Wednesday, October 20, 2010


In La Raza Harry Reid’s state of Nevada, which is 25% illegal, and breeding fast, welfare to illegals is soaring, but nothing in compared to CA, which puts out $20 billion per year!
At this very minute, Reid and Obama are HISPANDERING up and down the country for the illegals’ illegal votes!
LaRaza Calls For Boycott Against Free Speech
No surprise here. Pulling the race/hate card again and using political correctness La Raza goes after cable shows reporting on illegal immigration.

"MurguĂ­a said she recognized that ultimately the power to change the debate lies with the Hispanic community itself. “Latinos buy products from the advertisers supporting these programs,” she said. “Latinos vote in primaries and in the general election. We have a significant role to play picking winners and losers in both arenas. We need to make it clear to those who embrace hate that they do so at their own economic and political peril.”

New Stealth Federal Funding Bill for La Raza
Which brings us to an extraordinary matter of some urgency. Several weeks before the White House and its Senate allies announced their big "breakthrough" legislation (S.1348), radicals in the House quietly introduced legislation to pump $5 million directly into La Raza next year — and $10 million per year for "each fiscal year thereafter."
"This country belongs to Mexico" is said by the Mexican Militant. This is a common teaching that the U.S. is really AZTLAN, belonging to Mexicans, which is taught to Mexican kids in Arizona and California through a LA Raza educational program funded by American Tax Payers via President Obama, when he gave LA RAZA $800,000.00 in March of 2009!


Mass Immigration Comes at the Expense of American Kids, Finds New Report from FAIR

Excessive immigration to the United States — both legal and illegal — is harming the interests of Americans in many ways. A new report by FAIR demonstrates how our poorly conceived and poorly enforced immigration policies are harming American school children. Immigration and English Language Learners in Nevada: A Case Study of Clark and Washoe Counties finds that coping with the rapid increase in the number of non-English proficient students is taking a dramatic toll on resources and education quality in one highly affected state.
Between 1989 and 2009, the number of students in Nevada public schools classified as Limited English Proficient (LEP) grew from 5,173 to 78,732 and now accounts for 18 percent of total enrollment. During the same period, the performance of Nevada schools plummeted, as measured by student performance on standardized tests, and now ranks 50th out of 51 public school systems in the country, surpassing only the District of Columbia.
Nevada now spends $730 million a year on LEP education — an average of $9,273 for each non-English proficient student, some 30 percent more than is spent on educating kids who are fluent in English. Those additional resources, plus the time spent by teachers providing special attention to English learners, comes at the expense of the education received by other Nevada school children. A 2009 FAIR study found a similar impact on children in Prince George’s County, Maryland.
The report provides a case study for why FAIR believes that immigration to the United States must be reduced significantly and our immigration policies dramatically overhauled. Sensible immigration reform must recognize the impact of immigration on American citizens. When, as in the case of school kids in Nevada, immigration is impeding their ability to receive a quality education, policymakers must place citizen interests first.
October 2010
Ever the hispanderer, Obama cuts social programs for legals all over the nation to pay for his bankster donor’s crimes, and then expands Mex welfare state!

