The city has a $5 million per year structural deficit, said Michael Trainor, a spokesman for Flanders.
"Going forward, it's now at a point where a city is about to run out of cash," he added.
Central Falls, a city of 19,000 residents living in roughly a square mile, has historically had difficulty reducing its expenses because of a decline in population and the resulting smaller tax revenues, according to Trainor.
Each of the 141 city retirees will receive a voting ballot and a packet by the end of the week, showing how much of their pensions will be slashed if they agree to volunteer for the benefits cut.
With August set as the deadline for further decisions on the financial future of the city, Flanders hopes to find out residents' decisions by the end of the month.
Those who were planning to retire soon are now worried about doing so, fearing that they may end up with nothing. Firefighters in the city do not receive Social Security benefits.
"They're very concerned about what's happening, they worked 20-25 years of their career, they were anticipating having this benefit that they were promised the day they were hired," said Michael Andrews, president for local firefighters' union.
Though the measures seem drastic, residents are being told that it's a far better choice than "being at the mercy of the bankruptcy court."
"It was a very difficult meeting, there was a lot of concern and anger," said Trainor of Tuesday's event.
Flanders "hopes, in the case of the retirees, that they would agree," Trainor said.
"Better to accept his proposal than taking a chance with the bankruptcy court," he added
http://articles.cnn.com/2011-07-21/us/rhode.island.pensioners_1_retirees-pensions-social-security-benefits?_s=PM:USAs cities across the United States struggle to keep their finances afloat, Central... more-
- Schnookums
- added this
- 7 months ago
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- 12 comments
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Contortionist and their Compromises across the Continents
It's often hard to define with precision when the beginning of an end is reached. In many instances, and certainly in the case of the Euro and its zone, it's really inconsequential. The only thing that truly counts is that after yesterday's contortionist €159 billion Greek bail-out 2.0, there is no way back to a healthy currency, or an economically viable region to use it in, for that matter.
But the markets are up, you say! Yes, of course they are, because they were just handed access, in the form of a "reformed" European Financial Stability Facility (EFSF) to potentially trillions of euros worth of European taxpayers' money. And even though they're well aware that it's all just temporary, for today - and maybe tomorrow- their profits are guaranteed. So of course they're up. For now.
There's no serious investor, however, who’ll dive in for the long, or even the medium, term. The message that emanates from the hastily broken vows and neglected solemn pledges by the major players in Europe does nothing to restore confidence in either Greece, Ireland or Portugal. In fact, it does the exact opposite. If there had been any chance at all that Greece could have paid off its debts, the terms of the present deal would not be what they are. What it all spells, going forward, is increasing volatility. Which suits the most savvy players just fine, thank you.
Europe is, of -financial- necessity, sliding towards a fiscal and subsequent political union (and yesterday was a big step). A union that has zero chance of being accepted by its members. That is how we recognize that this is the beginning of the end. Without the extended powers of the EFSF, an outright Greek default would have been unavoidable. With the revamped facility, there can be a few more months (or is it even just weeks?) of pretending. And then, German, Dutch and/or Finnish voters will hammer it down.
It's still nothing but the same old same old: a severe bout of insolvency that is being treated as if it were as simple case of illiquidity. All bail-outs on both sides of the Atlantic carry this signature. And for good reason: they deal with bankrupt entities, banks in the one instance, countries in the other. Whatever the differences may be, that common feature trumps them all.
The markets -represented where the PIIGS are concerned by the bond vigilantes- are kept satisfied for a vanishingly fleeting moment, and everyone prays the quiet will last. But then it never does. The PIIGS are bankrupt. They will never be able to pay back their debts, and it makes little difference whether these are public or private. There's so much blood in the -Mediterranean- waters (and the Irish Sea) that the sharks are certain to remain where they are, restlessly swimming. There's simply too much money to be made.
The changes to the EFSF are presented by the big kahunas as tokens of strength and solidarity. But they're just a charade. Everybody knows the truth; at least everybody who plays at the big kahuna table, while the ones who don't know are forced to pick up the bill. After all, as Simon Jenkins writes in the Guardian: "Power always wins, so long as it can get someone else to pay".
