So PPIP, one of the largest wealth redistribution upwards in the history of our planet (second only to TARP and ahead of TALF...but then where does Fed setting rates below the market for banks fit it?...I digress) is a go after all.
You should be sickened, angered and ready to fight the implementation of this scam. Here's basically how it came about, at least in my own head:
Ben Bernanke, our Fed Chief meets up with his buddy Timothy Geithner our Treasury Secretary and their other buddy Bill Gross, the head of PIMCO, the largest bond fund in the world and a part of the German bank, Allianz.
Bennie and Timmy walk up to Billy.Timmy says, “Hey man, all of our banker friends are still insolvent because they still have lots of worthless derivatives that they need to get off their balance sheets somehow.And they told me that would be bad for Cody and the other taxpayers.You have any ideas how we can erase those losses?”
Bennie chimes in, “Yeah, we’ve got to do something for my partners – Remember, the Fed’s not a government agency…we’re literally, by charter, owned by the banks we’re supposed to regulate.And they need more help or they’re bankrupt…again. Oh, and that would be bad for Cody and the other taxpayers. I keep telling Cody that. Billy, please help us help Cody.”
Billy says, “Here’s what I think we should do – and remember, this is for the good for Cody and the other taxpayers.I’ll buy $1000 worth of some of that junk the banks are still pretending have some value.”
Bennie leans over to Timmie and says, “We’re saved!”
Timmie says, “Great.We’ll set it up.”
Billy says, “Just one more thing.I’ll only put in $100 of my money to buy $1000 worth of junk. It’s junk after all.”
Bennie sheepishly asks, “Where’s the other $900 come from?”
Billy replies, “From Cody and the other taxpayers. Just tell them you’re only borrowing it for a little while and that you’ll even make them a profit on it.”
Timmie and Bennie say together, “We get Cody to put in $900 while you put in $100 and we split the profits 50/50?Sounds good to us. Thanks, Billy, we’ll set it up.”
Billy says, “Just one more thing.Since I know this stuff is junk and you know this stuff is junk, we all know this stuff is quite possibly totally worthless. In that case, you guys have to give me back my original $100 investment.You can take it from Cody and the other taxpayers at the end, if there’s any losses.They’ll understand, I assure you.Just remember to tell them if they don’t the world will end.”
Timmie says, “Is that it? You put in a $100 to buy $1000 worth of junk and if we make money you get half and we get half but if it loses money we make sure you don’t lose anything?”
Billy answers dryly, “Yup. That’s it.It’s good for the country, I assure you.”
Timme and Bennie, “Let’s go get some money from Cody and fix this economy!”
I really can't believe that these don't see the political ramifications of this down the road. I mean, if it does work out somehow and there are huge profits, we, the people, are going to be angered at the insane profiteering off taxpayer largesse by these firms involved in PPIP.
And since it more likely won't work out, we, the people are going to be angered that in the midst of ongoing economic hardships, we're reimbursing these firms for their losses with taxpayer largesse.
The vicious cycles of bailouts and creating profiteering systems with taxpayer funds are killing our economy. Seems rather straightforward when you think about it, no?
The truth of the matter is that the PPIP program allows Hedgers to buy non-performing mortgages. Now you have scavengers buying up non-performing mortgages to become third-party debt collectors. Just one problem: If the borrower was already foreclosed on and gave his house to the bank, and the bank sold the mortgage after taking the home inforeclosure, you have the 3rd party collector chasing the borrower for the note on the home he no longer owns. Talk about "DOUBLE JEOPARDY", this is "FINANCIAL DOUBLE=JEOPARDY" for the poor schlub who was falsely qualified for the mortgage he couldn't afford, lost the home, and now faces a debt collector holding the note. You want to turn this economy around? Turn the DEBT into EQUITY! Punish the bank by reducing principal to fair market value, re-write the mortgage to terms that fit the borrowers' REAL ablility to pay, and reverse the cycle. The BANKS are the ROBBER-BARRONS of the 21st Century. Wells Fargo is the largest purveyor of predatory lending in the country. THEY SHOULD BE PUNISHED! Thank GOD the Supreme Court came down on the side of the law last Monday that allows these STATE AG's to go after the National Banks, who have been hiding behind the National Bank Act. THEY ARE THE CRIMINALS! Prosecute THEM!!!