Eyeing Latino vote, Obama signs Hispanic education order
By Margaret Talev and Lesley Clark | McClatchy Newspapers
WASHINGTON — Two weeks before elections in which Democrats in several states are nervous that depressed turnout by Latino voters could cost them their jobs, President Barack Obama on Tuesday signed an executive order to improve Hispanic children's educational opportunities.
Obama's order appeared to be, at least in part, a bid to rally Latinos behind Democrats and him this election season. If Latino voters sit out the elections, that'll hurt Democrats the most, because most Latinos traditionally back Democrats. This could be of particular consequence in close contests this year in Arizona, California, Colorado, Florida, Illinois, Massachusetts, Texas and Washington state.
A survey that the nonpartisan Pew Hispanic Center released this month found that education, jobs and health care rank as the top issues for registered Latino voters. Immigration came in fifth, behind federal budget deficits.
Nearly two years after Obama was elected, legislation that would give millions of illegal immigrants a path to citizenship is going nowhere in Congress. The narrower DREAM Act, which would allow young illegal immigrants who serve in the military or attend college to seek citizenship, also is stalled.
Further, the grim economy is frustrating Latino voters just as it's frustrated all Americans. Latinos make up roughly 15 percent of the U.S. population and 9 percent of eligible voters.
However, White House Press Secretary Robert Gibbs said the elections had nothing to do with the executive order, noting Latino dropout rates.
"It's the right thing to do, not because of the political calendar," Gibbs said.
A mariachi band played in the White House Grand Foyer as Obama entered the East Room before an audience of Hispanic-American advocates. There he signed the order renewing the White House Initiative on Educational Excellence for Hispanics.
The program, an effort to determine the causes of the achievement gap between Hispanic students and their peers and to work to address them, began under President George H.W. Bush, and continued and expanded under Presidents Bill Clinton and George W. Bush. Despite two decades of focused efforts, only 50 percent of Hispanic children graduate from high school within four years, compared with three-fourths of all incoming freshmen.
Obama said that Latinos accounted for more than one in five U.S. students and were more likely to attend low-performing schools, be in larger classes, drop out or arrive at college underprepared.
"This is not just a Latino problem, this is an American problem . . . we will all fall behind together," he said, adding that there isn't just a moral aspect but also "an economic imperative" to improve Latino students' performances.
The president didn't mention voter turnout. He called on Congress to pass the DREAM Act and told the Hispanic advocates that his approach is about "giving you more say in the policies that affect your lives."
"Immigration reform is high on our list," said Rudy Lopez, the national field director and political director of the advocacy group Center for Community Change, "but we also want good schools for our kids and jobs." Lopez said the executive order was "a gesture," and "a good thing." Nevertheless, he doesn't expect Latino turnout this year to approach 2008 or 2006 levels.
The Pew survey found that 65 percent of Latino registered voters plan to support Democrats in their congressional elections, and 22 percent Republicans.
The survey of 1,375 Latino adults, including 618 registered voters, was conducted Aug. 17-Sept. 19. It has a margin of error of 4.9 percentage points for registered voter responses.
Jorge Mursuli, the president of Democracia USA, a nonpartisan Hispanic civic engagement and voter registration group, said few campaigns focused sufficiently on Hispanic turnout this year and that some Democrats ran away from the issue of immigration because it was so polarizing.
"Without the investment from his party, what most Hispanics are going to know is he made a promise he didn't keep,'' he said of Obama. "I think Latinos are unlikely to significantly participate as much because of this lack of investment."
In the open Senate race in Florida, Mursuli said, Democratic U.S. Rep. Kendrick Meek and independent Gov. Charlie Crist haven't connected well with Hispanic voters. Republican Marco Rubio, a Cuban American, opposes liberalizing immigration policy and may take a conservative stance on government programs and spending than many Hispanic voters would want. However, Mursuli said, "In the absence of information, people who are determined to vote are going to go 'eeny, meeny, miney, moe' and go with a Hispanic name

Read more:

