May US Foreclosures 3rd Highest Month on Record

How will we ever be able to turn the corner if we can not stop people from losing their homes?

U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.

Foreclosure filings dipped 6 percent in the month but increased 18 percent from May 2008, marking the third highest month on record.

The reasons for this foreclosure crisis are much more than bad loans to people who could not pay. It is systemic greed by big corporations that are shipping our jobs overseas which in turn is forcing more and more people to compete for the few jobs that remain. This is causing wages to drop and the prices of homes are plummeting as a result.

If these corporations really care about America why don't they stop shipping our jobs overseas and help rebuild the middle class? It is time to outlaw corporate money in politics. Until we do that our slide to a country of haves and have nots will continue with most of us ending up in the have not column.

Glimmers Of Hope On the Employment Front

Can you believe a job loss of 345,000 last month is actually good news.

Job losses slowed dramatically in May, according to the latest government reading on the battered labor market, even as the unemployment rate rose to a 26-year high. But some experts cautioned that the job market remains weak.

Employers cut 345,000 jobs from their payrolls in the month, down from the revised decline of 504,000 jobs in April.

This was the fewest jobs lost in a month since last September, when the bankruptcy of Lehman Brothers caused a crisis in U.S. financial markets and choked off credit for many businesses. Economists surveyed by Briefing.com had forecast a loss of 520,000 jobs in May.

The one thing to remember is that we need to create 150,000 new jobs per month to keep up with demand but that hasn't happened in quite a while. Employment will remain a problem as long as it remains cheaper to ship our jobs overseas. Many people have asked how can we stop this run away train of outsourcing. The only way I can see is a return to the tariffs of old. Those tariffs valued American workers and American manufacturing. When those tariffs were lifted, under the guise of free trade, our standard of living was damaged. It is time to demand free trade be replaced by fair trade. It is time to demand that corporations pay their fair share of taxes and use those taxes to return us to fiscal sanity. It is time to stop mortgaging the next generation and its time to understand that we can not pay to defend the world while bankrupting our country. We need to get our priorities straight or all the defense in the world won't matter.

Foreclosure Crisis Deepens

The foreclosure crisis deepens.

More homeowners than ever before are falling behind on their mortgage payments and sliding into foreclosure, according to figures released on Thursday, a sign that the country’s housing crisis is spreading through the ranks of previously stable borrowers.

About 5.4 million of the country’s 45 million home loans were delinquent or in some stage of the foreclosure process in the first three months of the year, according to the Mortgage Bankers Association. About 12.07 percent of all mortgages were delinquent or in foreclosure, up from 11.93 percent at the end of 2008.

Temporary halts on foreclosures imposed by lenders and mortgage underwriters have mostly ended, and banks are moving quickly against delinquent homeowners.

Housing specialists said the number of foreclosures would probably keep rising as more people lose their jobs or are forced to trade full-time work for part-time. Nearly six million jobs have been lost since the recession began a year and a half ago, and many economists expect the unemployment rate to rise to 10 percent from its current 8.9 percent.

More defaults by unemployed homeowners could shunt more houses onto an already saturated market, economists said, dragging prices down farther.

This should come as no surprise as the ranks of the unemployed just keep growing. At a time when corporations need to be putting the citizens of this country first they are instead opting for profits over people. I know of many companies that are still outsourcing the jobs they have to India and other far away places. How is our economy ever expected to recover when this trend of outsourcing shows no limits to the number and types of jobs that are being lost?

When will Congress finally side with the American people and demand fair trade policies on not just goods but on services and employment as well. Jobs are a commodity and there should be tariffs on the services provided by workers in other countries. In the end your home is only worth what someone is willing to pay for it and in the current economic climate that doesn't appear to be too much.

TARP Funds and the FDIC

By JIM KUHNHENN, Associated Press Writer Jim Kuhnhenn, Associated Press Writer – Wed May 6, 6:18 am ET

WASHINGTON – Banks that want to pay back their federal bailout funds and free themselves from government restrictions on compensation and dividends will have to sever their ties to another financial assistance program.

Financial firms eager to return infusions from the $700 billion Troubled Asset Relief Program will have to demonstrate that they can operate without debt guarantees provided by the Federal Deposit Insurance Corp., a senior government official said Tuesday. The FDIC program allows financial institutions to borrow money at lower costs.

The new requirement will make it harder for some institutions to get out from under government rules attached to the bailouts, another shift in a changing landscape for banks. It also illustrates the government's desire not to have banks abandon the bailout program if they are not financially prepared to do so.

The official spoke on condition of anonymity because the standards have not been made public. The Treasury and the Federal Reserve are expected to issue TARP repayment guidelines on Wednesday, a response to banks that want to get out from under bailout conditions. The change was first reported Tuesday evening by The Wall Street Journal.