July 6, 2009 at 12:35 pm
Cruth
So, what is PPIP? And, please use complete sentences. lead off paragraph is pure garbage.
July 6, 2009 at 2:23 am
Scott
It all comes down to "Ignorance is Bliss!" Majority of the people that voted for this goon in the White House don't understand what he's doing nor do they care because they're looking for a handout. Us as Conservatives need to band together and start working triple time in 1 1/2 years to get the LIBS out of the House and Senate. I think we're safe for now on the Cap and Trade and this Free Medical Care bills. However, if we don't get this done and get majority in the House and Senate our liberties will be GONE!
July 5, 2009 at 8:11 pm
Matt
I think we all need to read the Declaration of Independance agian, especially the part concerning the removal of the government when it fails to serve the people.
July 3, 2009 at 11:44 am
MadMarv
This crap has to stop now!!!!!
I am listening to a group of bright minds, but nobody seems to have the legal answer to stop this criminal activity.
Please, address these crimes against the people as CRIME, and spell out how to bring them to justice.
Cody, yesterday on Happy Hour you hit the nail on the head when you made your call on "Cash for Clunkers." I'm in the car business -- you do have to qualify for a loan in order to buy a car. My bet is that only 20 to 25 percent of the people who believe they will qualify for the program will actually be able to trade and buy a new car. Lots of the details are lost on the public who think they will get the "Cash" plus the value of their trade in. Not so. The "Cash" is in lieu of a trade-in value for the Clunker.
July 2, 2009 at 1:02 pm
Les Opp
I remember hearing the same thing from a coworker while stationed in Korea (south) in 1978. I also remember the economy under Carter, interesting how that has cycled. I hope the country enjoys Carter 2.0 and the associated loss of freedoms.
July 2, 2009 at 10:55 am
tom
Reply to Mike's post:
And that is exactly the plan; destroy the economy, angering everybody to the point of mass rebellion, establish martial law, and then confiscate everyone's weapons.
July 2, 2009 at 10:27 am
Jeff
There are currently two bills making rounds in the house and the senate calling for an audit and oversight of the Fed. Whether you are conservative or liberal, please contact both your representative and your senators and demand they support HR1207 and S604 (HR1207 has the most momentum with 245 co-sponsors).
The Fed needs oversight and the taxpayers need to see where our money is. Can you imagine other banks being able to keep their balance sheet private?
Contact your reps in DC to support HR1207 and S604!
July 2, 2009 at 9:48 am
missy
You should check your facts RE: “Hey man, all of our banker friends are still insolvent because they still have lots of worthless derivatives that they need to get off their balance sheets somehow.."
The assets to be purchased in PPIP are not derivatives, they are assets. REAL hard assets that you a person can touch.
Check your facts.
July 2, 2009 at 9:27 am
Mark Prysi
It is the Federal Reserve Open Market Committee that makes interest rate decisions and money making bond/reserve transactions/decisions not the Federal Reserve Board or Chairman “appointed “by President.(Greenspan did not keep our interest rates atifically low the FOMC did) These meeting are secretive and not audited by the government. Most present are private bankers who stole our money in the first place and now we are sending our money too. Who was taught that in school? Problem is according to many of my very successful patients in Naples Florida this is how it has been for last 100 years and will be for next 100 years …public has no idea it is completely contrary to there self interests…but too omnipotent to fight so understand make money and forget it. MFP
July 1, 2009 at 9:06 pm
Buzz Gross
Uncle Bill Gross has bragged about supporting Obama while criticizing his policies. I never understood this incongruous position until now. Bill Gross obviously dislikes socialism unless he can profit from it. Be careful, Uncle Bill, this monster could turn on you and devour you.