The US has its own contorted compromise. Bernie Saunders, Senator for Vermont, writes: The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. Not even the EFSF will get that far anytime soon. we may presume.
It's somewhat funny that both sides of Congress and the Senate, as well as the White House, have now spent months rolling over the floors, jockeying for election position in the debate over the debt ceiling. Which, though incomprehensibly large as it already is supposed to become, is nevertheless still smaller than just the secret loans the Federal Reserve has handed out over the past few years alone.
Contorted, convoluted, con artists. They're gutting our futures, and those of our children. We elected -most of- these fine folk. And it's up to us to get rid of them.
http://theautomaticearth.blogspot.com/2011/07/july-22-2011-contortionist-compromises.htmlIt's often hard to define with precision when the beginning of an end is reached.... more-
- Schnookums
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- 7 months ago
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- 1 comment
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Bankruptcy docket reports
Get copy of Official Bankruptcy Court Dockets, Bankruptcy case dockets provide an ongoing record of the case, allowing you to obtain information, monitor filings and most importantly it helps you to avoid missing deadlines.Get copy of Official Bankruptcy Court Dockets, Bankruptcy case dockets provide an... more-
- sandrarowe1
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- 9 months ago
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Star Chef, Facing a Suit, Files for Bankruptcy
GEOFFREY ZAKARIAN has made all the right moves for a celebrity chef. He is a fixture on four Food Network programs, including “Chopped.” Over the years, he has operated a number of high-profile restaurants, three of which have won three stars from The New York Times. He now has two places in fashionable New York hotels and a hand in hotels in Miami Beach and Atlantic City.
But his latest step doesn’t follow the script.
He has filed for personal bankruptcy, a move that could help fend off more than $1 million in legal claims from his kitchen staff at Country in the Carlton Hotel, along with a former partner in the restaurant, which closed nearly three years ago.
Of the 179 creditors listed in the Chapter 7 bankruptcy petition he filed on April 6 in federal court in Bridgeport, Conn., 152 are former cooks at Country. They are part of a class action lawsuit against Mr. Zakarian and his management firm that claims that when he was an owner of the restaurant and its chef, he failed to pay the workers time and a half for overtime, falsified pay records to shortchange them and deducted from their paychecks for staff meals they were not given. They are seeking $1 million in damages and $250,000 in penalties.
Neither legal action has been widely reported in the news media, nor has the bitterness between Mr. Zakarian and two former partners that has led those two men to take the workers’ side and face off in court against him.
In a statement, the chef’s publicist, Jaret T. Keller, said: “Geoffrey Zakarian filed for bankruptcy due to the enormous costs of defending a class action lawsuit by former employees of a restaurant in which Mr. Zakarian is no longer involved. Mr. Zakarian denied the allegations in the lawsuit but it would cost him several hundred thousand dollars to defend the action.” Mr. Keller said Mr. Zakarian was “sequestered” in Los Angeles taping “The Next Iron Chef” and would have no further comment.
After being sent e-mails detailing the allegations in the legal papers, Mr. Zakarian replied by e-mail: “As a respectful practice, I will not comment on business partnerships or pending litigations. I realize and understand the responsibility that as a public face of a business, one can become a target. I remain focused on my craft and delivering great meals to my diners.”
The bankruptcy filing, which lists assets of no more than $50,000 and liabilities of up to $1 million, automatically puts a hold on any litigation against Mr. Zakarian, including the class action lawsuit, said Scott A. Lucas, the plaintiffs’ lawyer.
“Isn’t it interesting that a TV celebrity chef, who opens multiple new restaurants around the country, can file for bankruptcy?” said Mr. Lucas, who said he would move to have the class action go forward.
Since Country closed in 2008, Mr. Zakarian has opened the Lambs Club restaurant in the Chatwal Hotel off Times Square and the National Bar and Dining Rooms in the Benjamin Hotel in Midtown. He oversees food and beverages at the Water Club at Borgata in Atlantic City and will soon open the Tudor House restaurant in the Chatwal group’s Dream South Beach Hotel in Miami Beach. He rents a four-bedroom house in Greenwich, Conn., that is listed on the market for just under $3 million.