OBAMA & The La Raza Dems - EXPANDING MEX SUPREMACY for their illegal votes


by Michelle Malkin
(get Malkin’s book on OBAMA NOTED below!)
Only in America could critics of a group called "The Race" be labeled racists. Such is the triumph of left-wing identity chauvinists, whose aggressive activists and supine abettors have succeeded in redefining all opposition as "hate."
Both Barack Obama and John McCain will speak this week in San Diego at the annual conference of the National Council of La Raza, the Latino organization whose name is Spanish for, yes, "The Race." Can you imagine Obama and McCain paying homage to a group of white people who called themselves that? No matter. The presidential candidates and the media have legitimized "The Race" as a mainstream ethnic lobbying group and marginalized its critics as intolerant bigots. The unvarnished truth is that the group is a radical ethnic nationalist outfit that abuses your tax dollars and milks PC politics to undermine our sovereignty.
Here are 15 things you should know about "The Race":
15. "The Race" supports driver's licenses for illegal aliens.
14."The Race" demands in-state tuition discounts for illegal alien students that are not available to law-abiding U.S. citizens and law-abiding legal immigrants.
13. "The Race" vehemently opposes cooperative immigration enforcement efforts between local, state and federal authorities.
12. "The Race" opposes a secure fence on the southern border.
11. "The Race" joined the American-Arab Anti-Discrimination Committee in a failed lawsuit attempt to prevent the feds from entering immigration information into a key national crime database -- and to prevent local police officers from accessing the data.
10. "The Race" opposed the state of Oklahoma's tough immigration-enforcement-first laws, which cut off welfare to illegal aliens, put teeth in employer sanctions and strengthened local-federal cooperation and information sharing.
9. "The Race" joined other open-borders, anti-assimilationists and sued to prevent Proposition 227, California's bilingual education reform ballot initiative, from becoming law.
8. "The Race" bitterly protested common-sense voter ID provisions as an "absolute disgrace."
7. "The Race" has consistently opposed post-9/11 national security measures at every turn.
6. Former "Race" president Raul Yzaguirre, Hillary Clinton's Hispanic outreach adviser, said this: "U.S. English is to Hispanics as the Ku Klux Klan is to blacks." He was referring to U.S. English, the nation's oldest, largest citizens' action group dedicated to preserving the unifying role of the English language in the United States. "The Race" also pioneered Orwellian open-borders Newspeak and advised the Mexican government on how to lobby for illegal alien amnesty while avoiding the terms "illegal" and "amnesty."
5. "The Race" gives mainstream cover to a poisonous subset of ideological satellites, led by Movimiento Estudiantil Chicano de Aztlan, or Chicano Student Movement of Aztlan (MEChA). The late GOP Rep. Charlie Norwood rightly characterized the organization as "a radical racist group … one of the most anti-American groups in the country, which has permeated U.S. campuses since the 1960s, and continues its push to carve a racist nation out of the American West."
4. "The Race" is currently leading a smear campaign against staunch immigration enforcement leaders and has called for TV and cable news networks to keep immigration enforcement proponents off the airwaves -- in addition to pushing for Fairness Doctrine policies to shut up their foes. The New York Times reported that current "Race" president Janet Murguia believes "hate speech" should "not be tolerated, even if such censorship were a violation of First Amendment rights."
3. "The Race" sponsors militant ethnic nationalist charter schools subsidized by your public tax dollars (at least $8 million in federal education grants). The schools include Aztlan Academy in Tucson, Ariz., the Mexicayotl Academy in Nogales, Ariz., Academia Cesar Chavez Charter School in St. Paul, Minn., and La Academia Semillas del Pueblo in Los Angeles, whose principal inveighed: "We don't want to drink from a White water fountain, we have our own wells and our natural reservoirs and our way of collecting rain in our aqueducts. We don't need a White water fountain … ultimately the White way, the American way, the neo liberal, capitalist way of life will eventually lead to our own destruction."
2. "The Race" has perfected the art of the PC shakedown at taxpayer expense, pushing relentlessly to lower home loan standards for Hispanic borrowers, reaping millions in federal "mortgage counseling" grants, seeking special multimillion-dollar earmarks and partnering with banks that do business with illegal aliens.
1. "The Race" thrives on ethnic supremacy -- and the elite sheeple's unwillingness to call it what it is. As historian Victor Davis Hanson observes: "[The] organization's very nomenclature 'The National Council of La Raza' is hate speech to the core. Despite all the contortions of the group, Raza (as its Latin cognate suggests) reflects the meaning of 'race' in Spanish, not 'the people' -- and that's precisely why we don't hear of something like 'The National Council of the People,' which would not confer the buzz notion of ethnic, racial and tribal chauvinism."
The fringe is the center. The center is the fringe. Viva La Raza.
“Wherever there’s a Mexican, there is Mexico!”... President Calderone. As an American living under Spanish speaking Mexican occupation, I would add to this “Where there’s a Mexican, there’s a violent Mexican gang!”

How Mexico Expands Their OCCUPATION of the U.S. At Our Cost

Through love of having children, we are going to take over."
---Augustin Cebada, Brown Berets


Become a blog follower. Email from the blog, cut, paste & post!
Mexico expands their occupation of our country by birthing anchors! Mexico is a shameless nation that exports their pregnant women, poor, illiterate and criminals over our borders.
When an illegal gives birth to her child at our expense, she collects welfare for the next 18 years. During these years she will teach her child they are Mexicans! NOT AMERICANS! She will teach her child to demand that Spanish be spoken by legals. She will watch with pride as her child marches waving a Mexican flag demanding no-strings OBAMA AMNESTY!

State Law makers preparing citizenship legislation (Will this help win for the republicans)

State lawmakers preparing citizenship legislation
Davenport And Amanda Lee Myers, Associated Press Writers – Tue Oct 19, 9:27 pm ET
PHOENIX – The state senator in Arizona who wrote the nation's toughest law against illegal immigrants said Tuesday he's collecting support across the country from legislators to challenge automatic U.S. citizenship to the children of illegal immigrants.