July 1, 2009 at 5:54 pm
Mark Prysi
Due to our JP Morgan/Rockefeller sponsored education plan from more than 50 years ago 99.9% of population due not realize The Federal Reserve is not a government agency but a 100% private for profit credit monopoly central bank with government protection from competition, oversight and audit. I am a surgeon and thought for 30 years at least “Quasi” government…was I wrong.
“Some people think the Federal Reserve Banks are US Government institutions. They are not….They are private credit monopolies which prey upon the people of the US for the benefit of themselves and their foreign and domestic swindlers, and the rich and predatory lenders. The sack of the United States by the FED is the greatest crime in history. Every effort has been made by the FED to conceal its powers, but the truth is the FED has usurped the government. It controls everything here and it controls our foreign relations. It makes and breaks governments at will” Congressman Louis McFadden, Chairman, House Banking and Currency committee, June 10th, 1932
You are doing great job Cody but first the taxpayers must understand the FED is not their friend!
July 1, 2009 at 3:33 pm
teiD ekoC
Now you understand the science of never having to take responsibility for your actions.
July 1, 2009 at 1:37 pm
Pamela
Sorry Cody, The only way for this to anger most voters is if we require voters to pass 6th grade math. Realistically, just how many elected officials do you suppose could pass a basic algebra 1 exam??
July 1, 2009 at 12:06 pm
Mike
80% of the public strongly opposed tarp yet it happened anyway, now with a fully dem controlled gov why would any amount of vocal dissent stop them from doing whatever they want. Until the populous rejects the spending with a national strike nothing will change, and on that day look for the federal gov to handle the populous much like Iran did theirs.
Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company.
He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."
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mr_subprime
The truth of the matter is that the PPIP program allows Hedgers to buy non-performing mortgages. Now you have scavengers buying up non-performing mortgages to become third-party debt collectors. Just one problem: If the borrower was already foreclosed on and gave his house to the bank, and the bank sold the mortgage after taking the home inforeclosure, you have the 3rd party collector chasing the borrower for the note on the home he no longer owns. Talk about "DOUBLE JEOPARDY", this is "FINANCIAL DOUBLE=JEOPARDY" for the poor schlub who was falsely qualified for the mortgage he couldn't afford, lost the home, and now faces a debt collector holding the note. You want to turn this economy around? Turn the DEBT into EQUITY! Punish the bank by reducing principal to fair market value, re-write the mortgage to terms that fit the borrowers' REAL ablility to pay, and reverse the cycle. The BANKS are the ROBBER-BARRONS of the 21st Century. Wells Fargo is the largest purveyor of predatory lending in the country. THEY SHOULD BE PUNISHED! Thank GOD the Supreme Court came down on the side of the law last Monday that allows these STATE AG's to go after the National Banks, who have been hiding behind the National Bank Act. THEY ARE THE CRIMINALS! Prosecute THEM!!!
Cruth
So, what is PPIP? And, please use complete sentences. lead off paragraph is pure garbage.
Scott
It all comes down to "Ignorance is Bliss!" Majority of the people that voted for this goon in the White House don't understand what he's doing nor do they care because they're looking for a handout. Us as Conservatives need to band together and start working triple time in 1 1/2 years to get the LIBS out of the House and Senate. I think we're safe for now on the Cap and Trade and this Free Medical Care bills. However, if we don't get this done and get majority in the House and Senate our liberties will be GONE!
Matt
I think we all need to read the Declaration of Independance agian, especially the part concerning the removal of the government when it fails to serve the people.
MadMarv
This crap has to stop now!!!!! I am listening to a group of bright minds, but nobody seems to have the legal answer to stop this criminal activity. Please, address these crimes against the people as CRIME, and spell out how to bring them to justice.
