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ET Williams

The Doctor of Common Sense

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11/07/2011 by The Doctor Of Common Sense

Freddie Mac-Daddy wants $6 Billion More

 

 

Published November 03, 2011

| Associated Press

 

WASHINGTON–  Government-controlled mortgage giant Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter.

Freddie Mac said Thursday that it lost $4.4 billion, or $1.86 per share, in the July-September quarter. That compares with a loss of $4.1 billion, or $1.25 a share, in the same quarter of 2010.

This quarter’s $6 billion request from taxpayers is the largest since April 2010.

Freddie’s losses are increasing mainly for two reasons: Many homeowners are paying less interest because they are able to refinance at lower mortgage rates. And failing and bankrupt mortgage insurers are not paying out as much money when homeowners default.

The government rescued McLean, Va.-based Freddie Mac and sibling company Fannie Mae in September 2008 after massive losses on risky mortgages threatened to topple them. Since then, a federal regulator has controlled their financial decisions.

Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates it could cost up to $51 billion more to support the companies through 2014.

Freddie and Washington-based Fannie own or guarantee about half of all U.S.mortgages, or nearly 31 million home loans worth more than $5 trillion. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year.

Charles E. Haldeman Jr., Freddie’s chief executive, said many homeowners are refinancing at lower mortgage rates or are shortening the terms of their mortgage. While that saves homeowners money, it is pushing Freddie deeper into the red.

“In fact, borrowers we helped to refinance will save an average of $2,500 in interest payments during the next year,” he said.

For Freddie, those losses are temporary because interest rates will remain low for the foreseeable future, said Jim Vogel, an interest-rate specialist at FTN Financial.

Still, many homeowners are still defaulting on their mortgages. Unemployment remains stubbornly high at 9.1 percent. The percentage of those who are late by 90 days or more on their monthly mortgage payments was virtually unchanged at 3.51 percent in the July-September quarter.

Another reason Freddie needs more aid is because it has received less money from mortgage insurers.

Many riskier mortgage loans require insurance, which is meant to protect lenders and investors from losses if a homeowner defaults and the lender doesn’t recoup costs through foreclosure. The borrower pays a monthly premium for the insurance, typically a set percentage of the total mortgage loan. But when those mortgage insurers fail, they pay out less in claims.

For example, the main subsidiary of private mortgage insurer PMI Group was seized byArizonainsurance regulators last month. That followed heavy losses the group incurred after the housing market collapsed. PMI is now paying claims at just 50 percent.

As a result, the amount that Freddie has set aside for losses increased from $2 billion in the January-March quarter to $3.6 billion in the July-September quarter.

Fannie and Freddie buy home loans from banks and other lenders, package them into bonds with a guarantee against default, and then sell them to investors around the world. When property values drop, homeowners default — either because they are unable to afford the payments or because they owe more than the property is worth. Because of the guarantees, Fannie and Freddie must pay for the losses.

Fewer foreclosures and delays in foreclosure processing because of a yearlong government investigation into mortgage lending practices have reduced the companies’ projected losses.

Fannie and Freddie are required to pay 10 percent dividends on the government money they receive. Freddie paid $1.6 billion in dividends to the Treasury Department in the July-September quarter.

Pressure continues on the government to eliminate Fannie and Freddie and reduce taxpayers’ exposure to risk. The Treasury Department put forward a plan in February to slowly dissolve Fannie and Freddie, although that process could take years. Abolishing Fannie and Freddie would transform how homes are bought and redefine who can afford them.

http://www.foxnews.com/politics/2011/11/03/freddie-mac-loses-44b-in-third-quarter-requests-6b-more-from-treasury/#ixzz1cxWgviSx

 

Filed Under: Uncategorized Tagged With: Corruption, Freddie Mac, Nepotism, Politics, Whatever Happen? To Common, White House

11/07/2011 by The Doctor Of Common Sense

Occupy L.A. Jumps on Crime Bandwagon

 

We are Occupy Wall Street Idiots

By Kate Linthicum,Los AngelesTimes

November 5, 2011

 Police were called to two violent incidents at Occupy Los Angeles on Friday, adding to questions about the protest and its future.

In the morning, a woman was arrested at the encampment outside City Hall after she set another person’s clothes on fire, police said. In another incident hours later, a woman was arrested after protesters said she struck a man with a tent pole. Both were booked on suspicion of assault with a deadly weapon.