Chefs and restaurateurs have faced lawsuits over pay issues like overtime and distribution of tips with increasing regularity in New York, although bankruptcy does not seem to be the usual outcome.
What is striking about the suit involving Country is that a former partner in the restaurant, Adam Block, has filed an affidavit in support of the workers, and that another partner, Moshe Lax, has said in a separate suit that Mr. Zakarian violated labor laws.
The two men agreed to a $200,000 settlement with the cooks in December. But Mr. Block, a restaurant developer who helped bring Per Se and Masa to the Time Warner Center, said in a legal filing on behalf of the plaintiffs last November that the settlement was not the reason he was speaking against his former partner. It was, he said, “because I know that Geoffrey Zakarian’s narcissistic behavior and arrogance caused Country to fail and inevitably allowed whatever wage and hour violations occurred while he was Country’s operator.”GEOFFREY ZAKARIAN has made all the right moves for a celebrity chef. He is a fixture... more-
- letsliveinpeace
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- 10 months ago
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Beyond Foreclosure-Gate & our Lawless Elite
Michael Collins -
The surface scandal is about fraudulent business practices and a systematic assault on homeowners by lenders, servicers, and the legal system. A much broader picture must be viewed in order to understand the utter contempt that the ruling elite has toward citizens and the depraved tactics used to express that contempt, all to serve endless desire to accumulate more money and power.
The set up began when we heard about the ownership society in the 2004 presidential election. President Bush defined ownership as taking the government out of our lives so more people could own homes and control their destinies. The foundation was home ownership. As Bush said on the campaign trail, "We're creating a home -- an ownership society in this country, where more Americans than ever will be able to open up their door where they live and say, welcome to my house, welcome to my piece of property" October 2, 2004"
The Chairman of the Federal Reserve and the president ratified the real estate bubble, already underway at the time, as political and financial doctrine. The advice was clear. Get an ARM, own your piece of the American Dream and spend that equity. Housing prices never go down, right?
Freddie Mack, Fannie Mae, Wall Street and the big banks provided the back room. Mortgage Backed Securities (MBS) derivatives were vastly expanded. This made it easy for more homebuyers to qualify for mortgages they might not otherwise get, credit standards dropped. Those with good credit saw an array of tantalizing zero interest loans and other mortgage products to maximize available cash and feed the stock market.
It was all good until it wasn't.
The real scandal is the unfathomable loss of wealth and opportunities by the vast majority of citizens and the vicious attack on the most vulnerable citizens as a part that process. The attack continues and is worthy of review.
Before Congress passed the 2005 bankruptcy reform act, homeowners could avert foreclosure in many states by filing for bankruptcy. Not just anyone could qualify. The process of qualifying was difficult and, oftentimes humiliating. But homes were saved and families were preserved with a chance to start over.. The alleged abuse of the system became the excuse for a major overhaul of bankruptcy law. The legislation passed the Senate with 74 yes votes and soon became law.
The changes since the 2005 legislation provide substantial benefits to creditors. Morgan et al summarized the direct benefits to creditors in a forthcoming publication in the New York Fed's Economic Policy Review. Before bankruptcy reform, the filer of a bankruptcy claim used to determine Chapter 7 or 13 filing status. That makes a difference in the amount and type of debt relief. The legislation imposes means test that determines precisely which chapter (7 or 13) filers must use. Significantly, chapter 13 filers retain more debt from medical and other unsecured credit.
Legal costs ranged from $600 to $1500 before bankruptcy reform. Legal fees now range between $2800 and $3700. Previously, there was no requirement for credit counseling prior to filing.
Under the old law, only bankruptcy trustees appointed by the federal court could file claims of abuse by the filer. Under the new legislation, anyone can file a claim of bankruptcy abuse, which can lead to a dismissal of the cause. This is a huge benefit to lenders who wanted to keep citizens from realizing debt relief.
The new law makes it harder to file a claim, doubles costs, and gives the creditors a say in claiming fraud on the part of those who file claims. Significant delays in filing for bankruptcy became the norm.
