Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

Flying the Airplane is More Important than Radioing Your Plight to a Person on the Ground Who is Incapable of Understanding or Doing Anything About It." -- Unknown

"There seems to be almost no problem that Congress cannot, by diligent efforts and careful legislative drafting, make ten times worse." -- Me

"What the hell is an `Aluminum Falcon'?" -- Emperor Palpatine

"Eck!" -- George the Cat

Monday, February 13, 2017

Some "Swamp-Draining" There, Donnie Boy

Treasury Secretary nominee Steven Mnuchin, likely to be confirmed by the Senate on Monday, is reaching into the Republican establishment and Wall Street to fill out senior leadership roles in his department.

Senior Goldman Sachs banker Jim Donovan is under strong consideration for deputy Treasury secretary and could serve as Mnuchin’s number two if confirmed by the Senate, people familiar with the matter said. Justin Muzinich, a former Morgan Stanley banker now at Muzinich & Co., is likely to take a senior position possibly as undersecretary for domestic finance or counselor, the people said. The counselor position would not require Senate confirmation.
Great move, putting more people from Goldman Sachs in positions of power in the Treasury. Let's not forget that Goldman Sachs was all over the wrecking of the global economy in 2007-8. They pumped it up, brought it down and made money both ways. Millions of people lost their jobs, millions lost their homes, and the American auto industry was almost eviscerated (which would have cost millions more their jobs), but hey, let's put the same pirates in charge who did all that.

In a just world, these clowns wouldn't be getting plum government jobs which allow them to make it easier for their compatriots to continue to loot the 99%-- they would have been given a cigarette and a choice of blindfolds.


glasslass said...

Housing bubble and the collapse - I worked for 35 years in the mtg. profession and last 15 as an auditor of the mortgage loans that collapsed. Here are thoughts from the inside person.

1. Congress passed a law requiring bank/mortgage companies to make loans to "poor" people" without good credit ratings. Banks/Mtg. Co. from the time I got into the business (35 years)used A=Really good credit - B=ok credit and did not loan to C/D creditors - C=Bad credit - D=nobody should be stupid enough to loan to them.

2. Banks did not want c/d loans of any kind UNTIL they began to be picketed by organized protesters screaming that they were (my favorite word) Racist. When customers stayed away because they were being screamed at the banks decided to make a "few" of them.

3. People hear that they too might become homeowners and rush out to look at houses. Do they look at homes that would allow a house payment they might be able to pay? NOPE they don't want to look at "starter" homes they want big, bold and BIG. They sign a purchase agreement and make application to get a home loan. Now they are making a $600. month rent payment and they have $0 savings and mom/dad/aunt/uncle/cousin/brother/sister are all going to throw some money in so that they have the money to close. They are getting a 100% loan so all they need is closing cost money. BUT their new house payment is $1,100. So me, the underwriter, says to herself how are they going to pay $1,100. monthly when at $600 they can't save money. And on top of that they have a credit report without ONE piece of good credit. Charge off's, repossessions, judgements. BUT because of Washington and they all knowing congress WE NEED to let them have this loan because it will give them Pride of Ownership and they Will pay for this home.

4. We, the people who had to approve these loans moaned, bitched, complained too everyone who would listen that these were bad loans. But "CONGRESS' would not lets us back off.

5. So, when Susie Q and Billy Bob found that making that $1,100 month payment was too much they packed their bags and let the home go. The stories of the conditions of these homes would horrify you as would the excuse's. One woman told me she bought intending to NEVER make a payment because she got a big beautiful home to live in for 14 months for free. Not paying let her save enough to buy a new car.

6. So we all suffered, are still suffering from the misguided thought that if people were just given the chance they would step up and do the correct thing. Well that didn't work out.

7. Did the banks make money? Sure, that's why they are in business. Did they want to make these loans. Hell No! Lots of moaning in those Monday morning meeting as to how do we get around these laws that congress had passed. Federal Laws state that a bank/mortgage co cannot exceed 5% foreclosure rate. So these laws were from the start a recipe for disaster. We use to use 28/36% for approval rate. 28% of your GROSS monthly income for your house payment, 36% for the GROSS monthly house payment + all your long term debts. At the end of the bubble we were making loans with a 50/55%. So we in the trenches were not surprised when the bubble burst.

8. Lots of banks and mortgage companies closed their doors throwing thousands of people out of work, housing companies tried to work with mortgagors to help them hold onto their homes (they did not want them back) but they were also loosing their jobs. Became such a vicious cycle. But what no one seems to understand is that truly banks and mtg. companies do not want the houses back. It cost thousands for the monthly maintenance on them and when they go on the market they, by law, cannot just pocket any profits they made. A percentage must go to the mortgagor if they can be found.

Sorry for the length but hope you do read all of it. Just a look from the inside.

B said...

I too abhor the thought of GS folks running our economy....But do you really think they'll do worse than the ivory tower/educated morons/Pseudo intellectuals that have done so for the past 8 years? Folks like Barry, that have no experience doing anything, but lots of "Theory"?

I doubt that anyone could do worse.

But I have faith. They might.

dinthebeast said...

Jail time. Nothing else will ever change the behavior of these people who burned up twelve trillion dollars of other people's wealth, and will do it again in a minute if given the chance.

-Doug in Oakland

B said...

So yer gonna jail Barry and his accomplices for the mismanagement (and downright theft) via the American Reinvestment and Recovery Act?

CenterPuke88 said...

B, so the steady recovery and improving economy under President Obama is actually all credited to Jr and Donnie?

B said...

What "steady recovery and improving economy under President Obama"?

What color is the sky in your world, friend?