By linking the two programs, the government could motivate banks to cut themselves off from the various assistance programs that it put in place to unclog credit and free up lending in the midst of the financial crisis.

The bailout program has been unpopular in Congress and prompted a new round of conditions earlier this year following news reports about lavish spending on perks, retreats and corporate planes.

Initially, the government required banks that wanted to repay early to raise money from the private sector. Then Congress eased that rule but attached greater restrictions on the government funds. Among the rules restricting banks were conditions on employee compensation, bonuses and dividend payouts. Congress also required the Treasury to review previous compensation payments.

The FDIC debt guarantee, meanwhile, has proven to be popular with some banks as a way to increase liquidity and does not impose the same restrictions as TARP. So far, banks have issued more than $330 billion under the program, which the FDIC launched in October to help financial institutions finance themselves and make loans.

"It throws a hurdle as far as the banks repaying TARP," Scott Talbott, a senior lobbyist for the Financial Services Roundtable, a bank industry group, said of the new condition.

Banks have become increasingly wary of the bailout funds, chafing at the restrictions and worried that acceptance of the money somehow tagged them as troubled institutions. As a result, a handful of banks have returned a small amount of money and bigger institutions have indicated a desire to repay.

Banking industry consultant Bert Ely said requiring banks to first show an ability to operate without the FDIC guarantees does complicate their payback of TARP money. But he said it also demonstrates a change in the Federal Reserve's and the Treasury's approach to TARP.

"A couple of weeks ago it was, 'Oh, we don't know if want to let you repay,'" he said. "There's been a reversal of position here as far as I'm concerned. It will be interesting to see how fast banks move in that direction."

The Federal Reserve and the Treasury are expected to announce the new payback standards just ahead of Thursday's planned release of the results of "stress tests" on the country's top 19 financial institution.

The tests gauged the ability of the banks to weather an even deeper economic crisis than the country currently faces. Several of the 19 banks will be asked to seek additional capital.

Those banks will have six months to raise money from private investors, sell off assets or tap what remains of the $700 billion TARP.

Joe The Plumber The New Face of The Republican Party

Only would the Republicans keep trotting out this dope. Does he or anyone else really think a majority of the country cares about his views and why is he still being asked about anything?

Joe the Plumber, aka Samuel Wurzelbacher, sat down for an lengthy interview with Christianity Today to discuss his views on the future of the Republican party. Wurzelbacher took the opportunity to speak out against gay marriage, which he says is wrong. The unlikely conservative spokesman went so far as to say he doesn't allow openly gay people "anywhere near" his children.

The word "queer," Wurzelbacher noted, "means strange and unusual."

Christianity Today: In the last month, same-sex marriage has become legal in Iowa and Vermont. What do you think about same-sex marriage at a state level?


Wurzelbacher: At a state level, it's up to them. I don't want it to be a federal thing. I personally still think it's wrong. People don't understand the dictionary--it's called queer. Queer means strange and unusual. It's not like a slur, like you would call a white person a honky or something like that. You know, God is pretty explicit in what we're supposed to do--what man and woman are for. Now, at the same time, we're supposed to love everybody and accept people, and preach against the sins. I've had some friends that are actually homosexual. And, I mean, they know where I stand, and they know that I wouldn't have them anywhere near my children. But at the same time, they're people, and they're going to do their thing.

In the vein of George W. Bush and Michael Steele, Joe the Plumber also indicated that he wouldn't run for public office until the Lord had given him a cue. "God hasn't said, 'Joe, I want you to run.' I feel more important to just encourage people to get involved, one way or another. If I can inspire some leaders, that would be great." Joe added: "I don't know if I want to be a leader."

He is waiting for the Lord to give him a cue? I am waiting for the Lord to give him a clue. This is what is left of the Republican Party. Lets hope this fool doesn't breed.

The Senate Screws The Middle Class Again.

The Senate on Thursday rejected an effort to stave off home foreclosures by a vote of 51 to 45. It was an overwhelming defeat, with the bill's backers falling 15 votes short -- a quarter of the Democratic caucus -- of the 60 needed to cut off debate and move to a final vote.

The death of the bankruptcy reform measure -- which would have allowed a small number of homeowners who met strict conditions to renegotiate mortgages under bankruptcy protection -- is a major tactical win for the banking industry. But allowing the foreclosure crisis to continue unabated may end up being a failed strategy for the financial sector.

It wasn't easy for Majority Whip Dick Durbin (D-Ill.), who led the effort on behalf of homeowners, to wrangle the 45 votes.

Sen. Evan Bayh (D-Ind.), who had been on the fence for weeks, gave Durbin his support and nudged him on the way out of the chamber, alerting him of the anti-bank position he'd just taken.

Sen. Mark Warner of Virginia, a conservative Democrat, also cast a courageous vote in favor of the measure. He gave Durbin a hard slap on the arm on the way out.