Arizona state Sen. Russell Pearce's target is the 14th Amendment, but it is unclear how the state lawmaker can or will influence a federal statue.

"This is a battle of epic proportions," Pearce said Tuesday during a news conference at the Arizona Capitol. "We've allowed the hijacking of the 14th Amendment."

Pearce declined to say how the legislation will differ from similar measures that have been introduced in each two-year congressional session since 2005. None of them made it out of committee.

He and another Arizona lawmaker did argue that wording in the amendment that guarantees citizenship to people born in the U.S. who are "subject to the jurisdiction" of this country does not apply to the children of illegal immigrants because such families don't owe sole allegiance to the U.S.

The efforts by Pearce and the other lawmakers come amid calls to change the U.S. Constitution's 14th Amendment. Supporters cite costs to taxpayers for services provided to illegal immigrants and their children.

Changing the Constitution is difficult.

It requires approval by two-thirds majorities in both chambers of Congress, an impossibility now because Democrats have the majority in both houses and most oppose such a measure. Even if Republicans gain power in November and legislation is passed, an amendment would still need to be ratified by three-fourths of the states.

Paul Bender, a constitutional law professor at Arizona State University, said if the lawmakers focus their argument on the "subject to jurisdiction" wording, they won't get very far because the founders only meant it to apply to the children of foreign diplomats born in the U.S.

"If the British ambassador and his wife have a child in the U.S., that child is not a citizen because he is not subject to the jurisdiction of the U.S. We cannot put him in jail, we cannot even give him a parking ticket," Bender said.

The 14th Amendment "could have easily have said you're a citizen if you owe your allegiance, but our Constitution doesn't say that," he said. "It says if you're born here, and you're not a diplomat's child, then you become a citizen, and that's the way its been for 100 years."

Carlos Galindo-Elvira, vice president of Valle del Sol, a Phoenix group that provides social services to community members and advocates for immigrants, said Pearce's interpretation of the amendment is an effort to "legitimize bullying babies."

He also questioned why lawmakers would focus on this issue rather than the country's economic woes and high unemployment rate. "All it does is split the country," he said.

Pennsylvania state Rep. Daryl Metcalfe, the founder of a national group of legislators critical of illegal immigration, said the 14th Amendment "greatly incentives foreign invaders to violate our border and our laws." He had a news conference Tuesday in Harrisburg, Pa., on the multistate endeavor.

The effort could run afoul of the language in the 14th Amendment and lead to a court battle over the constitutionality of the law. But Metcalfe said providing birthright citizenship to children of illegal immigrants is an "ongoing distortion and twisting" of the amendment.

Metcalfe's office said lawmakers in at least 12 other states besides Arizona and Pennsylvania said they were making their own announcements about working on the citizenship legislation. Those other states: Alabama, Delaware, Idaho, Indiana, Michigan, Mississippi, Montana, Nebraska, New Hampshire, Oklahoma, Texas and Utah.

Pearce was the main sponsor of a tough new Arizona law that would require police enforcing other laws to question people about their immigration status if there's reason to suspect they're in the U.S. illegally. It was to go into effect this summer, but a judge put on hold key provisions pending the resolution of a legal challenge.

Pearce also was the chief sponsor of a 2007 state law targeting employers who knowingly hire illegal immigrants.

Arizona Gov. Jan Brewer, who signed the 2010 law and who is championing the state's legal defense of it against a court challenge mounted by the U.S. Justice Department, was noncommittal when asked whether lawmakers should approve legislation on citizenship.

However, Brewer said she was "always concerned" by the possibility of involving the state in a court fight. "No one wants to be in court. No one wants to be fighting the federal government," she said.