Also Friday, police arrested a man on suspicion of climbing a tree and dumping fluorescent paint on a historic marble fountain that the city barricaded earlier this week to protect from vandalism.

The incidents are distressing, city officials say, because up until now protesters at Occupy Los Angeles have been mostly peaceful.

“We have not seen violent incidents like this,” Los Angeles Police Department Cmdr. Andrew Smith said. “But two felonies from the south lawn in one day? This has raised concerns for us.”

Last week, Mayor Antonio Villaraigosa said the encampment “cannot continue indefinitely,” citing health and safety concerns. He has instructed city officials to begin drafting a plan to identify another location for the demonstration. But it’s not clear when the plan will be announced or whether the protesters will agree to move.

Villaraigosa spokesman Peter Sanders said Friday that the city is working with protesters to assure the safety of those camping on the City Hall lawn. “But,” he said, “we recognize that a number of the individuals who are on the lawn are not affiliated with the Occupy L.A. protest.”

The encampment’s location in the heart of downtown has attracted more than just people protesting economic policies that they say have created an unfair distribution of wealth. A sizable number of homeless people have joined the camp — some who identify themselves as protesters and some who don’t — along with a range of other curiosity-seekers.

Protester Orameh Bagheri, who is organizing a teach-in with college professors and community activists this weekend, said the camp is “an open public space. There’s people coming in, and we don’t necessarily throw people out.”

Bagheri said the camp’s safety committee is working on how to address acts of aggression, which she said are an anomaly. “It is a nonviolent movement,” she said.

Compared with New York, where Occupy Wall Street protesters have had a tense relationship with police, or Oakland, where protesters have rioted, the relationship between police and demonstrators in Los Angeles has been quite relaxed. Marijuana smoke wafts throughout the encampment during the day, but there have been few drug-related arrests.

Most of the crimes reported have been petty, police said, as in another incident on Friday morning. As a heavy rain fell downtown, employees at a Starbucks near the encampment called police after they noticed that two patio umbrellas had been stolen.

Officers found the umbrellas — which had been painted in an unsuccessful attempt to disguise them — at Occupy Los Angeles.

http://www.latimes.com/news/local/la-me-1105-occupy-crime-20111105,0,7765367.story

http://whateverhappentocommonsense.com/

 

Filed Under: Uncategorized

11/06/2011 by The Doctor Of Common Sense

White House has something to hide on Solyndra: Rejects Subpoena

Smoking Hides The Corruption

 

The Associated Press
WASHINGTON– The White House on Friday strongly rebuffed a subpoena from House Republicans seeking all communications about a failed solar panel manufacturer that received a half-billion dollar federal loan guarantee.

In a letter to two top Republicans on the House energy panel, White House Counsel Kathryn Ruemmler said the request “was driven more by partisan politics than a legitimate effort to conduct a responsible investigation.”

The White House and the Energy Department have already turned over 85,000 pages of documents on Solyndra Inc. The California-based company filed for bankruptcy and laid off 1,100 workers after receiving $528 million in federal backing.

Ruemmler said those documents show no wrongdoing or political favoritism by the administration. She added that curiosity alone is not a justification to encroach on the Executive Branch’s longstanding confidentiality interests.

House Republicans have used Solyndra to highlight what they see as President Barack Obama’s failure to create clean energy jobs. The company was the first to receive a federal loan guarantee under the 2009 stimulus law, which greatly expanded the program. Obama visited the company last year to praise it publicly.

Documents already obtained by the committee show that the administration knew the firm had problems, yet continued to support it.

On Thursday, a subcommittee of the energy panel voted on party lines to issue the subpoena, calling the White House “obstructionist.”

House Energy and Commerce chairman Fred Upton, R-Mich., said in a statement issued Friday that he was disappointed that the White House and House Democrats were continuing to put up “partisan roadblocks to hide the truth from taxpayers,” when, he said, the investigation so far has shown that the GOP is on the right track.

“Solyndra was a jobs program gone bad, and we must learn the lesson of Solyndra as we work to turn our economy around and put folks back to work,” he said.