Time is money for loan servicers. A long delay before a bankruptcy filing, allows servicers the opportunity to add on special fees, many of which the borrower can't comprehend.The majority of filers made between ten and forty thousand dollars a year before reform. That has remained virtually unchanged. The big spending abusers were and remain a mythical construct; the centerpiece of a diversion strategy to keep attention away from this never-ending gift to creditors.
These newly empowered creditors were the same creditors who hired debt collectors to try and frighten people out of their filings. A major study found that 24% of filers reported that debt collectors told deliberate lies to avoid bankruptcy. They herd that filing for bankruptcy would lead to jail, job loss, or an IRS audit. Some were told that it was illegal to file for bankruptcy.
The deck was stacked early against citizens and protection from creditors disappeared under the new law. The creditors, who so recklessly precipitated the economic collapse, came out on top. They were free to profit in any way they could from their new market,
What Causes Bankruptcy - Financial Shocks from Medical Expenses
Prior to the new law, the major cause of bankruptcy stemmed from medical care expenses and the resulting disruptions to families. Rather than the mythical big spender contrived by Congress, for nearly half of filers, major medical expenses, family tragedies, were the tipping point to a loss of financial viability.
The Consumer Bankruptcy Project audited a representative sample of bankruptcy filers in 2001. The audit found that 46% cited a "major medical cause" for bankruptcy. This includes the direct cost of uncovered medical bills for major illness or injury, lost work due to the same, and the need to mortgage the family home to cover medical costs.
Did Congress review this data? Were they intent on making it harder to file bankruptcy as a result of illness? When bankruptcy is delayed or simply not attainable, less money is available for needed medical care. Were the members supporting bankruptcy reform indifferent to the suffering compounded by their thoughtless legislation?
The situation is worse now. A comprehensive survey of those who filed bankruptcy in 2007 showed the increasing desperation of those faced with medical problems. When individuals or family members are in dire need of medical care, do they just sit home and suffer?
Nearly two thirds of bankruptcies result from medical care that people can't afford or losses in income from medically required leave. Where are the big spending cheats?
Nihilists at the Helm
The big banks, Wall Street, the politicians they own, and the Federal Reserve Board created the real estate bubble in bad faith.
What did the nihilists of the financial elite and their hit men walking the halls of power do with all this knowledge? They went ahead with the real estate bubble, fostered it, deregulated meaningful controls on the financial industry, and crafted a new bankruptcy law to stick it to filers. They knew or should have known that data from 2001 showed a very high rate of filings due to the financial stress of medical care. Did they care? Do they care now? Has anything been done to correct this injustice?
While citizens suffer in financial distress, often due to illness, at the behest of influential bankers and investors, the Department of Justice crafts a settlement with lenders and their representatives to relieve them of the stern justice due for their specific crimes and the larger horrors they visit upon citizens, all in the name of short term profit.
We are most emphatically not a nation of laws. We are a nation where the law is used by a very few for their own purposes, without regard for the well being of the nation or its citizens. We are a lawless nation...(links sources and more at figrd)Michael Collins - The surface scandal is about fraudulent business practices and a... more-
- figgdimension
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- 10 months ago
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- 8 comments
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Subprime Foreclosures and the 2005 Bankruptcy Reform
Is it just coincidence that subprime foreclosures surged right after the bankruptcy abuse reform (BAR) took effect in October 2005?
http://calculatedriskimages.blogspot.com/2010/10/personal-bankruptcy-filings-sept-2010.html
This article presents arguments and evidence suggesting that it is not. Before BAR, any household could file Chapter 7 bankruptcy and have its credit card and other unsecured debts discharged. By sidestepping their unsecured debts, households retained more income to pay their secured debts, such as mortgages. BAR blocks that
maneuver by presenting a variety of obstacles, including a means test that forces better-off households that demand bankruptcy protection to file Chapter 13, where they must continue paying unsecured lenders.
Read more about the New York Federal Reserve's report:
http://www.newyorkfed.org/research/epr/forthcoming/1102morg.pdfIs it just coincidence that subprime foreclosures surged right after the bankruptcy... more-
- Schnookums
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- 1 year ago
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Is America Already Bankrupt?