Through love of having children, we are going to take over."
---Augustin Cebada, Brown Berets



Anchor Babies: Born in the USA -- The Abuse of the Fourteenth Amendment - Part I
Article by Stephany Gabbard and Frosty Wooldridge
July 6, 2004 ****************************************
Published on
My commute to work exceeds fifty miles but it gives me time to reflect. It is 1987 and I am an obstetrical nurse working in the crowded San Fernando Valley of California. Tonight I drive to my job in "Labor and Delivery," knowing the scenario before I arrive. Eight other nurses will battle through the night in this very busy obstetrical unit. Our patients are 99 percent pregnant illegal alien women who have broken United States immigration law to birth an American citizen child.
This will be their families' entry ticket into the United States. For them, no pesky visa applications and no waiting in line for several years like so many millions that enter this country through the front door. Pregnant Third World women have discovered that the only thing they have to do is cross the U.S.--Mexico border. The Fourteenth Amendment is their ticket.
It is now seventeen years later and things have worsened. The babies I helped deliver are older teenagers. When they turn 21, they will be eligible to bring their family members from Mexico, Central America and South America, i.e., chain migration on an ever-accelerating spinning wheel. Whole industries have now developed around abusing the Fourteenth Amendment. Pregnant Korean tourists come to the U.S. on travel visas to have their "anchor" babies. Coyotes dealing in human traffic are paid $1,500.00 to $25,000.00 per person to shuttle pregnant illegal aliens across our southern border. Our politicians and elites wink at this blatant law breaking and do nothing. The colonization of our country continues with the cooperation of our government. That means your senator and representative aid this illegal baby invasion. None dare call it treason. Most Americans mistakenly trust their politicians to do the right thing. Congressional members from every state betray that trust daily.
The Fourteenth Amendment: It's a simple document, a constitutional amendment drafted after the Civil War to assure that newly emancipated black slaves would never be denied citizenship by the States. The drafters had no idea that years later it would be used to make a mockery of our immigration laws. Alan Wall, an American journalist living in Mexico states, "An illegal alien can cross the border, have a baby five minutes later, and that baby is automatically declared a citizen of the USA automatically."
The illegal aliens don't have to go through any legal doors. They are exempt from that. They are, in fact, rewarded for disobeying U.S. laws by having their children granted automatic citizenship. In addition, the happy family is entitled to welfare benefits. And, illegal alien parents who have children born in the U.S. are seldom deported. That's why their children are called "anchor babies" - they anchor their families securely in the USA.
It doesn't have to be this way. Most European countries have done away with birthright citizenship because they experienced the same abuses we are seeing. The Irish Supreme Court recently ruled that immigrant parents could be deported even if they have an Irish child. "It was becoming common for 'single pregnant woman' to come to Ireland from countries outside the 15-nation EU, most frequently from Nigeria, to claim political asylum," states Shawn Pogatchnik, AP writer. Ireland saw a wave of immigration abuse and promptly put a stop to it. Recently, the Irish voted to end birthright citizenship. Britain and Australia both changed their citizenship laws in the 1980's for the same reasons. If you are born in Switzerland you will not automatically become a Swiss citizen. Why should Americans allow our country to be invaded by people who do not honor allegiance to our laws?
Allegiance is the key word. Senator Jacob Howard, co-author of the citizenship clause of the 14th Amendment, stated in 1866, "Every Person born within the limits of the United States, and subject to their jurisdiction, is by virtue of natural law and national law a citizen of the United States. This will not, of course, include persons born in the United States who are foreigners, aliens, who belong to the families of ambassadors or foreign ministers accredited to the Government of the United States, but will include every other class of persons."
The Fourteenth Amendment states,"(A) Persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States." However a proviso limits foreigners who have babies in America. It couldn't be clearer, children of foreigners, aliens or diplomats, who are subject to the jurisdiction of their home country, are ineligible for citizenship. At the time the Fourteenth Amendment was ratified we didn't have immigration laws. One hundred and thirty eight years later we are paying for the misinterpretation of it.
Congress has the power to step in and correct this wrong, but don't hold your breath. There have been several bills dealing with this issue and most have died in committee. Except for a few brave individuals like Tom Tancredo of Colorado and Rep. Goode of Virginia, there isn't enough chutzpah on Capital Hill to fill a thimble. Where are the Thomas Jefferson's and Ben Franklin's when we need them? An important case, Hamdi vs Rumsfeld was recently heard by the U.S. Supreme Court. Yaser Hamdi was captured during the Afghanistan war fighting for the Taliban. It was later learned that he had been born in Louisiana to Saudi nationals when his father was employed as a chemical engineer on a work visa. The family subsequently moved back to Saudi Arabia where Hamdi was raised. Hamdi sued the U.S. government for holding him in a Navy stockade for two years. He demanded full rights of U.S. citizenship since by accident he happened to be born here. The U.S. government wanted Hamdi charged as a non-combatant and denied due process. Rumsfeld representing the U.S. government didn't raise this issue because he wanted to end birthright citizenship but other groups saw the possibility to finally challenge this fatal flaw in our immigration law that is wrecking havoc on our country.