 

(Copyright ©2011 by The Associated Press. All Rights Reserved.)

http://abclocal.go.com/kgo/story?section=news/business&id=8419931

 http://whateverhappentocommonsense.com/

 

Filed Under: Congress, Corruption, Hypocrisy, Politics, White House Tagged With: Common Sense, Congress, Hypocrisy, Nepotism, Politics, Whatever Happen? To Common, White House

11/06/2011 by The Doctor Of Common Sense

Herman Cain another Black Conservative being lynched

This is what happens to Black Conservative's

 

The Telegraph

By Toby Harnden US politics

Herman Cain’s terrible, horrible, no good, very bad week ended on a discordantly high note. Addressing a packed ballroom inWashington’s Convention Centre, the former pizza mogul prompted whoops and cheers when he referred obliquely to the sexual harassment storm that had at times threatened to sweep away his White House candidacy.

“You know, I’ve been in Washingtonall week, and I’ve attracted a little bit of attention,” he boomed. “And there was an article in The New York Times today that has attempted to attract some more attention. You know, that’s kind of what happens when you start to show up near or at the top of the polls. It just happens that way.”

The article in question was one of the few that had not been about allegations that Cain, the unlikely Republican front runner in national polls, had behaved inappropriately with women while he was president of the National Restaurant Association.

Instead, the article sought to bracket Cain with the Koch brothers, the billionaire bogeymen for liberals who founded the Americans for Prosperity group and pump money into conservative and liberal causes. Rather than seek to wriggle out of the association, Cain embraced it, declaring, as the room erupted: “I am the Koch brothers’ brother from another mother.”

The address by the former motivational speaker, at the Americans for Prosperity annual conference, was vintage Cain – strong on rhetoric, short on policy detail, powerfully delivered and unashamedly politically incorrect.

Hours earlier, an ABC/Washington Post poll had found that Cain’s national popularity had improved during a week that, by any conventional standards, had been disastrous.

Mitt Romney, the best-funded, most-disciplined and most experienced candidate, was stuck on 25 percent while Cain was up six points from a month at 23 percent and breathing down his neck. As every student of American politics knows, national polls matter little in a primary race. But the surveys in early-voting states likeIowaandSouth Carolinaare also indicating that Cain has not been damaged.

There’s no way this should be happening. The 65-year-old grandfather’s response to the sexual harassment claims that have emerged out of the woodwork after a dozen years has been miserable. At least two cases were settled for a total of $80,000 after allegations were made against him.

Rather than being prepared for the inevitable disclosure of the cases, he was caught flat-footed, claiming at first not to remember what had happened and then dribbling out details and shifting explanations over the ensuing days. He fuelled more controversy by blaming Governor Rick Perry’s campaign for planting the story, lost his temper with the press and was barely able to talk about theUSeconomy until his speech on Friday.

By any normal rules of politics, Cain should be toast. So what’s going on?

Simply put, the media and Cain’s detractors have over-played their hand. By Friday night, Politico, which broke the original story, had published 94 articles on the allegations in under six days. Every other major publication had followed suit. Every time he stepped out of a room, Cain was mobbed by reporters.

Yet despite the maelstrom, Cain’s accusers remain anonymous and the details of the allegations oddly vague. With many conservatives believing that sexual harassment lawsuits are an industry and that frivolous cases are often settled to avoid more expensive litigation, there was a growing sense that Cain was being treated unfairly.

Cain’s very amateurishness became almost endearing. Rather than mouthing slick talking points, Cain got angry with the journalists (a profession loathed by most Republican activists) and claimed that he was the victim of a “high-tech lynching”.

That was the phrase used by Clarence Thomas during the ugly confirmation hearings for his seat on the Supreme Court in 1991. Thomas had been accused by Anita Hill, a former subordinate, of making crude sexual comments.

Vilified and mocked by the Left, Thomas’s righteous anger boiled over as he condemned the hearings as “a circus” and “a national disgrace” in which “uppity blacks who in any way deign to think for themselves” would be destroyed. “You will be lynched, destroyed, caricatured by a committee of the US Senate rather than hung from a tree.”

Cain, of course, is also a black conservative. As such, he sends many on the Left crazy because he defies the standard categories of politics. White conservatives are eager to support conservatives of colour partly to combat allegations of racism but also because they appreciate the courage it takes for blacks to break out of the Democratic party straitjacket.

Despite his anti-politician message and his campaign gaffes (he did not know China had nuclear weapons, had not heard of the Palestinian right of return and suggested he would free Guantanamo Bay prisoners if terrorist hostage-takers demanded it, to name but three) Cain is a shrewd operator.