The United States national debt has passed $14 trillion. For each dollar spend by the federal government 40 cents is borrowed. So technically, the US is already bankrupt because it has a debt that is almost four times the size of its economy. Lawmakers in Congress are saying that their major priority is to tackle and find ways to reduce the national debt, yet they are unwilling to see that the only way to avoid fiscal insolvency is to have a dual approach: Cut spending on one hand, and increase taxation on the other. Short of this, the United States will never get out of this giant hole that it has dug for itself. During his state of the union speech, President Obama said that we need a new “sputnik moment”. America’s sputnik moment should be to make drastic cuts in its military spending by getting the US military out, sooner than later, of Afghanistan, Iraq, Germany, Japan and South Korea.
Cut Spending AND Increase Taxes Or Face Dire Consequences
Not only the US is in deep financial troubles federally, it is also in dire shape at state and local levels. 44 states are currently facing big budget gaps, and some are even considering bankruptcy as a way out. America’s policymakers are facing the daunting task to tackle a dreadful fiscal challenge. The 2008 recession has caused the sharpest decline in state tax revenue on record with state tax collections at 12 percent below pre-recession level. Meanwhile, the need for state funded services has increased. Even after making deep budget cuts, especially in social services, over the last three years, states are now facing what seems to be insurmountable budget gaps.
Fiscal 2012 is projected to be the most difficult year on record with 44 states and the District Of Columbia projecting a budget gap totaling $125 billion. States options for addressing those budget gaps are dwindling fast. By the end of fiscal year 2011, federal assistance for states will be largely gone. State governors are now faced with a grim reality to prevent their fiscal house to become completely underwater.
more at link....The United States national debt has passed $14 trillion. For each dollar spend by the... more-
- WakeUpPeople
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Is a State Pension in Your Future? Maybe Not.
Public employees have been blasted in the media for having pensions, and conservatives are quietly attempting to enact legislation to allow states to declare bankruptcy and escape having to pay workers pensions which those workers have earned. The same people who want to allow states to slide out of their obligations are not so lenient when it comes to mortgage holders or those with credit card debt. Why is that?Public employees have been blasted in the media for having pensions, and conservatives... more-
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States look to bankruptcy to escape debt, pension obligations
Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.
Unlike cities, the states are barred from seeking protection in federal bankruptcy court. Any effort to change that status would have to clear high constitutional hurdles because the states are considered sovereign.
But proponents say some states are so burdened that the only feasible way out may be bankruptcy, giving Illinois, for example, the opportunity to do what General Motors did with the federal government’s aid.
Beyond their short-term budget gaps, some states have deep structural problems, like insolvent pension funds, that are diverting money from essential public services like education and health care. Some members of Congress fear that it is just a matter of time before a state seeks a bailout, say bankruptcy lawyers who have been consulted by Congressional aides.
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http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?_r=4&src=buslnPolicy makers are working behind the scenes to come up with a way to let states... more-
- Dagum
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Bankrupt America - The Irrelevance of the Debt Ceiling
By David P Shirk
Over the news we have been hearing about the idea of congress raising the debt ceiling. It has been pointed out that if it is not raised, then many entitlements will not be paid. On the flip side if the debt ceiling is to be raised even higher to cover the cost of all the programs that were promised, then there will be no way to meet that debt no matter what you raise taxes to. Indeed both of these options present some very serious problems.
If government entitlements and are not paid, and other contracts are not honored, then there is a very high chance that riots will indeed ensue when peoples dependency on receiving government checks is severed. However if the debt is raised to meet those contracts and entitlements for the coming year, then the amount of resulting debt extension will make the consequences for the following year more dire. Qe2 will not suffice as it still results in more government debt that we the people are bound as citizens to pay. Monetizing the debt (increasing the money supply to meet the debt), will only result in even greater damage for reasons to numerous to name.
Yet as serious as this problem sounds, it is at this point irrelevant. The amount of unfunded debt from 2010 going into this year (which is far more than merely raising the debt ceiling can cover) remains a problem that I have not even seen the news address yet (for more information on the exact amount and to whom it is owed, go to http://www.treasurydirect.gov/govt/reports/pd/pd.htm and for the exact breakdown, go to http://www.treasurydirect.gov/govt/reports/pd/feddebt/feddebt_dec10.pdf ). What you must keep in mind is that the number 4,624,007 is not expressed in the dollar amount, but rather in the millions, meaning that the real rolled over debt is 4,624,007,000,000 – 4.6 trillion.