Bert
Cody, yesterday on Happy Hour you hit the nail on the head when you made your call on "Cash for Clunkers." I'm in the car business -- you do have to qualify for a loan in order to buy a car. My bet is that only 20 to 25 percent of the people who believe they will qualify for the program will actually be able to trade and buy a new car. Lots of the details are lost on the public who think they will get the "Cash" plus the value of their trade in. Not so. The "Cash" is in lieu of a trade-in value for the Clunker.
Les Opp
I remember hearing the same thing from a coworker while stationed in Korea (south) in 1978. I also remember the economy under Carter, interesting how that has cycled. I hope the country enjoys Carter 2.0 and the associated loss of freedoms.
tom
Reply to Mike's post: And that is exactly the plan; destroy the economy, angering everybody to the point of mass rebellion, establish martial law, and then confiscate everyone's weapons.
Jeff
There are currently two bills making rounds in the house and the senate calling for an audit and oversight of the Fed. Whether you are conservative or liberal, please contact both your representative and your senators and demand they support HR1207 and S604 (HR1207 has the most momentum with 245 co-sponsors). The Fed needs oversight and the taxpayers need to see where our money is. Can you imagine other banks being able to keep their balance sheet private? Contact your reps in DC to support HR1207 and S604!
missy
You should check your facts RE: “Hey man, all of our banker friends are still insolvent because they still have lots of worthless derivatives that they need to get off their balance sheets somehow.." The assets to be purchased in PPIP are not derivatives, they are assets. REAL hard assets that you a person can touch. Check your facts.
Mark Prysi
It is the Federal Reserve Open Market Committee that makes interest rate decisions and money making bond/reserve transactions/decisions not the Federal Reserve Board or Chairman “appointed “by President.(Greenspan did not keep our interest rates atifically low the FOMC did) These meeting are secretive and not audited by the government. Most present are private bankers who stole our money in the first place and now we are sending our money too. Who was taught that in school? Problem is according to many of my very successful patients in Naples Florida this is how it has been for last 100 years and will be for next 100 years …public has no idea it is completely contrary to there self interests…but too omnipotent to fight so understand make money and forget it. MFP
Buzz Gross
Uncle Bill Gross has bragged about supporting Obama while criticizing his policies. I never understood this incongruous position until now. Bill Gross obviously dislikes socialism unless he can profit from it. Be careful, Uncle Bill, this monster could turn on you and devour you.
Mark Prysi
Due to our JP Morgan/Rockefeller sponsored education plan from more than 50 years ago 99.9% of population due not realize The Federal Reserve is not a government agency but a 100% private for profit credit monopoly central bank with government protection from competition, oversight and audit. I am a surgeon and thought for 30 years at least “Quasi” government…was I wrong. “Some people think the Federal Reserve Banks are US Government institutions. They are not….They are private credit monopolies which prey upon the people of the US for the benefit of themselves and their foreign and domestic swindlers, and the rich and predatory lenders. The sack of the United States by the FED is the greatest crime in history. Every effort has been made by the FED to conceal its powers, but the truth is the FED has usurped the government. It controls everything here and it controls our foreign relations. It makes and breaks governments at will” Congressman Louis McFadden, Chairman, House Banking and Currency committee, June 10th, 1932 You are doing great job Cody but first the taxpayers must understand the FED is not their friend!
teiD ekoC
Now you understand the science of never having to take responsibility for your actions.
Pamela
Sorry Cody, The only way for this to anger most voters is if we require voters to pass 6th grade math. Realistically, just how many elected officials do you suppose could pass a basic algebra 1 exam??
Mike
80% of the public strongly opposed tarp yet it happened anyway, now with a fully dem controlled gov why would any amount of vocal dissent stop them from doing whatever they want. Until the populous rejects the spending with a national strike nothing will change, and on that day look for the federal gov to handle the populous much like Iran did theirs.