Sen. Barbara Boxer (D-Calif.), a strong backer of the bill, spent a good deal of time trying to persuade his colleague Jim Webb (D-Va.).

As she got close to convincing him, she called in Durbin. "Hey Durbs," she could be heard saying, "help me with Jim."

Durbin and Webb spoke for several minutes and Webb cast an aye vote.

Sen. Claire McCaskill (D-Mo.), meanwhile, spent much of the vote checking the tally. Toward the end of the vote, she cast her lot with homeowners. Sen. Ted Kaufman, a Democrat from Delaware, a state nearly wholly-owned by the financial industry, voted his conscience, opposing the banks. He is not running for reelection. "I'm liberated from fundraising," said Kaufman afterwords.

His Delaware colleague, Democrat Tom Carper, voted with the banks.

The Chamber of Commerce has deemed the vote a crucial one that will be heavily counted in its annual scorecard, and those who voted yes will pay a financial price from the Chamber and the banking industry.

Other Democrats stuck with the banks against the homeowners. Sen. Robert Byrd (D-W.Va.) was wheeled into the chamber and pointed his finger in the air, signaling a yes vote, then dramatically swung it down, as if taunting the backers of the bill.

Sens. Jon Tester (Mont.), Mary Landrieu (La.) and Ben Nelson (Neb.) all voted with the banks, as they told the Huffington Post they would. Sen. Blanche Lincoln (D-Ark.) voted no, as did the new Democratic Sen. Arlen Specter of Pennsylvania.

Sen. Michael Bennett (D-Colo.), Sen. Tim Johnson (D-S.D.) and Max Baucus (D-Mont.) voted no as well.

Earlier this week, Durbin concluded that banks that "frankly own the place."

How much did the Senate go for?

The banking and real estate industry has funneled roughly $2,000,000 into Landrieu's campaign coffers over her 12-year career, according to data from the Center for Responsive Politics. The financial sector is Nelson's biggest backer; he's taken $1.4 million from banks and real estate interests and another $1.2 million from insurance firms. Tester has fielded roughly half a million in his two years in office. Lincoln has taken $1.3 million from banking and real estate interests.

Carper has raked in more than $1.5 million. Baucus, chair of the finance committee, has been on the receiving end of $3.5 million over his career. Specter has hauled in more than $4.5 million and Johnson has gotten some $2.5 million.

Across the United States, the measure is estimated to have been able to prevent 1.69 million foreclosures and preserve $300 billion in home equity.

Durbin is deeply unhappy with his Democratic colleagues that sided with the banks. "Frankly, I can't match what the bankers are doing in terms of lobbying," he said. Asked by the Huffington Post how bank influence could ever be reduced, he said, "When the voters speak, some elected officials listen. So I hope that, if we fail on mortgage foreclosure and we fail on credit card reform, I hope that people in this country will stand up and say to Congress, 'You've got the wrong friends.'"

After the vote, Durbin said he was surprised to lose so many Democrats. "I had hoped for a better vote. I mean, really, to lose 11 Democrats was disappointing, but, you know, I guess I've gained some ground since the issue last came up. Maybe if the mortgage foreclosures go up dramatically and I call it again next year I can pass it," Durbin told the Huffington Post. (In April 2008, a similar bill received 36 votes.)

Reminded of his comment earlier in the day that if the bill failed, he hoped the American people would respond, he didn't back down even though so many in his own party strayed. "I hope they get the message," he said of his wayward colleagues. "Maybe they have an answer to this problem, but I have seen it."

Carper, however, the no vote from Delaware, said the issue was finished in the Senate. "My guess is we're not going to see it again," he said.

Earlier this week, Durbin took to the Senate floor to tell his colleagues that the upcoming vote was a test.

"Who's going to win this debate? The mortgage bankers and the American Bankers Association or the consumers across this country?" he asked.

We now have the answer. "We led the way on this and we are clearly responsible for defeating this for the third time in the last year," David Kittle, chairman of the Mortgage Bankers Association, told our friends at the American News Project in this must-watch video:

Pakistan Near Collapse?

With suicide bombers killing scores in Iraq and Afghanistan and Pakistan near collapse, the policies of George W. Bush are coming home to roost. Had he not decided to start a war with Iraq long before September 11th and had instead concentrated on getting those who attacked us we would not be looking at the real possibility of those loyal to Osama Bin Laden taking over a nuclear armed Pakistan.

How can anyone still defend the Bush administration. They destroyed our standing in the world and left a world more dangerous than the one they found. Many members of this administration should be trading cigarettes for their lives in a maximum security prison. The mess these criminals left behind will be with us for a generation. We must as Americans demand they be held accountable and must look under every rock for the truth no matter what that truth tells us. Its time for the Obama Administration to make an example of these crooks.