One such group, Friends of Immigration Law Enforcement, submitted a 'friend of the court' or Amicus brief. They asked the Supreme Court to address the issue of whether Hamdi should be considered an American citizen at all, since at the time of his birth his parents were foreign nationals with no fealty to this nation.

The decision came down this week and just like the rest of the elite establishment in this country the U.S. Supreme Court ignored the issue of birthright citizenship except for a brief statement by Justices Scalia and Stevens stating Hamdi was a "presumed American citizen." So we live to fight another day. In the meantime the invasion/colonization of our country marches on. South Korean women can continue to visit and plan their very pregnant United States vacations!
In Part II: The costs of anchor babies will have you reaching for Pepto Bismol, Excedrin, Advil, Motrin, Paxil and Valium. And, you'll still be sick to your stomach!
Anchor Babies Grab One Quarter of Welfare Dollars in LA Co

The anchor baby scam has proven lucrative for illegal aliens in Los Angeles County, at considerable cost to our own poor and downtrodden legal citizenry.

The numbers show that more than $50 million in CalWORKS benefits and food stamps for January went to children born in the United States whose parents are in the country without documentation. This represents approximately 23 percent of the total benefits under the state welfare and food stamp programs, Antonovich said.

"When you add this to $350 million for public safety and nearly $500 million for health care, the total cost for illegal immigrants to county taxpayers far exceeds $1 billion a year -- not including the millions of dollars for education," Antonovich said.

I love children and I'm all for compassion -- smart, teach-them-to-fish compassion. But when laws, the Constitution, and enforcement allow illegal aliens (the operative word here being "illegal") to insinuate themselves into our nation and bleed us of our precious financial resources, then laws, the Constitution and enforcement need to be changed.

"Remember 187 -- the Proposition to deny taxpayer funds for services to
non-citizens -- was the last gasp of white America in California."
---Art Torres, Chairman of the California Democratic Party
Anchor Baby Power
La Voz de Aztlan has produced a video in honor of the millions of babies that have been born as US citizens to Mexican undocumented parents. These babies are destined to transform America. The nativist CNN reporter Lou Dobbs estimates that there are over 200,000 "Anchor Babies" born every year whereas George Putnam, a radio reporter, says the figure is closer to 300,000. La Voz de Aztlan believes that the number is approximately 500,000 "Anchor Babies" born every year.
The video below depicts the many faces of the "Anchor Baby Generation". The video includes a fascinating segment showing a group of elementary school children in Santa Ana, California confronting the Minutemen vigilantes. The video ends with a now famous statement by Professor Jose Angel Gutierrez of the University of Texas at Austin.

Mexican Militants Tell white to "GET OUT"

Why is not the media spalshing this video all over tv

"This is country belongs to Mexico" is said by the Mexican Militant. This is a common teaching that the U.S. is really AZTLAN, belonging to Mexicans, which is taught to Mexican kids in Arizona and California through a LA Raza educational program funded by American Tax Payers via President Obama, when he gave LA RAZA $800,000.00 in March of 2009!

obama's assault on Arizona, the People FOR LA RAZA OCCUPATION & HIS BANKSTER DONORS

“I’m not here to punish banks!” Barack Obama, bankster bought, bankster owned!