While decrying race-based politics, Cain has been happy to compare himself to Haagen Dazs black walnut ice cream, joke that he’s a “dark horse” or quip that his Secret Service codename should be “Cornbread”  . By Friday, a Cain Super PAC had cut a television ad entitled: “High-tech lynching”.

Just as Barack Obama’s race was a key part of his appeal in 2008, Cain is a more attractive candidate for Republicans because he is black. Obama’s supporters responded with fury and lobbed accusations of racism when their candidate came under legitimate attack from theClintons. Cain backers have been similarly vehement.

Sexual allegations against a black man are rightly treated with great suspicion by many Americans because they play on the kind of fears and taboos examined in Harper Lee’s To Kill a Mocking Bird. With the case against him thin and the accusation so incendiary, Cain’s predicament is prompting more sympathy than opprobrium.

Those who leaked the details of the 1990s sexual harassment cases might have thought that they’d destroy Herman Cain and leave his campaign dangling from a tree. But, as befits this strange and unpredictable election campaign, a funny thing happened on the way to the lynching.

http://blogs.telegraph.co.uk/news/tobyharnden/100115731/american-way-a-funny-thing-happened-on-the-way-to-the-herman-cain-lynching/

 

http://whateverhappentocommonsense.com/

Filed Under: Common Sense, Hypocrisy, Politics Tagged With: Black Conservative, Common Sense, Corruption, Herman Cain, Hypocrisy, Lynching

11/05/2011 by The Doctor Of Common Sense

Occupy Wall Street is Nothing But a Throw Back to Woodstock

Police Reports Reveal Ten Worst Crimes Allegedly Committed at #Occupy Demonstrations in the U.S.

by Jeffrey Scott Shapiro

 

Occupy activists around the nation claim that their movement is a peaceful one. However, details in police reports and provided by police sources demonstrate a pattern of lawlessness–including violent crime–at Occupy protests throughout theUnited States.

Sources tell Breitbart.com that there have been more than 1,050 arrests inNew York Cityalone, involving a variety of crimes from sexual assault to disorderly conduct.

Here’s a list of the ten worst crimes allegedly committed at Occupy demonstrations across the country:

NEW YORK, NY: A 26-year old was arrested today for an alleged sexual assault upon an 18-year old female that took place on October 24 inZuccottiPark, where the Occupy Wall Street protest is based. NYPD Police sources said that detectives are investigating a separate incident involving a possible rape.

BOSTON, MA: On October 21, a 34-year old man and a 31-year old woman were arrested for allegedly trying to sell heroin in theTentCity area of Occupy Boston. The two suspects were reportedly living there with a child. Upon arrest, Brown told officers he had moved intoTentCity three weeks prior, and had joined the Occupy Boston movement.

MANCHESTER, NH: A 23-year old woman was charged with felony prostitution for trying to solicit a 16-year old girl she met inVictoryPark during the Occupy Manchester demonstrations. She also allegedly tried, through the Internet, to arrange a liaison for the minor with a man who was actually an undercover police officer.

MADISON, WI: An incident involving public masturbation allegedly occurred at the Occupy Madison protest result. The allegation was raised by a public official during a City Council meeting after complaints came from nearby employees, and although a complaint was not filed with police, the city has denied an application by the movement to renew its permit as a result.

NEW YORK, NY: On October 28, a 31-year old man allegedly threatened a Fox News Channel 5 reporter. The suspect was arrested at the corner ofTrinity Place andCedar Street, and has been charged with Grand Larceny, Menacing, Harassment and Criminal Possession of a Weapon.

DALLAS, TX: A convicted sex offender participating in the Occupy Dallas demonstrations was arrested last week after allegedly sexually assaulting a 14-year old girl who was staying in the protestors’ encampment. The girl, who was a runaway fromGarland, told investigators she had sex with the suspect after she had told him that she was 19 years old.

CLEVELAND, OH: Police are investigating an alleged rape that occurred against a 19-year old female student with a disability. The alleged rape occurred after the young woman was reportedly told to share a tent with an unknown person due to a shortage of tents.

