Showing posts with label foreclosure. Show all posts
Showing posts with label foreclosure. Show all posts

Wednesday, December 07, 2011

Occupy Wall Street: Plan - B

David Seaton's News Links
Foreclosure is a national tragedy and a relentless drag on economic growth. Jobs can’t be created until demand increases, and demand won’t increase until consumers get out of debt, and housing is the biggest obstacle. If we had healthy institutions, the White House, both parties in Congress, the leaders of the biggest banks, and consumer groups would have sat down together and worked out a solution that keeps millions of people in their homes without wiping their debts completely clean. But we don’t, and so the history of the past few years has been written by Rick Santelli and Occupy Wall Street. George Packer - New Yorker
The big question that people who want to change things have to ask themselves over and over is "what is to be done". That is the question that OWS must ask itself and answer quickly if it doesn't want to peter out into irrelevance... something that would be tragic if it were to occur.
The role of OWS is pedagogical, it is about raising awareness, consciousness. This is the terrain of what is known as the "propaganda of the deed". A practical, non-violent, American illustration of this would be the lunch counter sit-ins and  freedom riders of the Civil Rights Movement, photogenic action which captured the attention of the media daily and soon the imagination and the "hearts and minds" of the American people. These acts were the thin wedge that opened up the conscience and the consciousness of Americans and changed the face of America.
In my opinion the tragedy of mass foreclosures and thousands upon thousands of Americans being evicted from their homes in the midst of the gravest economic crisis since the Great Depression is an issue that has the same transformational potential.
Here is another quote from George Packer's article, that shows that political work is waiting to be done:
There’s no powerful D.C. lobby supporting Americans in Foreclosure, no mass movement of underwater mortgagees. Like unemployment, it’s a trauma that isolates people, leaving them to fend for themselves.
Few things could be more inspiring of compassion, empathy and fellow feeling than watching men, women and children being torn from their homes and ejected into the streets... only a heart of stone (and there are plenty of those) could fail to be moved by such a sight. Anyone who stands up for them and defends them is bound to win the sympathy and support of most decent human beings.
Showing the evicted -- or the about to be evicted-- that they are not alone, not leaving them to fend for themselves, would be the fulcrum that could turn the OWS into a powerful lever for changing the political life of America forever, in the same way that the Civil Rights Movement did.
How would this defense take place?
On one hand it would require an army of lawyers working pro bono to review all paper work leading to the foreclosures as much of it appears to be shoddy, slapdash and even outrageously fraudulent. Organizing this army of investigators and putting them on the case would win the gratitude and even the love of millions of Americans.
The next line of defense would be direct actions of non-violent, civil disobedience. Sit-ins, where dozens, hopefully hundreds, of activists would have to be carted away, one at a time, by police before the eviction could ever take place... with all the media recording it... every day, everywhere in America. The impact would be tremendous, transformational.
During these months of occupations, friendships of the like-minded without number have been made and a huge network of the politically conscious has been created. This instrument should be put to use in a way that connects in solidarity with the deepest fears of their fellow citizens. In doing this, a much, much more powerful instrument will be created, one that could forever change and purify the face of American politics. DS

Wednesday, March 28, 2007

Bloomberg's garden of verses

"Without much thought, you'd say people wouldn't want to lose their home so they'd first make the house payment,'' Risi said. ``But with a lot of the borrowers struggling to make their house payments, to get any cash, they have to get to work. And that's what they need their car for.''
David Seaton's News Links
Here, in Bloomberg's cold facts and figures is a little poem of suffering. DS


Subprime Defaults May Spread to Auto Bonds, S&P Says - Bloomberg Abstract: Bonds backed by automobile loans may be hurt by rising subprime mortgage defaults as people with poor credit struggle with their household debt, according to Standard & Poor's. Capital One Financial Corp., Wachovia Corp., Wells Fargo & Co., and other lenders have lent more funds to people with bad credit scores in the past few years to sustain growth, S&P said today in a report by analysts led by Mark Risi. The loans are also for longer terms, increasing the probability of default, the analysts said. About 68 percent of 2006 subprime auto loans were due in five years or more, Risi said. ``There could be some fallout from subprime in auto loans,'' Risi said in an interview. ``We don't have much data yet. We're still in collection mode. It's probably going to be hard to say for a while.'' The worst housing slump in 10 years is pushing down home prices, hampering owners from refinancing. Borrowers with weak or incomplete credit are also vulnerable to the resetting of mortgages at more than the teaser rates they initially paid.(...) Subprime auto borrowers who are also homeowners may have ``exposure to affordability products and the related payment shock,'' said Risi. ``But the good news is, initial data indicates that the majority of subprime auto borrowers are renters, and are therefore not subject to the vagaries of the mortgage market.'' Subprime auto bonds are showing a wide disparity in performance depending on the issuer, the analyst said. With some subprime issuers moving further down the credit spectrum and some resisting that trend, ``we are seeing some interesting results from this divergence,'' Risi said. Bondholders cannot tell which subprime auto borrowers are also homeowners, Risi said. Cumulative losses over 10 months for DaimlerChrysler AG's most recent loans is at 0.58 percent, its highest since at least 2000, S&P said. Securities originated by General Motors Acceptance Corp., that automaker's former finance arm, are showing losses of 0.18 percent, the lowest rate since 0.15 percent in 2002, according to S&P. Ford Motor Credit Co.'s loss rate is 0.25 percent, the same as in 2005. Given a choice between making a car payment or paying the mortgage, consumers react in different ways, Risi said. ``Without much thought, you'd say people wouldn't want to lose their home so they'd first make the house payment,'' Risi said. ``But with a lot of the borrowers struggling to make their house payments, to get any cash, they have to get to work. And that's what they need their car for.'' READ IT ALL