With White House backing, banks resume foreclosure evictions
By Tom Eley
20 October 2010
On Monday, Bank of America (BOA), the nation’s largest lender, and GMAC of Ally Financial announced they are resuming foreclosure evictions and sales in states where they had temporarily suspended them, claiming that they found no impropriety in their foreclosure documentation.
BOA’s decision means foreclosure proceedings against more than 100,000 homeowners will restart. It is expected that JP Morgan Chase and PNC Financial, which had also implemented temporary moratoriums on aspects of the foreclosure process, will follow suit.
Banks had implemented the partial moratoriums in recent weeks after it became public that they and their contractors had falsified legal documents relating to hundreds of thousands of foreclosures. Other banks and their subsidiaries implicated in the scandal, such as Citigroup, Wells Fargo, and Goldman Sachs, never instituted a moratorium.
All the major banks used “robo-signers,” employees who, in lieu of proper documentation, submitted affidavits falsely attesting they had knowledge of foreclosure cases. They also falsified notary stamps and signatures. Some banks simply threw out paperwork, while others hired low-paid “Burger King kids,” as one Goldman Sachs executive put it, to process large quantities of foreclosure documents.
The move by BOA affects its foreclosures in the 23 states that require judicial review prior to eviction and sale. New affidavits will be submitted to courts on Monday.
“We did a thorough review of the process, and we found the facts underlying the decision to foreclose have been accurate,” said Barbara J. Desoer of BOA’s Home Loans unit.
“This is an important first step in debunking speculation that the mortgage market is severely flawed,” BOA spokesman James Mahoney declared.
The bank’s claim that it found no evidence of false attestations in its foreclosure documents after only 10 days of review is simply not credible.
“This wasn’t just a simple little mistake of forgetting to dot the ‘i,’” Florida lawyer Peter Ticktin told the New York Times. “There was a whole system put in place to make false affidavits. How are they going to erect a new system to do 102,000 affidavits unless they are going to use the same old law firms to make a second generation of bad affidavits?”
“These are lawyers. These are banks going to court and committing fraud,” said Ira Rheingold of the National Association of Consumer Advocates. “For them to say this is a minor technical problem is mind-boggling.”
“The companies are overstating the ease of withdrawing these affidavits and then resubmitting them,” Judge Lynn Tepper of Florida’s 6th Circuit Court told the Washington Post.
BOA’s move came much sooner than expected and was likely provoked by mounting pressure from powerful financial concerns. Shares of major US banks have been pummeled by investors fearful that the revelations throw into question the validity of securities based on mortgage loans. Before yesterday’s announcement, BOA’s stock had fallen by nearly 10 percent over the previous week.
On Tuesday, an alliance of leading financial concerns—Pimco, the world’s largest bond fund; BlackRock, the world’s largest money manager; MetLife, the world’s biggest insurer; and the Federal Reserve Bank of New York—will sue to seek BOA buybacks of as much as $47 billion in mortgage-based securities issued through its Countrywide unit.
In addition to accusing BOA of improper documentation, the investors are accusing the bank “of taking too long with foreclosures,” Bloomberg reported Tuesday.
BOA has already sustained major losses related to mortgage bond buybacks. In the third quarter, it had to pay $400 million for buyers’ claims related to mortgage representations and warranties. According to the Wall Street Journal, these “refer to complaints from buyers of mortgages—especially government agencies Fannie Mae and Freddie Mac—that Bank of America and other big banks issued mortgages with faulty underwriting or documentation, and now must compensate them when the loans fail.”
In total, BOA has had to pay out $3.3 billion for such claims. It admitted in a Tuesday earnings report that it anticipates the losses will continue.
Similar demands will likely follow at other banks. A moratorium on foreclosures would very likely sharpen the conflict between the big banks, on the one side, and bond funds and money management firms on the other.
It is to avert such a scenario and the risk of reigniting the global financial crisis that the Obama administration has gone on record in support of the continuation of foreclosures, disregarding evidence of the banks’ rampant lawbreaking.
The latest administration official to intervene in the crisis on the side of the banks is Shaun Donovan, secretary for Housing and Urban Development, who penned a column for the Huffington Post warning of the supposed dangers should foreclosures be slowed.
“A national, blanket moratorium on all foreclosure sales would do far more harm than good,” Donovan writes. “[H]omeowners are at risk, too—and the best hope they have is for the ‘Foreclosed’ signs in front of the vacant, abandoned properties on their block to come down, so that the value of their homes can start rising again.”
This is an extreme free-market position. Donovan is arguing that speeding up foreclosures eventually benefits other homeowners by driving down the market to the point it can deteriorate no more, after which it should, in theory, begin to improve. The alternative—keeping people in their homes in the first place—is clearly not up for consideration in the White House.
Donovan assures readers that “a comprehensive review” is underway—not an investigation—involving a number of US regulatory agencies. Any changes will be put in place by the banks themselves.
“The message [we] are sending is the same: banks must follow the law—and those that haven’t should immediately fix what is wrong,” Donovan writes.
It should be noted that this same promotion of self-regulation set the stage for the financial collapse of 2008.
Indeed, the mortgage document scandal is a manifestation of an even larger fraud—the US housing bubble that exploded in 2008. Banks relentlessly promoted home buying and refinancing to cash-strapped American families with “teaser rate” loans, subprime loans, and other adjustable rate mortgages. Massive loan volume was the goal, and the resulting securities—counted in the trillions of dollars—were bundled, sold, and spread out across the global financial system. In this process, underlying legal claims to property title were of only secondary interest.
On these rotten foundations enormous personal fortunes were built up. Then, when the entire Ponzi scheme collapsed, the Bush and Obama administrations bailed out the banks to the tune of trillions of dollars, while saddling the population with the worst housing crisis in US history.
Obama’s “housing rescue” of 2009, (Home Affordable Modification Program, or HAMP) simply encouraged banks to change interest rates and payment plans, but it did not require them to lower principles, the grossly overvalued outstanding debt on loans issued during the housing bubble. The program has been a dismal failure, with only a handful of households gaining permanent refinancing.
The housing market, meanwhile, has continued to implode. In the third quarter, nearly one million US homes received a foreclosure filing.
Records show that four out of Obama's top five contributors are employees of financial industry giants - Goldman Sachs ($571,330), UBS AG ($364,806), JPMorgan Chase ($362,207) and Citigroup ($358,054).
July 1st 2008
Wall Street firms have chipped in more than $9 million to Barack Obama. Zurga/Bloomberg
Wall Street is investing heavily in Barack Obama.