Politicians on the hill have grown complacent to this number. After all, the same number at the end of 2008 was 4.3 trillion. So if we can continue to carry over debt from one year into the next without a catastrophe, why should they pay it any notice? Given this simple way of looking at things, it would seem like the debt can be allowed to simply continue to go up.
Yet here is the part that no politician wants to mention – how the debts were funded, and how were they rolled over. Heck, your average US subject would never even bother to go to http://www.treasurydirect.gov/govt/reports/pd/pd_sbredemptionsissuesbyseries.xls , and find out how this happens. This oversight of tracking how the debt is funded is what will cause the catastrophe. If you want a real jaw dropper as to the impending danger of what is happening, I encourage you to open the link. The amount of bonds outstanding (the money received by the government for the sale of the bonds), is not nearly enough to meet the debt rolled over from 2010 into 2011, let alone to fund this year’s budget. This is why the raising of the debt ceiling is irrelevant. The outstanding debt was 4.6 trillion – the amount of bonds it had to back it was only about 2.2 trillion, meaning that for the first time, we have 2.4 trillion dollars of debt, and absolutely no way to answer it.
In 2008 people like Peter Schiff, Gerald Celente, and Ron Paul warned of this danger. Yet so blind are most people to the nation’s economy, they laughed at them. The three people I just mentioned attempted to break the problem down into laymans terms knowing that most people would be lost if they dug into the specifics – and because people attack what they do not understand, they mocked them. The sad reality is that people missed the point of their arguments completely, and what is coming very soon is the result.
Yet those 3 (amongst many others) made 1 last warning knowing that the spending of government would not slow – and that was the danger of monetizing the debt. Monetizing the debt would mean that the FED would simply print the money into existence. Outside of running the very high risk of creating hyperinflation, there is of course another danger.
The Federal Reserve is not a government entity. It is a private banking institution owned by people who have little to do with our government. Their sole responsibility was to create a ....
http://www.peacefreedomprosperity.com/?p=3872By David P Shirk Over the news we have been hearing about the idea of congress... more-
- shanklinmike
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Bankruptcy filings show generous pay for relatives of Crystal Cathedral founder
As revenue plummeted at the Garden Grove mega-church this year, and employees and vendors went without pay, the church paid more than $1.8 million to 23 insiders and Schuller relatives.
Financial documents filed Wednesday in the Crystal Cathedral bankruptcy case show generous compensation paid to insiders and family members of founding minister Robert H. Schuller in the year before the Garden Grove-based mega-church filed for Chapter 11 bankruptcy protection.
During the same period, revenue plummeted, and church employees and vendors — from choral members to the livestock company that provided animals for its elaborate productions — were laid off or went without pay.
The church paid out more than $1.8 million to 23 insiders and members of Schuller's family in the 12 months leading up to the Oct. 18 bankruptcy filing, according to the financial statements. That sum included $832,490 in tax-exempt housing allowances given to eight people and payments to all five of Schuller's children and their spouses.
Jim Coleman, the president of Crystal Cathedral Ministries, declined to comment.
"I don't have knowledge of the documents you mentioned," he said. Other church representatives could not be reached.
Documents: Read key filings in the bankruptcy case
The church's financial records, which were kept private until the bankruptcy proceedings forced public disclosure, are beginning to paint a picture of how the church conducted business and the extent to which Schuller family members and insiders were compensated.
Don Neuen, a former 10-year choral conductor at the church, said that the news of salaries and housing allowances is shocking and heartbreaking.
"It erodes my trust in the family that they would do this, [while] owing other people," Neuen said.
The U.S. Trustee overseeing the bankruptcy proceedings has already questioned the redundant duties of some church insiders and family members and said there was "no justification whatsoever" for the $132,000 housing allowance paid to Chief Financial Officer Fred Southard. Southard has said the allowance was a benefit he is entitled to as a minister ordained by the Crystal Cathedral.