NEW YORK, NY: On October 24, three suspects approached a 24-year old female victim and allegedly threatened to kill her for filing a complaint with the NYPD that resulted in their friend’s arrest.New York police officers are searching for three individuals who match this description:

  • 1) A black male 16-18 years old, 5′5″, with a thin build. He was last seen wearing a brown hat with a white shirt that had the words “StoneHarbor” printed on the front.
  • 2) A black male 18-20 years old, 5′9″, with a thin build and dreadlocks with red streaks. He was last seen wearing a black leather coat and red pants.
  • 3) A black male 18-20 years old, 5′8″, with a medium build with black hair and black beard. He was last seen wearing a black hooded sweatshirt.

NEW YORK, NY: On November 1, an unidentified 24-year-old man was arrested for Assault on a Police Officer. Earlier, on October 12, a 38-year old man was charged with Assault on a Police Officer, Resisting Arrest and Obstructing Governmental Administration.

NEW YORK, NY: On October 11, a 27-year old man was charged with “Sex Abuse 3” for allegedly committing an offense against a victim sleeping in a sleeping bag inNew York City’sZucottiPark.

http://biggovernment.com/jsshapiro/2011/11/02/police-reports-reveal-ten-worst-crimes-allegedly-committed-at-occupy-demonstrations-in-the-u-s/

Filed Under: Common Sense, Corruption, Idiots, No Common Sense, Politics, White House Tagged With: Occupy Wall Street, White House

11/03/2011 by The Doctor Of Common Sense

Corruption with MF Global (Where’s the Money?)

We Will Never Stop Ripping Off The American People

 

By MARK DECAMBRE

The FBI is now on Jon Corzine’s case.

 Federal agents yesterday joined the hunt to find out if Corzine’s MF Global mishandled hundreds of millions in client accounts that went missing — at least briefly — just before the broker-dealer filed for bankruptcy.

The FBI launched a preliminary probe that could lead to a criminal investigation, joining an army of regulators poring over the embattled firm’s books, according to sources.

MF is already being investigated by the Securities and Exchange Commission and other federal agencies after shocking allegations that it mingled clients’ dough with the firm’s money — a major no-no on Wall Street.

 GOTCHA! MF Global’s Jon Corzine — including Gary Gensler, a former Goldman colleague and head of the CFTC — is being called out by regulators for failing to keep MF funds and customer accounts separate.

An FBI probe would cap a treacherous several days for formerNew Jersey governor Corzine, who is battling questions over his management of the once-staid broker-dealer.

Regulatory agencies have descended on the firm to uncover the details of a possible $700 million cash shortfall and whether the firm’s execs dipped into funds explicitly designated for clients.

At aManhattanbankruptcy court hearing yesterday, MF lawyer Kenneth Ziman told Judge Martin Glenn that all the missing money was accounted for.

“To the best knowledge of management, there is no shortfall,” Ziman said.

But the more alarming issue is that MF brass copped to tapping clients’ money as the firm’s financial woes mounted.

“This whole thing stinks,” said Jon Najarian, co-founder of Optionmonster.com. “There are so many checks and inevitable audits of how you checked and what your procedures are, that it is extremely strange.”

The idea behind keeping client money separate from the firm’s is to guard against clients losing their money because of the company’s gambles.

Yesterday, the Chicago-based exchange CME Group’s CEO Craig Donohue said the exchange “determined that MF Global is not in compliance with CFTC and CME customer segregation requirements.”

“While we are unable to determine the precise scope of the firm’s violation at this time, we are investigating the circumstances of the firm’s failure,” Donohue said during a conference call to discuss the company’s third-quarter results.

Revelations around MF’s sketchy moves emerged during Corzine’s failed attempt to strike an eleventh-hour deal with rival brokerage house Interactive Brokers Group.

In addition to the FBI, the SEC and the CME Group, the Commodity Futures trading Commission has also launched a probe into the firm’s conduct.

On Monday, the Securities Investor Protection Corp. filed a lawsuit against MF Global, demanding that the brokerage arm, which has not filed for bankruptcy, be put through a liquidation to ensure that clients get all of their money.

Corzine, a former Goldman Sachs co-CEO, ran the gold-plated firm for five years before being ousted in a power struggle with Henry Paulson in 1999.

Humbling days may be ahead for Corzine as he confronts former Goldman banker alums like Gary Gensler, who now runs the CFTC.

Mark.decambre@nypost.com

http://www.nypost.com/p/news/business/sticky_fingers_IUbtPwAbpWK9VcXpAOTCMO#ixzz1ccu19gdp

 

Filed Under: Common Sense, Corruption, Hypocrisy, Politics Tagged With: Corruption, MF Global, Wall Street

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