Although the Democratic presidential hopeful has vowed to raise capital gains and corporate taxes, financial industry bigs have contributed almost twice as much to Obama as to GOP rival John McCain, a Daily News analysis of campaign records shows.

"Wall Street wants change and wants a curtailment in spending. It wants someone who focuses on the domestic economy," said Jim Cramer, the boisterous host of CNBC's "Mad Money."

Cramer also does not discount nostalgia for the go-go 1990s, when Bill Clinton led the largest economic expansion in history.

"It wants a Clinton like in 1992, but not a Hillary Clinton," he said. "That's Barack Obama."

For both candidates, Wall Street's investment and banking sectors have become among their portliest cash cows, contributing $9.5 million to Obama and $5.3 million to McCain so far.

It's a haul that is already raising concerns that, as the nation's faltering economy has become issue No. 1, the two candidates may have a hard time playing tough on issues like market regulation or corporate-tax loopholes.

"No matter who wins in November, Wall Street will have a friend in the White House," said Massie Ritsch of the Center for Responsive Politics, which crunched the data for The News.

April 3, 2009
Greed and Stupidity
What happened to the global economy? We seemed to be chugging along, enjoying moderate business cycles and unprecedented global growth. All of a sudden, all hell broke loose.
There are many theories about what happened, but two general narratives seem to be gaining prominence, which we will call the greed narrative and the stupidity narrative. The two overlap, but they lead to different ways of thinking about where we go from here.
The best single encapsulation of the greed narrative is an essay called “The Quiet Coup,” by Simon Johnson in The Atlantic (available online now).
Johnson begins with a trend. Between 1973 and 1985, the U.S. financial sector accounted for about 16 percent of domestic corporate profits. In the 1990s, it ranged from 21 percent to 30 percent. This decade, it soared to 41 percent.
In other words, Wall Street got huge. As it got huge, its prestige grew. Its compensation packages grew. Its political power grew as well. Wall Street and Washington merged as a flow of investment bankers went down to the White House and the Treasury Department.
The result was a string of legislation designed to further enhance the freedom and power of finance. Regulations separating commercial and investment banking were repealed. There were major increases in the amount of leverage allowed to investment banks.
The U.S. economy got finance-heavy and finance-mad, and finally collapsed. When it did, the elites did what all elites do. They took care of their own: “Money was used to recapitalize banks, buying shares in them on terms that were grossly favorable to the banks themselves,” Johnson writes.
In short, he argues, the U.S. financial crisis is a bigger version of the crises that have afflicted emerging-market nations for decades. An oligarchy takes control of the nation. The oligarchs get carried away and build an empire on mountains of debt. The whole thing comes crashing down. Johnson’s remedy is clear. Smash the oligarchy. Nationalize the banks. Sell them off in medium-size pieces. Revise antitrust laws so they can’t get back together. Find ways to limit executive compensation. Permanently reduce the size and power of Wall Street