Federal tax law permits churches and other religious organizations to give housing allowances to ordained, licensed or commissioned ministers who perform certain duties, though it is unclear if the eight housing allowance recipients met those criteria. The allowances are exempt from federal income tax.
The newly filed documents show that in addition to Southard, at least three others received housing allowances of more than $100,000: Schuller's son-in-law Paul Dunn, who writes and directs the annual Glory of Christmas and Easter pageants; Schuller's daughter Carol Milner and his son Robert A. Schuller, who left the church in 2008.
Founder Robert H. Schuller also received an allowance, as did Coleman, who is Schuller's son-in-law; James Penner, another son-in-law who produces the "Hour of Power" television program; and Southard's son-in-law William Gaultiere, a part-time pastor.
Over the years, some critics have contended that the church gave money to family members, who in some cases performed seemingly little work. Those claims have never been verified because as a religious nonprofit, the church is not required to file tax statements or make its finances public.
Dunn, the pageant director, who lives in Hawaii, received more than $300,000 in housing allowance and vendor payments in the last year and was still owed $64,758, according to the financial statement filed Wednesday.
The latest records show that all five of Schuller's children and their spouses collected payouts from the church as either employees or vendors. The payments, which total about $1.2 million, helped support expensive homes. Milner and her husband, Timothy, own houses in Orange and Boulder, Colo., both valued at more than $1 million. The Dunns own at least two properties in Hawaii; and the Laguna Beach home of Robert A. Schuller is valued at more than $1 million as well, according to property records.
While the family members continued to collect pay, revenue was flagging dramatically. From January 2010 to Oct. 18, when the church filed for bankruptcy, Crystal Cathedral reported $22.3 million in revenue, down from $41.2 million in 2009 and $54.6 million in 2008.
Financial statements show the church sold properties in San Juan Capistrano and Big Bear Lake in the last two years — bringing in $22.5 million from the Rancho Capistrano sale in May. Family members took a pay cut in August, but it was not enough to turn the finances around.
The church owes creditors $48.5 million, according to the document.
It's not uncommon for family members to be on the payroll of a church or charity, said Dan Busby, president of the Evangelical Council for Financial Accountability, a voluntary member organization of churches. Crystal Cathedral is not a member.
But Busby said the fact that the board is made up primarily of family members and employees makes the compensation more questionable. Busby's organization requires its members to have majority-independent boards, meaning that most of the directors are not staff or family members of staff.
"It's more difficult to demonstrate that transactions or decisions are being made in the best interest of the church or other charity when the majority of board members are insiders," he said.
Christina Wilcox, a former choir singer, said she stayed with the church choir until Easter, going months without pay while many of the other professional singers left. Wilcox said she stayed partly in the belief that she would eventually be paid and partly because she wanted to see the choir survive.
"We would ask, 'Are [the family members] paying themselves, are they taking a cut in salary, or are we being the ones asked to sacrifice?" she said.As revenue plummeted at the Garden Grove mega-church this year, and employees and... more-
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Debt Mediators | Bankruptcy, Debt Consolidation Loans, Debt Agreements and Debt Advice Australia"
Debt Mediators assists those in financial hardship with bankruptcy, debt consolidation, loans, payment strategiesand other debt solutions bankruptcyDebt Mediators assists those in financial hardship with bankruptcy, debt... more-
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Will Crystal Cathedral survive the bankruptcy threat?
Crystal Cathedral Church is situated in California and expands over an area of 40 acres. The pastor of Crystal Cathedral Church is even looking to cut back day to day expenses and save money to pay back a huge debt of $100 million.Crystal Cathedral Church is situated in California and expands over an area of 40... more-
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Crystal Cathedral struggling with bankruptcy problem!
Crystal Cathedral struggling with bankruptcy problem! Crystal Cathedral, the beleaguered glass mega-church in Southern California, has reportedly filed for protection against bankruptcy, owing more than $7.0 million.Crystal Cathedral struggling with bankruptcy problem! Crystal Cathedral, the... more-
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Toni Braxton is out of money, again!
Everybody in the town knows the financial woes of Toni Braxton. This is for the second time that Toni Braxton has filed for bankruptcy. According to theEverybody in the town knows the financial woes of Toni Braxton. This is for the second... more-
- mky786
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